The RevPAR Recovery Race

In an effort to recap the April results the following table (sorted alphabetically) establishes the market name, trailing 12-month (TTM) moving average, RevPAR peak and trough and the respective dates of these high and low points. Utilizing the TTM time period helps normalize the data and substantiates a 12-month sustainable growth rather than a unique monthly/seasonal irregularity.

As seen in the previous table, both Orlando and Norfolk-Virginia Beach, Virginia, experienced their RevPAR trough in May 2010 and continue to lag the other markets in their recovery. In the case of Orlando, this lag is primarily attributable to average daily rate, where May TTM ADR fell from US$91.07 to US$90.20. On the other hand, in the case of Norfolk-Virginia Beach, the May 2010 RevPAR low is attributable to occupancy, where the six-year market low occupancy point of 51.7% was experienced in May 2010.  Full report from STRHOTELNEWSNOW…

Posted in Uncategorized | Comments closed

Seville Hotel Miami to become Edition by Ian Schrager/Marriott

Ian Schrager, the celebrity hotelier who invigorated South Beach with his launch of the Delano hotel 15 years ago, is coming back to the beach.  Through a partnership with Marriott, Schrager is set to turn the shuttered 12-story Seville Beach Hotel into a boutique property under the new Edition brand.  The new venture, confirmed Thursday by Marriott, is just the second announced U.S. location under the new brand. The first is scheduled to open this fall in Honolulu.

Marriott spokesman John Wolf said the South Florida hotel, which sits on nearly three acres of beachfront property at 2901 Collins Ave., is expected to open in three years after significant renovations.  ”Edition has tremendous growth potential and this hotel will be a flagship to showcase the brand,” said Marriott International CFO Carl Berquist in a conference call with investors.  Thursday’s announcement adds a new whiff of hip to the Beach scene, still basking in the glow of basketball star LeBron James’ decision last week to call the area home. And it comes at a time when few comparable projects are on the horizon.  Schrager left Miami Beach a few years ago with the sale of his interest in the Morgans Hotel Group.  In recent years, Schrager has focused on luxury residences and a hotel in New York City and on the creating the Edition brand, aimed at sophisticated travelers.

His return to the beach is being heralded as a renewal after a tough patch for South Beach hotels, with several high-profile properties stressed by the economy.  ”The Delano has the vibe or whatever . . . and Schrager was the marketing genius behind it,” said Scott Brush, an independent hotel consultant based in Miami-Dade. “With him involved with this, I don’t think there’s any way that it won’t be successful.”  Some of Miami Beach’s hottest hotels, the W and the Gansevoort, are several blocks south of the Seville; the Fontainebleau Resort lies 15 blocks north. The action between is subdued.

“For locals, this was an area that you avoided,” said Peter Zalewski, a principal at real estate consultancy Condo Vultures. “Or if you drove through it, you went really fast.”  He wondered how easy it would be to translate a massive older resort into “boutique chicness,” but called Marriott a pioneer for moving into the area.  ”This is a tremendous economic boost,” he said. “It’s going to fill in the gap between south of Fifth and the Fontainebleau. This is the piece that’s necessary to bridge.” Click here for full story By Hannah Sampson, The Miami Herald…

Posted in Uncategorized | Comments closed

Ritz Carlton To Open Worlds Tallest Hotel In Hong Kong

If you build it, they will come. If you build it bigger and higher, they will pay to come.

Maybe the Ritz-Carlton saw the Armani Hotel Dubai in the Burj Khalifa–the current tallest building in the world–as a challenge. Or, maybe the hotel group just wanted to create some local competition with the Park Hyatt Shanghai (to date the highest rooftop observation deck in Asia). Or, maybe still, the pending opening of the tallest hotel in the world was just another way for the legendary hotel group to make an unforgettable impression. Whatever the case, the Ritz-Carlton’s re-entry into Hong Kong is prepped to be one of the biggest and grandest events in hotel history, and we got a sneak peak at what’s to come.

Standing 118 stories high, the Ritz-Carlton Hong Kong will become the flagship property for the Ritz-Carlton in Asia and occupy levels 102 to 118 in the International Commerce Centre, Hong Kong’s tallest building and home to financial giants including Morgan Stanley, Credit Suisse and Deutsche Bank. While the sounds might be seem serene at 1,600 feet above the chaotic Hong Kong city streets, the view is anything but calm: the building sits directly across Victoria Harbour and offers magnificent views of the harbor, Hong Kong Island and The New Territories.

