LE founder Pat Ford dies: Patrick “Pat” Ford, the founder of the hotel construction and development data firm Lodging Econometrics, passed away on June 7 surrounded by his family. He worked in hotel operations early in his career and was credited with establishing the annual budgeting process in the hotel industry. By the middle ‘70s he was director of operations for Dunphy Hotels and in 1977 established his own hotel management company, which soon expanded into hotel brokerage with New England Hotel Realty. He was also a former president of the Hotel and Motel Brokers of America. He started LE in the mid-90s, which today employs some 48 people. Three of his children continue to operate the business.
Hope for US inbound: In an effort to open United States borders to inbound travelers, The Biden Administration said on Tuesday that is going to create working groups to determine when to lift bans on inbound travel. Groups will include internal White House teams, as well as the Centers for Disease Control and Prevention and the Departments of State, Homeland Security, Health and Human Services, and Transportation. It will also include representatives from Canada, Mexico, the European Union and the United Kingdom. In response to the news, the U.S. Travel Association stated, “This announcement marks an important step forward in our national recovery from the pandemic. U.S. Travel and its membership believe a public-private task force can quickly develop a blueprint to reopen international inbound travel and jumpstart a sustained jobs and economic recovery. With decreased infection rates in the U.S. combined with the administration’s goal of having a critical mass of Americans fully vaccinated by July 4th, there is a true near-term opportunity to safely begin to welcome back international visitors.”
International travel report: The latest research from ForwardKeys reveals that the outlook for international air travel this summer (June 1 – August 31) is set to be just under a quarter (23%) of pre-pandemic levels. As at June 1, flight tickets issued for international arrivals in Africa & the Middle East were just 31% of what they were at the same point in 2019. The Americas stood at 38%, Asia Pacific at 7%, and Europe at 22%. The one region where this summer’s travel looks healthy is the Caribbean, where bookings are 81%. Governmental reaction to COVID-19 and travel restrictions are key reasons for these numbers. For example, summer bookings to China, Japan (which is welcoming no foreign spectators for the Olympics), Thailand and Australia, which are effectively closed to visitors, are just 2%, 4%, 2% and 10% respectively.
Canada may reopen soon: Canada is prepared to open its borders to vaccinated travellers, says Prime Minister Justin Trudeau, although he has not indicated when that will happen. As Canada’s COVID-19 numbers continue to improve, Trudeau has said the government wants to keep Canadians safe, but also help the battered tourism and travel industry. He said that Canada is looking to start welcoming visitors in a “phased way”, which was one of the major recommendations from a Canadian government advisory panel report two weeks ago.
Uptick in meetings, events: Knowland’s ongoing monthly U.S. Meetings and Events volume data for May shows that U.S. group meetings volume increased 28.4% over the last month. Knowland continues to see metric improvement as average attendees aligns with 2019 levels and meeting space used comes with 10% of 2019 values.
IHCL expands in Bengaluru: Indian Hotels Company (IHCL) has signed an agreement with Bengaluru Airport City Ltd (BACL) for developing a 775-room hotel at the city’s Kempegowda International Airport. The hotel, a combination of a 450-room Vivanta and a 325-room Ginger hotel, will be a management contract with BACL to operate another hotel at the international airport where IHCL already operates Taj Bangalore. It is slated to open in 2025. The hotel will become IHCL’s 12th in Bengaluru.
India occupancy decline: According to STR, hotel occupancy in India has been on a rapid decline amid its second COVID-19 wave. Monthly occupancy reached a pandemic high in February (53.9%). But by April, occupancy fell to 31%, and more recently, just 21.5% for the week ending May 30.
While the country as a whole has fallen back to late-2020 levels, some markets are experiencing more promising metrics. During the week ending May 30, Mumbai saw the highest occupancy level (43.2%) among STR-defined markets, which was 60% of the comparable week in 2019. The market, however, is expected to experience flattened demand levels in 2022. Chennai (38.3%) and Gujarat (32.2%) also saw higher occupancy levels with better 2019 comparisons.
Watch a video on India’s hotel performance and factors that will help shape the upcycle here.
Coralville Marriott to get new name, management: Marcus Hotels & Resorts will take over management of the 286-room Coralville Marriott Hotel & Conference Center in Coralville, Iowa, effective August 18, 2021. The hotel is owned by the City of Coralville. It will be rebranded as the Hyatt Regency Coralville Hotel & Conference Center as of the same date. The property will undergo a phased renovation of its rooms and restaurant.
THG grows portfolio: The Hotel Group has won management of the 92-room Tru by Hilton Spokane Valley in Spokane Valley, Washington. The property is owned by GL8 Hospitality. This becomes the ninth Hilton brand to join THG’s portfolio.
Menin to accept crypto: Menin Hospitality, Miami Beach, Florida, has announced the acceptance of BitPay, the largest bitcoin payment processor in the world. BitPay accepts payment in Bitcoin, Bitcoin Cash, Ethereum, Dogecoin and 4 USD-pegged stablecoins (GUSD, USDC, PAX, and BUSD). Menin will accept all of these coins and tokens at all venues under its portfolio.