Not so hot for Wynn: A former part owner of the land sold to Wynn Resorts for its Everett casino project is suing the company for breach of contract and fraud, alleging the company reneged on a handshake agreement to pay him US$18 million above the purchase price.
In his complaint, filed in federal court in Boston on Tuesday, Anthony Gattineri cited Wynn’s “calculated refusal to honor their contract.” The gaming commission’s legal department is reviewing the complaint, said Elaine Driscoll, an agency spokeswoman. Driscoll declined further comment.
Airbnb gets a grip on Japan: A day before a new law on minpaku (private lodging services) takes effect in Japan, Airbnb has rolled out fresh initiatives to the country. Friday “marks the first official day of the home sharing economy and we are very excited to be a part of this important development,” Nathan Blecharczyk, co-founder of the San Francisco-based room-sharing giant that lists more than 5 million homes worldwide, said Thursday at a Tokyo news conference in the Shibuya district.
Among the new initiatives is a service called Airbnb Plus, which lists only “high standard” homes in Tokyo, Osaka and Kyoto.
Dan Hotels execs questioned by police: The company, whose properties include the legendary King David in Jerusalem, said Wednesday it was being investigated by tax authorities and that several top executives had been called in for questioning. A day earlier its offices were raid by investigators and computers confiscated. Neither Dan nor the Israel Tax Authority would provide further details, but investigators reportedly suspect the company of allowing Israeli guests at its hotels to claim the exemption from Israel’s 17% value-added tax that only foreign tourists are permitted to claim. Dan, which operates 13 hotels with a combined 4,000 beds, said in a statement to the Tel Aviv Stock Exchange that there was “no legal or factual basis” for the suspicions.
Noble acquires a Westin: Noble Investment Group has acquired the 191-room Westin Reston Heights in Reston, Virginia. The hotel will undergo a comprehensive guest room and public area upgrade and renovation. The Westin Reston Heights has 191 guestrooms and suites, a 24-hour business center and the Vinifera Wine Bar & Bistro.
W back in the Sydney saddle: W Hotels Worldwide is making a re-entry into Sydney with the signing of W Sydney. Built and developed by Grocon and funded by Greaton Group, W Sydney is set to debut in 2020. The new-build hotel will be part of ‘The Ribbon’, an development designed by the award-winning architect Hassel on Darling Harbour.
Strong performance in Hong Kong: STR’s preliminary May data for hotels in Hong Kong indicates strong performance results.
Based on daily data from May, Hong Kong reported the following in year-over-year comparisons:
- Supply: +0.9%
- Demand: +3.1%
- Occupancy: +2.2% to 84.8%
- ADR: +9.2% to HKD2,336.05
- RevPAR: +11.6% to HKD1,133.61
Growth in demand (room nights sold) continued to drive performance in Hong Kong. May was the fourth consecutive month with a double-digit RevPAR jump.
STR analysts note that the returning volume of inbound arrivals from Mainland China, combined with limited supply growth, creates a favorable short- to mid-term outlook for Hong Kong hotel performance.
Not so much in London: STR’s preliminary May data for London, England, indicates lower performance due to supply growth.
Based on daily data from May, London reported the following in year-over-year comparisons:
- Supply: +2.0%
- Demand: +0.9%
- Occupancy: -1.0% to 82.3%
- ADR: -4.1% to GBP146.51
- RevPAR: -5.0% to GBP120.59
May was the 12th consecutive month with a year-over-year occupancy decline in the market. The month also was the third in a row with an ADR decrease after 16 straight positive months in the metric. As of April, London’s 12-month average supply growth was 3%.