Set to open in December, the 312 guest room hotel will feature an indoor infinity pool, spa, gym, rooftop restaurant and restaurants on lower floors. The hotel’s guest rooms will occupy floors 106-117. The other floors will house the spa (116); the gym, pool and rooftop restaurant (118); additional restaurants (102); and the hotel lobby will be on floor 103. The International Commerce Centre below floor 102 features office and residential space, an Observation Deck on the 100th floor, a shopping mall and is a transport hub to both Mainland China and Hong Kong Island. Full report from Huffington Post click here…. (JLD – Huffington Post states that hotel is 188 floors tall, is not correct, ICC is 118 stories tall)

Posted in Uncategorized | Comments closed

Colorado Hotel for Sale – 40K per room

The Owners are pleased to offer for sale the 43-unit Franchisable Hotel located in South Fork, Colorado (the “Property”). The Property address is 0182 E Frontage Rd, South Fork, Colorado 81154, located downtown, a quarter of a mile west of the intersection of Highway 149 and Highway 160. Highway 160 is the main east/west route between Interstate 25 and Southwestern Colorado.

Originally built to Comfort Inn by Choice Internationa’s stringent specifications, the two-story, interior corridor hotel features jacuzzi suites, a family suite, an extended stay suite convertible to a manager’s apartment, king bedded rooms, and twin queen bedded guest accommodations. The 43 guestrooms feature the latest in-room amenities for guest convenience and comfort including individually air conditioned rooms, wireless high-speed Internet access, am/fm radio alarm clock, coffeemaker, hairdryer, iron with ironing board, and 27″ cable television. The property offers a two-story lobby, heated indoor swimming pool with hot tub, an exercise room, 1000sqft conference room, administrative office, combination housekeeping and laundry area, a guest laundry facility, and continental breakfast area. The property was constructed in 1997 and is located on a parcel, which is generally rectangular in shape with a size of 1.31 acres or approximately 57,063 ( /-) square feet.

Click here for more information…

Posted in Uncategorized | Comments closed

Jumeirah Group to manage VENU HIMALAYAS Hotel Shanghai

Jumeirah Group, the Dubai-based luxury hospitality company and member of Dubai Holding, has signed an agreement with Shanghai Zendai Himalayas Real Estate Co. Ltd to manage VENU HIMALAYAS Hotel Shanghai. The new contemporary lifestyle hotel in the heart of Pudong district of Shanghai is scheduled to open in 2011.

Guests of the first VENU property will be able to tune-in, connect, share and celebrate in the futuristic hotel, designed by architect Arata Isozaki and interior designer KCA International to reflect the unique structure and experience of the Himalayas. VENU HIMALAYAS Hotel Shanghai will be a 400 key art-themed hotel, including 70 luxury suites, standing at the heart of an arts and lifestyle hub, the Himalayas Centre.

The Himalayas Centre also includes a modern art museum, a theatre, as well as retail space.  Located in front of the Shanghai New International Expo Centre and within an exclusive high-end residential area, the project enjoys direct access to the Shanghai Metro system and less than a kilometre away from the Maglev train, allowing a seven-minute connection to Pudong International Airport.

VENU HIMALAYAS Hotel Shanghai is the sixth management agreement signed by Jumeirah Group in China and brings the total number of properties under development or in operation by Jumeirah globally to 43.  From HNN.com….

Posted in Uncategorized | Comments closed

Gaylord RevPAR up despite shutdown of Opryland

NASHVILLE, Tenn. — Gaylord Entertainment Co. on Monday said its second-quarter revenue per available room rose, despite the shutdown of one of its four hotels because of flooding.

The Gaylord Opryland has been closed since the first week of May because of major flooding in Nashville. Through June 30, advance reservations for 273,151 room nights were canceled at the severely damaged hotel.  The company has worked to transfer conventions scheduled for that facility to other properties. Advance bookings through June 30 included 43,645 flood-impacted room nights that were transferred to other Gaylord hotels, the company said.

Revenue per available room, an important gauge of a lodging operator’s performance, rose 5.7 percent at its properties in Kissimmee, Fla.; Grapevine, Texas and National Harbor, Md.

