Provenance parent seeks to cover US$7M in losses
With his hotel chain hemorrhaging money, hotelier Gordon Sondland has gone on the attack against his insurer in an attempt to save his business from the coronavirus recession. Aspen Lodging Group, the parent company of Provenance Hotels, has sued its insurer, claiming the insurer wrongfully denied its claim to cover losses suffered after the government effectively shut down the hospitality industry. According to the new lawsuit, Provenance Hotels lost US$7 million in just the first month of the coronavirus shutdown. His insurance company refused the claim.
Marriott jumps into Hamptons rental market
Marriott International is dipping its toe into the Hamptons rental market in an effort to combat traditional occupancy, which has fallen dramatically since the pandemic hit the U.S. in March. The rental market in the Hamptons, on New York’s Long Island, is another story, with demand surging. Marriott’s short-term rental business, Homes & Villas by Marriott, partnered with Hamptons rental company StayMarquis to offer properties and concierge services to guests, the companies announced. When Homes & Villas first launched in May 2019, Marriott said the move reflected the evident evolution of “consumer travel needs.”
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China weekly hotel performance update
Each week, STR analysts provide a video deep dive into China hotel performance. Key highlights from the most recent video include:
• RevPAR in China reached heights not seen since January during the week of May 18-25
• Suzhou and Wuxi showed great performance gains during the May Day holiday as anticipated. But as shown in the visibly higher growth curve of Nanjing, provincial capitals saw a flurry of activity and subsequent demand growth ahead of the National Congress with important meetings being held
• As of April 2020, there were roughly 210,000 rooms in construction in China (excluding Economy class)
U.S. hospitality forecast
Hotel industry performance over the five-week period ended May 9 has been abysmal, according to data from Horwath HTL. Week 1 of the five-week period ended April 11 saw occupancy plunge 45.1 percentage points to 21% from a year-end 2019 occupancy rate of 66.1%. For the week ended May 9, occupancy had rebounded by more than 9 percentage points over April 11 to 30.1%. Looking ahead to Q3 and beyond, industry prognosticators revised their forecasts downward and now anticipate that:
• Occupancy for YE 2020 will be about 35.8%, down -45.8% from 2019; ?will improve by YE 2021 to about 52.1%
• ADR for YE 2020 will be about US$102.83, down -21.6% from 2019; ?will improve by YE 2021 to about US$104.58
• RevPAR for YE 2020 will be about US$36.84, down -57.5% from 2019; will improve by YE 2021 to about US$54.53
IHG extends reward nights
InterContinental Hotels Group has extended dynamically priced reward nights to more hotels around the world this week, after launching in the Greater China region last month. With the program update, the amount of points required for members to redeem a reward night will flex up and down, similar to cash rates for room bookings. More than 65% of hotels in Greater China rolled out with a reduction of point amounts due to the reward nights, with some hotels were lowered up to 30,000 points from their previous point amounts.
Toilet paper Tuesdays
After being closed for a month due to COVID-19 concerns, the Hotel Trundle in Columbia, South Carolina, reopened and launched a complimentary toilet paper giveaway night. In partnership with other local businesses, “Toilet Paper Tuesdays” means that every Tuesday in June, from 11 a.m. until 1 p.m., hotel team members will distribute a case (about 80 rolls) of toilet paper among the first 80 drive-up requesters. The hotel’s co-owner said the hotel is able to get toilet paper easily and cheaply through its vendor and wanted to share its bounty.
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