Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
STR, STR Global releases September results
US: During the month of September, the U.S. hotel industry’s occupancy rose 0.3% to 63.4%; its ADR was up 3.3% to $111.03; and its RevPAR increased 3.6% to $70.36, according to data from STR, parent company of HNN.
Americas: Compared to September 2012, the Americas region reported a 0.3% monthly increase in occupancy to 63.5%; a 3% monthly increase in ADR to $112.82; and a 3.4% monthly growth in RevPAR to $71.64, according to data compiled by STR and STR Global.
STR, STR Global releases September pipeline data
US: The total active U.S. hotel development pipeline comprises 2,767 projects totaling 333,775 rooms, according to the September STR Pipeline Report. This represents a 15.6% increase in the number of rooms in the total active pipeline compared with September 2012 and a 29.5% increase in rooms under construction.
Caribbean/Mexico: Led by the upper midscale and upscale segments, the Caribbean/Mexico hotel development pipeline comprises 132 hotels totaling 22,532 rooms, according to the September STR Construction Pipeline Report.
Central/South America: The Central/South America hotel development pipeline comprises 241 hotels totaling 36,367 rooms, according to the September STR Global Construction Pipeline Report.
US government shutdown affects hotels
Heavy government-business-reliant markets, such as Washington, D.C., and Norfolk, Virginia, reported significant decreases in occupancy during the U.S. government shutdown, according to STR, parent company of Hotel News Now.
Upon closer analysis, markets that rely on national park tourism, such as Gatlinburg, Tennessee (Great Smoky Mountains), and Jackson Hole, Wyoming (Yellowstone National Park), also saw significant dips in demand, reports Hotel News Now’s Jason Q. Freed.
Despite obstacles, Brazil’s outlook is bright
While Brazil’s economic growth might have been shaken by the downturn, its hotel sector hasn’t stirred from consistent gains in performance and a strong upward trend in the travel market, reports HNN contributor Janet Tappin Coelho.
Analysts are predicting a healthy future for the South American giant’s hotel industry, with steady increases in operating metrics, double-digit growth in corporate travel and record-breaking numbers of domestic and global tourists. Diversification and decentralization of the country’s economy and growth in domestic purchasing power are just some of the key factors driving a multitude of hotel investment opportunities in the country rolling out over the next few years.
IHG expands in Mexico, Brazil
The Holiday Inn Express brand is expanding in Brazil with the openings of the 156-room Holiday Inn Express Belem-Ananindeua hotel; the 174-room Holiday Inn Express Porto Velho hotel; and the 102-room Holiday Inn Express Marilia hotel expected to open later this year. InterContinental Hotels Group also has plans for a new-build Holiday Inn Express Manaus hotel, scheduled to open in 2014.
IHG and Auteles Kalionchiz S.A. de C.V partnered in the opening of the 128-room Holiday Inn Monclova hotel. This is the first Holiday Inn hotel in Coahuila and is the fifth IHG-branded hotel for the state. Auteles Kalionchiz has invested $10 million in the Holiday Inn Monclova hotel.
Tepid rate growth mars NYC’s robust outlook
New York is most notable for the exceptionally active pipeline of new projects planned for the market. This is a testament to the perceived strength, durability and outlook for travel demand. Yet despite this robust outlook, the city suffers weaknesses and future threats that should not be ignored.
HNN contributor and Lodging Advisors’ Sean Hennessey provided an in-depth analysis of underlying hotel operating fundamentals in New York.
Effect of Colorado floods on hotels
Heavy rains the week of 9 September brought historic flooding to Boulder, Colorado, and many other cities throughout the Front Range of Colorado, with some areas experiencing 100- to-1,000-year flood levels.
STR Analytics’ Chesley Price and Carter Wilson examined data to measure the impact that the flooding had on hotels in six cities in the state.
Iberostar Hotels & Resorts adds hotel in Brazil
Iberostar Hotels & Resorts, the hotel division of Grupo Iberostar, announced the development of its newest hotel in Brazil, the 5-star 226-room Iberostar Magia Maceió. The resort will mark the brand's fourth hotel in Brazil, but will be the first in the Alagoas region. The hotel complex is in the construction stages and plans to open in 2015 in Alagoas’ capital Maceió.
FibraHotel becoming Mexico’s largest owner
Fibra Hotelera Mexicana, a Mexican-based real estate investment trust and one of the largest hotel owners in its country, has doubled its portfolio size over the past year and has nearly 5 billion Mexican pesos ($385.7 million) earmarked for additional growth moving forward, reports HNN’s Jason Q. Freed from the company’s third-quarter earnings call.
FibraHotel added five hotels to its portfolio in the third quarter, bringing its total to 42 hotels—39 in operation and three under development. During the quarter, the company closed the acquisition of: Hotel Plaza Genova Guadalajara, One Puebla FINSA, Fiesta Inn Oaxaca, Fiesta Inn Puebla FINSA and Real Inn Mexicali.
Compiled by Samantha Worgull.