A quick roundup of global hospitality news.
RECORD HOTEL TREVPAR IN U.S.: U.S. hotel TRevPAR came in highest for any month on record, showed STR’s March P&L data release.
- GOPPAR: $95.12 (+14.5%)
- TRevPAR: $238.22 (+17.5%)
- EBITDA PAR: $71.07 (+14.4%)
- LPAR (labor costs): $74.43 (+23.4%)
Revenue and profit improved for the second consecutive month, with all key profit-and-loss metrics registering double-digit growth YOY. The rise in TRevPAR stopped labor costs from adding more pressure on GOPPAR. Even with higher labor costs, profit margins were robust as total revenues rose and other expenses were handled through reduced services, lower employment levels and adjusting operations. While all the top 25 markets posted a rise in GOPPAR levels over March 2022, Los Angeles was the only major market to see TRevPAR lower than that comparable. Group-dependent markets are now leading, with New York City recording the highest GOPPAR gain on March 2022. Overall, there were no longer any top markets with negative TRevPAR or GOPPAR comparables.
THE ELSBY TO BE REDEVELOPED INTO HOTEL: Resch Property Group and The Springler Co., both based in New Albany, Ind., have announced the construction of The Elsby Hotel in New Albany’s Downtown Historic District. The 82-room boutique hotel will be an adaptive reuse of The Elsby Building, which earlier housed office space. Opened in 1917, the building was home to the German American Bank and Trust Co. In June 2021, the building was acquired by co-owners Steve Resch of the Resch Property Group and Resch Construction and Chad Springler of The Springler Co. With a development budget of $29 million, renovation and construction of the new hotel building will start in late spring. The hotel will be managed by Chicago-based First Hospitality and will be a Tapestry Collection by Hilton-branded property. The hotel will feature three dining venues, with a new 13,000-square-foot event and conference center to be constructed on a plot adjacent to the hotel. While the exterior brick and terracotta, storefronts, signage, 1916-Italianate corbel details and special details such as a bank vault (installed by the German American Bank and Trust Co.) will be preserved, the building’s HVAC, electrical and plumbing systems will be replaced. Tower Pinkster will oversee the hotel’s architecture and design, with initial design by architectural specialist Ron Stiller and Leslie Lewis & Associates for interior design.
MARRIOTT COMPLETES CITY EXPRESS ACQUISITION: Marriott International, Inc. has completed the acquisition of the City Express brand portfolio from Hoteles City Express, S.A.B. de C.V. The acquisition marks Marriott’s entry into the affordable midscale segment and launches the hotel giant’s 31st brand — City Express by Marriott. The acquisition also helps Marriott grow its footprint in the Caribbean and Latin America, especially in the secondary and tertiary markets. The City Express portfolio comprises 150 properties and is now a part of Marriott’s franchise system. These properties include urban, suburban and extended-stay properties under five sub-brands across Costa Rica, Mexico, Colombia and Chile. The transaction has grown Marriott’s presence in the Caribbean and Latin America region by 45% to more than 480 properties in 37 countries.
CRESCENT ADDS TO LATITUDES PORTFOLIO: Crescent Hotels & Resorts has added the Shangri-La Resort & Marina in Monkey Island, Okla., to its Latitudes: Lifestyles by Crescent collection. Situated on 1,300 miles of shoreline, the lakeside getaway includes 119 rooms with premium amenities, like direct access to the resort’s 6,500-square-foot pool and children’s splash pad. The resort also features multiple dining venues, an activity center, poolside fire pits, a spa and a fitness center with an indoor pool. The resort also includes 45 holes of lakeside golf and a 240-slip marina. Crescent currently has more than 120 properties across the U.S. and Canada.
TAJ MAHAL PALACE 100% GREEN: Mumbai-based Indian Hotels Co. Ltd. has announced that The Taj Mahal Palace, Mumbai, its landmark heritage hotel, is now 100% green. The hotel, which initially opened in 1903, has implemented waste reduction and water-saving measures in addition to employing renewable energy. The hotel has also introduced a bottling plant, added EV charging stations, installed low-flow aerators for taps and showers, utilizes treated water for horticulture and flushing and uses LED light energy-efficient motors and time-controlled lighting systems. The Taj Mahal Palace is IHCL’s first-ever hotel to open. The company currently has 263 hotels, including 75 under development across four continents, 12 countries and in more than 100 locations.