U.S. occupancy reaches highest level in a year: U.S. weekly hotel occupancy reached its highest level in a year, according to STR’s latest data through March 13. March 7-13 (percentage change from comparable week in 2020):
Occupancy: 52.1% (-1.4%)
ADR: US$102.62 (-14.5%)
RevPAR: US$53.45 (-15.8%)
Year-over-year percentage changes are now more favorable as comparisons have shifted to pandemic-affected weeks from 2020. When indexed against 2019 levels, the U.S. has recaptured between 70-75% of occupancy in recent weeks.
Florida, lifted by Spring Break and Bike Week, was most represented among the leaders in week-to-week occupancy gains. Among all STR-defined markets, Daytona Beach; Gatlinburg, TN; Myrtle Beach; San Antonio; Greensboro, NC; and the Florida Panhandle showed double-digit growth from the previous week, which is reflective of further reopening around the country. All but seven states saw week-over-week gains, and six states saw occupancy increase by more than 5 percentage points.
Among the top 25 markets, Tampa experienced the highest occupancy level (72.7%). The lowest top 25 occupancy levels came in Boston (33.6%) and Minneapolis (33.9%). Aggregate data for the top 25 markets showed slightly lower occupancy (49.8%) but higher ADR (US$109.06) than all other markets. The major markets continue to show the most sizeable gaps in current occupancy vs. 2019.
Hyatt managing Rio Las Vegas: A Hyatt Hotels Corp. affiliate has entered into franchise agreements with an affiliate of Dreamscape Companies, which will lead the renovation of the Rio Las Vegas. The multi-phase project is expected to bring multiple Hyatt full-service offerings to Las Vegas. The more than 2,510-room Rio Las Vegas will be renovated and rebranded into multiple Hyatt full-service brand flags, and will undergo a redevelopment of the current public spaces, including gaming, retail, food and beverage, spa and fitness, and pool recreation deck. In addition, the hotel will undergo a renovation of one of its existing towers, and upon completion, the tower is expected to become a 1,501-room Hyatt Regency hotel with standard guest rooms averaging 580 square feet. The remainder of the Rio’s guest rooms are expected to be branded or affiliated with one or more other Hyatt full-service brands after they are renovated.
Four Seasons, Emin Capital in Mallorca: Four Seasons Hotels and Resorts and Emin Capital, a private equity investment company focused on hospitality and real estate, will partner in Four Seasons managing the former Hotel Formentor in Mallorca, Spain. Originally opened in 1929, the existing 110-room hotel will undergo extensive renovations before it is unveiled as a Four Seasons experience in 2023.
Sonder to open in NY’s Flatiron Hotel: Sonder, the well-heeled San Francisco startup that rents furnished rooms by the night, plans to reopen the Flatiron Hotel in April. The hotel will be the company’s first in New York City — a year and a half after Sonder agreed to lease it. Despite the delay, caused in part by interior renovations being halted for six months during the pandemic, neither Sonder nor building owner Premier Equities is complaining.
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Fairmont San Jose owners win early in bankruptcy case: The owner of the bankrupt and shuttered Fairmont Hotel in San Jose, California, has won early rounds in the battle to refresh the hotel’s shattered finances, court papers show. A U.S. bankruptcy court judge has approved the Fairmont Hotel’s plans for short-term financing of US$2.5 million to bolster current operations. Separately, the Fairmont owners filed papers seeking approval to scout for a new brand and alliance with a national hotel operator that would be willing to provide at least US$45 million in capital to help the hotel prosper on a long-term basis.
Hawkeye acquires three: Iowa-based Hawkeye Hotels acquired Fairfield Inn & Suites in Cambridge, Ohio, for an undisclosed sum, days after closing on the acquisition of Aloft Oklahoma City Downtown — Bricktown. These are the company’s second and third acquisitions of 2021. In January, Hawkeye Hotels also acquired the Staybridge Suites in Lafayette, Louisiana. Constructed in 2016, the 99-room Fairfield Inn & Suites in Cambridge has 238 square feet of meeting space and a bar for guests. This hotel complements Hawkeye Hotels’ existing portfolio, which includes properties in Grove City, Ohio, in addition to Pittsburgh and Erie, Pennsylvania.
