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Briefs: ESA deal snag? | Caesars sues insurers

Two Extended Stay shareholders don’t like deal: Two top-ten holders in Extended Stay America say they plan to vote against its proposed takeover by Blackstone Group and Starwood Capital Group, arguing the US$6 billion offer undervalues the lodging company. Tarsadia Capital, which owns roughly a 3.9% stake in Extended Stay, said in a letter to shareholders Monday it not only believes the price is wrong but the timing is off as the travel industry begins its recovery from the pandemic. The family office said it was concerned Extended Stay rushed the deal because Tarsadia had nominated three directors to its board and believes there is more value to be created on a standalone basis.

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U.S. travel industry wants inbounds back: Leaders of the U.S. travel and aviation industry called on the Biden administration Monday to set a May 1 deadline to commit to a plan for reopening the country to inbound international visitation. The U.S. Travel Association is among the 26 organizations to sign a letter urging the White House “to partner with us to develop… a risk-based, data-driven roadmap to rescind inbound international travel restrictions.” The industry letter to the White House notes that 2020 international arrivals to the U.S. fell 62% from Mexico versus the previous year, 77% from Canada, and a whopping 81% from overseas markets—for a total loss to the U.S. economy of US$146 billion last year.

Read the letter

Caesars sues for US$2B: Caesars Entertainment says it has lost more than US$2 billion over the course of the COVID-19 pandemic. Now it wants its insurance providers to pay up. The Reno, Nevada-based company filed a lawsuit against its insurance carriers on Friday for refusing to pay for pandemic-related business interruption losses. Caesars said it paid more than US$25 million in premiums to secure “all risk” coverage. The 80-page lawsuit could help it recoup some of the losses. These sort of pandemic-related lawsuits are common; Caesars’ case isn’t the first of its kind among Las Vegas casino operators.

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England’s fine for traveling abroad: A £5,000 (US$6,925) fine for anyone in England trying to travel abroad without good reason is due to come into play next week as part of new coronavirus laws. The penalty is included in legislation that will come to a vote on March 25. Foreign holidays are currently not allowed under the “stay at home” rule which ends on Monday. Prime Minister Boris Johnson said it was “too early” to set out new foreign travel rules for the summer.

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Spanish REIT acquisition: Spanish Socimi (REIT) Next Point has acquired a 114-room, 4-star hotel in Spain’s Catalonian province of Gerona for €6 million (US$7.1 million). The hotel was technically acquired by Next Point’s subsidiary Viv Buildings 3. Next Point has a portfolio that includes senior living, tourism properties and short-term stay apartments in Catalonia’s main cities.

Spain hopes to see summer boost in tourism: Spain’s tourism minister is aiming to get the number of foreign tourists returning to the country up to half of pre-pandemic levels. Some tens of thousands of German tourists reportedly arrived in the Balearic Islands at the weekend, in a boost for local businesses. However, Spaniards are still facing a travel ban due to coronavirus restrictions.

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Market report: Desaru Coast, Malaysia: While COVID-19 devastated the hospitality industry in 2020, Desaru in Malaysia welcomed two luxury resorts, namely Anantara and One&Only. While not immune to the damage dealt to the global tourism industry, a new report from Horwath HTL indicates that those developments do send an encouraging signal to those with bullish perspectives on the destination. The report also says that further improvements with a new international ferry terminal south of Desaru and a possible third bridge link to Singapore will have a tremendous positive impact on the destination and bolster economic growth.

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Profit report, 2020: A new report from HotStats around performance, “Profit Matters” has a slight departure from the way its been presented in the past. The report still examines TRevPAR to GOPPAR, but instead of a specific focus on regions and cities, it examines the trends and stories that underscored 2020. Highlights include: break-even analysis; operating cost review; labor examination; and insights into segmentation.

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Wyndham’s first Trademark in Brussels: Wyndham Hotels & Resorts is opening the 78-room Hotel Avenue Louise Brussels, its first Trademark Collection by Wyndham hotel in Belgium. Owned by Atom Hoteles and managed by Hotel Collection International, the hotel has undergone a US$3.1 million refurbishment and is slated to open later this month.

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