Total revenue per available room, which includes food and beverage sales and other services, rose 4.7 percent at the three remaining hotels.  Gaylord Entertainment is scheduled to post full second-quarter results before the market opens on Aug. 3.

In afternoon trading, Gaylord shares added 47 cents, or 2 percent, to $24.90. The stock has changed hands between $10.22 and $34.55 in the past 52 weeks.  Click here for full report from Associated Press…


Posted in Uncategorized | Comments closed

W ‘doing very well’ in Fort Lauderdale, South Beach

W Fort Lauderdale and W South Beach have weathered the storm that hit the tourism sector during their first year in business.   Though they opened at a brutal time for the market – April 2009 for the 517-room W Fort Lauderdale and July for the 408-room W South Beach – their owners say the luxury properties are doing just fine.

“Business is doing very well, considering the economics we’ve had,” said John Yanopoulos, CEO of Miami-based DYL Group, the properties’ developer. “We’ve exceeded in our first year what we thought we’d have in average daily rates and occupancy rates. We were looking around, thinking that if we got 30 percent to 40 percent, we’d be lucky.”    Read more: W luxury hotels ‘doing very well’ in Fort Lauderdale, South Beach – South Florida Business Journal…  ED/DD – that is view from stair looking through pool.  cool..

Posted in Uncategorized | Comments closed

Noble Investment Group Acquires the Holiday Inn Charleston Historic District to be a Courtyard by Marriott

Noble Investment Group (“Noble”), today announced the acquisition of the award winning, 126-room Holiday Inn Charleston Historic District prominently located at the intersection of Calhoun and Meeting streets.  Noble concurrently acquired an adjacent land parcel and has obtained entitlements to add 50 hotel guest rooms and 2,500 square feet of meeting space to the existing asset.  Noble will complete the guest rooms and meeting space expansion in tandem with a comprehensive renovation of the current hotel. In 2011, the hotel will be re-branded as the Courtyard by Marriott Charleston Historic District with 176 guest rooms and 5,000 square feet of meeting space.

The Charleston peninsula combines three centuries of development density, limited land area, the oversight of America’s oldest historic preservation society, and a regulatory environment that does not encourage additional hotel development.

“Our team sourced and will execute an investment that combines the integral value-add components of a consistently strong demand market with inordinately high barriers to entry, topmost location within a market, and our ability to significantly enhance performance through physical repositioning and re-branding,” said Rodney Williams, Noble’s chief investment officer and a managing principal.

The award winning hotel was named “Best Hidden Gem” by Trip Advisor and embodies the local southern traditions featuring wooden rocking chairs on the porch, landscaped courtyard and water fountain, year-round outdoor heated pool, fitness center and the Battery Grill restaurant.   Click here for full story from Reuters….


Posted in Uncategorized | Comments closed

Las Vegas’ Riviera Hotel & Casino into bankruptcy

Riviera Holdings Corp (RVHL.PK), owner of the Riviera Hotel & Casino on the Las Vegas Strip, has filed for bankruptcy protection under a pre-negotiated deal which will transfer ownership of the company to senior secured lenders.  The proposed reorganization plan has the support of a majority of senior secured lenders, who hold claims under the company’s $228 million credit agreement, the company said in a statement late Monday.

In court papers, Riviera said like many casinos in Las Vegas, it had been deeply affected by the slowdown in the U.S. economy and was facing increasing isolation given the recent changes along the north end of the Strip.  Riviera said during the recent economic boom, many properties on the north Strip were sold or torn down to make way for new high-end resorts.

However, as the economy rapidly declined, most of those anticipated new projects either halted construction or failed to start altogether, it said.  ”The effects of such nearby vacant lots and uncompleted projects have been considerable. Although Riviera Las Vegas has fewer neighboring competitors, there are also fewer reasons for customers to venture to the north end of the Strip,” Riviera said.   In its Chapter 11 petition, the company listed both assets and liabilities in the $100 million to $500 million range.  Full story found at Reuters…..click here

Posted in Uncategorized | Comments closed

Historic Biltmore Hotel in Coral Gables is $2.3 million behind on its rent

The historic Biltmore Hotel in Coral Gables, Fla., is $2.3 million behind on its rent, but not likely to be closed, city officials said.  ”It would be a disaster of great proportions,” said Coral Gables Mayor Don Slesnick, The Miami Herald reported Monday.  The 84-year old hotel has been owned by the city and managed by Seaway Corp. since 1992 after a previous owner went bankrupt. No rent has been paid since April 2009, the newspaper said.

