Thomas Cook travelers, hotels hanging: Some 600,000 travelers globally were stranded after U.K. tour operator Thomas Cook declared bankruptcy Monday morning. The British government has asked its Civil Aviation Authority to step in and repatriate British citizens. The CAA reportedly is also contacting hotels and other affected travel providers to reassure them they will be paid. Meanwhile, guests at the Les Orangers resort in Tunisia reported the hotel held them hostage, demanding they pay their bills before allowing them to check out, and social media postings reported that some hotels were evicting Thomas Cook clients unless they paid up. Tunisia’s tourism minister claims that the tour operator left the country’s hotels with unpaid tabs totaling US$66 million for July and August stays.
Read more about the collapse and customers in Tunisia on Reuters
Caesars sells Rio in $US516M deal: The off-strip Rio All-Suite Hotel & Casino was sold to New York-based Imperial Companies. Caesars Entertainment Corp., which sold the 2,500-suite casino hotel for US$516.3 million, will continue to operate it for at least two years in a lease-back arrangement, paying rent of US$45 million a year. Imperial retains the option to retain Caesars’ management after that. Caesars itself is in the midst of being acquired by Eldorado Resorts Inc.
Oyo founder sinks US$2B into company, chooses Dallas as home base: Oyo founder and CEO Ritesh Agarwal is investing US$2B into the company, according to the Business Standard. Agarwal signed a primary and secondary management investment round through RA Hospitality Holdings. Lightspeed Venture Partners and Sequoia India, early supporters of Oyo, are selling part of their holdings to help him increase his stake. The India-based company, which recently announced a US$300 million expansion of its U.S. presence, also settled on Dallas as its U.S. base, leasing more than 20,000 square feet in One McKinney Tower in the city’s Uptown district.
Read more about the investment
Hong Kong hotels coping with protest fallout: Hotels in Hong Kong are scrambling for ways to survive the steepest declines in occupancy since a 2003 SARS outbreak, according to the South China Morning Post. Ongoing protests against the Chinese government have hurt tourism numbers since June; arrivals in August plummeted nearly 40% from last year. Operators are coping by offering locals dine-and-stay discount packages, asking staff to take unpaid leave and pursuing MICE bookings.
India’s hotel tax cut boosts stocks: Shares of Indian hotel company stocks jumped 13% on the first day of trading after the government slashed the goods and services tax on hotel rooms. The tax on lower-priced rooms was trimmed from 18% to 12%; higher-cost rooms saw a drop of 28% to 18%, India Times reported.
OTA to spotlight Okura Nikko Hotels: Ctrip Group, Asia’s largest OTA, will promote Okura Nikko Hotel Management’s three brands — Okura Hotels & Resorts, Nikko Hotels International and Hotel JAL City — in a flagship “store” on its website. The stores, which Ctrip rolled out last year, allow registered customers to book members-only prices and receive additional benefits. Okura Nikko is the first Japanese hotel group to sign a deal with Ctrip.
Radisson Blu in Romania, Aruba: Radisson Hotel Group signed its fourth Radisson Blu in Romania. Scheduled to open in spring 2021, the Radisson Blu Hotel, Cluj-Napoca will have 149 rooms, conference rooms and a ballroom. Radisson also announced a deal in Aruba that will result in the Radisson Blu Hotel and Residence Aruba. Opening in spring 2020, the Palm Beach project will have 208 suites.
Kokua, Filament join forces: Hotel management firm Kokua Hospitality has teamed up with Filament Hospitality to form Sightline Hospitality, a hybrid third-party management company. According to press material, “Sightline collaborates with owners to welcome guests not just to their room but into the fabric of the local community and culture.” The company is headquartered in San Francisco with regional offices in Honolulu and New York City.
IHG Rewards adds Mr & Mrs Smith option: Under a new partnership, IHG Rewards Club members will be able to earn and redeem points at more than 500 Mr & Mrs Smith hotels when booking through IHG channels. The exclusive relationship will more than double the number of luxury and boutique hotel choices available. Mr & Mrs Smith, self-described as a “travel club for hotel lovers,” offers more than 1,200 boutique and luxury properties in 80-plus countries.
Virgin in Miami: Virgin Hotels is developing a new property in Miami’s Brickell neighborhood. The Virgin Hotels Miami is slated to open in 2023 and will be managed by Virgin Hotels and developed by Blue Jay Capital; BLUR Workshop is the architect. The property will incorporate a residential component operated by Blue Jay Capital with 15 floors of furnished residential spaces consisting of 150 micro units and co-living units. The 40-story new-build hotel will have 250 rooms, spa, meeting space, rooftop pool and lounge space, and multiple F&B outlets.