IHG launches new loyalty program: IHG Hotels & Resorts has launched IHG One Rewards, a new global loyalty program. The reimagined program will include a new tier and bonus point earning structure which will allow members to earn more points faster and gain rewards sooner; benefits like free breakfast for Diamond Elite members; exclusive access to reward night discount promotions for Platinum Elite and Diamond Elite members; more opportunities for elite members for early check-in, late check-out and room upgrades; and the introduction of Milestone Rewards — a new technology-based platform allowing members to choose rewards.
Apollo looks to acquire Parkdean Resorts: Apollo Global Management, New York City, is planning to takeover Parkdean Resorts in the U.K. for £2 billion (US$2.60 billion). Apollo has reportedly been picked as a bidder by Parkdean’s owners to move to the next phase of the auction process, which is being handled by Morgan Stanley. Canada’s Onex Corp. acquired Parkdean in 2016 for £1.3 billion (US$1.69 billion). If Apollo acquires the company, it will unite the company with Parkdean’s CEO Steve Richards. Previously, Richards ran Casual Dining Group, the owner of Bella Italia and Café Rouge, when it was owned by Apollo.
Hilton expands lifestyle pipeline: Hilton announced it is expanding its lifestyle offerings with 10 new Canopy by Hilton, Tempo by Hilton and Motto by Hilton signings in the U.S., Latin America and Europe. With significant signings in Nashville, Sioux Falls, Sao Paulo and Cannes, the pipeline of Hilton’s three lifestyle brands is expected to more than double in the next 10 years with expansion into 15 new countries. The latest signings constitute around 20% of the Hilton category’s pipeline of 55 hotels, of which 55% are in the U.S. Growth is the strongest in Europe, with 1,000 expected rooms, followed by the Caribbean and Latin America and Asia Pacific regions. The Canopy by Hilton brand is expected to grow its presence in the U.S. and France, while Tempo by Hilton is growing its current pipeline of over 10 properties with five new signings in the U.S. Motto by Hilton, which has a development pipeline of 10 properties, has recently signed the first two hotels in Brazil.
US construction decline continues: While a dip in hotel construction continues steadily across the U.S., volume in New York City and Nashville accounted for a significant percentage of those markets’ current supply, according to STR. Additionally, planning activity continues to increase nationally, with markets like Miami, Phoenix and San Francisco registering high interest from developers.
- In construction: 154,881 rooms (-15.7%)
- Final planning: 177,756 rooms (-16.8%)
- Planning: 297,046 rooms (+26.3%)
In terms of rooms in construction, New York led with a 11.5% rise (14,288 rooms), followed by Nashville (8% increase, 4,394 rooms), Detroit (5.7% increase, 2,637 rooms) and Miami (5.4% rise, 3,450 rooms). In terms of planning phase of the pipeline, Miami led with a 15.6% rise and 9,986 rooms, followed by Nashville (14.3% rise, 7,877 rooms), Phoenix (10.2% rise, 7,134 rooms) and San Francisco/San Mateo (8.9% rise, 4,842 rooms).
EAHG acquires in West Palm Beach: Electra America Hospitality Group, the joint venture between Electra America and AKA, has acquired for US$84 million a new-build property in downtown West Palm Beach, Florida, which will be converted into AKA West Palm, an upscale hotel residence. The six-story building was purchased from developer Transwestern Development Co. The hotel will include 217 suites and residences, 6,000 square feet of ground-floor retail, an indoor/outdoor lounge and bar, a fitness center, conference room, pet spa and a private residence lounge space for AKA members. The property, which is slated to open this summer, will feature studio, one- and two-bedroom residences. This marks the joint venture’s fourth acquisition since it was launched in early 2021.
Industry outlook survey: Around one-third of respondents in the Spring 2022 Industry Outlook Survey conducted by the Hospitality Asset Managers Association (HAMA) said 51% to 75% of hotels are projected to exceed the 2022 budgeted RevPAR. The semi-annual report collected predictions, experiences and opinions of almost 100 hotel managers and addressed respondent’s thoughts on the industry’s future outlook. About three-quarters of surveyed asset managers were more optimistic about the rest of the year as the Omicron variant of COVID-19 had subsided. Top three concerns of asset managers were labor availability (90.48%), wage increases (70.24%) and delays in supply chain (61.9%). Around 61% of the respondents said RevPAR would return to 2019 levels for the entire U.S. by 2023. The survey also revealed that almost 90% of the participants are actively acquisition opportunities.
