US occupancy decline coming: With supply growth in the U.S. increasing at an annual pace greater than the long-run average through 2022, and the rise in demand projected to average roughly three-quarters of its respective long-run average, CBRE Hotels Research is forecasting declining occupancy in the U.S. in both 2020 and 2021. CBRE projects occupancy levels to remain flat in 2019 at 66.2%, and then decline to 65.7% in 2020 and 64.6% in 2021. For context, U.S. occupancy averaged 62.5 percent from 1988 through 2018, according to STR.
Costs in US impact profit: April was the first month of the year to see a year-over-year decline in profit per room at full-service hotels in the U.S., as a drop across all revenue centers was impacted by rising costs, according to HotStats. GOPPAR fell by 3.7% YOY to US$118.51. Still, YTD profit per room is positive at 1.6% YOY. The month’s fall was led by a decline in RevPAR, which dropped by 1.6% YOY to US$179.24 as decreases were suffered in both room occupancy (down 0.6 percentage points) and achieved average room rate (down 0.9%). This marked the first time hotels in the U.S. recorded a monthly YOY decline in achieved average room rate since September 2017.
Europe revenue weakens: Profit per room at hotels in mainland Europe fell for a fifth consecutive month in April, as revenue levels continued to weaken across all departments, according to HotStats data. GOPPAR fell 8.4% year-over-year. In addition to a 1.2% decrease in RevPAR to €114.51, hotels in the region recorded a 7.4% decline in ancillary revenues this month to €53.96. This was led by a year-on-year drop in Food & Beverage (down 8.4%) and Conference & Banqueting (down 16.6%) revenue, on a per-available-room basis.
Six Senses deal in Costa Rica: Six Senses Hotels Resorts Spas and developer The Canyon Group, Larkspur, California, (teaming with local developer Garnier Group) have announced plans to the develop Six Senses Papagayo in Costa Rica. The site stretches from the highest point and 360-degree panorama of the Guanacaste archipelago to a forested beachfront dotted with 41 secluded pool villas. There are also 31 residences available for sale. The hotel is currently scheduled to open in Q4 2021.
Two Radissons for Brazil: Radisson Hotel Group has signed two new-build Radisson hotels in Brazil in partnership with Atlantica Hotels. Radisson Hotel Flecheiras will be built near the beaches along Brazil’s northeastern coast, breaking ground Q2 2019 with an anticipated opening of Q1 2024. Radisson Hotel São Paulo, Pinheiros will offer 152 guest rooms and suites and is anticipated to begin Q3 2019 with plans to open in Q4 2022.
Rapper suing Cosmo in Vegas: Rapper Meek Mill will file a lawsuit against the Cosmopolitan hotel in Las Vegas this week alleging racial discrimination in violation of state and federal laws, his attorney told The Washington Post on Tuesday. The attorney criticized the hotel’s defense of overcrowding as the reason Mill was turned away from attending a performance in one of its clubs.
Langham updates logo: The Langham Hotels & Resorts has unveiled a new logo and brand campaign to affirm its position within the ultra-luxury hotel segment. Through the use of video, photography, and digital experience platforms comes the theme, “Celebrate The Everyday.”
Wynn pays in Massachusets: Wynn Resorts on Tuesday paid the US$35 million fine imposed on it by the Massachusetts Gaming Commission and the US$500,000 fine imposed on CEO Matt Maddox, though the company’s board of directors said it strongly disagreed with the commission’s punishment of Maddox. Last month, the commission ruled that Wynn Resorts could keep the license for its US$2.6 billion Everett casino despite errors in handling issues involving Steve Wynn and the “considerable shortcomings” of Maddox, the current chief executive who was Steve Wynn’s hand-picked successor. The company does not plan to file an appeal.
Ducks coming to Texas: Memphis-based Peabody Hotels & Resorts has gotten the go ahead from the city of Roanoke, Texas, for a luxury hotel to be built near the Texas Motor Speedway in Denton County. The 300-room hotel will have 25,000 square feet of meeting space, two restaurants and a spa. Patterned about the original Peabody hotel in Memphis, The Peabody Roanoke will have a fountain in the lobby which will have a mezzanine. There will be a rooftop with a swimming pool and a “duck palace” up there for the Peabody ducks.
Aqua-Aston to Arizona: Aqua-Aston Hospitality, a hotel and resort management group and an operating business of Marriott Vacations Worldwide Corp., has added the CopperWynd Resort & Club in Scottsdale, Arizona, to its portfolio of nearly 40 properties. CopperWynd is the company’s first managed resort in Arizona. The property is currently undergoing an extensive US$60 million renovation and expansion, and following the development’s anticipated completion in 2020, CopperWynd will join the ranks of Autograph Collection Hotels.
New manager for Pebblebrook in SF: The Marker, A San Francisco Hotel, has announced new management by Access Hotels & Resorts. The 208-room hotel is owned by Pebblebrook Hotel Trust.