IHG reports earnings, plans new brand. IHG reported Q4 2018 results on Tuesday, which showed pre-tax profits off 26% but an increase in dividends by 10%. The UK-based operator also announced the launch of a still-to-be-named all-suites brand in the upper midscale segment where strong demand has driven an approximate 70% increase in room supply over the past four years. The slump in pretax profit was due to an exceptional charge of US$104 million for acquisition and integration costs, litigation, reorganization costs, and expenses related to the settlement of the pension scheme. Total gross revenue increased 6.6% to US$27.4 billion and operating profit rose 7.7% year-on-year to US$816 million. Global RevPAR was up 2.5%, boosted by a good performance in Greater China. The system grew 4.8%, including 56,000 room additions.
Four Hiltons for Mexico. Hilton on Tuesday announced the signing of four hotels in Mexico, including firsts for three of Hilton’s brands. In Spring 2019, the 59-room Umbral, Curio Collection by Hilton will launch in Mexico City; in late 2019 the Canopy by Hilton Cancun La Isla will in the largest shopping center in Cancun with 175 guestrooms; also in late 2019 Hotel Lafontaine, Curio Collection by Hilton will feature 34 guest rooms in the Polanco neighborhood of Mexico City; and in late 2021 in Monterrey’s financial district, the 202-guestroom Hilton Monterrey Valle Oriente will form part of a mixed-use-project.
Hiltons sold. A group of nine hotels in the UK leased to Hilton Worldwide Holdings, which entered a form of bankruptcy protection in early 2018, has been acquired for US$315 million by Vivion Investments Sarl, led by the family of Israeli property tycoon Amir Dayan, according to a Bloomberg report. The hotels were once part of Iranian-British businessman Vincent Tchenguiz’s Zinc Hotels portfolio.
Wyndham Rewards changes. Wyndham Hotels & Resorts has announced several new features for its Wyndham Rewards loyalty program. Effective April 3, a three-tier redemption program, including a cash and points option, will replace a flat redemption rate. Free night redemptions will be available at 7,500, 15,000, and 30,000 points. Points plus cash redemptions will be available at 1,500, 3,000, and 6,000 points. Approximately one-third of Wyndham hotels will move down to the 7,500 point redemption tier, with only 200 moving up to the 30,000 tier. Wyndham Rewards will also provide more outlets to redeem points with new hosts and partnerships.
RIU grows TUI stake. RIU has increased its stake in TUI to 3.56% frin 3.38% by acquiring 1.1 million shares representing an investment of more than €10 million. The relationship between TUI and RIU dates back to 1977 with the creation of Riu Hotels S.A., a hotel development company with a 49% stake held by TUI, and 51% by the Riu family. RIU has been a shareholder of TUI AG since 2004.
Woodspring development. Choice Hotels International has agreed with ServiceStar Hospitality to develop 14 new WoodSpring Suites hotels throughout Colorado, Arizona, and Nevada. ServiceStar Hospitality is part of ServiceStar Capital Management, a Colorado real estate investment firm.