Proposal could change hotel operations
A new proposal in San Francisco would extend newly implemented emergency operating rules beyond the pandemic, which hotel interests say would pose severe consequences for a hospitality industry already in distress. The proposed ordinance would add the strict clean operating prescriptions from the recent temporary emergency measure into the city’s regular health code as a means to protect against COVID-19 and “other contagious health threats.” The new proposal is being reviewed by the city’s planning department.
More from the San Francisco Business Times
Australia looks to domestic travel
A new report from CBRE examines how Australian hotels plan to capitalize on domestic leisure travel, which is expected to continue picking up as confidence gradually returns. Trends across Australia’s 10 major markets, for the year ended June 2020, include:
- Annual RevPAR declined 20.7% to US$109
- National occupancy declined 18.5% to 60.2%
- ADR declined 2.7% to US$181
- No market registered positive annual RevPAR growth
MGM Growth says hotel-casino tenants are paying rent
The CEO of MGM Growth Properties, which acts as landlord for a number of MGM hotel-casinos, said the company sits in a “very enviable position.” On Tuesday, the REIT reported access to nearly US$2 billion worth of liquidity and said its tenant, MGM Resorts International, was paying rent “in full and on time,” despite the economic challenges brought on by the pandemic. Its portfolio includes 15 Las Vegas and regional assets, including the MGM Grand and New York-New York on the Strip.
An ‘unfriendly’ hospitality insurance market
The hospitality insurance market in the United States is in a tough place, according to reporting from Insurance Business America. Not only are hospitality insurers under pressure to find solutions for an industry that has been devastated by the COVID-19 pandemic, but they’re trying to do so at a time when the U.S. property and casualty (P&C) insurance market is facing ongoing challenges of its own.
