Global occupancy climbing: New data shows that hotel occupancy levels are on an upward trajectory, with global occupancy at 46% in April, up from the low point of just 13% in April 2020 — this from travel tech company Amadeus. The data also indicates that booking lead time is lengthening, meaning a growing consumer confidence to plan ahead. For much of the past year, nearly all reservations across the world were made within 0-7 days of travel. In recent weeks, bookings made on the same day of travel, which are the most problematic for the industry to accommodate, have shrunk globally from 39% the first week of 2021 to 23% the week of April 25, and 31- to 60-day bookings increased from 6% the first week of 2021 to 11% the week of April 25. There’s also significant growth optimism among hoteliers, although the ability to recruit new staff still remains a worry for many.
Dublin’s Morrison sold: London PE firm Zetland Capital has acquired from Russian billionaire investor Elena Baturina Dublin’s famed Morrison hotel. No price was disclosed but it was reported in March that the deal was expected to be worth more than €65 million (US$79 million). In February 2020, when the hotel was reportedly set to go to market, the guide price was believed to have been €80 million (US$98 million). Ten days ago, the 157-bed Moxy Dublin City hotel was sold by the Spitzer family’s Midwest Holding group for €35 million (US$43 million) to the MHL Hotel Collection. Zetland said it plans to investment in a refurbishment of the Morrison.
KSL buys in UK: The 215-room Hilton Bracknell in the UK sold last week to an affiliate of KSL Capital Partners for £17.5 million (US$25 million) on behalf of Tabamara Ltd. The hotel, which has been in operation for more than 20 years, ceased trading under the Hilton name as of May 4.
Reimagining loyalty: Loyalty programs — and where exactly they’re heading in a post-COVID world — was part of the main focus at the 15th annual BWH Hotel Group Travel Summit, which was held virtually on May 14. Data via Google indicates that 36% of consumers have tried a new brand amid the pandemic, with the top criteria for switching being availability, convenience and value. Of those 36% of consumers, 73% intend to incorporate the new brands into their routine.
These trends, which come from McKinsey research, show that consumers are switching brands at unprecedented rates. And it’s also a signal to the industry: enhance and reimagine your travel loyalty programs, or suffer the consequences. Or, as BWH Hotel Group Senior Vice President and Chief Marketing Officer Dorothy Dowling puts it:
“At Best Western, we recognize that we have to re-earn most of our customers’ loyalty as they have not been able to participate in our program over the last 13 to 15 months. We are launching our ‘Pay With Points’ program as a way to reengage with them, while also having the understanding that most customers join hotel loyalty programs because they want free nights. 80% of our rewards redemptions are for free nights, so it’s about knowing who our customers are and providing them with the rewards that matter to them most.”
Hawaii continues to struggle: A year after Hawaii set into motion a 14-day quarantine for travelers as a result of the COVID-19 pandemic, the state’s hotel industry continues to struggle, with a RevPAR decline (-59.5%) that both exceeds national average (-27.7%) and is also one of the most severe drops when matched against the average for the top 25 markets (-43.6%), according to data from CBRE. Visitor volume remains a fraction of “normal” levels, although recovery has been accelerated by the effectiveness of the state’s “Safe Travels” program. Though it the industry continues to suffer, it is worthy to note that Hawaii has had great success in managing the pandemic, earning it the reputation of being one of the safest destinations in the U.S.
Ireland may make earlier return to foreign travel: Amid pressure from both airlines and employers eager to reopen foreign travel, Ireland may move faster to help citizens move with more ease across the European Union, according to Reuters. The country had originally planned to adopt a COVID-19 certificate in late July. Irish ministers still say it will be late July or early August before they put the EU’s so-called “green certificate” into play, but Health Minister Stephen Donnelly said on May 21 that it could be even earlier. Currently, Ireland has the strictest travel restrictions in the 27-nation bloc. The country advises citizens against non-essential travel, imposes fines on those traveling for holidays, and has a two-week mandatory hotel quarantine for arrivals from a number of countries.
Luxury coming to downtown Fort Lauderdale: A 138-room luxury hotel has won approval and will start construction this fall in downtown Fort Lauderdale, Florida, according to The Real Deal. Two local developers, Hudson Capital Group and Barron Real Estate, expect to name an independent operator to run the property scheduled to open in 2023.
Unique deal sponsorship: Legendary Capital, Fargo, North Dakota, is sponsoring the 175-room Holiday Inn El Paso Sunland Park acquisition in a US$9.7 million transaction. The deal utilized Legendary Capital’s proprietary Equity Preservation UPREIT mechanism – where the hotel ownership contributed their property in exchange for a special class of Transition Partnership Units – which potentially preserves the contributor’s equity as the property restabilizes. The consideration also included the assumption of US$7.9 million of the existing US$8.4 million loan secured by the hotel and payment of US$300,000 cash to the owner. The current management company, Elevation Hotel Management, will continue managing the property, together with NHS, LLC dba National Hospitality Services. This is the second transaction Legendary Capital has sponsored in the past three months using its patent pending contribution structure, following the recently-acquired Courtyard by Marriott in Aurora, Colorado.