U.S. occupancy remains flat: U.S. weekly hotel occupancy remained relatively flat from the previous week, according to STR’s latest data through January 30.
January 24-30 (percentage change from comparable week in 2020):
Occupancy: 40.4% (-29.6%)
ADR: US$89.62 (-29.8%)
RevPAR: US$36.23 (-50.6%)
Aggregate data for the top 25 markets showed lower occupancy (38.4%) but higher ADR (US$95.50) than all other markets. Tampa/St. Petersburg, Florida (58.2%), reported the highest occupancy level among the top 25 markets. Top 25 markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (22.8%), and Minneapolis/St. Paul, Minnesota-Wisconsin (27.7%).
New CEO for SH Hotels: Starwood Capital Group has promoted Arash Azarbarzin to chief executive officer of its subsidiary company, SH Hotels & Resorts, effective immediately. Azarbarzin succeeds Starwood Capital Chairman and CEO Barry Sternlicht as CEO of SH Hotels & Resorts. Sternlicht will remain chairman and continue to be involved with the organization. Azarbarzin has more than 30 years of industry experience, including leadership roles at St. Regis Hotels, W Hotels, Four Seasons Hotels, and as founding member at SBE hotel group, among others.
Wali launches This Assembly: Hospitality industry veteran Bashar Wali on Thursday announced This Assembly, a parent company for its pure third-party management company, Practice Hospitality, as well as a vehicle to enter into joint ventures to acquire hospitality real estate assets. Additionally, the team said This Assembly is working on creating its own lifestyle hotel brand and there may be other ventures to come. Wali was most recently president and CEO of Portland, Oregon-based Provenance Hotels. In December, Practice Hospitality took management of its first property, Hotel Colee, an Autograph Collection Hotel, in Atlanta’s Buckhead neighborhood.
Accor expands digital key: Accor has started a global roll-out of its digital key solution, “Accor Key.” On arrival at their destination, customers will receive their room key virtually upon downloading Accor’s digital key app. Customers will then be given access to rooms, entry to meeting rooms and floor access via lifts using their smartphone. Once departing the hotel, the mobile key will automatically be deactivated. Following successful pilot programs in North America, Europe and Asia, the roll out will start in all new Accor hotels opening in 2021 and extend to existing properties with an objective to equip 500 hotels with Accor Key this year, and at least 50% of all rooms across the network within the next five years.
Waldorf, Canopy in the Seychelles: Hilton has signed management agreements to bring its Waldorf Astoria Hotels & Resorts brand, as well as lifestyle brand, Canopy by Hilton, to the Seychelles. Waldorf Astoria Platte Island will have 59 seafront villas all equipped with private pools and the 120-room Canopy by Hilton Mahé will have a a boutique shopping village. The properties are scheduled to open in 2023.
Non-traditional investors eye assets: Uncertainty and cautiousness plagued hotel investor interest in 2020 due to the COVID-19 pandemic. However, the global lodging industry is poised to rebound in 2021, according to JLL Hotels & Hospitality’s annual Hotel Investment Outlook. It said the industry’s resilience shaped new experiences and demand from consumers while introducing a wave of trends that have been accelerated as hoteliers quickly shifted operations and strategy. According to the report, in 2020, US$24.5 billon in capital was raised in closed-end funds targeting hotel and hospitality assets globally, matching 2016 levels. Additionally, all regions globally are seeing a flurry of fundraising activity with opportunistic capital ready to mobilize on distressed assets, allowing non-traditional investors to get a piece of the lodging pie at a competitive price. This trend is expected to drive the bulk of liquidity in 2021.
Paid time off for vaccinations: Atlanta, Georgia-based Hospitality Ventures Management Group, a private hotel investment, ownership and management company, will now provide its associates with four hours of paid time-off to receive COVID-19 vaccinations once they are eligible. While not mandatory to take the vaccine, the company said it wanted “to remove barriers, such as missing hours at work, that could keep an associate from seeking out the vaccine.” All associates across the group’s 45 hotels and the corporate office are eligible for the paid time off.
Be patient for return of leisure travelers: A new study indicates that a majority of leisure travelers (57%) plan to resume traveling in 2021, though most plan to wait until the second half of the year. The study, conducted by consulting firm Simon-Kucher & Partners and research company ROIRocket, also suggests that a crucial factor in travelers’ decisions on when to take their next trip depends on the COVID-19 vaccine: 15% of respondents want to travel once they are vaccinated, and 14% when a significant majority of the public is vaccinated.
Free health insurance: Haven Riviera Cancun Resort & Spa in Mexico will now provide all guests of the resort complimentary health insurance during their stay, with the intention of protecting guests against any unforeseen circumstances in the event that they contract coronavirus during their travels. All paying guests will qualify for complementary health insurance regardless of booking channel. The health insurance is completely free of cost throughout 2021 and becomes active as soon as guests check in to the property.
Canada investment update: Challenging hotel operating conditions continued for Canada into Q4 as a second wave of COVID-19 brought renewed travel restrictions and shelter in place orders. With vaccine programs now rolling out across the country, there is light at the end of the tunnel, according to Colliers latest Innvestment Canada Hotel Report.
Hotel rooms becoming apartments: The share of hotels behind on their mortgages rose to just over 18% in December, up from less than 2% a year ago, according to Fitch Ratings. Hotels are suffering even more than retail real estate. But that creates an opportunity for investors who are buying distressed hotels at bargain basement prices, and converting them to affordable apartments. Suite hotels are cheaper to convert, as they already have kitchens. Standard rooms don’t require much work, either. And the demand for these conversions into affordable units is only getting stronger.
New event tech at Steigenberger: Frankfurt-based Deutsche Hospitality is expanding technological services for its Steigenberger Hotels & Resorts brand to further boost and support hybrid events. In the future, two locations in Germany and one in Belgium will offer fully equipped studios that are able to facilitate live broadcasts, virtual meetings, live streams and video recordings. Steigenberger is also launching a new event planning concept called “Virtual Live Tour,” where potential customers will be able to take a real-time tour of a hotel.
Meriwether buys the Aspen Club: Meriwether Cos., a private real estate investment and development firm based in Boulder, Colorado, has partnered with Revere Capital and Fireside Investments to acquire the Aspen Club, located at the base of Aspen Mountain in Aspen, Colorado. The five-acre mixed-use development site was previously operated as a fitness and tennis facility, frequented by locals, celebrities and sports stars, with history dating back to 1976. Boulder-based Meriwether Cos. plans to complete the revitalization of the 144,248-square-foot project, which will feature a hotel, culinary, fitness, health and wellness offerings. A purchase price was not given.