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1. India's Ventive Hospitality begins IPO
Pune, India-based real estate investment trust Ventive Hospitality took its first steps toward an initial public offering with the Securities & Exchange Board of India, reports HNN's Terence Baker. The company expects its initial public offering on the Bombay Stock Exchange and National Stock Exchange of India will raise approximately 20 million Indian rupees ($238.2 million).
Ventive is the hospitality division of real estate conglomerate Panchshil Realty, which develops commercial, retail, data center and residential projects across and outside India.
In the initial filing, Ventive executives said, "our portfolio has grown significantly over the years, starting from 83 keys in 2007 to 2,036 keys as at Mar. 31, 2024. In 2017, pursuant to the acquisition of a 50% stake in our company, BRE Asia (formerly known as Xander Investment Holding XVI Ltd.), an affiliate of Blackstone, became 50% shareholder.”
2. Historic Yosemite Park hotel to close for repairs
The 168-year-old Wawona Hotel at Yosemite National Park will close for an indefinite amount of time starting in December while the National Park Service assesses the condition of the property, the San Francisco Gate reports. The hotel underwent a roof replacement project recently that revealed the need for further investigation of the property.
The 104-key hotel opened in 1856 and includes a historic Chinese laundry, a nine-hole golf course, a swimming pool and riding stables, according to the article.
Guests affected by the closure have been refunded.
3. Performance drives investor interest in 'irreplaceable' US hotels
The U.S. hotel's transaction market this year has splintered somewhat, with investors focusing on smaller hotel deals at or below $25 million as well as the higher-priced, irreplaceable properties, HNN reports.
Research from JLL found eight deals through August this year that topped $200 million, a 59% increase compared to the same period last year. These deals amount to about $4 billion, a 15% rise over 2019 levels.
Zach Demuth, global head of hotels research at JLL's hotels and hospitality group, said luxury hotels continue to perform exceptionally well, and with growth in high-net-worth wealth, there's growing demand for these properties. Many of the high-priced deals this year were for hotels that could not be replaced.
“So, the opportunity to acquire even at a relatively high value — again, you’re really acquiring an irreplaceable asset,” he said.
4. Weaker Labor Day leads US hotels into autumn
Seven straight weeks of revenue per available room growth ended with a year-over-year drop of 5.2% in the first week of September, write STR’s Isaac Collazo and Chris Klauda. An early Labor Day is not necessarily to blame, as the other factors affecting travel are inflation, high interest rates and changing travel behavior.
The 2.5 percentage point drop in occupancy drove the weekly RevPAR decrease, aided by a 1% decline in average daily rate, they write. The top 25 hotel markets and all other U.S. markets produced equal 5.2% RevPAR declines for the week.
“Labor Day week through Sept. 7 was weak any way you cut it,” they write. “U.S. hotel room demand was in the middle of the pack (9 out of 25) as 22.9 million hotel rooms were sold versus 23.8 million a year ago and 23.3 million in 2019.”
5. American Airlines flight attendants ratify new contract
Flight attendants at American Airlines ratified a new five-year contract that includes an immediate wage increase of 20.5% along with other quality-of-life improvements, CNN reports. Ninety-five percent of eligible flight attendants voted on the contract with 87% in favor of the new deal.
“Among the many improvements, the contract includes a new sit rig for compensation for long sits between flights, and American Airlines Flight Attendants become the first unionized workgroup to lock in pay for boarding,” said Julie Hedrick, national president for the Association of Professional Flight Attendants.
In related news, Boeing's largest labor union went on strike, with members walking off the job just after midnight Pacific time Friday, the Wall Street Journal reports. These workers are responsible for working on Boeing's 737, 777 and 767 jets. They rejected a new contract that would have raised wages by 25% over four years. The last labor deal was struck 16 years ago, and union members argued the proposed increases did not keep up with pay at other companies or the cost of living.