London bed tax. The British Hospitality Association is calling a proposed London “bed tax” unfair. The London Assembly Economy Committee said on Tuesday the tourism tax could add between £91 million to £364 million a year (US$120 million to US$479 million) to the UK economy. The plan introduced in January has been described as a “Berlin-style tax of 5% of the room rate per night” and could potentially increase rates by £3.40.
Dusit expands in China. Dusit International, Bangkok, has signed a management agreement with Kunshan Yuanwanggu IOT Industrial Park Co. Ltd. to manage Dusit Thani Zhouzhuang, a luxury hotel in Zhouzhuang, China, often described as “the Venice of the East.” Phase one is anticipated to open in 2018, with phase two following in 2022. The hotel will comprise 30 rooms in traditional houses and 160 hotel guest rooms. The traditional houses will open next year in phase one.
HNA taps NH for cash. China’s HNA Group has agreed to a sale and repurchase deal on some of its shares in Spain’s NH Hotel Group to raise cash for internal financing. HNA, which has taken on billions in debt to fund a US$50 billion acquisition spree in the last two years, said it will sell and buy back a 1.14% stake (valued at around e21.5 million) in NH Hotel to “provide liquidity to HNA globally in the context of internal financing.” The transaction was done with an institutional investor not named by HNA.
Marriott beats street. Marriott reported a nice beat versus expectations for 3Q17 with Adjusted EBITDA of US$831 million, well above consensus of US$785 million. Adjusted diluted EPS came in at US$1.10 versus guidance of $0.96-0.99. It reported better branding fees and strong leisure demand in Asia and Europe. 3Q RevPAR results were slightly ahead of guidance, as well. International RevPAR growth was driven by Asia Pacific at +7.9% and Europe at +8.7%. 2018 Worldwide RevPAR guidance came in at the expected +1-3%, similar to HLT’s +1-3%.
Loews expands in Orlando. Loews Hotels & Co will develop two new hotels with Universal Orlando as part of their long-term joint venture partnership. Set to begin opening in the summer of 2019, the hotels will feature a combined 2,800 guest rooms, including 1,450 two-bedroom suites designed to accommodate families of all sizes. Both options will be value-driven, with nightly rates starting below Universal’s Cabana Bay Beach Resort and Universal’s Aventura Hotel, which is scheduled to open in the summer of 2018.
Mighty Marriott. Lodging Econometrics reported Marriott International, due in part to the acquisition of the Starwood brands, currently has the largest construction pipeline of any franchise company with 1,298 projects/166,419 rooms. Their largest brands in the pipeline are: Fairfield Inn with 284 projects/27,411 rooms; Residence Inn with 189 projects/23,605 rooms; and TownePlace Suites with 183 projects/18,590 rooms.
NYU names new leader. Nicolas Graf, PhD, has been appointed associate dean of the NYU School of Professional Studies (NYUSPS) Jonathan M. Tisch Center for Hospitality and Tourism, effective January 1, 2018. Over the past 20 years, Graf has delivered executive education courses for companies in Asia, North and South America, and Europe, and has served as a consultant in the fields of asset management, strategic planning, and business development. Most recently, he served as chief academic officer of Les Roches Global Hospitality Education. In his new role, Graf will lead the Center in creating curricula, industry partners, and attracting students from around the world.