Mainland China occupancy recovering slowly
Each week, STR analysts provide a deep-dive video update into China hotel performance. Key highlights for the most recent video include:
• Mainland China occupancy is slowly recovering, but ADR has shown very little movement over the last few weeks
• Midscale and economy hotels continue to show the highest occupancy levels, but other classes are slowly closing the gap
• The video also provides a look at historical profitability, specifically F&B
UK occupancy and RevPAR remain static
Each week, STR analysts provide a deep-dive video update into U.K. hotel performance. Key highlights from the most recent video, highlighting performance for the week of June 1-7, include:
• Occupancy and RevPAR remained static, with RevPAR not expected to show a year-over-year shift until July 4
• Midscale and economy class hotels saw occupancy over 30% during the weekdays and over 20% during the weekend, as essential workers are housed in these hotels
• Forward-looking data (as of 1 June) shows that cancellations are outweighing new bookings in key U.K. markets
In Trump emoluments case, a move to block subpoenas
The U.S. Justice Department is trying to stop subpoenas of U.S. President Donald Trump-related businesses in a case over whether Trump is illegally accepting emoluments by owning the Trump International Hotel in Washington, D.C. The request comes as the Trump administration formally said it plans to appeal the case to the Supreme Court.
KKR’s Apple Leisure hires advisers as it weighs capital raise
Apple Leisure Group has hired advisers as it contemplates raising new capital after being hit hard by the COVID-19 pandemic. The travel and hospitality company, as well as owners KKR & Co. and KSL Capital Partners, have hired financial and legal advisers. The company is allegedly not currently weighing restructuring or bankruptcy as an option. Apple Leisure has a US$950 million first-lien loan due in 2024 that last traded at about 67 cents on the dollar, according to data compiled by Bloomberg. It fully drew down its US$175 million revolving credit facility earlier this year, a person with knowledge of the matter said.
Napa Valley hotels reopen after nearly three months
The majority of the more than 100 hotels in Napa Valley, California, have reopened or plan to this month, after the state’s Department of Public Health on June 5 cleared the way for more business sectors to resume operations. Hotels include the Auberge du Soleil, Meadowood Napa Valley in St. Helena, Calistoga Motor Lodge and Spa, and the DoubleTree Hotel & Spa Napa Valley. Archer Hotel, Arbor Guest House, and Wine Valley Lodge are slated to reopen in July, according to Visit Napa Valley.
Cuban group plans to reopen ‘sun and beach’ hotels
Cuba’s Gran Caribe hotel group will prioritize the reopening of sun and beach hotels during the first post-COVID-19 recovery phase planned on the island, in which tourist offers will only be for the domestic market. The group’s delegate in Havana, Isabel Arbona, said these facilities are highly requested by national tourism, a sector that grew last year by more than 600,000 guests compared with 2018. Gran Caribe has 12 hotels in Havana. Among them, one of the most demanded is the Atlántico-Villa Los Pinos-Villa Mirador del Valle hotel complex, although also reopening hotels located in the city hasn’t been ruled out.
Pan Pacific London moves opening date to early 2021
Pan Pacific London will move its opening date from this year to sometime in early 2021 due to complications from coronavirus, the hotel’s GM confirmed. The hotel marks Pan Pacific Hotels Group’s first outpost in Europe and the first high-rise hotel in London.
Aimbridge Hospitality’s AIMConnect program
Dallas, Texas-based management company Aimbridge Hospitality has launched AIMConnect, a strategy to execute small meetings and events in response to the new environment and safety guidelines. Developed internally, AIMConnect focuses on four pillars for small meetings and events: redesigning the hotel for success through social distancing and leveraging technology; implementing innovative food and beverage services; instilling client confidence through education and communication; and executing safe events. Aimbridge associates are trained on the program through a series of educational webinars, tools and resources.