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Briefs: CBRE forecast for ’22; Steigenberger-Porsche brand details

CBRE predicts US RevPAR +15% in 2022: CBRE is forecasting an 8% rise in occupancy in 2022, along with a 7.1% increase to ADR. The net result is a 15.6% forecast increase in RevPAR for 2022. Beyond 2022, U.S. national occupancy is expected to reach the long-run average of 62% in 2023. Sunbelt cities and drive-to leisure destinations are slated to perform better, while group-oriented hotels, gateway cities depending on inbound international travel and northern markets are expected to lag in performance. According to CBRE, nominal ADR levels will reach the previous peak by Q2 2023. On a combined basis, the improvements in ADR and occupancy may lead to a full recovery in nominal RevPAR by 2024. CBRE also said hotels in the U.S. will achieve a 2021 annual occupancy level of 54%, with an ADR of US$112.85, according to the September 2021 CBRE Hotels Research. The RevPAR of US$60.91 will be a 41.7% increase than the annual RevPAR value of US$42.97 recorded in 2020. This, however, is still 29.3% less than the RevPAR of US$86.16 of 2019.

Grupotel takes control of Nordotel: TUI Group continues to dispose of hotel assets as it has sold full control of the 11-hotel, 5,800-room Nordotel portfolio to Spain’s Grupotel. The portfolio has been part of a joint venture between TUI and Grupotel’s Ramis family. The properties include two hotels in Mallorca and nine in the Canary Islands, now giving Grupotel some 19,500 rooms systemwide. The hotels will continue to be part of TUI’s portfolio and will be marketed and operated by Grupotel. Just last week, TUI said it was looking to raise €1.1 billion (US$1.3 billion).

The heart of Steigenberger Porsche Design hotel is the welcome area called “The Platz”.

Details on Steigenberger-Porsche alliance: Deutsche Hospitality has released further details about its plan to work with the Porsche Design Group to develop the luxury lifestyle Steigenberger Porsche Design Hotels brand, including establishing up to 15 hotels by 2027 in markets such as London, Singapore, Dubai and Shanghai. The hotels will offer at least 150 rooms, suites and penthouses with a major focus on restaurant and bar concepts, Meet&Greet Cubes, as well as a health and beauty facility and gym extending over a minimum area of 1,000 square metres.

Organizational changes at Sage Hospitality: Sage Hospitality Group, Denver, Colorado, announced the promotion of Jason Altberger to chief financial officer. He will be maintaining his role as president of Sage Investments and will be leading all finance leaders, along with the corporate and hotel & restaurant accounting teams. Ken Widmaier will be retiring on November 5 after serving as both the chief operating officer and executive vice president of growth. Dean Stambules has been promoted to senior vice president of Acquisitions & Business Development.

Ascott to manage Vietnam properties: The Ascott Ltd., CapitaLand Investment’s wholly-owned lodging business unit, has entered into a strategic partnership with Sun Group to manage serviced residence integrated development in Vietnam. Ascott will manage 1,905 units in three serviced residence brands in Sun Group’s Tay Ho View Complex in Hanoi. Ascott will be debuting it’s The Crest Collection brand in Vietnam, which is currently only present in France. Ascott will also be launching its signature Ascott The Residence brand and Citadines Apart’hotel. The three residences are slated to open from Q1 2023 in phases.

Berlin performance improves: Hotels in Berlin recorded highest room rates and second-best occupancy in the pandemic, according to preliminary September 2021 data from STR.

  • Occupancy: 61.3%
  • Average daily rate (ADR): €95.01 (US$109.88)
  • Revenue per available room (RevPAR): €58.20 (US$67.3)

The absolute ADR level peaked since March 2020 while RevPAR was the highest since February 2020. Although occupancy was a bit lower than 65.4% in August, it was the market’s second highest level since February 2020. However, Berlin’s performance was much below the pre-pandemic figures from September 2019 — occupancy (88.6%), ADR (€125.50 or US$145.14) and RevPAR (€111.22 or US$128.63).

Mixed performance in Riyadh: Hotels in Riyadh reported mixed performance as compared to recent months, per preliminary September data by STR.

  • Occupancy: 59%
  • Average daily rate (ADR): SAR520.78 (US$138.68)
  • Revenue per available room (RevPAR): SAR307.46 (US$81.87)

Absolute occupancy dipped 60.5% from August but the ADR and RevPAR levels were the market’s highest since May and June, respectively. Pre-pandemic figures from September 2019 were 62.1% occupancy, SAR553.14 (US$147.3) ADR and SAR343.47 (US$91.46) RevPAR.

Strong investment market in the UK: With one quarter remaining, the outlook for the U.K. hotel transaction market is expected to remain strong, with the total 2021 year-to-date (Q1-Q3 2021) U.K. hotel investment rising 18.7% to reach £2.66 billion (US$3.62 billion) compared to the 2020 volumes, according to real estate adviser Savills. Savills expects a further £1.34 billion (US$1.82 billion) worth of hotel assets to be transacted in the last quarter, bringing 2021 year-end volumes to £4 billion (US$5.44 billion), close to the 15-year average of £4.22 billion (US$5.74 billion), a 78.2% increase compared to 2020 volumes. UK hotel transactions touched £935.1 million (US$1,274.07 million) in Q3 of this year, more than tripled the volume recorded in Q3 2020, and a 20.6% increase compared to Q3 2019. London has dominated single asset hotel transactions, accounting for two-thirds of the total U.K. single asset volumes, equaling approximately £890 million (US$1,1212.62).

Thailand to end quarantine requirements: Thailand is reportedly planning to scrap quarantine requirements for fully vaccinated travelers from at least 10 low-risk countries, including the U.S., the U.K., Germany and China, from November 1. Travelers from these nations, however, will be mandated to present a negative COVID test and test once again upon arrival. Entertainment venues in the country will be reopening and alcohol sales will be permitted from December 1. More countries could be added to the low-risk country list on that date. Thailand reportedly lost almost US$50 billion in tourism revenue in 2020 due to the pandemic.

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