Asia’s biggest hospitality REIT: Singapore’s CapitaLand has passed a resolution to merge its Ascott Residence Trust and Ascendas Hospitality Trust to form Asia Pacific’s largest hospitality trust. It will become eighth largest globally with combined assets of S$7.6 billion (US$5.6 billion). The combined entity, which will continue to be named Ascott Residence Trust, will have a quality portfolio of 88 properties with more than 16,000 units across 39 cities in 15 countries. Through increased access to a larger capital base and higher debt headroom of about S$1 billion (US$733 million), the combined entity will also have greater financial flexibility to seek more accretive acquisitions and value enhancements.
Minimal US RevPAR growth: The U.S. hotel industry reported mostly positive results in the three key performance metrics during Q3 2019, according to data from STR. In a year-over-year comparison with Q3 2018, occupancy was off 0.1% to 70.9%; ADR was up 0.8% to US$133.25; and RevPAR increased 0.7% to US$94.42, While RevPAR increased slightly, it was the lowest year-over-year percent change in the metric since the first quarter of 2010, and the first quarter during the current cycle to show an increase in the metric below 1.0%. Among the top markets, Phoenix, Arizona, registered the largest jump in RevPAR (+5.3% to US$60.57); Houston, Texas, experienced the highest rise in occupancy (+4.4% to 62.4%); Washington, D.C.-Maryland-Virginia, posted the largest lift in ADR (+4% to US$148.43). Two markets matched for the steepest decline in RevPAR: Seattle, Washington (-5.1% to US$154.70), and Miami/Hialeah, Florida (-5.1% to US$101.68). Seattle reported the largest drop in ADR (-4% to US$185.35). Orlando, Florida, experienced the steepest decrease in occupancy (-5% to 69.6%).
Hard Rock drama continues: After two days of delays, on Sunday two teetering cranes at the construction site of the partially collapsed Hard Rock Hotel in New Orleans were brought down by explosives. One of the cranes fell onto Rampart Street, while part of the other is hanging over Canal Street. The Hard Rock Hotel under construction at the edge of the historic French Quarter partially collapsed on October 12, killing three workers. Two bodies still inside the structure will now be recovered before full demolition of the building is expected to take place. Hard Rock Hotels put out a statement on Monday clarifying its role in the crane demolition, saying it was contacted Friday afternoon to provide urgently needed financial support for the safe removal of the two cranes. “We immediately authorized the funds from an escrow account to allow the Kailas Companies to fulfill its obligation,” it said.
Accor grows in Colombia: Accor Group’s Sofitel Hotels & Resorts has announced its third property in Colombia, Sofitel Calablanca, a new resort in Barú set to open by 2021. Accor began the construction of the property in alliance with Patrimonios Estrategias Inmobiliarias, Cementos Argos and Arquitectura y Concreto, who have a development track record in the Caribbean region. Expected to open in mid-2021, the hotel will have 187 spacious guest rooms, distributed in 10 smaller buildings, including 23 suites.
Avani grows in Vietnam: After announcing two projects in Vietnam earlier this year, Avani Hotels & Resorts said on Monday it has signed the Avani Doc Let Resort in Nha Trang, Vietnam, set to open by mid-2020.