US looks good through 2020: A favorable economic outlook will lead to continued growth in U.S. hotel revenues and profits through 2020, according to CBRE Hotels Americas Research findings. However, an economic slowdown in 2021 will cause a short-lived softening of lodging industry fundamentals that year. CBRE is forecasting U.S. RevPAR to increase by 2.5% in 2019 and an additional 2% in 2020. However, for 2021, CBRE is projecting a slight decline in RevPAR of 0.6%. Fortunately for hoteliers, that immediately is followed by 1.4% RevPAR growth for 2022.
Lisbon values spike: Hotel values across Europe registered another strong year in 2018, showing 3% growth and reaching new highs, according to HVS’ European Hotel Valuation Index. Although more modest growth than that of 2017 at 4%, 2018 saw recovery for many cities as well as a leveling off in values for some markets, which had previously been depressed compared with the European average. Hotels in Lisbon, Moscow, Paris, Brussels and Berlin filled the top five slots in terms of highest percentage growth in values in euro terms, with Lisbon seeing an impressive 9% uplift. Only six of the 33 markets analyzed experienced a value drop, with those at the bottom of the index, in euro terms, including Barcelona, which was badly impacted by the civil unrest caused by the strengthening of the Catalan independence.
Choice-Equinox deals: Choice Hotels International has signed agreements with Equinox Hospitality to develop three dual-brand Sleep Inn and MainStay Suites properties and two stand-alone Sleep Inn hotels. These midscale hotels will be built in the Phoenix metropolitan area and across California, and the first hotel is set to open in 2021.
Ibiza legend passes: Tony Pike, Ibiza icon and founder of the infamous Pikes Hotel, died over the past weekend. He was 85 this year. His hotel, Pikes, became an institution on the island after hosting Freddie Mercury’s birthday party and was used as the location for Wham’s ‘Club Tropicana’ video. Pike reportedly sold the hotel 11 years ago, but remained a legendary figure on the Ibiza scene.
QT on the move: Event Hospitality & Entertainment Ltd. has entered into a management agreement for its newest QT Hotels & Resorts property opening in Adelaide in 2021. The A$180 million development will feature 200 guest rooms and extensive conferencing and events facilities. This will be the 11th QT hotel and its first introduction to South Australia.