Treppides exits Oniro chain: Treppides Investments & Holdings, Nicosia, Cyprus, announced it is exiting its Oniro hotel business in Greece after its four-year stint by selling the four hotels to the family office of Stavros Efremidis and Delfi Partners Group. The hotels, which were created and managed by Treppides, include the Oniro City Hotel in Kolonaki, the Asomaton Hotel in Thiseio, the Oniro Suites in Chora Mykonos and a property under construction in Kolonaki. The new owner of the hotels have also acquired the Oniro Hotels brand name and is deploying US$400 million for investments in Greece.
UBS REPM funds hotel, office tower: UBS Asset Management Real Estate & Private Markets is providing equity funding to help in the development of a £100 million (US$130.16 million) hotel and office tower in London. The property will be owned by UBS. The capital is being provided along with development partners BSW Land & Property and Pickstock Group. The 23-story hotel will feature 18 floors of hotel space above 25,000 square feet of office space. Motel One has pre-leased the hotel on a 30-year lease.
New principals at Grand Orlando: The Grand Orlando Resort at Celebration, which was recently acquired by New York-based Tishman Hotel Corp., will be managed by Providence, Rhode Island-based StepStone Hospitality. The 718-key hotel is undergoing a US$35 million renovation, which is expected to be completed in early 2023. The renovated resort will be flagged as a Delta by Marriott. The renovation construction is contained to one of the six hotel towers at a time. Located close to the Walt Disney World, the property also includes a 11,632 square feet conference center.
Indian hotel owners sentiment survey: Low demand and occupancy and reduced ADR and revenue have emerged as one of the biggest challenges faced by Indian hotel owners, according to the third Indian Hotel Owners’ Sentiment Survey 2022 conducted by Hotelivate. Retaining human resources, high fixed costs and cashflow issues also emerged as the topmost challenges during/post the pandemic. About 43% of hotel owners were dissatisfied with the Indian government’s response and handling since the start of COVID-19 in India, while 43% of the respondents were satisfied with their hotel brand’s response since the start of pandemic in India. If given the opportunity, hotel owners said they would ask the government for reorganization of statutory requirements (like licenses, excise waivers, etc.), reduction of the Goods and Service Tax or GST rebates and infrastructure status for hospitality.
Deal activity improves: Deal activity in travel and tourism sector improved by 1.8% in Q1 2022 compared to Q1 2021, as per GlobalData’s Financial Deals Database. A total of 289 deals were announced during Q1 2022. The growth was boosted by improvement in some key markets although other important markets saw subdued activity due to prevailing market volatility and uncertainty. While the U.S., the U.K., Japan, India, Germany and Spain saw improved deal activity, markets like China, Australia, France and South Korea reported fewer deal activity in Q1 2022 compared to Q1 2021.
Boardwalk Investment acquires 3 in California: Boardwalk Investment Group, Costa Mesa, California, has acquired three properties in Northern and Southern California. The acquired properties include an eight-story apartment complex in San Diego’s Little Italy, The Flower Gill Promenade and shopping center in Del Mar and the 22-acre Estate Yountville resort in Napa Valley. These investments have a combined purchase value of US$620.8 million. The Estate Yountville, the largest commercial property in the area, features two luxury hotels, a spa, 11 indoor and outdoor event spaces, a vineyard and a festival-style shopping center.
Highgate to manage Renaissance Hotel in Honolulu: JL Capital, Honolulu, Hawaii, has selected Highgate to manage the new Renaissance Honolulu Hotel at Sky Ala Moana. The twin-tower hotel and condominium project is currently under construction. The 39-story hotel tower will comprise 187 rooms and suites topped by Marriott’s Renaissance Residences, a restaurant, bar and an eighth-floor sky terrace with two pools, Himalayan salt saunas and a fitness center and spa. The hotel is expected to open in the next 18 months. This will mark Highgate’s 10th property in Hawaii.