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News in brief: Regional results, Starwood Capital, UAE taxes

STR on Europe, Mideast, Africa, Central/South America: The European hotel industry recorded mostly positive May results year-over-year: The continent reported nearly flat occupancy (-0.3 to 73.4%), but a 2.1% rise in average daily rate to €114.28 (US$129.74) drove a 1.7% increase in revenue per available room to €83.89 (US$95.24). Belgium rebounded slightly after the March terrorist attacks. Meanwhile, hotels in the Middle East reported mostly negative results in May compared with the previous year, while hotels in Africa reported mixed results. The Middle East subcontinent reported nearly flat occupancy (+0.1% to 69.1%). Average daily rate for the month was down 4.7% to US$156.75, and revenue per available room fell 4.6% to US$108.34. Africa experienced a 5.8% decrease in occupancy to 56.1%. However, average daily rate was up 8.8% to US$100.16, and RevPAR increased 2.5% to US$56.15. Compared with May 2015, the Central/South America region reported an 8.8% decrease in occupancy to 51.9%. Average daily rate was up 7.7% to US$88.86. Revenue per available room fell 1.8% to US$46.11.

 


Starwood Capital selling: Barry Sternlicht’s Starwood Capital Group wants to sell the three hotels in its eco-luxury brand 1 Hotels. The asking price for all three could top US$800 million. The hotels include 1 Hotel Central Park and Hotel Brooklyn Bridge, both in New York City, and 1 Hotel South Beach in Florida.

Read more in the Real Deal

 


No value-add for customers: Tourists and residents wishing to stay overnight in the UAE could end up paying a combined tax rate of up to 31%, warned Alex Kyriakidis, president of Marriott International’s Middle East and Africa operations. The Gulf states are expected to introduce VAT in 2018. That’s on top of service and municipality taxes, a “tourist” fee introduced in 2014 and a room charge. “Could you make a case for exempting the industry versus not? This is the kind of discussion we need to have with government,” he said.

Read the story in Arabian Business

 


Morgans board scrutiny: Shareholder rights law firm Johnson & Weaver LLP launched an investigation into whether board members of Morgans Hotel Group Co. breached their fiduciary duties in connection with the proposed sale of the company to SBE.

Read the press release

 


Frasers in Tokyo: Frasers Hospitality Group of Singapore is partnering with Japanese property and real estate developer Sekisui House Ltd to open Fraser Suites Tokyo. The 223-unit serviced residence is expected to open in 2020, in time for the Tokyo Olympics.

 


Westin in Queensland: Starwood Hotels & Resorts Worldwide signed an agreement with Sekisui House Australia to plan and operate The Westin Coolum Resort and Spa. It is slated to open in 2021 and will be part of a proposed mixed-use development.

 


Hotels.com for Partners: Expedia Affiliate Network launched Hotels.com for Partners, an online platform that allows partners such as airlines and travel companies to co-brand with Hotels.com and access the website’s hotel rates and availabilities.

Read about it on BreakingTravelNews.com 

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