Seaway has a plan to begin paying the city in 2011, at which point it will be $4 million behind on its rent. But the city is reluctant to close the grand hotel that is on the historic register and has sheltered kings, queens and presidents.  When it opened in 1926, owner George Merrick served pheasant to thousands, who were entertained by the Paul Whiteman orchestra.  The occupancy rate at the 280-room hotel is now lower than the county occupancy average. Revenues are down 25 percent with operating profits off 50 percent. But city commissioners are likely to approve some plan to keep the hotel open, the Herald said.  The hotel has to hang on and then “It will be in fine shape,” said hotel industry consultant Scott Brush.  Click here for full report from Miami Herald…

Posted in Uncategorized | Comments closed

Technology Trends for the Global Hotel Industry

Here are some of the top hospitality technology developments across the globe:

1. Budget reductions

Less of a trend than an unfortunate reality, budget reductions are making it more and more difficult for IT professionals to do their jobs.  For example, while working on a recent project in China, consultant Terence Ronson of Pertlink asked the owners of a new-build property what the IT budget was for the hotel. Their answer? There was no budget.  “They’ve forgotten to create a budget for IT, so you have to work with the leftovers,” he said.  That’s especially the case for IT infrastructure. An owner will spend a lot of money on a chandelier or carpet—those outward-facing elements that contribute to the “wow” factor for guests—but they overlook the critical cabling and networking elements that hide behind walls and in pipes.  In short, hotel companies are not IT companies, explained Jeremy Ward, senior VP of IT for Kempinski Hotels.  “A lot of hotel management companies are starting to understand that. … Our knowledge and skills are in hospitality management,” he said, adding that more and more companies have started to outsource IT.  The resulting forecast is bleak for hotel IT professionals, said Ted Horner, managing director of E Horner & Associates.  “We’ve got all this wonderful technology but there’s not even a custodian to watch over it,” he said.

2. Criminal targets

As recent terrorist and cybercriminal instances have shown, the global hotel industry increasingly has become a target for attacks.  In the Middle East, where a Hamas agent recently was murdered in a hotel by persons unknown, the region’s hotel industry has pushed for increased security standards with even more documentation of guests and more cameras to track their movements, according to Horner.  While working on a project in Abu Dhabi, for example, Scot Campbell of MGM Resorts International was asked to put in more than 10 times the amount of cameras than he usually installs—at casino hotels.  Cyber breaches also have pushed a few prominent hotel companies into the spotlight for public scrutiny.  In the United States, Payment Card Industry Data Standard Security compliance has emerged as a minimum benchmark to foster data security.  “You can almost see a sunrise across the globe. It’s completely been driven out of the U.S. originally. … It’s now starting to get into Europe, and there is a bit of drive there,” Ward said. “The acquiring banks in Europe don’t really know the strategy. They’re a bit worried about losing some of their customers if they come on too strongly with PCI. … Europe is kind of waking up to it a bit.”   But in the Middle East, Africa and China, “they have no care about PCI,” Ward added.

3. Guests want to be in control

BlackBerrys, iPhones, touch-screen kiosks and DVR—call them tools of the I-want-it-now masses. Consumers have more control of their lives than ever before, customizing their experiences to their own particular likes, preferences and needs.  It makes sense, then, that they want the hotel to be a natural extension, accommodating their insatiable need to be in control, Ronson said.  But just as those technologies enable a consumer’s ability to customize their experiences, so too does it become harder to build a hotel for the “typical guest,” he added.  “How do we know really what that guest wants and what is the typical requirement of that guest outside of (a clean, comfortable, affordable room) in the different geographic locations?” Ronson asked.  Addressing the need for guests to be in control is a challenging, ongoing problem, Horner said, especially given the proliferation of new technologies and devices.  It’s also a problem that might be exaggerated, Ward said.  They may not want to be as in control as we perhaps think they are. It is a trend, but how deeply engrained is it at the moment? I don’t know,” he said, adding that it will come on stronger in five to 10 years.

