Avid gets rolling: IHG’s newest brand Avid has 100 franchise applications received, including 34 which have already been converted to signed deals for avid hotels locations across the U.S. Groundbreaking for the first Avid, in Oklahoma City, has also begun. Projected to open by the end of Q3 2018, the Avid hotel Oklahoma City–Quail Springs will be a four-story, new-build hotel with 87 guest rooms, and will be owned and operated by Oklahoma-based Champion Hotels, the largest privately-held hotel operator in the U.S. Additionally, avid hotels is now franchise ready in Canada.
UBS buying a percentage of MGM: International brokerage UBS Securities LLC will buy some US$339 million worth of MGM Resorts common stock from private investment firm Tracinda Corporation. Tracinda is unloading its 16.2% stake in MGM Resorts following the death of founder Kirk Kerkorian in June 2015. Kerkorian, who also founded MGM Resorts International, reportedly stated in his will that Tracinda must dispose of its stake in the U.S.-listed casino operator.
Emoting and experiencing: Expedia Media Solutions, the advertising arm of Expedia, Inc., presented new generational data on the preferences, influences and motivations of travelers from the U.S., U.K. and China, across Gen Z, Millennials, Gen X and Boomers. The findings illustrate that emotions and experiences – not price – are what drive traveler decisions today. Key findings include:
- American, British and Chinese travelers prioritize trip activities, once in a lifetime/bucket list and cultural experiences above all else
- Millennials from the U.S. and China travel the most (35 travel days per year), while British Gen Z travel the least (21 travel days per year)
- British travelers go abroad, while American and Chinese travelers explore their own vast countries, but fewer than half have decided on a destination when they begin planning a trip
- Chinese travelers prioritize the social elements of travel, like the food experience and going somewhere they can vacation with friends, and allocate more of their budget to shopping and attractions or tours
Chatham acquisition: REIT Chatham Lodging Trust acquired the 219-suite Embassy Suites by Hilton in Springfield, Virginia for US$68 million, or approximately US$310,000 per suite. With this acquisition, Chatham has invested approximately 81% of the proceeds from the share offering.
Fujita chatbot: Japanese hotelier Fujita Kanko Inc. is implementing a multilingual chatbot that uses artificial intelligence to handle guest inquiries on the websites for some of its Japan-based properties that are attracting a growing number of international guests. Website visitors can use the chatbot in Japanese, English, Traditional Chinese, Simplified Chinese, or Korean to receive assistance.
Asia Pacific pipeline data: The most recent Asia Pacific construction pipeline trend report, excluding China, states that the total pipeline has 1,798 projects/364,579 rooms, up 15% by projects year-over-year, according to analysts at Lodging Econometrics.
There are 966 projects/207,100 rooms Under Construction, up 11% by projects year-over-year. Projects scheduled to start construction in the next 12 months are at 380 projects/76,977 rooms, up 15%, while projects in early planning at 452 projects/80,502 rooms, up 25% year-over-year.
The top three countries in the pipeline, excluding China, are: Indonesia with 446 projects/77,049 rooms, India with 230 projects/36,329 rooms and Japan with 206 projects/40,509 rooms. Cities with the largest pipelines are: Seoul, South Korea with 126 projects/22,199 rooms, Jakarta, Indonesia with 114 projects/21,678 rooms and Tokyo, Japan with 64 projects/15,181 rooms.
China pipeline data: Analysts at Lodging Econometrics report that China’s construction pipeline has 2,435 projects/538,836 rooms, up 5% year-over-year.
There are 1,732 projects/364,809 rooms under construction, up 4% by projects year-over-year. Projects scheduled to start construction in the next 12 months are at 308 projects/69,972 rooms, up by one project year-over-year, while projects in early planning at 395 projects/104,055 rooms are up by 9%.
The top hotel companies in China’s construction pipeline are: Hilton Worldwide with 292 projects/72,382 rooms, Marriott International with 272 projects/76,595 rooms, and InterContinental Hotels Group (IHG) with 203 projects/54,778 rooms. The largest brand in the pipeline for each of the these companies are: Hilton’s Hampton Inn & Suites with 110 projects/16,724 rooms, Marriott’s full-service hotel with 59 projects/18,429 rooms, and IHG’s Holiday Inn Express with 61 projects/13,575 rooms.