Optimism from Scandic: The biggest player in Scandinavia, Scandic, is reporting improved occupancy and rate trends through August and is optimistic about the fall season. Occupancy stood at 58.5% in July and 53.5% in August due to domestic leisure business. Trends have Scandic expecting at least 50% occupancy in September. The greatest increase has been in the larger cities, while Scandic reports demand during weekdays in early September was increasingly being driven by domestic business travelers and meetings. Currently, Denmark and Norway are performing best, while Finland occupancy levels are at a considerably lower level. Scandic said 40% occupancy will allow it to achieve positive adjusted EBITDA and about 50% for positive cash flow.
Six Senses adds in Maldives: Six Senses Hotels Resorts Spas, Bangkok, is set to add Kanuhura on the private island of Lhaviyani Atoll to its portfolio in the Maldives. This is the company’s second branded property in the Maldives, after Six Senses Laamu at Laamu Atoll. Once Kanuhura joins the Six Senses family in late 2022, it will offer 80 private overwater and beach family villas. The resort will undergo renovations, which will include an upgrade of the overwater villas to include private pools, new family suites, wellness center and dining concepts. This will be the company’s second collaboration with the Singapore-headquartered Hotel Properties Ltd., which owns 41 hotels and resorts in 15 countries with eight in the Maldives.
Fewer deals in August: Deal-making activity in the travel and tourism sector fell 17.4% in August, according to latest data by data and analytics firm GlobalData. A total of 57 deals (consisting of private equity, M&A and venture financing) were announced in August compared to 69 deals in July. The announcement of venture financing, private equity and M&A deals declined by 4.3%, 20% and 24.4%, respectively, in August. Although China saw improved deal-making activity, it dipped in major markets like the U.S., the U.K., Australia and India.
Ikos grows in Spain: Greece-based Ikos Resorts has acquired the luxury 319-room Blau Porto Petro hotel in Mallorca, Spain, for €110 million (US$129.95 million) from Grupo Roxa. The property will undergo an extensive renovation and increase its room count to 434 when it reopens in April 2023.
AHLA analysis of business travel revenue: The U.S. hotel industry is expected to end 2021 down more than US$59 billion in business travel revenue as compared to 2019, as per a survey by the American Hotel & Lodging Association and Kalibri Labs. This comes after the industry lost around US$49 billion in business travel revenue in 2020. Business travel, which has been the slowest to return to normal since the pandemic, is not expected to reach the pre-COVID levels until 2024. The lack of business travel and events has also caused widespread unemployment, with hotels likely to end 2021 down nearly 500,000 jobs compared to 2019. New York City, New York; Washington D.C.; San Francisco, California; Orlando, Florida, and Chicago, Illinois, are the five markets which are expected to end the year with the biggest declines in business travel revenue.
Respecting native Americans: Citing a commitment to inclusion and diversity, and to show greater respect to the local the local Washoe Tribe of Indians, the Resort at Squaw Creek, Olympic Valley, California, will remove the word “squaw” from its name with plans to introduce a new brand for the 405-room Lake Tahoe area property by April 2022.
Hilton Honors extends benefits: Hilton Honors, the guest loyalty program of Hilton’s 18 brands, announced changes to its policies, including the extension of global loyalty benefits, enabling more than 118 million members to retain their points and status perks and benefits till March 31, 2023. Other changes include pausing expirations of points till December 31, 2022, relaxing 2022 qualifications regarding earning status from 2019 requirements, extending rollover nights and continuing flexibility of some benefits for U.S. Hilton Honors American Express card members till December 31, 2022.