IHG 3rd quarter results: InterContinental Hotels Group released its third quarter results, which showed group RevPAR down 53.4%, but occupancy up to 44% from 25% in Q2. Almost 200 hotels (3% of estate) remained closed as of September 30. The company has also signed 82 new hotels, taking it to 263 year-to-date, more than a quarter of which are conversions. Highlights include:
- Group Q3 RevPAR down 53.4%; continued outperformance in key markets; year-to-date down 52.3%
- RevPAR reflects a 30% point reduction in occupancy year-over-year, with rate holding at minus 80% of prior year levels
- Occupancy improved to 44% from 25% in Q2; 199 hotels (3% of estate) remained closed as of September 30
- Net system size growth of 2.9% year-over-year; global estate now 890,000 rooms (5,977 hotels)
- 11,000 rooms opened (82 hotels), 23,000 year-to-date; 6,7000 added across mainstream brands, 4,200 in upscale and luxury
- Signed a further 14,000 rooms (82 hotels), 40,000 year-to-date; total pipeline now 286,000 rooms (1,899 hotels)
- Positive cash flow in Q3, leading to total available liquidity at end of September increasing to US$2.1 billon
- After issuance of new bonds and partial repayment of 2022 bonds in early October, on a pro forma basis, liquidity increased further to US$2.9 billion
TripAdvisor CEO criticizes Google: TripAdvisor CEO Stephen Kaufer, a longtime critic of Google, has welcomed the U.S. government’s recent decision to look into the tech giant for allegedly unlawfully maintaining a monopoly in search by cutting off rivals from key distribution channels. “Google is using its dominance in internet gatekeeping at the expense of other businesses,” Kaufer told CNBC in a phone interview.
COVID-era hospitality marketing shifts to regional: According to a recent poll, 70% of HSMAI’s Marketing Advisory Board members were focusing their marketing efforts at the regional level as opposed to the national (30%) or global (0%) level. Those same board members weighed in on increasing importance of regional marketing, changes in booking patterns, and how they’re shifting their marketing efforts. Marketing on a global level is almost nonexistent due in part to the increase in drive traffic hotels are seeing and differing regulations with regard to COVID-19. “I can’t see anybody doing anything global,” one member said, “unless it’s really high-level aspiration stuff.”
Airbnb’s changes to service fee structure: Airbnb recent rolled out Airbnb Simplified Pricing, the company’s move to make its 15% host-only fee mandatory for connected hosts. Up until this summer, most Airbnb hosts were paying a 3% to 5% service to Airbnb, for each reservation that they were getting. This so-called “split fee” meant that guests were paying a guest service fee on their side, usually around 11% to 12% of the booking value. Airbnb also highlights the fact that there is no guest service fee added to the host’s rates, making the listings more attractive to guests. According to the platform, hosts that have decided to switch to the simplified pricing have seen an overall increase in their bookings of about 17%.
Israel updates aid to hotels: Israel’s tourism and finance ministers agreed to two changes to the government’s COVID-19 aid fund meant to help the country’s hotel industry. Hotels no longer need to make a choice between applying to get a property tax waiver or receiving aid, which provides financial relief for small hotels.
Read the details in the Jerusalem Post
New Google AI tech for travel: Southlake, Texas-based software company Sabre Corp. is partnering with Google to develop an artificial intelligence (AI)-driven travel platform. The new platform utilizes Google’s AI and advanced machine-learning capabilities to deliver relevant and personalized content more quickly and create expanded revenue and margin growth opportunities. The product will come to market in early 2021.
Hyatt Together: Hyatt Hotels Corp. is launching Hyatt Together, a platform with wellbeing experiences that include: new in-room offerings from partner Headspace; the premiere of a library of wellbeing video content; and a new, flexible offering for small group Hyatt stays with added discount, hotel and rewards perks.
Bring bathing back: A new hospitality project is being launched by Steve Gold (of the Bravo show “Million Dollar Listing”) and Samuel Amoia, who got his start under Ian Schrager and André Balazs. The duo will develop a destination hotel in New York’s Catskills region called The Aurum. The 36-room hotel is the inaugural project of Aurum Hospitality and is expected to open in fall 2021. The property will also “re-envision bathing culture” via its spa component, Aurum Thermae, inspired by the large domes first seen in the Roman Imperial period.