Sandals plans 3 in Jamaica: Caribbean-based Sandals Resorts International will add three new hotels in Jamaica. According to Adam Stewart, Sandals executive chairman, the company will transform two all-inclusive resorts in Jamaica acquired last year — the former Jewel Dunn’s River Beach Resort & Spa in Ocho Rios and the Jewel Runaway Bay Beach Resort & Waterpark, in addition to a parcel of beachfront land adjacent to the Ocho Rios resort. All three will become new distinct experiences under the Sandals Resorts and Beaches Resorts brands.
U.S. weekly occupancy falls from previous week: U.S. weekly hotel occupancy fell 2.6 percentage points from the previous week, according to STR‘s latest data through 17 April 2021. For April 11-17:
- Occupancy: 57.3%
- ADR: US$107.16
- RevPAR: US$61.37
Following the end of spring break, weekly demand fell back below the 22 million mark, and occupancy dipped to its lowest level since mid-March. The ADR level was also US$5 less after two straight weeks above US$112.
After elevated performance throughout the spring-break period, Florida saw its largest week-to-week decline in occupancy (8 points) since early January. Most Florida markets that were trending above corresponding weeks from 2019 fell back when using that same comparison.
Among the top 25 markets, Tampa (77.7%) and Miami (73.8%) experienced the highest occupancy levels. The lowest top 25 occupancy levels came in Boston (40.0%) and San Francisco/San Mateo (41.1%). Aggregate data for the top 25 markets showed slightly lower occupancy (55.4%) but higher ADR (US$115.74) than all other markets.
Potential for Genting’s Vegas venture: Genting Bhd’s track record in managing integrated resorts should turn its latest Resorts World Las Vegas (RWLV) venture profitable in about three years, according to analysts. RHB Investment Bank analysts in a note yesterday stated that — while they expect the venture to register some losses in the initial years — RWLV should be able to achieve positive EBITDA by FY22 given the steepening of the vaccination curve and the Kuala Lumpur, Malaysia-based company’s track record globally. With total development and land costs of US$4.3 billion, RWLV is set to open on June 24 and will be one of the first new integrated resorts on the Las Vegas Strip in over 10 years.
Huazhu Group Q1 results: Due to COVID-19 resurgence in Shanghai, Beijing and Hebei Province and the “stay local” guidance prior to the Chinese New Year holiday, Shanghai-based Huazhu Group’s Q1 results showed RevPAR in January and February 2021 recovering to 74% and 56% of 2019, respectively. Performance started to recover steadily again post the Chinese New Year, particularly during the first week of March, when the Chinese government further eased travel restrictions. After that, the company saw strong recovery in hotel demand in the Beijing area, followed by other major tier 1 cities. RevPAR in March 2021 recovered to 95% of 2019, mainly driven by the strong recovery of business demand. Heading into April, the recovery trend has continued. RevPAR during the Tomb Sweeping holiday recovered to 96% of same period of 2019, which the company says indicates a “strong recovery” of leisure demand.
Blue Flag acquires 6 in Nantucket: Boston-based real estate firm Blue Flag Partners announced the acquisition of six additional properties in Nantucket, Massachusetts. With three existing hotel properties on Nantucket and the purchase of the Kelley House Hotel on Martha’s Vineyard in October 2020, these acquisitions further expand Blue Flag’s partnership with the Life House hotel group. The portfolio, which comprises six properties spread across three transactions, includes the Summer House at 27 Fair Street, Summer House at 29 Fair Street, Pineapple Inn, India Street Inn, Hawthorn House, and another property that previously operated as a seasonal vacation rental.
Stockdale acquires hClub: Stockdale Capital Partners, a Los Angeles-based, vertically-integrated real estate investment firm, announced that it acquired the former hClub at 1717 Vine Street in Los Angeles. The property underwent substantial capital improvements in 2019, including the addition of an outdoor swimming pool, a rooftop restaurant, and an open-air lounge. The property has 35 luxury-appointed guest suites with an average of 780 square feet. Stockdale will announce dining, entertainment and lifestyle program partners for the site in the coming months.
Demand may exceed supply, says IHG CEO: Travel and tourism will begin to bounce back by the second half of 2021, according to data seen by Keith Barr, chief executive of Intercontinental Hotels IHG. But, in a recent interview with MarketWatch, Barr warns about capacity constraints across the industry, and says the rollout of COVID-19 vaccines is behind a “surge” in bookings at hotels, airlines and tour operators. “I think leisure demand could outstrip supply in some markets in the short to medium term,” he said. “Talking to some of the airlines they’re concerned about their ability to get capacity fast enough, if things really do open up.”
NYC’s US$30M campaign to revive tourism: Both the city and hospitality businesses are hoping to revitalize New York City’s tourism industry. As a result, New York City Mayor Bill de Blasio on Wednesday announced a US$30 million campaign to bring back tourists. The campaign, called “New York City Reawakens” was created by NYC & Company CEO Fred Dixon, and the advertising begins in June on multimedia and social platforms. City officials are ultimately trying to bring back some 400,000 jobs connected to the tourism industry. And of those jobs, it was restaurants and hotels that were hit the hardest during the pandemic.
Positive momentum for return to business travel: Nearly one-quarter of respondent from a recent poll report that their company has resumed non-essential business travel, or that the company has in place a plan to resume travel. The poll, from the Global Business Travel Association (GBTA), shows multiple positive signs for business travel recovery, including an increase in willingness to travel, a decrease in trips cancelled and a more optimistic view towards returning to the road as travel bookings continue to increase.
Spain’s hotel owners not ready to sell, but investors circle: International real estate investors are flocking to Spain where they spy a chance to snap up hotel bargains in pandemic-hit resorts — but the hotel owners, supported by government aid, are in no hurry to sell. Having enjoyed several boom years before the pandemic, most hotels are well-capitalized, writes Yahoo Finance, with state-backed funds providing the support they need to ride out the crisis. This is in stark contrast to Spain’s 2008-2013 downturn, which left deep economic scars and led to forced real estate sales.
Women-based groups form new JV: Officials of the Atlanta, Georgia-based Castell Project, a nonprofit organization focused on accelerating the careers of women professionals in the hospitality industry, and Washington D.C.-based She Has A Deal, a real estate investment platform aimed at hotel ownership and development for women, have formed a joint venture to build Fortuna’s Table. This new endeavor will “connect diverse prospective hotel owners to knowledge, guides and community.”