IHG served notice on 103 hotels
InterContinental Hotels Group has received a notice of event of default and termination from Newton, Massachusetts-based Service Properties Trust or SVC, as a result of IHG’s failure to pay SVC approximately US$8.4 million of required priority return for the month of July. IHG has 30 days, or until August 24, to make the payment plus accrued interest to avoid termination of its operating agreements with SVC (which cover 103 properties). SVC has the right to keep the hotels branded and managed by IHG for up to one year post termination if it ultimately comes to that.
Spain’s occupancy crashed in H1 2020
The rate of occupancy in Spanish hotels more than halved in the first six months of the year, a new study shows, as a three-month coronavirus lockdown, travel bans, and quarantine rules hurt the tourism-dependent country. With tourism accounting for around 12% of Spain’s economy, the 33% average occupancy rate of hotels from January to June — compared with 73% during the same period last year — was especially damaging. The northeastern region of Catalonia, a leading tourist hotspot, saw occupancy dive 58% in Barcelona, while the capital Madrid lost 46% of its 2019 levels.
HotStats reports on global profit
As the second quarter of 2020 closed, HotStats reported global regions continued to struggle with the effects of the coronavirus, with some areas reopening quickly, as well as worry over further spikes that could thwart the hotel industry’s ability to get back to some semblance of normalcy. In the U.S., for instance, which continues to lead in global cases and deaths, RevPAR in June was down 87.3% year-over-year, but hoteliers could take solace that the metric was 67% higher than it was in May. GOPPAR in the month was down 118% year-over-year and a gain in the metric from April to May was short-lived, sliding back, down 14% in June over the prior month.
Marriott Bonvoy credit cards ups bonuses
Two cards, Marriott Bonvoy Bold Credit Card and Marriott Bonvoy Boundless Credit Card, have now boosted their sign-up bonuses in light of the pandemic slump. New cardholders can earn up to 100,000 bonus points, which can be redeemed for hotel stays, experiences and flights. Marriott Bonvoy Bold Credit Card earns 50,000 bonus points after you spend US$1,000 within the first three months. (That’s 20,000 points more than the previous offer.) Marriott Bonvoy Boundless Credit Card dangles a bigger 100,000-point bonus but requires spending US$3,000 on the card within three months of opening it. That’s a bump of 25,000 points from the card’s old bonus.
19 million Brits say they won’t be traveling abroad
Almost 19 million British citizens (36%) say they will avoid traveling abroad over the next 12 months, according to new research from personal finance comparison website Finder.com. Some three million (6%) say they will never travel abroad again due to the pandemic. Not everyone intends to shun international travel. Over half (52%) expect to make travel plans over the next 12 months. For 5 million (10%), it will take a vaccine or treatment for COVID-19 for them to travel internationally within the next 12 months.