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Briefs: Hyatt Q4 data | Hersha’s new funding

Hyatt Q4 losses worse than expected: Hyatt Hotels Corp. reported Q4 2020 adjusted loss per share of US$1.77, much wider than the expected loss per share of US$1.38. Comparable systemwide RevPAR was down 68.9% year over year, while company owned and leased RevPAR was off 81.8%. Hyatt reported 4Q20 Adjusted EBITDA of (US$98M) versus consensus of (US$49M). There was no guidance. It said about half of the Adjusted EBITDA decline relates to “costs incurred on behalf of our managed and franchised properties that we do not intend to recover from hotel owners.”

U.S. occupancy up slightly: U.S. hotel occupancy increased more than four percentage points from the previous week, according to STR’s latest data through February 13.

February 7-13 (percentage change from comparable week in 2020):

Occupancy: 45.1% (-29.0%)
ADR: US$99.21 (-25.7%)
RevPAR: US$44.72 (-47.2%)

Boosted by Valentine’s Day and the long weekend with Presidents’ Day, U.S. weekend occupancy (Friday/Saturday) came in at 58.5%, which was the highest level in the metric since mid-October. Elevated occupancy during the weekend of Presidents’ Day occurred during previous recessions as well.

Aggregate data for the top 25 markets showed slightly lower occupancy (44.0%) but higher ADR (US$106.53) than all other markets. Among the top 25 markets, Tampa, Florida, saw the highest occupancy level (66.3%), lifted by Super Bowl LV. Top 25 markets with the lowest occupancy levels for the week included Oahu Island, Hawaii (28.8%), and Minneapolis, Minnesota (30.9%).

Hersha lands new funding: Hotel owner Hersha Hospitality Trust announced it secured a strategic financing commitment from West Street Strategic Solutions Fund I, L.P. and Broad Street Credit Holdings, each of which is an affiliate of the Merchant Banking business of The Goldman Sachs Group. The unsecured notes will provide an initial US$150 million draw at closing and an incremental US$50 million delayed draw that can be drawn at the company’s discretion in minimum installments of US$25 million at any point on or prior to September 30, 2021. Hersha also successfully executed amendments to its revolving credit facility and term loan facilities with its bank group in conjunction with the financing commitment and recently announced dispositions. Year-to-date, Hersha has entered into binding sales contracts on four consolidated hotels for a total sale price of US$178.5 million.

San Diego restaurateur close to buying Lafayette: San Diego restaurant group CH Projects is currently in escrow to purchase the Lafayette Hotel, also in San Diego — a landmark that in its heyday was a retreat for some of Hollywood’s most famous movie stars. The prospective sale was confirmed by CH co-founder Arsalun Tafazoli, whose company would be making its first foray into hotel ownership should the purchase be successful. CH Projects is known for its robust portfolio of San Diego drinking and dining venues. Purchased in 2004 for US$11 million, the hotel underwent a US$6 million renovation that was completed eight years later.

More from The San Diego Union-Tribune

Real Hospitality managing Nyack: Houston, Texas-based Juniper Capital Partners has opened the 133-room Hotel Nyack, previously The Time Nyack Hotel, in New York’s Hudson Valley. Recently acquired by Juniper, Hotel Nyack now joins Hyatt’s Joie de Vivre lifestyle brand. Juniper has appointed hospitality management company, New York City-based Real Hospitality Group to oversee operations.

Baglioni managing 5-star in Sardinia: Milan-based Baglioni Hotels & Resorts will manage the 5-star luxury Paradise Resort & Spa, located in the “Lu Impostu” bay in Puntaldìa, Sardinia. Ahead of the scheduled opening on June 1 2021, the project foresees the re-branding of the resort, as the Baglioni Resort Puntaldìa, and becoming a new member of The Leading Hotels of the World organization. The Italian Hospitality team Cushman & Wakefield has advised Quercia S.R.L. on the search and selection of Baglioni.

Business travel sees steady recovery in Europe: At a recent town hall held by The Global Business Travel Association, the focus was on its annual outlook report with an emphasis on challenges and recovery as a result of COVID-19 in Europe. Highlights of recovery included:

•   GDP growth in the Eurozone is expected to bounce back by 3.6% in 2021, and 4.2% in the UK, in part stronger due to the lower base of 2020

•   A US$25.9 billion increase in business travel spending is projected in Western Europe in 2021 (18.5%). Emerging Europe will see an increase of US$5.6 billion (18.9%). Most of this gain is expected to come at the end of 2021 as vaccinations increase globally and business confidence returns

•   The biggest economic recovery is to come from the emerging markets, particularly the Asian markets who will continue to drive the global economic growth in 2021 and beyond

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New Zealand hotel market snapshot: With the country’s borders closed since March last year, the government is using 32 hotels as managed quarantine facilities for returning New Zealand residents, taking up to 40% of major hotel rooms in key hotel markets. This latest report from Horwath HTL explains how the absence of international visitors and a captive domestic market has affected the major hotels that are not part of the government’s managed quarantine program.

Download the full report

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