Biden targets US$41B tax break for real estate investors: U.S. President Joe Biden is taking aim at real estate investors used to buying and selling properties without having to pay capital gains taxes. The U.S. president’s new economic plan calls for abolishing the right to defer certain tax payments on property-investment gains of over US$500,000, part of a broader effort to raise taxes on the rich to pay for the expansion of social services. Known as a like-kind or “1031” exchange, the perk allows property investors to roll the proceeds of real estate sales into future purchases without paying capital gains taxes on profits. The strategy was projected to save investors US$41.4 billion between 2020 and 2024, according to Congress’s Joint Committee on Taxation.
Miami Beach board backs Bulgari plans: A plan from Bulgari to redevelop the Seagull Hotel Miami Beach is now advancing, with aims to add two floors to the seven-story building, as well as expand the ground floor. The fashion jewelry house is teaming up with Seagull Miami Beach owner, London-based Blue Horizon Group, which bought the shuttered hotel for US$120 million in January of last year. A local board has voted to recommend the city commission approve amendments to land use regulations that will allow the height increase and the ground-floor expansion, as well as vacating a right-of-way along the front of the oceanfront property. The 178-room hotel, slated to open in 2024, will have an outdoor pool, spa and fitness facilities, and a restaurant and bar from Chef Niko Romito.
Uptick in US weekday occupancy: U.S. weekly hotel occupancy remained flat from the previous week, according to STR’s latest data from April 18 through April 24:
- Occupancy: 57.3%
- ADR: US$108.10
- RevPAR: US$61.93
Overall industry occupancy will likely remain plateaued until the summer leisure travel boom, but there has been noticeable uptick in weekday occupancy, which is indicative of increased business travel. ADR was up slightly from the previous week, and the Luxury, Midscale and Economy classes have each recovered more than 90% of their 2019 ADR levels.
Among the top 25 markets, Tampa (73.7%) and Miami (72%) experienced the highest occupancy levels. The lowest top 25 occupancy levels came in San Francisco/San Mateo (41.0%) and Washington, D.C. (42.8%). Aggregate data for the top 25 markets showed slightly lower occupancy (55.1%) but higher ADR (US$117.00) than all other markets.
AHLA pushes hotel jobs bill to Congress: The American Hotel & Lodging Association (AHLA) and Unite Here hospitality workers union have publicly asked the U.S. Congress to pass the Save Hotel Jobs Act. Key provisions of the bill include the following:
- Direct payroll grants will be utilized for payroll and benefits expenses for workers. The legislation would also require grantees to give laid-off workers recall rights to ensure those who lost their hotel jobs due to the pandemic are able to get back to work
- Provides a “Personal Protective Equipment Tax Credit” to promote worker safety measures, which would allow for a payroll tax credit for 50% of costs associated with the purchase of personal protective equipment, technology designed to reduce the impact of the pandemic, increased testing for employees, and enhanced cleaning protocols that do not negatively impact the level of work for housekeeping staff
Foreclosure suit in Orlando: An Orlando, Florida, hotel allegedly is facing financial troubles after the pandemic wiped out revenue for hospitality properties across Central Florida. A commercial foreclosure lawsuit was filed April 19 against the owners of the 170-room Radisson Country Inn & Suites Orlando. The hotel’s owners, Pinnacle Holdings-XI and Pinnacle Hospitality Group, allegedly owe more than US$9.3 million.
More from the Orlando Business Journal
Plaza to reopen after over a year: After being closed since March 2020 due to fallout from the pandemic, New York’s iconic Plaza Hotel will reopen next month. In a message on its website, the hotel said, “Dear valued guests and friends of The Plaza: For the past year you’ve been asked to stay home, The Plaza is now extending its formal invitation to return to New York. Our doors reopen on May 20th, we look forward to welcoming you!”
MGM CEO says Vegas will be back at pre-pandemic levels soon: MGM Resorts International CEO Bill Hornbuckle believes its Las Vegas properties will be operating at pre-pandemic levels in the first half of 2022. The company pointed to Clark County operating restrictions set to ease back this week, hotel occupancy rates on the rise and group business picking up. “We’re very excited about the summer and fall,” Hornbuckle said. “We think the regionals return to ‘19 levels by end of year, and … come the first half (of 2022) of versus the second half, save international.”
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Summit names new CFO: Summit Hotel Properties has named William (“Trey”) Conkling will join the company as executive vice president and chief financial officer effective May 17. Most recently, Conkling served as a managing director in the real estate, gaming and lodging investment banking group for Bank of America Merrill Lynch. Prior to joining Bank of America Merrill Lynch, Conkling was with the investment banking unit of Bear, Stearns & Co. and previously worked in asset management for Host Hotels & Resorts.
IntercityHotel coming to Karlsruhe: Frankfurt-based Deutsche Hospitality is launching a IntercityHotel Karlsruhe project, which will form part of a new and high-end complex to be known as Ka Drei in Karlsruhe, Germany. The collection of buildings on the site will also include two office blocks with retail space, an underground car park and a café. The 194-room hotel itself is scheduled to open in the second quarter of 2023 and will have a restaurant and bar designed by the Italian architect and designer Matteo Thun. Qcoon Real Estate and Fortoon Development, both based in Hamburg, will share responsibility for project development and construction management of the building complex.
Color me hospitality: The Leading Hotels of the World has debuted the second edition of its coloring book, themed “LHW Take Me There.” The book features a variety of bucket list destinations and hotel drawings from the company’s properties across the globe. Each drawing is made by artist Dallas Shaw, who will also be sharing coloring tips for the book on LHW’s social media throughout the following weeks.
Read more and download the book