4. Cloud computing

Having already addressed hoteliers’ growing desire to move certain IT functions off site, the panelists concurred that that doesn’t mean the industry is yet ready to embrace cloud computing with open arms.  Yes, the solution does save on labor. Yes, it does make it easier to save on large-scale capital expenditures. (If company invests in an expensive IT infrastructure on site, only to find it needs to be changed, it might have to wait 10 years before it has the capital to make the necessary changes. Software as a service, or a cloud solution, can be changed more easily for less money.)  And perhaps more than anything else, cloud computing allows companies to do more with less.  But at the same time, the “solution” brings with it some interesting challenges.  Within an on-site, private network, for example, connecting to different applications and systems within that network is a relatively straight-forward process. If each of those applications is outsourced—often to different vendors—connecting them becomes far more challenging, Ward explained.  The concept of moving data and processes offsite also raises questions about the services a management company provides. If a hotels’ every service is outsourced, then does the management company itself become a middleman, Horner asked.  And what if the owner decides to reflag? Does he or she lose that precious data in the cloud?  “I don’t’ think as an industry, as a management company, we’re quite ready to embrace the whole commercial aspect,” Ward said. “We have to start talking to our owners a little bit more now that we’re saving capital costs.”   STORY BY By Patrick Mayock of Hotel News Now….


Posted in Uncategorized | Comments closed

Super Bowl’s boost to Dallas-Fort Worth area hotels may fade fast

Early next year, an estimated 150,000 Super Bowl spenders will stream into North Texas looking for a place to bunk.

The Omni Dallas Convention Center Hotel is under construction in downtown Dallas – and still will be when the Super Bowl rolls into the area in February. Although the Omni hotels in Irving and Fort Worth have big plans in hosting both NFL teams, Dallas’ 1,001-room hotel isn’t expected to open until early 2012. (Story, 16A)

For local hoteliers, still shaking off the impact of the Great Recession, occupancy rates will swell to near capacity and room rates will climb enough to bring an estimated $79.3 million into the four-county region.   But there is little hope the big game on Feb. 6 will result in a long-term impact on hotel rates, revenues or even occupancy, experts say.

Ed Netzhammer , regional vice president of Irving-based Omni Hotels, says Dallas could learn from San Diego. ‘That market really took off as a leisure destination after the 1998 Super Bowl,’ he said.  A year after the Super Bowl bonanza, occupancy and room rates generally return to the same levels as they were before the game’s media blitz, and in some cases worse, figures from past host cities show.

That means operators can enjoy the fun while it lasts, but shouldn’t expect the Super Bowl boost to last.

“What they’ll see is a big bump – particularly in room rate and revenue – for a month,” said Bobby Bowers, senior vice president of Smith Travel Research. “After that, it’s gone. What’s the residual effect? Are people more likely to come back? Good question.”

Last year, occupancy rates in the Dallas area (not counting Arlington and Fort Worth) dropped to 51.2 percent, and the average room rate fell 8.5 percent to $86.20, according to Smith Travel.  For more on this from Dallas News click here…

Posted in Uncategorized | Comments closed

Crowne Plaza to be sold: A judge orders a foreclosure auction of the 462-room hotel

The downtown Crowne Plaza Hotel has entered foreclosure and will be sold at a sheriff’s auction in the near future.  A judgment by Tulsa County District Judge Rebecca Nightingale found that the 462-room hotel’s owners, Ascension Hotels of Donaldsonville, La., failed to repay a $20.3 million loan plus $3.1 million in interest by the due date, and the property has been awarded to Tulsa Hotel Partners LLC, holders of the loan.

However, THP has been ordered by the court to sell the property as soon as possible.  Also named as defendants in the foreclosure lawsuit were Aaron Patel — also known as Amrutbhai J. Patel — of Donaldsonville; and Kamal and Tarun Kapoor, both of Alhambra, Calif. Tarun Kapoor is president of Ascension Hotels.   Click here for full story from Tulsaworld.com….. ED/DD: Owes 23.4 Million presently on hotel.

Posted in Uncategorized | Comments closed

HEI buys Le Meridien out of foreclosure – 66K per key

HEI Hotels & Resorts of Connecticut has bought the 258-room Le Meridien Dallas North Hotel near the Galleria shopping mall.  HEI gained title to the 9-year-old hotel at last week’s foreclosure auction. Earlier, the investor had bought the debt on the property at 13402 Noel Road.  The Far North Dallas hotel acquisition is HEI’s fourth hotel purchase in 2010.

