U.S. economic recovery not all good: The uneven U.S. economic recovery is reflected in eight revised hotel performance forecasts by STR and Tourism Economics over the past 16 months. While unemployment exceeds February 2020, labor shortages will continue to plague the relatively low-paying, high-contact hospitality industry as least through the peak summer months. Though widely available vaccines are expected to stimulate more leisure and corporate travel, and while consumer optimism continues to rise, lodging’s outlook is in for a rocky recovery.
Below are the KPI forecasts for 2021 and 2022, respectively:
- Occupancy: 53.3% and 60.1%
- ADR: US$109.47 and US$117.34
- RevPAR: US$58.39 and U$70.57
New Oaktree offer for Crown: Oaktree Capital Management has revised its offer to lend Crown Resorts money to buy back some or all of founder James Packer’s stock, the casino company said. Reuters reported that the package consists of a A$2 billion (US$1.5 billion) loan and A$1.1 billion (US$884 million) in convertible debt that could give Oaktree up to a 9.99% stake. The deal equates to roughly A$12.40 per Crown share. That’s higher than the bids from Blackstone and rival casino operator Star Entertainment, who want to take control of the company.
Cerberus, Highgate to buy Dorsett City London: Cerberus Capital Management and Highgate on Tuesday announced the acquisition of Dorsett City London, from subsidiaries of Far East Consortium International. The transaction is the latest partnership between Cerberus and Highgate, which includes the recent joint purchase of six hospitality portfolios from Colony Capital earlier this year.
Near-full recovery for American Express: American Express CEO Steve Squeri has told CNBC that U.S. travel and dining spending is nearing full recovery. “Our travel bookings in May were 95% of what they were in May of 2019,” he said. “We also believe that by the end of the year in the U.S. we will have a full consumer recovery from a travel perspective, and overall by the end of the year I think globally we’ll probably be about 80% of what we were in 2019.” Squeri also said May dining expenses totalled 85% of May 2019 levels.
England lockdown easing delayed: British Prime Minister Boris Johnson has ordered a four-week delay in the final easing of lockdown restrictions in England, to allow for a speeding up of the vaccination program. However, he also indicated that he would not tolerate any further suspension, saying 19 July was a “terminus date” and that all restrictions on social contact could be lifted – unless a game-changing new variant were to emerge.
Millennium Broadway Times Square returns to MHR: Millennium Broadway Times Square will be transitioning back into the Millennium Hotels and Resorts’ (MHR) portfolio. It was previously affiliated with Hilton Hotels from 2019. MHR has engaged Highgate to manage the 626-room hotel, which is owned by Millennium & Copthorne Hotels. MHR owns, manages and operates over 145 hotels across some 80 locations worldwide.
Scandic market situation and booking trends: Stockholm-based Scandic’s occupancy rate is expected to reach at least 35% in June. Scandic also expects occupancy in July 2021 to be higher than the 42% it reached in July 2020. Although customers are continuing to act with short lead times, it is clear that the business on the books for July is higher than it was at the same time last year. Currently, about 22% of Scandic’s capacity is booked for July compared to 14% at the same time last year. Compared with 2020, the largest rise in booking activity has been seen in the larger cities due to eased restrictions. Scandic is the largest hotel company in the Nordic countries with more than 280 hotels, in operation and under development, in more than 130 destinations.
City Lodge reopens two properties: City Lodge Hotel Group is reopening two of its rebranded properties in Johannesburg, South Africa. The 69-room City Lodge Hotel Eastgate (previously Courtyard Hotel Eastgate) and 213-room Road Lodge Sandton (previously Town Lodge Sandton, Grayston Drive) are set to reopen on June 21. This will bring the number of hotels in the group now up and running again to 57, with only six due to reopen as demand dictates.
StepStone to manage Sheraton Boston: Providence, Rhode Island-based StepStone Hospitality has been appointed property manager of the 247-room Sheraton Boston Needham Hotel. The news follows the acquisition of the Sheraton by an affiliate of Paceline Equity Partners, a Dallas-based private equity manager. The hotel is scheduled to undergo significant renovations to its rooms, lobby, restaurant, and meeting space. The renovation will start later this year and is expected to be completed in spring of 2022.