Capstone launches ‘Rebel’ to manage portfolio: Capstone Equities, a New York-based private equity firm, will now self-manage its portfolio of hotels with the launch of Rebel Hospitality. With the goal of aligning asset financial performance and owner interests, this self-management model “epitomizes the investor-centric mindset of Capstone Equities,” according to the firm. Rebel Hospitality offers transparency between operations and investment teams with a technology-oriented management platform that can also be applied in partnership with other hotel owners or investors.
Goco in Canada: Bangkok-based Goco Hospitality has joined Brew Bay Village Development as co-developer of the Goco Retreat Brew Bay Village project, a luxury wellness retreat and residential destination on the coast of the Salish Sea, British Columbia, Canada, focused on adventurous outdoor lifestyle and personal wellbeing. The hotel will also be home to the first dedicated Oriental Healing Center in the region. No opening date has been announced as of yet.
Pyramid names two new execs: Boston-based Pyramid Hotel Group has named Brian Berry executive vice-president of commercial strategy and Peter Karpinski executive vice-president of operations, independent and lifestyle hotels. Prior to his new role, Berry was senior vice-president of global revenue management for Hyatt Hotels. Karpinski is perhaps best well-known professionally for his tenure as partner at Sage Hospitality Group, where he co-founded Sage Restaurant Group. He also co-founded Arrive Hotels & Restaurants, a privately held hotel and restaurant brand development, ownership and management company.
Spire Hospitality managing Hilton in Portland: Spire Hospitality has assumed management of the Hilton Garden Inn Portland/Lake Oswego in Oregon. The 179-room hotel has complimentary WiFi, an indoor pool, a fitness center, pet-friendly rooms, a business center, free parking and more. The property has nearly 1,225 square feet of event space. There’s also an on-site restaurant, The Garden Grille & Bar.
Melia sues government for lockdown damages: Spain’s largest hotel chain, Melia Hotels, has filed a complaint against the government with an administrative court seeking €116 million (US$138 million) in damages incurred due to last year’s COVID-19 restrictions, the company said. A spokeswoman for the group said on Wednesday the claim was related to losses suffered as a result of the government-imposed lockdown between mid-March and late June of 2020. More than 400 Spanish bars, restaurants and hotels have already filed claims seeking compensation from the government for losses linked to the restrictions, according to a lawyer who is advising those businesses.
New Airbnb hosts earned US$1B during pandemic: A new report from Airbnb indicates that new hosts, with only one listing, who have had their first guests since the start of the pandemic, have already earned more than US$1 billion. The company also points to recent consumer polling which suggests there is pent-up demand for travel after months of pandemic-caused isolation.
HFZ faces lawsuit, unpaid tax bill: A partner in HFZ Capital Partners’ Shore Club hotel in South Beach, Florida, filed a lawsuit against the hotel’s owners, as financial and legal troubles continue to mount for the New York-based HFZ. A company tied to The Clark Estates, the family of the late newspaper publisher and businessman Stephen Carlton Clark, is suing the Shore Club’s owners to block the sale of the hotel without the approval of The Clark Estates entity. The lawsuit follows a February notice from the Florida Department of Revenue, which issued a warrant for nearly US$441,000 in unpaid sales and use taxes. The hotel, a prime waterfront property in Miami Beach, has fallen into disrepair and has been shuttered throughout the pandemic.
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Dan Hotels reopening: Israel-based Dan Hotels is now in the process of reopening properties. Its flagship property, the King David Hotel in Jerusalem, reopened March 17. The Dan Accadia on the Mediterranean at Herzliya and the Dan Carmel in Haifa will also reopen this week. The Dan Tel Aviv formally reopened on February 21, although it never actually closed, as it has continued to host airline crews throughout the pandemic. The Dan Eilat, the Dan Caesarea and the Ruth Safed reopened on February 25. The Dan Jerusalem and the Dan Panorama Haifa will also be open in time for Passover.
Marriott’s new CEO talks pandemic, growth: Marriott CEO Tony Capuano recently spoke with Barron’s magazine about his new job, the company’s outlook, and the pandemic’s impact on business. And in terms of filling Arne Sorenson’s shoes? Listening will be key, Capuano says.
Avani Hotels launches TikTok Travel: Bangkok-based Avani has launched an official Avani TikTok channel. The brand says it will collaborate with leading TikTok-ers based in Thailand and so far, has over 32 billion views.