“This is a first-class hotel with a prime location in the foremost business center of Dallas and aligns perfectly with our portfolio of upper-upscale and luxury properties in leading U.S. markets,” Steve Mendell, HEI’s president of acquisitions and development, said Monday in a prepared statement. “This is the fourth acquisition of HEI Hospitality Fund III, and we continue to seek out assets that leverage the experience of our acquisitions team and our investment resources.”

The luxury hotel was remodeled last year and has 3,500 square feet of meeting space, an indoor swimming pool and a fitness center.  The hotel had been posted for foreclosure for several months after owner APHM-ND LP of California defaulted on its debt. The original loan on the property was $32 million.  Investment banker and broker Holliday Fenoglio Fowler LP negotiated the sale of the debt on the hotel to HEI.  At the foreclosure sale, the new owners bid $17 million for the property, according to data from Addison-based Foreclosure Listing Service.  Click here for full report from Dallas News….

Posted in Uncategorized | Comments closed

Chicago – Westin to be sold for 51MM

The lender group on the Westin Chicago North Shore has filed to foreclose on the 412-room hotel in northwest suburban Wheeling, five months after the owner stopped making loan payments.

The Westin is straining under an $86-million loan taken out three years ago, when the hotel market was booming and lenders were still shoveling money out the door. But local occupancies and room rates have tumbled since then, and bad loans keep piling up.  Hotel values have plunged, too, meaning the Westin’s lenders could face steep losses. The hotel at 601 N. Milwaukee Ave. was appraised at $110 million in May 2007 but just $51.2 million in March, according to a loan report by Bloomberg L.P.  Local developer Harp Group Inc. built the hotel in 2006 but cashed out most of its stake a year later when it refinanced the property with $15-million investment from New York-based Marathon Asset Management LLC and the $86-million loan from J. P. Morgan Chase & Co.  J. P. Morgan divided the loan into three parts: a $37.1-million senior note that it sold in a commercial mortgage-backed securities (CMBS) offering; a $24.9-million junior note held by Oak Brook-based Inland American Real Estate Trust Inc., and the lowest-ranking $24-million piece owned by Stamford, Conn.-based Five Mile Capital Partners LLC.

If the hotel could be sold for $51.2 million, Marathon and Five Mile would recover none of their investment and Inland American would recover a little more than half of its principal. CMBS investors would get paid back in full.  A Harp executive referred a reporter to a Marathon representative, who did not return calls. A Five Mile executive also did not return phone calls, while an Inland American spokesman referred a reporter to a Chicago-based lawyer representing the lenders, John Weiss of Duane Morris LLP, who declines to comment.  A spokeswoman for the servicer of the loan, Pennsylvania-based Berkadia Commercial Mortgage LLC, also declines to comment.  It’s a familiar story for a growing number of local hotels that loaded up on debt during the boom. New York-based research firm Real Capital Analytics Inc. estimates that $1.4 billion of Chicago hotels are in financial distress, up from $680 million a year ago. Click here for full article from Chicago Real Estate Daily…

Posted in Uncategorized | Comments closed

Hyatt Regency to reopen New Orleans hotel

Hyatt Hotels Corp. said it is revamping and reopening its Hyatt Regency New Orleans in fall of 2011.

The operator said it will launch a multimillion redevelopment of the 1,193-room hotel located adjacent to the Louisiana Superdome.

The reopening is part of an economic development plan designed by the New Orleans Regional Planning Commission and New Orleans Downtown Development District to revitalize New Orleans’ Central Business area over the next several years.

First opened in 1976, the hotel played a key role during Hurricane Katrina serving as a primary support location for state, local, and federal agencies before it closed in December 2005.

Hyatt shares rose 36 cents to $36.38 in afternoon trading.  For full report from Business Week click here….

Posted in Uncategorized | Comments closed

Disaster #2: OIL SPILL

Oil from the BP spill has now washed ashore on the beaches of every Gulf Coast state. And as could be expected, beachfront hotels this summer have been quick to put forth promotions in an attempt to mitigate the damage.

Various hotels are now offering “no oil” deals that make promises such as free roomnights or free cancellation if oil appears on the hotel’s property.

I understand the marketing strategy here. This oil spill happened at perhaps the worst possible time: the lead-up to the ever-busy summer travel season. So far, hotels along the Gulf have shown resiliency thanks to the presence of clean-up workers staying at the hotels, but there’s no telling how long that is likely to last.

