COVID-19: Las Vegas mask policy | US profits tick up in May

Mask policy for MGM, Caesars

Both MGM Resorts International and Caesars Entertainment Corp. announced policies requiring masks for all guests and visitors inside public spaces at the property-level. For MGM, that means every MGM Resorts property in the United States. For Caesars, that means everyone indoors at its properties across the Caesars network will be required to wear masks at all times, except when eating or drinking. Earlier, both companies only required employees to wear masks.

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Disneyland delays reopening of California parks, hotels

Disneyland Resort in Southern California will not reopen July 17 as previously announced. Disney said it has to delay the planned reopening of Disneyland and California Adventure and on-site hotels because the state of California has said it will not issue reopening protocols until after July 4. It did not set a new reopening date, saying it will do so once it has a “clearer understanding” of when guidelines will be released. Labor union opposition to the July 17 reopening appears to have played a role, too. Last week, the Coalition of Resort Labor Unions, which represents a dozen Disneyland Resort unions, sent a letter to California Governor Gavin Newsom saying it was too early to reopen Disneyland, which closed in mid-March due to the coronavirus pandemic. 

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U.S. hotel profitability improved in May

STR‘s most recent monthly profit and loss data release shows U.S. hotel gross operating profit per available room down 110.1% in May. That percentage change was a slight improvement from April’s decline of 116.9%. Additionally, limited-service properties showed positive profitability on average when surpassing 45% occupancy.

In a year-over-year comparison with May 2019, the industry reported the following:

GOPPAR: -110.1% to US$-10.26

TRevPAR: -88.3% to US$28.62

EBIDTA PAR: -130.9% to US$-24.14

LPAR (labor costs): -69.5% to US$24.30

Among top markets, Phoenix reported the most improvement from April to May in TrevPAR (US$18.52), while Los Angeles/Long Beach showed the largest gain in GOPPAR (US$28.33).

As Europe’s COVID-19 cases drop, hoteliers prepare for comeback

If May’s global numbers are any indication, things are getting better, according to data from HotStats. As several countries started to loosen some of their lockdown restrictions, the prodigious profit drop in Europe’s hotel industry showed a significant deceleration on a month-over-month basis. GOPPAR in May was down 1.2% compared to the previous month, a welcome result in view of the 119.1% and 122.9% month-over-month plunges recorded in April and March. And even though GOPPAR remains 125.5% below May of 2019, this reduction is an indicator that the region has likely reached the bottom and is on its way to recovery.

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Sternlicht: Big city hotel business will be slow to bounce back

In a video interview with Bloomberg, Starwood CEO Barry Sternlicht explains how the coronavirus pandemic is affecting the hotel industry and why he is especially worried about New York City’s recovery.

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Phuket launches destination marketing campaign

In Asia’s first international destination recovery initiative post-COVID-19, the Phuket Hotels Association and global hospitality branding agency Quo have joined forces to create a relaunch campaign aimed at reviving travel to Phuket. The “Imagine Phuket” campaign focuses on the sights, sounds, feelings, and tastes that Phuket evokes.

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