Groups drive US business: Hotel occupancy in the U.S. recorded a four-week high, as per STR’s data through September 18.
- Occupancy: 63% (-11.6%)
- Average daily rate (ADR): US$131.04 (-2.6%)
- Revenue per available room (RevPAR): US$82.50 (-13.9%)
The rise in occupancy was boosted by weekly group demand going above 1 million for the first time since the pandemic. High group demand lowered ADR since group rooms for upper-tier classes are usually priced lower than transient rooms. Among the top 25 markets, New Orleans saw the largest gain in 2021 in occupancy (+7.3% to 72.6%) and RevPAR (+18.2% to US$114.37). Oahu Island witnessed the steepest decline in occupancy (-43.9% to 49.6%). Miami saw the largest increase in ADR (+22.5% to US$166.04), while the largest RevPAR declines were in San Francisco/San Mateo (-65.5% to US$91.23) and Washington, D.C. (-53.1% to US$69.87).
AAHOA announces new President, CEO: AAHOA announced Ken Greene as its new President and CEO. Greene had been serving in the role on an interim basis since June. “During his time as Interim President and CEO, he’s made it clear that he’s committed to being accessible, helping the hotel industry on the road to recovery, and ensuring that the future of AAHOA is nothing but bright,” AAHOA Chair Vinay Patel said. “His decades of experience bring a deep understanding of and appreciation for the hotel industry, and he has many long-standing relationships that are well suited to guide AAHOA.” Before joining AAHOA, Greene served as president, Americas for Radisson Hotel Group, president and CEO for Delta Hotels and Resorts and in other roles at Wyndham Worldwide and Cendant Corp.
Hyatt prices offering: Hyatt Hotels Corp. has priced its public offering of 7 million Class A shares at US$74.50 per share with an over-allotment of an additional 1.05 million shares. Estimated net proceeds of approximately US$500 million will be used to fund a portion of the US$2.7 billion acquisition of Apple Leisure Group, as well as for general corporate purposes, including repayment of indebtedness. The closing date for the offering is September 27, 2021.
Accor joins sustainability alliance: Accor has joined the Sustainable Hospitality Alliance, the global organization that brings the industry together on environmental and social challenges. In 2011, as part of its ongoing CSR initiatives, Accor identified 21 areas where targets and policies could be set for measurable goals and actions, including management of water and electricity consumption, promoting sustainable and healthier food and more. Aligned with the United Nations Sustainable Development Goals, the Alliance’s members constitute 25% of global hotel industry by rooms and include 14 hotel companies like Hilton, IHG Hotels & Resorts, Marriott International, Hyatt and Radisson Group. This comes after Google announced its new eco-certification tool for hotels.
Oyo plans to file for IPO: SoftBank-backed Oyo Hotels and Homes, Gurugram, India, is reportedly in talks to raise around US$1 billion through initial public offering and is likely to file its draft red herring prospectus next week. The IPO, which is tentatively pegged between US$1 billion and US$1.2 billion, will comprise a fresh issue of shares and an offer for sale from present shareholders. Kotak Mahindra Capital, Citigroup and JP Morgan have been appointed to manage the public issue. Oyo received a US$5 million investment from Microsoft Corp. last month.
Analyzing Hispanic travel trends: U.S. Hispanic tourists spent US$113.9 billion on domestic leisure travel in 2019, which was 13% of the entire domestic leisure travel that year, according to the ‘Vistas Latinas: A Landmark Study on U.S. Travelers of Hispanic Descent’ by MMGY travel Intelligence along with Travel Unity. About 57% of the respondents said they were more likely to visit a place which welcomes Hispanic cultures and celebrates Hispanic cultural contributions and business. This is the first travel analysis which studies the needs, behaviors and concerns of Hispanic travelers in the U.S. As per the report, the top three destinations for overnight travelers are California (21%), Texas (15) and Florida (14%). Incidentally, these three states have the highest number of Hispanic residents. Around 85% of Hispanic travelers have traveled to the country/region of their family’s heritage, with 15% returning more than once a year and 22% returning yearly.
Innisfree mandates staff to be fully vaccinated: Innisfree Hotels, Gulf Breeze, Florida, has mandated all its employees to be fully vaccinated against COVID-19 by October 15. New recruits need to have their first vaccine before their first day of employment or by September 15. FDA’s recent approval of the vaccine manufactured by Pfizer prompted the company’s decision. Innisfree currently has 2,000 employees spread over 19 beachfront properties and three urban properties.
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Chris Myer
September 24, 2021 at 12:10 pmInnisfree should encourage it but not mandate it. Say goodbye to freedom to choose.