Mixed January in U.S.: While overall performance growth was muted in January 2019, particularly on the rate side, the U.S. hotel industry reported positive results in the three key performance metrics and set a demand record with more room night sold than any other January on record, according to data from STR. In a year-over-year comparison with January 2018, the industry posted the following: Occupancy +0.7% to 54.8%; ADR +0.8% to US$124.39; RevPAR +1.5% to US$68.13.
Marriott activates Bonvoy: With a tagline “Rewards Reimagined,” Marriott International is launching a global marketing campaign introducing its newly renamed loyalty program, Marriott Bonvoy. The campaign encompasses advertising across television, digital video, mobile, print, social media, out of home, and cinema, as well as special events and member access to partner experiences around passion points like sports and entertainment. Highlighting the campaign will be television spots directed by Oscar-nominated filmmaker Jean-Pierre Jeunet, which will premiere in the U.S. during the 91st Oscars and will be featured within an insulated commercial pod during the broadcast on ABC. Marriott is also entering into a multi-year agreement with Premier League powerhouse Manchester United Football Club with Marriott Bonvoy branding appearing prominently on ground-level “digiboards” within Old Trafford stadium. Marriott Bonvoy members can bid points for access to a branded luxury suite within the stadium for matches.
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Starwood Capital close big Miami Beach deal: Starwood Capital Group, a leading global private investment firm, and LeFrak, a family-owned property company, announced that a controlled affiliate closed on the sale of the 429-room 1 Hotel South Beach in Miami Beach, Florida, for US$610 million, which translates to a frothy US$1.42 million per key. SH Hotels & Resorts, an affiliate of Starwood Capital Group, will continue to operate and manage the property as 1 Hotel South Beach.
Icahn suggests Caesars sale: Caesars Entertainment said Wednesday that it has held discussions with billionaire investor Carl Icahn, who began pushing for fundamental changes this week, including pursuing a sale, after revealing a 10% stake in casino and resort. Icahn also said he wants a say in who the company appoints to replace CEO Mark Frissora, who guided Caesars through its US$18 billion bankruptcy in 2017. Caesars said that it is evaluating Icahn’s ideas and will continue to listen to the activist investor.
Dan expands in Israel: Dan Hotels, Tel Aviv, is acquiring three hotels from Israel Land Development Hotels, owner of the Rimonim hotel chain, for a total of NIS 225 million. The hotels are the 278-room Rimonim Eilat Hotel, (NIS 110 million); the 75-room Ruth Rimon Hotel in Tzfat (NIS 33.7 million); and the 226-room Rimonim Nazareth Hotel (NIS 63.6 million). Israel Land Corp. has three months to decide whether to add the 44-room Neve Ativ Rimonim Hermon Holiday Village to the deal for an additional NIS 17.7 million. The agreement also gives Dan Hotels the right to negotiate for an agreement to manage three more Rimonim hotels not involved in the deal.
Oyo takes Japan: Indian budget hotel operator Oyo Hotels is moving into Japan with a rental apartment service targeting millennials. Oyo Technology & Hospitality Japan, a joint venture between Oyo and Yahoo Japan, on Wednesday said it will launch a service in early March that will enable users to find, rent and leave apartment rooms using a smartphone app. In Japan, homes are usually rented out unfurnished and tenants need to purchase furniture and appliances on their own. Oyo’s service, dubbed Oyo Life, aims to offer units that are fully furnished and come equipped with Wi-Fi and utilities like water and electricity. Oyo is targeting 1,000 listings in Tokyo’s prime areas by the end of March. It said monthly rental prices will range from 20,000 yen (US$180) to 800,000 yen (US$7,230).
Drumroll, please: Forbes Travel Guide on Wednesday debuted its 61st annual list of Star Rating winners. The 2019 award recipients include 21 new 5-Star hotels, 49 new 4-Star hotels and 62 new hotels in the Recommended category. Other first-time recipients include six 5-Star restaurants, eight 5-Star spas and 21 4-Star spas. A standout was The Peninsula Hotels, which made Forbes Travel Guide history by becoming the world’s first all 5-Star hotel company.
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Cambria growth: Choice Hotels International has signed an agreement with NIAM Investments, Greenville, South Carolina, to develop a six-story, 119-room Cambria Hotel in Spartanburg, S.C. The hotel is slated to open in summer 2020.
Breathing in Phoenix: Oxygen Hospitality Group, an owner-operator hospitality management company, has made its foray into the Phoenix hospitality marketplace with the acquisition from 3600 N. 2nd Ave Holdings LLC of the 160-room Wyndham Garden Phoenix Midtown, for an undisclosed amount. Purchased by Hotel Oxygen Midtown LLC, Oxygen Hospitality will manage the hotel and plans a multimillion-dollar renovation that will elevate it as a full-service hotel.