Sonesta launches global franchise platform: Sonesta International Hotels Corp., Newton, Massachusetts, launched Sonesta Franchising, its global hotel franchising organization. The new company will offer a complete platform of franchise services, franchise support and hotel operations. Presently, 12 of 15 brands run by Sonesta are available for domestic franchising. Sonesta Franchising’s launch in the U.S. includes its existing Sonesta Hotels & Resorts and Sonesta ES Suites, along with the newly introduced Sonesta Simply Suites and Sonesta Select brands. Following the acquisition of Red Lion Hotels Corp., Sonesta currently has 1,200 franchised and managed properties in its portfolio.
First Hospitality, Georgetown launch platform: First Hospitality, Chicago, Illinois, and The Georgetown Co., New York, have launched a platform aiming at US$1 billion of investment in luxury and upscale hospitality properties across the U.S. Georgetown and its capital partners will direct US$1 billion towards properties and hotel investments, in partnership with First Hospitality. Georgetown will also take a major ownership interest in First Hospitality along with Stephen Schwartz, First Hospitality’s founder, and the Schwartz family. While Schwartz will continue as the chairman, First Hospitality’s leadership team will continue to run the company’s daily operations. The new platform will be led by David Duncan, president and CEO of First Hospitality, and Michael Fishbin, Georgetown’s managing director and head of hospitality.
Hilton launches franchise model in China: Hilton has launched a large-scale franchise model in China, looking for investors and owners to explore opportunities for its Hilton Garden Inn prototype, which was specially developed for China and launched in 2019. Hilton has signed 100 deals so far to create Hilton Garden Inn hotels in China. The brand currently has a portfolio of 920 hotels, with 35 in China, in 50 countries.
Austin Proper sold: Loveland, Colorado-based real estate developer McWhinney has acquired the Austin Proper Hotel & Residence in Texas for an undisclosed price from Santa Monica, California-based Kor Group and Goldman Sachs Asset Management. The asset will continue to be managed by Kor Group’s Proper Hospitality. The 32-story property opened in December 2019 and features 244 guest rooms, 98 condos and more than 14,000 square feet of meeting and event space.
Six Senses appoints COO: Six Senses Hotels Resorts Spas, Bangkok, has appointed Neil Palmer as chief operating officer. He will look after the brand’s properties in 20 countries, with 34 more projects in the development pipeline. Palmer has 37 years of experience in international hospitality, most of which he spent with Starwood Hotels & Resorts. As the company’s senior vice president operations Asia Pacific, Palmer helped develop the portfolio and was in-charge of the pre-opening pipeline of the region. Currently living in New Zealand, he will be joining Six Senses in Singapore.
U.K. hotels warn of severe labor crunch: More than 65 hotels and restaurants in the U.K. have told the government they are nearing collapse led by severe labor shortage after the pandemic and Brexit tensions. They will reportedly send a letter to the government asking immigration requirements for hospitality workers to be eased. The U.K. Hospitality industry group has cautioned of a severe staff shortage as vacancy rates across the hospitality segment hover around 10% since establishments were allowed to fully open in July.
3H, LBA announce alliance: LBA Hospitality, Dothan, Alabama, and the 3H Group, Chattanooga, Tennessee, announced a strategic alliance which will help them focus on expanding their hotel management platform. The alliance will help merge 3H’s strength in hotel and asset management with LBA’s expertise in third-party hotel management program across the U.S. Both companies will retain all positions. Together, the companies have a managed hotel portfolio of 90 properties across 11 states. 3H and LBA will share a regional office in Chattanooga, while maintaining LBA’s existing corporate headquarters in Dothan.
New Hilton at Mayo Clinic in Florida: Concord Hospitality Enterprises, Raleigh, North Carolina, and Whitman Peterson, Westlake Village, California, in collaboration with Mayo Clinic will construct a 252-key, eight story Hilton hotel at Mayo Clinic in Jacksonville, Florida. Construction of the US$70 million project is slated to begin in summer of 2022, with the project expected to be complete by early 2024. The property will be Concord’s fourth in Jacksonville and the 27th hotel in Florida. Ever since their partnership was launched in 2016, Whitman Peterson and Concord have developed more than 20 open or under construction projects.
Phuket co-living partners with hospital: HOMA Phuket Town, the Phuket-based co-living project, has partnered with Bangkok Hospital Phuket to attract more international medical tourists to Phuket and drive arrivals through the Phuket Sandbox program. HOMA and Bangkok Hospital will offer customized packages for patients that combine medical services with affordable self-catering accommodation. HOMA will be providing long-term accommodation to Bangkok Hospital’s visiting doctors and full-time staff. Special package for tenants will allow them to avail a virtual consultation with doctors. Dedicated studio, one-, two- and three-bedroom units have been adapted for patients with an integrated connection to Bangkok’s Hospital’s CareConnect Centre, a customized patient care scheme.
Domestic demand to recover soon in Malaysia: With Malaysia closing off its international borders and banning inter-state travel throughout most of 2021, domestic demand is likely to return in Q4 2021, especially in main tourist attractions like Langkawi, Penang and Desaru, according to the ‘Kuala Lumpur: Top Tier Hotel Market’ study by Horwath HTL. While domestic travel could be subdued, occupancy and ADR of top-tier hotels in Kuala Lumpur is expected to worsen in 2021 compared to 2020. National borders may open in 2022 and demand for hotel rooms is likely to be dominated by domestic guests till Q2 2022, when international arrivals start picking up pace. ADR of upper upscale hotels plunged 20% in 2020 and is expected to further slip 8% in 2021. Top-tier hotel demand is expected to return to pre-COVID levels in 2024. According to the report, the luxury hotel sector will achieve below 60% occupancy in the long term, while the upper scale segment will reach pre-pandemic levels from 2026 onwards.
Climate conference buoys Glasgow: Hotel occupancy on the books in Glasgow is close to 90%, driven by the UN Climate Change Conference in early November, as per STR. Occupancy is between 87% and 89% from November 1 to 11, slipping to 80% on the last day of the conference. This marks a significant increase in occupancy from the rest of the year, which was much below 40%. Owing to its physical proximity to Glasgow, Edinburgh is also faring better with occupancy on most days above 50%.