Colony Capital defaults on US$3.2B in loans
Real estate investor Tom Barrack’s REIT Colony Capital has defaulted on US$3.2 billion in loans backed by hotel and health care properties, according to a regulatory filing. Before the coronavirus crisis hit, Colony Capital’s 157 hospitality and health care-related properties accounted for three quarters of the REIT’s real estate balance sheet. The company did not specify how many properties were at risk because of the defaults. In April, Barrack appeared on Bloomberg Television saying that the U.S. real estate industry was in peril because the government was allowing homeowners and renters skip payments.
The future is overwhelmingly staycations: study
A travel sentiment study indicates that local travel will come back first, with staycations predicted to be up a whopping 425% year over year and “driving distance” destinations up 28%, according to the study from travel industry data analytics company Curacity and the Independent Lodging Congress. Although there is a decline in air-based travel in the near term, the most surprising—and optimistic—news is that consumers believe there will be a minimal change in their holiday travel this December compared with last December.
April data for Jeddah hotels lowest since 2008
Because of the continued limitations and concerns around the COVID-19 pandemic, the hotel industry in the Saudi Arabian city of Jeddah reported its lowest overall performance on record, according to preliminary April data from STR. ??Compared with April 2019:
Occupancy: -57.5% to 21.9%
ADR: -18.6% to SAR544.77 (US$145)
RevPAR: -65.4% to SAR119.33 (US$32)
The absolute occupancy and RevPAR levels were the lowest for any month in STR’s Jeddah database. The ADR value was the lowest for an April in the market since 2008. Jeddah’s occupancy in March was 25%.
And London fared no better
With the continued impact of the COVID-19 pandemic, April was London’s worst hotel performance month on record, according to preliminary data from STR.
Comparison with April 2019:
Occupancy: -73.0% to 21.9%
ADR: -38.9% to £87.18 (US$108)
RevPAR: -83.5% to £19.11 (US$24)
The absolute occupancy and RevPAR levels are the lowest for any month in STR’s London database, while absolute ADR fell below £90 (US$112) for the first time since August 2005. The occupancy level was down from 32.7% in March.
Judges for US$1M COVID-19 competition revealed
The Lee Business School at the University of Nevada, Las Vegas released the list of committee members who will select winners for the Lee School Prize for Innovation and Entrepreneurship. The competition aims to speed entrepreneurs in the development of innovations necessary to rapidly address the urgent problems facing the hospitality, entertainment and travel industries resulting from COVID-19. Committee members will comprise industry leaders and deans from UNLV’s schools of business, science, engineering and hospitality.
The Lee School Prize committee members will include:
Steve Aoki – Aoki Foundation
Diana Bennett – chairman, Paragon Gaming and vice chair, UNLV Foundation
Dean Eric Chronister – UNLV College of Sciences
Mark Davis – principal owner and managing general partner, Las Vegas Raiders
William P. Foley II – chairman, Fidelity National Financial and owner, Vegas Golden Knights
Maurice J. Gallagher Jr. – chairman and CEO, Allegiant Air
Bill Hornbuckle – acting CEO and president, MGM Resorts International
Wolfgang Puck – CEO, The Wolfgang Puck Group
Dean Stowe Shoemaker – UNLV William F. Harrah College of Hospitality
Dean Paulette Tandy – UNLV Lee Business School
Dean Rama Venkat – UNLV Howard R. Hughes College of Engineering