U.S. occupancy highest since October: U.S. weekly hotel occupancy reached its highest level since late October, according to STR’s latest data through 20 February.
February 14-20 (percentage change from comparable week in 2020):
Occupancy: 48.1% (-23.8%)
ADR: US$101.57 (-22.1%)
RevPAR: US$48.82 (-40.6%)
Popular leisure markets in Florida, with leftover demand from the long holiday weekend, posted the week’s highest levels. Among STR-defined markets, the Florida Keys reached 93.5% occupancy, followed by Fort Lauderdale (80.1%). Miami saw the highest occupancy (75.8%) among the top 25 markets. Additionally, displaced Texans pushed week-over-week occupancy gains across STR-defined markets in the state. Texas’ occupancy added almost a point to overall U.S. occupancy for the week. STR will release a full Texas analysis in the coming days.
Top 25 markets with the lowest occupancy levels for the week included Minneapolis (32.0%) and Oahu Island (32.8%). Aggregate data for the top 25 markets showed slightly lower occupancy (47.0%) but higher ADR (US$107.07) than all other markets.
Marriott CEO speaks about rebound: In one of his first appearances since taking over as CEO of Marriott International, CEO Tony Capuano said as Covid vaccine distribution gains headway, he expects business will bounce back. He is especially bullish on China’s recovery and said Marriott’s customers are “anxious to get out there and be face to face with their business partners and customers.” Some 60% of Marriott’s bookings in 2019 were from business travelers. Since more companies now are adapting to remote workplaces, some industry watchers are worried the trend will dent the hotel industry forever, but not Capuano.
Ladder sells Miami Beach property for US$44M: Commercial real estate company Ladder Capital has sold the Washington Park Hotel in Miami Beach for US$43.8 million, after foreclosing on the property when it was owned by the Witkoff Group. The foreclosure and subsequent sale of the hotel marks one of a few such deals in South Florida to close since the pandemic began a year ago. Many owners of leisure hotels are focused now on recovery, while properties that rely on business travel continue to struggle, brokers say. WPH Properties of Beverly Hills, California, purchased the 181-key hotel, records show.
More from The Real Deal South Florida
Europe’s pipeline at year-end 2020: According to the latest Europe Hotel Construction Pipeline Trend Report from Lodging Econometrics, at the close of 2020, Europe’s hotel construction pipeline increased 2% by projects and 3% by rooms year-over-year to end the fourth quarter with 1,905 projects and 307,093 rooms, a record high project and room count for the region. Europe’s construction pipeline has remained robust as hotel developers have purposely delayed their opening dates to await improved operating conditions. Rooms under construction are at an all-time high of 967 projects/157,833 rooms. Projects scheduled to start construction in the next 12 months closed Q4 ‘20 at 477 projects/74,481 rooms, down slightly YOY. Projects in the early planning stage stand at 461 projects, a record high project count, and 74,779 rooms.
Ashford’s Q4 losses: Ashford Hospitality Trust has reported a loss in funds from operations in its fourth quarter, after reporting a profit in the same period a year earlier. The results fell short of Wall Street expectations. The Dallas, Texas-based real estate investment trust said it had a funds from operations loss of US$54.8 million, or US$1.67 per share, in the period. Funds from operations is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization. The company said it had a loss of US$70.5 million, or US$2.29 per share.
Voco’s first in Scotland: IHG Hotels & Resorts will launch its first Voco-branded hotels into the Scottish hotel market with the upcoming opening of the 230-room Voco Grand Central in Glasgow and Voco Edinburgh – Haymarket. The second Scottish opening, Voco Edinburgh, will mark IHG’s seventh Voco hotel, and its first new-build to open in the UK. Located in the West End of Edinburgh, the hotel will offer 150 rooms and suites, all-day restaurant The Blossom and Edinburgh at the Bar.
Richmond now has six major casino proposals: The city of Richmond, Virginia, has received at least six casino proposals as of the Monday afternoon deadline. In addition to the Pamunkey Indian Tribe, which announced its plans to submit a project last year, the companies include Bally’s Corp., Baltimore-based Cordish Cos., Texas-based Golden Nugget Hotels & Casinos, Wind Creek Hospitality and a partnership between Colonial Downs and Maryland-based media company Urban One Inc. The proposals vary in size, scope, cost and locations.
Wyndham declares quarterly cash dividend: Wyndham Hotels & Resorts has announced that its board of directors declared a quarterly cash dividend of US$0.16 per share on its common stock, payable March 31, 2021 to shareholders of record as of March 17, 2021. The cash dividend represents a 100% increase from the US$0.08 per share quarterly dividend paid during the second, third and fourth quarters of 2020.
Israel reinstates compulsory quarantine: Israeli ministers have approved the reinstatement of a compulsory quarantine period in special government-run hotels for all those arriving from abroad, a day after the previous regulations on the matter expired. As was previously the case, quarantine is for 14 days, or 10 days for those who have two negative tests during that period. Final approval of the temporary measure is still needed, and according to the statement, a panel is to meet later in the day to deliberate the matter.
Airbnb’s post-COVID flexible search: Airbnb is introducing a user-facing function which will allow users to forgo putting in exact dates when they look to book lodging on the platform. “Flexible Search” allows users to search for a weekend getaway, week-long vacation, month-long vacation or months-long vacation without setting specific dates. Not only does this give guests more options to browse, but it should also increase exposure for hosts. Airbnb says that its new travel trends report shows that one quarter of Americans would consider traveling during off-peak times of the year or the week, and in 2021 so far, more than one-third of the people searching on Airbnb have been flexible in terms of date and location.
Business travel recovery in 2021? The Global Business Travel Association has released its “BTI Outlook,” which includes an analysis of 2020 challenges for the business travel industry in Canada as well as a recovery forecast. Highlights include:
2020 losses and challenges:
- Business travel activity in Canada contributed US$25.7 billion of the US$1.43 trillion global business travel spend in 2019
- The region also ranked 11th in the world in terms of business travel spend. Business travel spending plummeted an estimated -51% to $12.5B in 2020
Forecast on business travel recovery:
- GDP and business travel spend is expected to bounce back in 2021, but recovery will be gradual due to a slow start to the national vaccination effort, a restrictive national travel policy, lagging business confidence and unprecedented debt levels, which will delay economic growth
- Canada is projected to reach a total business travel spend of US$23.6 billion by 2024, 92% of annual pre-pandemic levels
Marriott expands hybrid meetings offering: Marriott International will expand its “Connect with Confidence” hybrid meetings offering, in addition to streamlining the current planning process. New resources for hybrid meetings and events, including providers and pricing, will be available next month at Marriott hotels across the United States and Canada, and are slated to be available globally in the near future.
Growth scenarios for Asia Pacific: The Pacific Asia Travel Association has released the third issue of a suite of 39 destination-specific reports for the period 2021-2023. Each report builds on the regional forecast by delving deeper into the changing dynamics of travel and tourism into and across the Asia Pacific region at the single destination level.