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1. UK Hoteliers Plead For End of Rail Strike
As rail strike after rail strike is called, with little or no flexibility shown by either unions or rail companies, there are calls from hoteliers for both sides to “resume negotiations as a matter of urgency,” according to UKHospitality. The strikes began in June 2022 and have largely been staged for two or three non-consecutive days every month, with the days in between also often affected as trains, train drivers and other staff get back to speed. There are upcoming strike days on Sept. 30, Oct. 4 and Oct. 6.
With train travel still a major method of getting guests to hotels in the U.K., UKHospitality suggested there have been “£3.5 billion ($4.33 billion) in lost sales already racked up as a result of ongoing rail strikes.” Parliament’s cross-party Transport Committee has recommended that business sectors unable to adopt flexible or remote working patterns on strike days should be protected by minimum rail-company service levels.
2. Hotel Owners Face More Pressure as Leisure Demand Weakens
In its latest outlook on the hotel industry, Fitch Ratings anticipates slowing leisure demand and lower rates will decrease hotel revenue growth. Fitch anticipates a mild recession in the first six months of 2024, which would likely weaken leisure travel demand even further.
Asset-light hotel companies, such as brands, are expected to be better-positioned to weather the slow period than real estate investment trusts, which own larger hotel portfolios.
Willy Walker, CEO of commercial real estate lender Walker & Dunlop, told Reuters that consumer travel spending will likely tumble if a recession is confirmed.
"If there’s a recession, hospitality is the first-in and the first-out of any downward trend," Walker said.
Reuters also reported that more hotel owners could face loan challenges in the coming months. In the second quarter, nine of the 19 CMBS loans that liquidated were for hotel properties that first defaulted in 2020, according to Moody's.
3. Accor Appoints Chief Commercial Officer in Europe, North Africa
French hotel firm Accor has named Julie White as chief commercial officer of its premium, economy and midscale division in Europe and North Africa.
White is a 20-year veteran of the travel and hotel industry, in commercial leadership roles covering distribution, revenue management, digital, sales and marketing. She arrives from Wyndham Hotels & Resorts, where she was vice president of commercial for Europe, the Middle East, Africa and Eurasia.
4. Dalata Acquires Hard Rock Hotel Amsterdam American
Ireland-based Dalata Hotel Group has acquired the Hard Rock Hotel Amsterdam American from Amsterdam-based Zien Group for an undisclosed price, according to a news release. CoStar data shows the hotel was last sold in 2012 for $77.4 million.
In its announcement, Dalata said the 173-room hotel — which is located in a building that first opened in 1902 — will be converted to the Clayton Hotel Amsterdam American in early October. This is Dalata's first hotel in The Netherlands and its second in mainland Europe. The Irish company has plans to expand its hotel portfolio on the continent.
5. KKR To Restructure Bankrupt Japanese Hotel Company Unizo Holdings
Bankrupt Japanese hotel company Unizo Holdings has chosen a new restructuring sponsor in U.S. investment fund KKR, Reuters reports citing the Nikkei business daily. In April, Unizo reported debt of 126 billion yen ($849.4 million) and filed for bankruptcy protection. With the agreement in place, KKR will likely assume management of Unizo's office building in Japan and its hotel business, Reuters reports.
Unizo was partly owned by U.S. investment fund Lone Star, which spent $1.9 billion to acquire a stake in the company in April 2020. Then, in July 2021, Lone Star laid off most of its investment team in Asia outside of Japan, signaling its eventual retreat from the region.