Mandarin takes Lake Como. Mandarin Oriental Hotel Group has taken over management of the 79-room CastaDiva Resort & Spa, an existing resort spread over nine villas on Lake Como, Italy. The property will be rebranded as Mandarin Oriental, Lake Como in spring 2019 following a refurbishment of facilities. This will be Mandarin Oriental’s first resort in western Europe and will complement the group’s Milan hotel.
Hyatt, SLH alliance. Hyatt Hotels Corp. is growing the value of its loyalty program by announcing on Wednesday an alliance with Small Luxury Hotels of the World that gives World of Hyatt members the opportunity to earn and redeem points during stays at participating SLH hotels when they book through Hyatt channels. For SLH hotels, it gives members an opportunity to increase occupancy with significant exposure to the World of Hyatt program’s more than 10 million members.
New senior exec at Virgin. Virgin Hotels named Thomas Becker senior vice president of operations. Becker, a 35-year industry veteran who will be based in Miami, will be responsible for the operational performance of all Virgin Hotels and will work closely with the senior leadership team to develop and execute the strategic plan to drive growth and profitability.
Wyndham resort for Palau. Wyndham Hotels & Resorts announced the development of a 539-room resort with over-water villas in Palau. Wyndham Palau is being developed by the Sea Sky International Development Group, a subsidiary of Global International Development Group, and is scheduled to open in 2021.
Bon grows in South Africa. Bon Hotels, a South Africa-based hospitality company that owns, manages and markets 37 hotels throughout Africa, has announced the acquisition of the Protea Hotel Empangeni, to be named Bon Hotel Empangeni in KwaZulu-Natal, South Africa, and the Protea Hotel Waterfront Richards Bay, South Africa, to be named Bon Hotel Waterfront Richards Bay.
U.S. pipeline update. At the end of the second quarter, Lodging Econometrics reported that the total U.S. construction pipeline stands at 5,312 projects/634,501 rooms, up 7% from 2017’s 4,973 projects/598,371 rooms. Pipeline totals are still significantly below the all-time high of 5,883 projects/785,547 rooms reached in 2008. Projects scheduled to start construction in the next 12 months have seen minimal change year-over-year with 2,291 projects/266,878 rooms. Projects currently under construction are at 1,594 projects/208,509 rooms, the highest recorded since 2007. This also marks the fourth consecutive quarter that the number of rooms under construction has been over 200,000.
Hyatt raises RevPAR growth. Hyatt Hotels Corp. Q2 2018 results showed adjusted EBITDA of US$218 million; systemwide RevPAR growth of 4%; and fee growth of US$142 million (+9.6% year-over-year). RevPAR growth expectations are now 3%-4% (versus 2%-3.5% previously), shareholder returns are now targeted to be US$800 million (+US$100 million; Hyatt has repurchased US$607 million worth of shares year-to-date), and adjusted EBITDA is increasing US$10 million at the low end of the range, which includes a US$5 million negative impact from incremental FX headwinds versus prior expectations. The recently closed acquisition of the Hyatt Regency Phoenix is likely boosting earnings guidance a bit as well.
Solid Q2 for Wyndham. Wyndham Hotels & Resorts Q2 2018 results showed a 31% increase in revenue (US$435 million) compared with last year. Net income was US$21 million for the second quarter; adjusted net income was US$73 million, a 43% increase over the prior-year quarter. Global RevPAR increased 9% year-over-year and 4% in constant currency and excluding its 2018 acquisitions and divestitures. Systemwide, rooms grew 12% year-over-year, and 3% excluding its 2018 acquisitions and divestitures.
Long Island City hotel dealt. The 100-room Z NYC Hotel in Long Island City, New York, has been sold to Merchants Hospitality for US$43 million. The deal includes additional land behind the hotel that Merchants can use to add value through another building with 109 apartments.