According to STR data, Gulf Coast hotels showed an occupancy increase of 4.9 percent to 66.6 percent for the week ending 26 June. Revenue per available room also increased by 2.6 percent to 69 percent, but average daily rate fell by 2.2 percent to US$103.54.

So the hotel deals are an attempt to bring in tourists along with the oil clean-up workers. But let me put on my consumer hat. As a tourist, I have my pick of where to use my precious vacation days. Am I going to travel to a region knowing full well I might be greeted by oil-blackened beaches?

No.

Will a promotion that allows me to stay at the property for free (but likely limits my swimming to the hotel pool) if oil tarnishes my family vacation change my mind?

Sorry, but no. The beaches in California are just as nice.

At the end of the day, the only factor that is going to influence my decision to visit a beachfront Gulf Coast hotel is if the “no oil” guarantee actually guarantees that there is zero chance of oil ruining my stay. The only way that will happen is if BP somehow manages to cut off the oil flow.

And at the rate BP is going, it sure looks like it is going to be a long, long time before that is accomplished.  Full article from HNN click here….


Posted in Uncategorized | Comments closed

Disaster #1: ASH CLOUD ON HOTELS

LONDON –The lingering memory for travellers caught up in the airport closures earlier this spring because of the eruption of the Icelandic volcano, Eyjafjallajokull, will be of days wasted at airports or meetings and holidays cancelled. For hoteliers in London and the city’s two major airports, Heathrow and Gatwick, the closures had no significant effect on the long-term trend toward growth in revenue per available room (RevPAR), according to data from STR Global, the leading provider of market information to the global hotel industry. See the trend lines in the graph below.

The initial RevPAR gains because of airport closures were to be expected. However, hoteliers did not take advantage of the stranded travellers by massively increasing their average daily rate. Heathrow saw the highest increase in year-on-year rolling-7 average ADR and this was, for the circumstances, a relatively modest 24.5 percent. It was the peaks in occupancy that drove RevPAR upward. For the period from the beginning of April to early July, the change in year-on-year RevPAR, measured using a running seven-day average (in which each day is the sum of the six days ahead to even out the effect of weekdays and weekends) for London, Heathrow and Gatwick peaked during the closures of mid-April. London had a 39.6-percent improvement in RevPAR, Heathrow rose 68.6 percent, and Gatwick increased 42.3 percent. In contrast, hotel performance fell well below trend in the days immediately following the reopening of the airports on 20 April. These were caused by the significant cancellations in meetings and group business made in the light of the uncertainty at that time.    Later, in mid-May, the closures of the airports this time saw a more modest reaction as travellers coped better with the problem. The peak in the increase in RevPAR toward the end of May reflects the second May bank holiday falling on Monday 31 May, to be followed by half term for schools, compared with Monday 25 May in 2009.  Click here for full story from STR..

Posted in Uncategorized | Comments closed

IHG sells InterContinental Buckhead Atlanta: $265K Per Key

InterContinental Hotels Group announces the sale of the 422 room InterContinental Buckhead Atlanta to Maryland based Pebblebrook Hotel Trust (“Pebblebrook”) for US$105 million in cash.  IHG will continue to manage the hotel under a long term management contract.

IHG opened the hotel in November 2004 as the first newly built luxury hotel to enter the Buckhead market for over a decade.  The hotel generated revenues of US$30.6m, EBITDA of $9.4m and EBIT of $6.7m in 2009 and had a net book value of US$82.7m at 31 March 2010.  Pebblebrook will invest approximately $7m in capital improvements.

The sale is a continuation of IHG’s strategy of growing its management and franchise businesses and reducing capital intensity.  Since 2003 IHG has disposed of 185 hotels globally with a combined net book value of $5.3bn and with proceeds in excess of net book value.

Posted in Uncategorized | Comments closed

STR Global presentation: Back On Track

KEY TOPICS IN STR PRESENTATION:

  • Demand is back
  • Occupancies are up
  • Supply growth rates are slowing
  • Rate growth beginning to turn positive
  • Still at 2006/2007 RevPARlevels
  • 2010 year of recovery
  • Full recovery likely to take a few years
  • Healthy occupancies (top tier at 77%)
  • Overall performance to improve strongly
  • We are Back on Track!
  • CLICK HERE FOR FULL STR PRESENTATION…
Posted in Uncategorized | Comments closed
  • Follow Financier Joseph L. Daniell on his Round-The-World Road Show to Raise Over Half A Billion Dollars.
www