US performance boost: Performance of U.S. hotels rose to a level similar to late-summer, boosted by the long Columbus Day weekend, as per STR’s latest study through October 9.
- Occupancy: 63.9% (-9.6%)
- Average daily rate (ADR): US$134.63 (+2.4%)
- Revenue per available room (RevPAR): US$86.02 (-7.4%)
Occupancy was the highest since the week ending August 14, while ADR was higher than every week since the one ending August 21. Although none of the top 25 markets saw occupancy rise since 2019, Tampa reached close to its 2019 level (-3.5% to 66.8%). Driven by ADR, it reported the highest RevPAR gain when compared with 2019 (+12.2% to US$91.67). Oahu Island recorded the steepest dip in occupancy (-45.1% to 46.9%). Miami saw the largest ADR rise (+22.2% to US$186.78), while the highest RevPAR deficits were recorded in San Francisco/San Mateo (-61.3% to US$93.03) and Oahu Island (-50.7% to US$98.83).
Search for new CEO at Four Seasons: Four Seasons Hotels and Resorts has announced that President and CEO John Davison, 63, will retire in 2022 and that a search for a new leader is underway. Davidson will stay in his role and onboard his successor, as well as join the company board of directors. The news comes after Bill Gates’ Cascade Investment increased its stake in the company last month to a majority share. Davison joined Four Seasons in 2002 and in 2018 was appointed interim-CEO, which became a permanent role the following year. Four Seasons currently manages more than 120 properties.
Westin to debut in Brazil: Marriott International has signed a franchise agreement with Hotéis Deville to launch the first Westin Hotels & Resorts in Sao Paulo, Brazil. The 187-room hotel is expected to open in spring 2024. The hotel will be situated inside the JK Square mixed-use development, which will house residences, offices and retail. Marriott currently operates 12 hotels across Brazil.
Hotel sales deals rise: Transactions in the commercial real estate market in Q3 2021 totaled to US$14.4 billion and included roughly 27,000 hotel rooms with an average sale price per room of US$532,000, according to the LW hospitality Advisors Q3 Select Major U.S. Hotel Sales Survey by the LW hospitality Advisors. The number of trades increased sevenfold as compared to Q3 2020, while sales price per room dipped by almost 15% and total dollar volume rose almost by six times. The number of trades in Q3 2021 rose 120% as compared to Q3 2019, while total dollar volume increased 30% and sales price per room fell 8%. A total of 16 trades or about 18% of the national Q3 total sales took place in Florida, followed by 11 in California, eight in Washington and seven each in Georgia and New York. While six sales were consummated for between US$100 million and US$200 million each, two blockbuster multimillion deals were announced in Las Vegas, Nevada. According to the survey, three significant transactions include the Blackstone Real Estate Partners acquiring Condor Hospitality Trust portfolio for US$305 million, the merger of Pyramid Hotel Group and Benchmark Global Hospitality and Terrapin Hospitality acquiring K Partners.
HVMG adds to portfolio: Hospitality Ventures Management Group, Atlanta, Georgia, has signed management agreements to instantly start operations of the 105-key TownePlace Suites Charlotte Fort Mill and the 123-key Holiday Inn Express & Suites Charlotte — Ballantyne, marking the ninth and 10th takeover within the last two months. The group presently operates 52 independent and boutique hotels and resorts (totaling to 8,345 guest rooms) along with a convention center across 17 states.
Davidson to manage Mills House: Davidson Hospitality Group, Atlanta, Georgia, has been selected by the RLJ Lodging Trust to manage The Mills House Hotel under its lifestyle operating unit, Pivot. The 216-key hotel in Charleston, South Carolina, also known as The Pink Hotel, will undergo refurbishment and repositioning. Pivot also operates Hotel Bella Grace and The Ryder Hotel in Charleston.