More Chinese-owned assets selling. Chinese company’s continuing divestiture of U.S. hotel assets is in the news again with Bloomberg reporting that Anbang Insurance Group Co. has hired Bank of America Corp. to help sell the former Strategic Hotels & Resorts luxury portfolio. Citing sources familiar with the matter, BOA was chosen from among several potential advisers to market properties such as the Westin St. Francis in San Francisco, the Loews Santa Monica Beach Hotel, the Fairmont in Chicago, Essex House Hotel in New York and the Four Seasons in Jackson Hole, Wyoming. Anbang acquired Strategic from Blackstone Group in 2016 for about US$6.5 billion, a roughly US$450 million premium to what the New York firm had paid for the company just three months earlier. The price dropped to US$5.5 billion after U.S. security officials opposed the sale of the Hotel del Coronado near a big naval base in San Diego.
Trump ties to NYC deal. Kushner Companies is buying from an undisclosed price the Hotel on Rivington on Manhattan’s Lower East Side. The family-run business, which include Jared Kushner, son-in-law and adviser to U.S. President Donald Trump, is acquiring the property, known for receiving a record number of noise complaints from neighbors, from former Wall Street attorney Paul Stallings, the New York Post reported.
Looking up in Asia Pacific: Hotels in the Asia Pacific region posted positive results across the three key performance metrics during October 2018, according to data from STR. The absolute ADR and RevPAR levels were the highest for any October in STR’s Bali database, while the absolute occupancy level was the largest for an October in the market since 2011. Phuket has now seen four consecutive months of RevPAR declines. STR analysts believe this could be due to a decline in group business, along with a softening of tourist numbers from Mainland China, something that other key destinations in Thailand have also seen in recent months.
October 2018 vs. October 2017, Asia Pacific
Occupancy: +1.6% to 72.5%
ADR: +1.5% to US$111.68
RevPAR: +3.0% to US$80.93
Middle East down, Africa up: Hotels in the Middle East reported October 2018 performance declines, while hotels in Africa posted growth across the three key performance metrics, according to data from STR. The absolute levels in each of the three key performance metrics were the highest for any October in STR’s database for the Cairo and Giza combined market. October also continued a trend of significant year-over-year performance increases in the market. STR analysts attribute this continued growth to further performance recovery and increased tourism aided by resumed flights with Russia as well as government campaigns to boost the attractiveness of the destination. At the same time, the market’s hotels have benefitted from a lack of supply growth.
October 2018 vs. October 2017, Middle East
Occupancy: -1.6% to 63.8%
ADR: -7.0% to US$151.11
RevPAR: -8.5% to US$96.46
October 2018 vs. October 2017, Africa
Occupancy: +5.9% to 66.0%
ADR: +8.2% to US$119.72
RevPAR: +14.5% to US$79.02
Madrid demand high: Europe’s hotel industry reported positive results in the three key performance metrics during October 2018, according to data from STR. The absolute RevPAR level was the highest for any month in STR’s Madrid database. STR analysts attribute a 7.4% jump in demand (room nights sold) to October’s CPhI Worldwide pharmaceutical conference, as well as the overall health of the market.
October 2018 vs. October 2017, Europe
Occupancy: +2.4% to 77.4%
ADR: +6.0% to EUR116.15 (US$133)
RevPAR: +8.6% to EUR89.89 (US$103)
Mixed bag in Central/South America: Hotels in the Central and South America region reported mixed performance results during October 2018, according to data from STR. A decline in occupancy in Colombia came as supply (+4.4%) outpaced demand (-3.7%) for the third consecutive month. STR analysts note that occupancy and ADR levels were higher than usual during October’s Latin American and Caribbean Agriculture congress.
October 2018 vs. October 2017, Central/South America
Occupancy: -1.6% to 59.2%
ADR: +13.1% to US$109.56
RevPAR: +11.3% to US$64.91