Travel lost US$1.1 trillion: Travel’s economic footprint in the United States shrank a staggering 42% last year, from US$2.6 trillion to US$1.5 trillion, according to new end-of-year totals prepared for the U.S. Travel Association by the research firm Tourism Economics. The employment devastation was similarly massive: travel-supported jobs fell by 5.6 million in 2020 (16.7 million to 11.1 million) — a whopping 65% of all American jobs lost to the economic fallout of the pandemic. Travel and tourism had supported employment for 11% of the U.S. workforce prior to the onset of COVID.
RLH deal finalized: Sonesta International Hotels Corp. has completed its previously announced acquisition of RLH Corp. As a result, Sonesta now has 1,200 locations, more than 100,000 guest rooms, and a diversified portfolio of 15 brands across multiple market segments. Sonesta also announced that 35-year hotel industry veteran Keith Pierce is joining Sonesta as executive vice president, president of franchise and development effective March 18, 2021. John Russell, Jr., CEO of RLH, will continue to support Sonesta leadership through the transition until April 30, 2021.
Westin Book Cadillac facing foreclosure: More than a decade after its opening helped lead the revitalization of downtown Detroit, The Westin Book Cadillac is heading into foreclosure. John Ferchill of Cadillac Funding Associates has been delinquent on a US$77 million CMBS loan since May, according to commercial real estate research firm Trepp. Cleveland-based Ferchill cited the COVID-19 pandemic and “the state’s draconian COVID rules” for a decline in revenue and occupancy, according to Crain’s Detroit Business, which first reported the hotel’s financial situation.
Hinton Group acquires two Travelodges: New York-based Hinton Group has completed the acquisition of two newly developed Travelodge hotels, both in England, for £20 million (US$28 million). The two hotels will operate on long term-term leases of 25 years. Both properties also comprise Costa Coffee drive-thru outlets, each let on 15-year leases. One is located in the town of Witney and comprises 63 rooms; the second is located in Emersons Green and has 90 rooms.
Mandarin Oriental Hangzhou: Mandarin Oriental Hotel Group has announced that it will manage a new luxury hotel in Hangzhou, China, scheduled to open in 2025. The 194-room hotel will be part of the Westlake 66 mixed-use commercial and luxury retail complex owned and being developed by Hang Lung Properties. The hotel will additionally have four restaurants and bars, as well as spa and wellness facilities and a fitness center and indoor swimming pool will also be featured.
Indagare travel outlook 2021: A new travel sentiment survey from travel-planning company Indagare asks how members of its community are feeling about travel during COVID—in addition to travel once vaccines become more widespread. A top concern among travelers surveyed is still the risk of spreading the virus, rather than becoming sick from it. Just shy of 40% of travelers (39.61%) indicated they were extremely concerned about the potential of exposing others and loved ones to COVID. It’s also clear that travelers surveyed feel a sense of personal responsibility and accountability when it comes to making travel decisions that could impact others.
Booking.com eyes payment platform: At Booking.com’s recent annual partner summit, the digital travel platform shared its vision for how it will aim to shape the recovery and future of the industry as well as key business priorities for 2021. One key component of the strategy will be continued investment in and expansion of Booking.com’s payment platform so travelers can pay in the method they want to while minimizing operational workload and costs for partners. As emphasized by Booking.com CEO Glenn Fogel at the event, payments will prove to be an area of strategic focus for the business in 2021 and beyond.
Schrager pledges $1M to Sorenson fund: Hotelier Ian Schrager has pledged US$1 million to the Arne M. Sorenson Hospitality Fund, recently established by Marriott International to honor the legacy of the company’s late President and CEO. The donation will help support the programmatic and career development elements of the Marriott-Sorenson Center for Hospitality Leadership, which will be housed within the Howard University School of Business. “Arne Sorenson was the finest, most decent, most brilliant and creative man I’ve ever known,” Schrager said. “My life was so enriched by just knowing him and dealing with him.”
6 ways to keep F&B costs in check: Food & Beverage is the second-most important revenue stream in a hotel after rooms and therefore it’s imperative to control the cost structure to ensure a healthy bottom-line, says HotStats in a new article which examines operational costs and undistributed costs within F&B. The article examines revenue, cost of sales, payroll costs, and other costs.
Benchmark founder named chairman of foundation: Burt Cabañas, founder and chairman of Benchmark, has been named chairman of the Florida International University Foundation. A 1976 graduate of FIU’s Chaplin School of Hospitality & Tourism Management, Cabañas served on the university’s Chaplin School Industry Advisory Board from 2002-2014 and in the role of chairman from 2009-2014. He joined the school’s Foundation Board in 2014 and became chairman this year.