Hospitality needs time to recover: Booking.com CEO
In a recent interview, Booking Holdings President and Chief Executive Glenn D. Fogel talks about his business, the pandemic driving growth for alternative accommodation, why it will take a long time for the travel industry to recover, and his own experience as a COVID-19 patient.
A loan on Schrager’s Public Hotel for sale
Korean lender Shinhan Investment wants to sell its US$60 million mezzanine loan on the Public Hotel in New York City, the Commercial Observer reported. The hotel is owned by hotelier Ian Schrager and the Witkoff Group. Deutsche Bank, senior lender of the property, provided the owners with a US$173 million refinancing in March 2019. The 367-room hotel has been closed since late March.
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Italy launches fund to help hospitality industry
Italy’s state lender CDP said Friday it had created a National Tourism Fund to invest up to €2 billion (US$2.3 billion) in the hotel sector, which has been ravaged by the coronavirus pandemic. The CDP said it would invest €750 million in hotels deemed to be of historic interest, while Italy’s tourism ministry will contribute a further €150 million. Other investors will make up the rest.
U.S. hotel profitability sees slowdown
Improvements in U.S. hotel profitability metrics slowed in August, according to STR‘s latest monthly profit and loss data release.
In a year-over-year comparison with August 2019, the industry reported the following:
GOPPAR: -91.3% to US$6.90
TRevPAR: -74.5% to US$55.72
Earnings before interest, taxes, depreciation and amortization (EBITDA) PAR: -112.1% to US$-6.96
Labor costs: -64.4% to US$27.19
Other regions see positive GOP
Europe, Asia-Pacific and the Middle East all showed positive gross operating profit per available room (GOPPAR) in August. The U.S. now becomes the only region that has yet to turn a positive month of profit since the COVID-19 pandemic took hold. Meanwhile, China is showing a true V-shaped recovery in profit, having matched December 2019 GOPPAR in August, according to data from HotStats.
International travel interest begins to stabilize
International travel is accounting for about 25% of customer travel inquiries, according to a recent survey from destination marketing firm MMGY Myriad. For comparison, international travel accounted for 40% of advisor inquiries prior to the pandemic. Domestic travel continues to be the most attractive type of trip for customers at the moment, accounting for 40% of all inquiries. Additionally, advisors reported in August that 20% of incoming North American travel bookings are for the next 30 days, up from 16% in July.
Wyndham’s new app offers economy check-in
Wyndham Hotels & Resorts has launched a new mobile app for iOS and Android, prioritizing low-contact in-stay features and mobile check-in and checkout at nearly 6,000 economy and midscale hotels in the U.S. Guests can choose to receive their room key digitally via their mobile phone for use throughout the duration of their stay. Expansion to other hotels and resorts is anticipated over the next 12 months as additional locations choose to leverage and implement.
U.S. occupancy nearly flat
U.S. hotel occupancy was nearly flat from the previous week, according to the latest data from STR.
September 13-19 (percentage change from comparable week in 2019):
Occupancy: 48.6% (-31.9%)
ADR: US$95.84 (-28.9%)
RevPAR: US$46.54 (-51.6%)
Demand rose slightly (+0.3%), and the highest occupancy markets were once again those housing displaced residents from Hurricane Laura and western wildfires, with California South/Central showing the highest level in the metric (74.7%). The Louisiana South (72.8%) and Louisiana North (72.3%) markets were also among the top five highest occupancy levels for the week.
Aggregate data for the top 25 markets showed lower occupancy (42.7%), but higher ADR (US$98.93) than all other markets. Four markets reached or surpassed 50% occupancy: Norfolk/Virginia Beach, Virginia (56.4%); San Diego, California (53.9%); Los Angeles/Long Beach, California (53.3%); and Detroit, Michigan (50.6%). Markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (19.7%), and Orlando, Florida (29.9%).