August it is: Marriott International has announced the official date of the launch of its new combined loyalty program: August 18. Regardless of which program members choose to maintain for the rest of the year, they will be migrated to the new combined loyalty program (which still remains nameless) in 2019.
AccorHotels 1st half 2018 results: Business volumes of €8.9 billion (US$10.4 billion), up 10.3% at constant exchange rates. Revenue of €1,459 million (US$1,706) up 8%. The company also had 301 hotels and 45,150 rooms opened. According to Accor CEO Sébastien Bazin: “The first half of 2018 saw AccorHotels continue the deep-seated transformation of its business model, with the sale of a majority stake in the capital of AccorInvest, the integration of Mantra in Australia and Mantis in South Africa, and the acquisition of Gekko in France. The second half of the year will see Mövenpick in Middle East, Atton in South America and SBE in the U.S. join our network, enabling us to consolidate our market shares and the vast array of choices we offer our customers. The group’s operating performance delivered solid results in first-half 2018 and record organic growth with the opening of 20,000 rooms over the period.”
Spain sees investment surge: Despite the political situation in Barcelona, interest remains strong according to STR and Magma Hospitality Consulting. Spain as a whole recorded 37 consecutive months of growth in revenue per available room (RevPAR) between March 2015 and March 2018. There have been marginal RevPAR decreases in recent months, mainly driven down by declines in Barcelona, the country’s largest hotel market (more than 60,000 rooms). According to STR analysts, throughout most key Spanish markets, including Madrid (more than 50,000 rooms), hotel performance remains on a strong upward trend.
UK investment up 28%: Investment into UK hotels reached £3.2 billion in the first half of 2018, a 28% increase on H1 last year according to Savills. The market was predominantly driven by portfolio deals which accounted for 71% of transaction volumes (£2.3 billion, US$4.2 billion). Deal count hit 79 in H1 2018 compared to 107 in the same period last year as volumes were driven by large portfolio deals. The firm highlights key deals including Brookfield’s acquisition of the SACO portfolio for £430 million (US$565 million) and the £750 million (987 million) acquisition of the Project Ribbon portfolio by Vivion Capital Partners.
CapitaLand Philippenes deal: CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited has boosted its leading position in the Philippines by entering a strategic alliance with one of the country’s top real estate developers, Cebu Landmasters to manage 1,600 units by 2022. Under the alliance, both parties will seek properties for CLI to develop into serviced residences to be managed by Ascott. Ascott and CLI have signed management contracts for their first four properties offering over 800 units in the prime business districts of Bacolod, Cebu City and Davao City. Citadines Bacolod City, Citadines Cebu City, Citadines Paragon Davao, and lyf Cebu City, will open from 2019 to 2021.