CBRE raises 2022 forecast: CBRE Hotels Research has raised its forecast for 2022 ADR, occupancy and RevPAR to reflect the stronger-than-expected performance in Q4. Other factors include below-average supply growth, robust domestic leisure trends, resumption of inbound international travel and a predicted return to office later this year. CBRE now predicts RevPAR to reach 2019 nominal levels by Q3 2022 instead of in Q3 2023 as previously forecast. CBRE expects that ADR will again surpass 2019’s levels following a pause this quarter, driven by a recovery in higher-rated, inbound international travel, resumption of more traditional business travel, labor market tightness and higher overall inflation. Domestic and drive-to resorts are expected to be favored again in 2022, as the war in Ukraine and rising cases of COVID-19 in Asia are likely to persuade wealthier travelers in the U.S. to opt for domestic destinations. Rising gas prices will affect budget-minded travelers who prefer interstate hotels.
Aareal Bank refinances Nobu Hotel London: Aareal Bank has announced the closing of a financing agreement with London + Regional Hotels (L + R) to refinance the rebranding and remodeling of the Nobu Hotel London Portman Square, which opened in May 2021. The 249-key hotel marks the third collaboration between L + R and Nobu, following properties in Monte Carlo and Ibiza. The deal’s financing advisory services were provided by Chatham. L + R and Aareal Bank were advised on legal matters by Fladgate and Bird & Bird respectively, while Cushman & Wakefield worked on the property’s valuation.
US performance improves: Overall hotel performance across the U.S. improved compared to the previous week, according to STR’s data through March 12.
- Occupancy: 63.2% (-9.8%)
- ADR: US$144.68 (+7.7%)
- RevPAR: US$91.45 (-2.8%)
Although none of the Top 25 Markets registered a rise in occupancy over 2019, Miami came closest to its 2019 comparable (-4.7% to 84.1%). San Francisco/San Mateo saw the largest occupancy decline (-29.7% to 56.3%), while Anaheim posted the highest ADR (+34.4% to US$217.87) and RevPAR (+25.9% to US$168.60) increases over 2019. The steepest RevPAR deficits were registered in San Francisco/San Mateo (-44.9% to US$101.77) and Washington, D.C. (-37.5% to US$83.01).
SoBe pioneer has hotel renamed in his honor: The late Tony Goldman, the man responsible for leading the 1990s revival of South Beach in Miami Beach, Florida, has been honored by his family’s Goldman Properties by renaming the 74-room Hotel on South Beach as The Tony Hotel South Beach. At the same time, the famed News Café, once frequented almost daily by the late fashion designer Gianni Versace, is set to reopen later this spring in its familiar location on the ground floor of The Tony’s Ocean Drive building. Goldman was a pioneer who transformed iconic neighborhoods such as South Beach, Wynwood, SoHo and Center City in Philadelphia. He was a preservationist and an artist, who sought to breathe life into decaying neighborhoods by accentuating their DNA, restoring historic architecture, and introducing colorful imagery.
Radisson Red to debut in Athens: Radisson Hotel Group announced the signing of its inaugural Red-branded hotel in Athens, Greece. Radisson has partnered with Gnosis Investment, Nicosia, Cyprus, to open Radisson Red Mitropoleos Square Athens, which will see an existing office building be converted into lifestyle serviced apartments. Slated to open in the second half of 2023, the hotel will consist of 94 small apartments with kitchenettes,150 square meters of meeting space, a fitness center, all-day dining restaurant, a rooftop bar and restaurant with direct views of the Acropolis. Espacron S.A. will be constructing the project. The hotel will mark Radisson’s third property in Athens, following the Radisson Blu Park Hotel Athens and the Anda Hotel Athens, which is a member of Radisson Individuals. The hotel will grow Radisson’s Greek portfolio to seven properties.
JLL closes acquisition financing for Blue Lantern Inn: JLL Capital Markets has closed US$9.5 million in acquisition financing for the 29-key luxury boutique Blue Lantern Inn in Dana Point, California. Working on behalf of the borrower, Ocean Lodging, JLL secured the 10-year loan through a commercial bank. The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Aldon Cole and Analyst Jack Piegza.
Ukraine calls out global operators in Russia: The Ukraine Hotel & Resort Association has posted an open letter to LinkedIn, calling out global hotel brands who have not halted business in Russia. On March 14, it sent an open letter to the seven leading global operators running hotels in Russia and only received one response but no action to halt hotel business there. HOTELS reported on March 10 that many of the major players were stopping further development in Russia, but were not closing their hotels, citing the desire to support staff and locals impacted by the ongoing war. The UH&RA wrote in its letter, “We naturally appreciate the support of humanitarian efforts the hotel companies are giving Ukrainian refugees but reject that the best they can do in Russia is to ‘comply with sanctions and applicable laws.’” The UH&RA went on to state while the operators cite their incapacity to break from franchise/license agreements, “these reports do not address that such contracts are written by the hotel operators and their skilled lawyers, and usually contain numerous exit clauses that could be triggered under force majeure, breach of material covenants, compliance, detrimental business conditions, etc. And in any case, if there is a financial cost to exit, then it should be questioned is it more ethical to breach such contracts at a fiscal cost or to maintain them and continue trading under an unlawful and brutal regime of the war criminal Putin, and against own business ethics codes.”
#HospitalityHelps supported by 322 hotels: #HospitalityHelps, an online booking platform created by hospitality industry veterans to provide temporary hotel accommodation to Ukrainian residents, is now supported by 322 hotels across 38 countries for people fleeing the war in Ukraine. Almost 7,000 room nights were booked with 33,575 room nights available. The website www.Hospitality-Helps.org connects Ukrainian residents seeking shelter with hotels in Europe that provide free accommodation. Hotels looking to sign up and provide their room nights can do so here. There is no minimum required room night donation, but each reservation will be up to five nights in double rooms. Round the clock support is provided in three languages — Ukrainian, Russian and English by Ukrainian refugees who were successfully accommodated by #HospitalityHelps. The initiative was initiated by the PKF hospitality group, The Bench, HotelSwaps, Moodley, Museum Booster and Zoocha. Besides independent hotels, the global initiative has gained support from leading hospitality groups like Accor, IHG, Hilton and Marriott and is the only platform that works across brands and borders.
Island assumes operations of Hilton Garden Inn: West Palm Beach, Florida-based third-party management company Island Hospitality Management has taken over operations of the 111-key Hilton Garden Inn Destin Miramar Beach in Florida on behalf of Chatham Lodging Trust. The hotel opened in 2020 and is within walking distance from the Gulf of Mexico. Island Hospitality currently operates over 75 hotels under 15 brands.
Ritz-Carlton announces residences in Florida: The Ritz-Carlton announced the launch of The Ritz-Carlton Residences, Estero Bay located between Sanibel Island and Naples in Southwest Florida. Designed by Arquitectonica, the project will consist of two towers of 22 stories with a total of 224 condominium homes. Imagined by London Bay Development Group, the first tower has achieved US$150 million in sales within 14 days of its launch. Interiors will be designed by New York design studio Meyer Davis. Starting from US$2 million, residences will range from 2,628 to 3,885 square feet and include two, three and four-bedrooms. The project is expected to break ground by this year’s end.