Olympics lifts Tokyo: Tokyo, Japan, posted its highest hotel occupancy in 17 months and saw two days with levels that neared the peak of the “Go To Travel” campaign (on November 21, 2020), according to a report from STR. The host of the delayed summer Olympics saw July occupancy level reaching 47.2%, which was the market’s highest monthly level since February 2020. Daily occupancy reached 60.5% and 60.6% on the night before and on the night of the opening ceremony (July 22-23). Preliminary data for August shows occupancy slipping to 45.4% on the night of the closing ceremony (August 8) and 29.2% the night after (August 9). Although the games were closed for spectators, performance surged as hotels housed media, staff and some high-profile teams that didn’t stay in the athlete village.
Auberge Resorts to manage for Leeu: Hospitality company Leeu Collection has appointed Auberge Resorts Collection to manage the 82-key Collegio Alla Querce in Florence, Italy. The 16th century property, which is set to open in 2023, will become Auberge’s second property in Europe. The refurbishment of the hotel is underway and Spanish father-son architect practice, Esteva i Esteva, has been enlisted to work on the structure, while local interior designers, ArchFlorence, will work on the hotel’s interiors. In 2017, Leeu bought Collegio Alla Querce, which opened in 1868 as a Barnabite boarding school, and has spent the last few years converting it into a luxury hotel.
Bankrupt San Jose hotel has new life: The owner of the bankrupt Fairmont San Jose hotel in San Jose, California, has reached a settlement that could allow it to reopen if its financial reorganization with its operator, Accor Management U.S., is approved by a judge. The hotel closed in March when the owner filed for bankruptcy following shattered finances and a months-long dispute with Accor. It is slated to be rebranded as Signia Hilton San Jose and will be managed by the Signia unit of Hilton Worldwide Holdings. Signia Hilton will provide US$15 million to boost the hotel’s operations and finances. Separately, JPMorgan Chase is providing a US$25 million loan as a further bulwark for the hotel.
DigitalBridge finds buyer for remaining portfolio: DigitalBridge, the Boca Raton, Florida-based real estate investment trust formerly known as Colony Capital, is finalizing the disposition of the remainder of its troubled lodge portfolio. The company reportedly found a buyer for its 48-hotel portfolio, spanning 21 states, in response to a movement filed in a lawsuit. Details of both the buyer as well as the deal size haven’t been disclosed. The deal comes after DigitalBridge and its minority partner, Chatham Lodging Trust, in 2020 defaulted US$780 million in CMBS loans when it failed to make interest payments.
NYC, mayor sued over vaccine mandate: New York City Mayor Bill de Blasio and the city of New York have been sued by a group of restaurants and businesses in opposition to their mandate requiring proof of vaccination for indoor activities. The Independent Restaurant Owners Association Rescue, Max’s Esca, DeLuca’s Italian Restaurant and Pasticceria Rocco have sought an injunction against de Blasio’s executive order. Fitness centers Evolve-33 and Staten Island Judo Jujitsu were also listed as plaintiffs in the complaint. The suit alleges that the mandate violates their constitutional rights, unfairly targets certain establishments and is “arbitrary and capricious.” The new policy is slated to start from September 13.
USTA supports extension of mask mandate: The U.S. Travel Association supported the Transportation Security Administration’s extension of the mask mandate through January 2022. In a statement, U.S. Travel Association Executive Vice President of Public Affairs and Policy Tori Emerson Barnes said: “The universal wearing of masks in airports and on airplanes, trains and other forms of public transportation is both an effective safeguard against spreading the virus and boosts public confidence in traveling — both of which are paramount for a sustained economic recovery.”
Marriott expands Turkey portfolio: Marriott International announced plans to expand its portfolio in Turkey with the expected openings of 10 properties by the end of 2022. These openings will help Marriott encompass 43 properties with over 7,000 rooms across eight markets by the end of 2022. The company also announced two recent deal signings under the Four Points by Sheraton brand. While much of the company’s growth in Turkey has been through new-build developments, it has seen an increase in conversion opportunities and signed six conversion deals across the country in the past two years. Turkey is currently home to 17 Marriott International brands.
Deal-making activity dips: Deal-making activity in the travel and tourism sector fell 6.8% in July 2021, according to GlobalData, a data and analytics company. A total of 69 deals (comprising mergers and acquisitions, private equity and venture financing) were announced in the global travel and tourism sector in July, as compared to 74 deals announced in June. The announcement of private equity and M&A deals dropped 58.3% and 4.7% respectively in July, while the venture financing deals saw a growth of 21.1%. Deal activity remained at the same level in key markets like the U.S., the U.K. and China, while India and Australia saw an improvement in deal activity. Deal activity declined in Germany, Spain and the Netherlands.
Middle East pipeline dips: Hotel construction in the Middle East dropped to 531 projects/152,448 rooms at the end of Q2 2021, according to the latest Construction Pipeline Trend report for the Middle East by Lodging Econometrics. Pipeline for the region fell 10% by both projects and rooms year-over-year (YOY). This is the eighth consecutive quarter the pipeline has declined since reaching its cyclical peak of 638 projects in Q2 2019. Projects under construction fell 6% by projects and 8% by rooms YOY, standing at 340 projects/107,537 rooms, down 23 projects from the peak of the under construction stage in the Middle East, which occurred in Q2 2020. Saudi Arabia leads as the country with the most projects in the construction pipeline with 187 projects/67,193 rooms, followed by the United Arab Emirates (149 projects/41,232 rooms) and Egypt (with a record high project count of 66 and 15,961 rooms). Dubai continues to lead the construction pipeline in the U.A.E. with 111 projects/31,901 rooms.
Hotel Equities partners with PEG and Petroglyph: Hotel Equities, the Georgia-based hotel development and management company, has partnered with Utah-based commercial real estate leader PEG Companies and Petroglyph Development Group to manage the 172-room Courtyard by Marriott hotel which is under construction in Nanaimo, Canada. The hotel is slated to open in Q2 2022. The nine-storey hotel, which is situated between Casino Nanaimo and the Nanaimo Museum, is expected to spur economic growth as the first major hotel brand in the area.