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Briefs: Starwood Capital sale? | Balazs accused of groping

André Balazs accused of groping: In recent weeks, as stories about alleged sexual misconduct by powerful men have made headlines in the U.S., several women have come forward accusing Standard’s André Balazs of groping them – among these, actor Amanda Anka, who is also the wife of American actor Jason Bateman.  

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Saudi crackdown continues: Days after some of Saudi Arabia’s wealthiest and most powerful men were detained in the Riyadh Ritz-Carlton (including billionaire Prince Alwaleed bin Talal), word came that the Courtyard by Marriott was undergoing a similar transformation. A receptionist at the hotel, which is located just across the street from the Ritz, said it had also been fully booked by “local higher authorities,” stoking speculation that the list of detainees is now growing. 

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Starwood Capital potential sale? The Times of London reported this week that Starwood Capital Group has appointed advisers to look at the potential sale of its Principal Hotel Co. and De Vere brands, which are being valued at more than £1.2 billion. UBS is reportedly looking option ranging from refinancing to disposal. Principal brands include 12 hotels in the U.K., while De Vere has 15 country hotel and conference venues.

 


Best Western “Experiences”: During its annual convention this week, Best Western Hotels & Resorts unveiled Experiences by Best Western Rewards. In the program, members will get experiences in destinations around the world. All of the program’s experiences include a two-night stay for two guests and an experiential “adventure” package.

 


U.S. tax reform: As U.S. tax reform legislation moves through Congress, a new economic impact study found that tax cuts could generate US$131.7 billion in economic activity for hotels and related industries over the next 10 years. On behalf of the American Hotel & Lodging Association (AHLA), Oxford Economics analyzed the impact of tax policy changes that would result in a tax cut of US$1.5 trillion over 10 years, which they believe will cause real GDP growth to accelerate to 3.0% in 2018.

 


Fujita serviced apartment: Japanese hotelier Fujita Kanko announced that the company will launch its first serviced apartment in Cikarang, located in Greater Jakarta, the capital of Indonesia. The serviced apartment, yet to be branded, is expected to have 214 rooms in three unit types for both single and family residents, accommodating both business travelers and expats. An opening is scheduled for fall 2019. 

 


Meliá results: Meliá released its nine-month 2017 results. Noteworthy: a 5% increase in total revenue thanks to 6.1% growth in RevPAR as a result of price increases; a 7.8% increase in EBITDA and a 42 basis point increase in EBITDA margins, excluding capital gains; and Melia.com continues to grow, with sales up by 17.9% for the period.

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U.S. pipeline data: According to recent reports from Lodging Econometrics, there are 1,295 extended-stay projects/136,945 rooms in the U.S. Hotel Construction Pipeline. 438 projects/48,903 rooms are under construction, accounting for 28% of all projects under construction in the total pipeline. 609 projects/64,359 rooms are scheduled to start construction in the next 12 Months while an additional 248 projects/23,683 rooms are in early planning.

Home2 Suites by Hilton currently has the largest extended-stay pipeline with 348 projects/36,439 rooms. The second largest brand is Marriott’s Residence Inn with 189 projects/23,605 rooms, followed by its Towneplace Suites with 183 projects/18,590 rooms.

 


STR data, London: Preliminary October 2017 STR data for hotels in London indicates a year-over-year decline in occupancy levels, but growth in average daily rate (ADR). Based on daily data from October, London reported the following in year-over-year  comparisons: Supply: +4.0%; demand: +2.0%; occupancy: -1.9% to 83.4%; average daily rate (ADR): +2.3% to GBP152.27; revenue per available room (RevPAR): +0.4% to GBP126.96. This would mark the lowest October occupancy level in London since 2006, but the second-highest ADR for any October since 1994. Because demand grew year over year, STR analysts attribute the decline in occupancy to the significant increase in supply.

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