Minor-Marriott case proceeds: A Thai court on September 4 said a Minor International lawsuit against Marriott International for “highly disappointing” performance of the JW Marriott Phuket Resort & Spa, can proceed. Minor fully owns the hotel and Marriott manages. The hotel suffered a 20% drop in gross operating profit in the first six months of 2019, compared to the same period last year, said the Bangkok-based hotel group, which is claiming an initial amount of US$18.7 million for the loss. Minor alleged the decline in performance was “due in large part to a failure to drive business to the hotel and is further caused by recent changes to Marriott’s loyalty program, which has severely reduced revenues to the hotel for such business,” it said in a press statement. Minor added that Marriott is itself increasingly competing directly with the JW Marriott Phuket hotel with its expanding portfolio of Marriott properties in Phuket and surrounding provinces. Marriott has called the claims “meritless” and said it would vigorously defend itself against Minor’s claims.
HK off 40% in August: Hong Kong visitor arrivals plunged nearly 40% in August from a year earlier, deepening from July’s 5% fall, as sometimes violent anti-government protests take a rising toll on the city’s tourism, retail and hotel businesses, Reuters reported. Hotels in some locations had seen occupancy rates drop to about half, while room rates plunged 40% to 70%, according to industry sources.
Accor sells Australian portfolio: European hotel investor AccorInvest’s Australian 23-hotel portfolio (1,797 rooms across 17 real estate assets and 1,249 rooms over six lease interests) has been sold to iProsperity Group, a Hong Kong-backed investment group for high-net-worth investors, for a reported A$300million (US$204 million). Some of the larger assets include the 200-key Ibis Sydney airport and the 156-key Ibis Budget Sydney Olympic Park.
Hyatt grows in UK: Hyatt Hotels Corp. has entered into a management agreement with Ewart Manchester Properties Ltd., a majority owned subsidiary of M&L Hospitality, for Hyatt Regency Manchester Oxford Road and Hyatt House Manchester/Oxford Road, both of which will be located in Manchester, UK. The 212-room Hyatt Regency hotel and the 116-room Hyatt House hotel will both be located in the landmark building “The Lume,” and are expected to open in 2020, which would bring the total number of Hyatt-branded hotels in the U.K. to 11 by 2022.
New Sotherly manager: Sotherly Hotels Inc., Williamsburg, Virginia, has entered into a master agreement with Newport Hospitality Group (NHG) and Our Town Hospitality for the management of 10 of the company’s hotels, effective January 1, 2020. Our Town, a newly formed wholly-owned subsidiary of NHG, will be headquartered in Williamsburg, Virginia, and dedicated solely to the management of Sotherly’s hotels.
Mideast leads global tourism growth: International tourism was up 4% in first half of 2019, according to the World Tourism Organization. Growth was led by the Middle East (+8%) and Asia and the Pacific (+6%). International arrivals in Europe grew 4%, while Africa (+3%) and the Americas (+2%) enjoyed more moderate growth. Destinations worldwide received 671 million international tourist arrivals between January and June 2019, almost 30 million more than in the same period of 2018 and a continuation of the growth recorded last year. Chinese outbound tourism (+14% in trips abroad) continued to drive arrivals in many destinations in the region during the first half of the year though spending on international travel was 4% lower in real terms in the first quarter.
Oyo defends accusation: Oyo Rooms on Friday refuted the claims of a Bengaluru, India-based hotelier following reports that its CEO Ritesh Agarwal was booked on charges of cheating. The case, suggesting Oyo had taken 80% of the profit share instead of the contracted 20%, was registered at the Whitefield police station following a complaint by Natarajan VRS, the owner of Rajguru Shelter Hotels at BEML Layout in Brookefield. Natarajan claimed that the Oyo CEO and two of his representatives in Bengaluru had cheated him to the tune of Rs 1 crore (US$139,525), the Deccan Herald had reported. “Our lawyers are looking into the matter and will be taking strong legal action as these claims are incorrect and defamatory in nature. We respect the law of the land and believe it will do the right justice,” the Oyo spokesperson added.
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