Sight downgrade in new U.S. forecast: Worsened pandemic metrics and assumptions of limited early-year travel led STR and Tourism Economics to slightly downgrade their latest U.S. hotel forecast. Full recovery of demand remains on track for 2023, while close-to-complete RevPAR recovery is still projected for 2024.
“While the recent COVID-19 surge has made for a challenging start to the year, our expectation that a strong rebound in travel activity will occur in the second half remains intact,” said Adam Sacks, president of Tourism Economics. “As we emerge from the stiffest periods of the public health crisis and virus-related conditions improve, our collective appetite for travel will kick-start the recovery.”
“These opening months of the year are going to resemble some of the slowest of 2020, but we are optimistic that hotel demand will improve as vaccine distribution becomes more widespread and travel confidence grows,” said Amanda Hite, president of STR. “While the early indicators should be visible in Q2, we expect Q3 to be the point where leisure travel shifts into high gear and corporate and group business show more progressive improvement. That will feed into a 2022 that shows a higher level of recovery.”
Hyatt’s on-site testing: Following the Centers for Disease Control and Prevention’s requirements for a negative COVID-19 test for all international air passengers entering the U.S., Hyatt Hotels Corp. is one of the first major hotel company to offer widespread complimentary, on-site COVID-19 testing at all Hyatt resorts across Latin America, including the Caribbean, Mexico, Costa Rica and South America, starting today. Hyatt hotels in Mexico, Central America, the Caribbean and South America are also extending a travel delay rate to guests whose travel plans are impacted by test-related reasons.
Distressed European fund: ActivumSG Capital Management, a real estate private equity manager specialized in turnaround and special opportunity investments based on the island of Jersey, has raised a total of €550 million (US$668 million) from international investors to deploy in European markets that are experiencing growing distress. The ActivumSG Real Estate Fund VI has already committed more than 50% of the total amount of capital raised by its final close. The pan-European fund’s focus is on distressed opportunities or creating value in turnaround situations, mainly in five markets – Germany, the Netherlands, Spain, Portugal and the UK.
IHG’s development symposiums: IHG Hotels & Resorts will host a series of virtual hotel development symposiums in early 2021. The free, online events are designed to bring information about IHG’s brands directly to owners. The company started offering virtual development symposiums in 2020 due to travel restrictions and the cancellation of events and conferences due to COVID-19. IHG’s 2021 Hotel Development Symposiums will focus on the company’s luxury, lifestyle, and premium brands; insights into IHG’s growth strategy; and provide opportunities for Q&A and discussion. Additional brand-specific events and topics will be announced in the coming months.
Seven adds for Wyndham: Wyndham Hotels & Resorts has seven new hotel franchise agreements for its upscale Wyndham brand in the U.S. The hotels are owned by national hotel development company, The Thrash Group, and managed by Charlestowne Hotels. The properties include The Thrash Group’s Origin Hotel Collection, consisting of five lifestyle hotels as well as one historic hotel and a brand new construction hotel all of which will operate under the Wyndham umbrella.
Full House expansion: Full House Resorts plans a US$180 million expansion of its Colorado-based Bronco Billy’s hotel-casino. The Las Vegas-based casino operator had planned to add 180 guest rooms to the Cripple Creek property but said Monday that its board of directors had approved plans to widen the expansion to 300 rooms and suites. The change comes after Coloradans voted in November to allow casinos to offer new table games, including baccarat and pai gow poker.
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Pebblebrook rooftop wireless leases: Bethesda, Maryland-based Pebblebrook Hotel Trust has monetized 14 rooftop wireless leases, including the assignment of future wireless rooftop leases, through the granting of long-term easements at 11 of the company’s properties. This transaction generated net proceeds of US$12 million and reflects a 5.5% net income capitalization rate based on estimated 2020 operating results. In addition, the Pebblebrook agreed to a strategic marketing and revenue sharing agreement for future rooftop wireless assets at the company’s 11 hotels and resorts included in this transaction with the third-party assignee of the leases.