Stable 2020 rates: Hotel Monitor 2020 by American Express Global Business Travel found that competition is expected to keep global hotel rate increases modest or stable in 2020. In the U.S., Chicago will see a 5% increase in room rates as the top performer, while New York will see rates decrease by 3%. In Asia Pacific, the report stated rates will increase due to sustained demand in cities such as Tokyo (4%) and Bangalore (5%). Brexit continues to loom large in Europe, impacting demand. In addition, hotel development is at a record high, with Germany and the UK leading in project development numbers.
Wyndham reports: Wyndham Hotels & Resorts reported 2Q19 earnings on Thursday with an earnings beat (adjusted EPS of US$0.84), while RevPAR growth (+0.4%) and rooms growth (+3%) in-line with expectations. Revenues were US$533 million, compared with US$435 million in the second quarter of 2018. Adjusted EBITDA of US$159 million was moderately ahead of consensus of US$157 million. Implied guidance was approximately US$151 million to US$161 million. The global pipeline rose sequentially by 4% versus 1Q19.
New Kempinski CFO: Kempinski Hotels, Geneva, Switzerland, on July 1 appointed Michael Pracht as chief financial officer and a member of the Management Board, replacing Colin Lubbe. Pracht brings more than 35 years of finance and operations experience within the hospitality industry. Prior to joining Kempinski, he served as general manager at HMS, a part of Maritim Hotel Group, where he led the finance and operations departments while also looking after global development.
Q2 in Mideast, Africa: Hotels in the Middle East reported mixed second-quarter 2019 performance results, while hotels in Africa posted increases across the three key performance metrics, according to data from STR. Middle East occupancy was up 2.6% to 61.7%; ADR was off 7.2% to US$147.44; while RevPAR was down 4.8% to US$91.03. Africa saw occupancy increase 2.2% to 57.6%; ADR was up 4% to US$106.53; and RevPAR jumped 6.3% to US$61.33. The absolute ADR and RevPAR levels were the lowest for a Q2 in STR’s Casablanca database. STR analysts note this is the first Q2 in Casablanca that showed a double-digit increase in supply (+15%). Dubai saw a 13.1% decline in RevPAR and 12.3% dip in ADR as supply has now outgrown demand for six consecutive quarters. STR analysts note that the occupancy level was the lowest for a Q2 in Dubai since the time of the economic crisis in 2009, while the absolute ADR and RevPAR levels were the lowest since 2003.
Radisson adds Treasure Island: Radisson Hotel Group announced on Thursday the signing of Treasure Island – TI Hotel & Casino in Las Vegas as a new franchise for its core Radisson brand. The 3,000-room resort will officially join the Radisson system later this year as Treasure Island – TI Hotel & Casino, a Radisson Hotel. As part of the agreement, TI will retain its current branding and exterior signage.
Sixth Pendry announced: Montage International’s Pendry Hotels & Resorts has announced the planned development of Pendry Washington D.C. – The Wharf. The 140,000-square-foot hospitality development located within Phase 2 of The Wharf, is set to begin construction this summer. Set to open in 2022 with 131 guest rooms, this marks the sixth Pendry Hotels & Resorts property under development.
Labor issues in Hawaii: Workers at three Hawaii hotels filed a class action lawsuit against the hotels’ owner and operator Diamond Resorts, alleging wage theft. The class action lawsuit covers past and current employees of The Modern Honolulu, Kaanapali Beach Club, and The Point at Poipu. At least 325 employees from the three hotels are covered by this lawsuit. Unite Here Local 5 represents hotel workers at The Modern and Ka’anapali Beach Club. The lawsuit alleges that employees at these three hotels did not receive paychecks in a timely manner, which is a violation of state laws. According to the lawsuit, Diamond Resorts should pay the affected employees their late-paid and unpaid earned wages plus double damages and interest. As the lawsuit was being filed in state court, Diamond Resorts announced to the union that it would immediately lay off the entire banquets department at The Modern Honolulu, totaling 28 workers, including a named plaintiff and banquet captain.