Host Q4 ahead of expectations: Host’s fourth-quarter headline results were well ahead of expectations, which is partially attributable to the company recording a US$47 million gain on sale of The Phoenician hotel land parcel. According to analysts from Baird Equity Research, at the hotel level, “better-than-expected revenues (and solid corresponding flow-through) were the main driver of the operational beat versus their modeling. Q4 results included a GAAP net loss of US$66 million compared to a net loss of US$316 million in Q3, reflecting a relative improvement in hotel results and a fourth quarter gain on asset sales; reduced hotel-level operating loss by 23% compared to Q3 due to a sequential improvement in RevPAR and operations and improved year-over-year RevPAR declines each quarter since the second quarter of 2020; achieved break-even or positive hotel-level operating profit at 20 of its hotels, representing 24% of rooms, in the fourth quarter of 2020, an increase from 14 hotels, representing 13% of rooms, achieved in the third quarter.
Accor sells 1.5% stake in Huazhu: Accor has completed the sale of a 1.5% stake in Huazhu Group, a hotel operator in China, for €239 million (US$289.1 million). After this disposal, the French hospitality group owns a 3.3% stake in Huazhu and will still be represented on its board of directors. A master-franchise agreement between the two groups has enabled the openings of 300 economy and midscale hotels in China, mainly under the Ibis, Novotel and Mercure brands. More than 200 properties in the pipeline are scheduled to open over the next 3 years.
Pro-invest to buy Sydney’s hotel: New South Wales-based Pro-invest Group has placed a big bet on demand for accommodation returning to the capital cities. The developer, investor and operator has agreed terms with Chinese developer Greenland to acquire its 5-star Primus Hotel in Sydney, after a mooted A$140 million (US$109 million) deal to sell the 172-room property to Qatar Airways did not eventuate. It is understood Pro-invest paid A$132 million (US$102 million) for the hotel, which opened in 2015.
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La Guardia Marriott sale price revealed: New York’s 443-room LaGuardia Airport Marriott and an adjoining development site was sold last month by Rubicon Companies to California PE firm ASAP Holdings for a combined US$103 million, according to The Real Deal. The hotel sold for US$86.6 million, and the 1.5-acre development site sold for US$17 million, according to property records. Rubicon purchased the hotel for US$21.5 million in 2013 and put US$30 million into renovations in 2018. Since 2016, LaGuardia Airport has been undergoing an US$8 billion redevelopment project, adding six new concourses and 72 new gates, along with new shopping and dining areas.
Distressed Japanese chain sparks hedge fund battle: Distressed Japanese hotel operator Unizo Holdings Co. is back at the center of a tussle between financial market heavyweights, after a Hong Kong-based hedge fund flagged risks to creditors. Last week, Hong Kong-based Asia Research & Capital Management said in a letter sent to Unizo, Chitocea and Lone Star that it held 4.7 billion yen (US$44.5 million) at face value of Unizo bonds and had reason to consider that the hotel firm is likely insolvent. It matters because many of the small Japanese financial institutions such as the regional banks and credit unions that are creditors to Unizo are already struggling amid the pandemic.
Vaccine game-changer for return to travel: A new poll from The Global Business Travel Association finds that most of the group’s members and stakeholders (79%) would be “very comfortable” or “comfortable” traveling for business after receiving the COVID-19 vaccination, and almost half support mandatory testing prior to travel to ensure the safety of customers and clients when meeting face-to-face. Respondents also see an increase in employee willingness to travel. More than half (55%) of buyer and procurement members feel their employees are “willing” or “very willing” to travel for business in the current environment, up from 49% in the January poll. Just 17% of the buyer and/or procurement members feel their employees are unwilling to travel for business at the present time.
Tampa hotels see rate gains on Super Bowl weekend: With limited attendance and game festivities, Tampa’s hotel performance gains came in far lower than that of previous Super Bowl host markets, according to STR. Despite the current pandemic environment, the market was still able to post a 64.5% year-over-year increase in ADR. During the nights of Friday-Sunday, February 5-7, Tampa posted an absolute ADR of US$245.82, which drove revenue per available room (RevPAR) of US$202.59 (+64.9%). Occupancy in the market was 82.4%, relatively flat in comparison to the equivalent days last year. The areas nearest Raymond James Stadium posted higher performance in absolute terms. The STR-defined Tampa CBD/Airport submarket experienced the highest occupancy (92.6%) and ADR (US$384.73). Tampa East was the only other submarket to see an occupancy level above 80% (at 87.1%). Clearwater posted the second-highest ADR at US$211.90.
Hunter Inn joins Lark’s third-party management service: The Hunter Inn in Hunter, New York, will now use Amesbury, Massachusetts-based Lark Hotels’ third-party management service. The hotel is open for business throughout the 2021 ski season and will then close temporarily in April to undergo a design renovation and brand repositioning. Launched in 2020, Lark’s third-party management division recently signed on properties in Carmel-by-the-Sea, California and Marco Island, Florida.
Jonathan M. Tisch Chair established: The NYU School of Professional Studies Jonathan M. Tisch Center of Hospitality has established the Jonathan M. Tisch Chair, endowed through a gift made by Lizzie and Jonathan Tisch. Through this gift, the position of associate dean of the Tisch Center will now also include the title of Jonathan M. Tisch Chair. Assuming this inaugural faculty position is Nicolas Graf, PhD, the current associate dean of the Tisch Center.