Global construction pipeline falls: The total global hotel construction pipeline decreased 9% year-over-year (YOY) and 7% by rooms in Q2 2021, according to the Global Hotel Construction Pipeline Trend Report by Lodging Econometrics. The pipeline now stands at 13,420 projects/2,253,499 rooms. However, construction pipeline jumped significantly by 94% by projects over the cyclical low established in 2011. There are 6,197 projects/1,142,207 rooms currently under construction worldwide, dipping 10% by projects and 7% by rooms YOY. The top countries by project count are the U.S. with 4,787 projects/598,111 rooms and China with 3,454 projects and a record high of 661,043 rooms. The top five franchise companies leading the global construction pipeline by project count are Marriott International with 2,471 projects/425,351 rooms, Hilton Worldwide with 2,450 projects/370,619 rooms, InterContinental Hotels Group with 1,669 projects/246,575 rooms, Accor with 913 projects/ 168,562 rooms and Hyatt, with 371 rooms/73,767 projects.
Rosewood Hotel Group announces co-chief development officers: Rosewood Hotel Group, a global lifestyle and hospitality management group, announced that Radha Arora, president of Rosewood Hotels & Resorts, and Michael Dojlidko, group head of legal, will assume additional responsibilities as co-chief development officers. Arora and Dojlidko will lead the company’s development team to support its expansion and will also retain their existing titles and responsibilities. In their additional role, both of them will lead the brand’s global development and feasibility team to expand the footprint of the group’s five brands — Rosewood Hotels & Resorts, New World Hotels & Resorts, KHOS, Asaya and Carlyle & Co. Rosewood currently encompasses 30 new projects under development across brands. In the rest of 2021, the group will open three new properties across the world.
Red Roof names new president: Red Roof, the New Albany, Ohio-based economy hotel chain, has appointed George Limbert as the company’s president effective immediately. Limbert has been interim president since October 2020 and served as the company’s general counsel for the previous eight years. Earlier this month, the company announced a new prototype for HomeTowne Studios, its extended-stay offering.
U.S. performance declines: Hotel performance in the U.S. continued to decline from the previous weeks, as per STR’s latest data through August 21.
- Occupancy: 63.7% (-9.1%)
- Average daily rate (ADR): US$135.77 (+5.1%)
- Revenue per available room (RevPAR): US$86.43 (-4.5%)
Although none of the Top 25 markets recorded a rise in occupancy over 2019, Detroit came close to its 2019 comparable (-0.7% to 69.3%). San Francisco/San Mateo saw the steepest decline in occupancy (-40.5% to 53.5%). Miami reported the largest ADR increase over 2019 (+27.8% to US$181.66). The largest RevPAR drops were in San Francisco/San Mateo (-58.2% to US$88.39) and Minneapolis (-43.6% to US$61.61).
Lobby fun: It’s Friday, so let’s have a little fun. The Curtis Hotel in Denver, Colorado, has refurbished its lobby to recreate the architecture of a traditional pool in the format of a lobby and lounge. Featuring depth markers, inset pool noodle-inspired banquettes, pool floats and an integrated ladder, the lobby was designed keeping in mind social media-savvy travelers. The design was worked on by DLR Group. To make it more realistic, the lobby’s pool is outfitted with a custom mosaic, which imbue the sense of water lines and movement across the floor and walls.
Aareal Bank’s loan to refinance Warsaw project: Aareal Bank, Germany, announced the closing of a financing agreement with international real estate investor and developer Ghelamco Group at the end of Q2 2021. As the sole agent, arranger and lender, Aareal Bank is providing a senior loan of €31.25 million (US$36.7 million) to Ghelamco to refinance the Warsaw Hub, a newly constructed development in Warsaw comprising high-rise buildings in a multi-functional complex. Besides office buildings, the complex includes an 86-meter hotel tower connected by a common podium. The 118,000 square meter of floor space includes the Crowne Plaza and Holiday Inn Express hotels, besides office and co-working space.
Ovolo’s ‘Vax Pact’: Ovolo Hotels, the Hong Kong-based designer hotel collection, is introducing the ‘Vax. Pact,’ which pledges its employees to get vaccinated and also rewards guests for taking the jab. In Australia, Ovolo’s ‘Vax Pact’ initiative will ensure 100% of employees get their first vaccination by December 31, 2021. To further encourage people to get vaccinated, Ovolo will soon offer incentives to fully vaccinated guests who stay, drink and dine at any Ovolo property in Australia, including dining offers, competitions and additional perks when they present their vaccination certificate.
LCP Group provides construction loan for Hilton: The LCP Group, a private real estate investment firm specializing in hospitality investing, announced it originated a US$45,250,000 construction loan to Sun Development & Management Corp. to develop The Printing House, a Tapestry by Hilton in Nashville, Tennessee. “This is a critical milestone for LCP as it marks our first financing transaction under our new debt platform,” said Francis Lively, President and CEO of LCP. Ratio Architects will design the 11-storey, 180-room hotel. Indianapolis-based Sun, a hotel developer with Hilton Hotels across the U.S., will develop the hotel. Sun currently operates 14 properties with over 1,898 rooms across seven states and has developed over 60 hotels.
Business travel sentiment rises: Willingness for business travel continues to show an upward trend but the rise of Delta variants of COVID-19 has become a cause for concern, according to the latest poll by The Global Business Travel Association (GBTA). While 72% of GBTA travel buyers felt their employees were “willing” or “very willing” to travel for business, over half of the respondents said they expect business travel to see a significant (8%) or moderate (47%) increase during September to November. Although 78% of respondents had not opened international travel in August (compared to 86% in July), 41% have not yet reopened domestic travel (compared to 50% in July). Almost half of respondents said vaccine requirements to perform key business functions are not typically required. Respondents from Europe (66%) are more likely than those in North America (52%) to report their company will not require employees to receive a COVID-19 vaccine before they can meet with clients and customers face-to-face.
Aimbridge launches restaurant group: Aimbridge Hospitality, Plano, Texas, and its lifestyle division, Evolution Hospitality, announced the launch of Taste & Theory Restaurant Group. A solution for concepting bars and rooftop experiences, Taste & Theory specializes in providing clients with bespoke solutions, strategic planning and development to create relevant and profitable concepts. The group aims at hotel guest-driven programming and local-focused, buildout projects, creating relevant and profitable F&B concepts.