HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s review covers the Americas.
STR reports pipelines for March
U.S.: The total active U.S. hotel development pipeline comprises 2,717 projects totaling 320,750 rooms, according to the March 2013 STR Pipeline Report. This represents a 9.2% increase in the number of rooms in the total active pipeline compared with March 2012 and a 19.3% increase in rooms under construction. STR is the parent company of HotelNewsNow.com.
Central/South America: The Central/South America hotel development pipeline comprises 235 hotels totaling 36,349 rooms, according to the March 2013 STR Global Construction Pipeline Report. Among the region’s countries, Brazil reported the most rooms in the In Construction phase with 6,131 rooms. STR Global is the sister company of HotelNewsNow.com.
Caribbean/Mexico: The Caribbean/Mexico hotel development pipeline comprises 118 hotels totaling 20,015 rooms, according to the March 2013 STR Construction Pipeline Report. Among the region’s countries, Haiti reported the largest expected room supply growth (+58.2%) if all 560 rooms in the country’s total active pipeline open.
US hotel outlook strong despite some bumps
The U.S. hotel industry will spout positive results over the long term—though short-term performance will be a different story, panelists said during the opening general session of the Hotel Equities and Lender Perspectives conference.
Despite the positive long-term outlook, panelists acknowledged that several macro issues risk slowing or even derailing the recovery. The sequester, for instance, could cut off the number of visitors coming to the U.S., said Scott Berman, principal at PricewaterhouseCoopers.
US hotel closure analysis
A few years ago STR Analytics, sister company of HotelNewsNow.com, did an analysis of U.S. hotel closures and the demographics that encapsulate this group of properties. Since then, the STR census database recorded an additional 1,400 hotel closures, a significant enough number to warrant updating the analysis.
In his current analysis, Carter Wilson was able to compile data on more than 7,900 closed properties. The basic stats include:
- 7,919 hotels from all 50 states;
- 632,384 rooms;
- average room count: 80;
- more than 45 brands represented as of the date of closing; and
- average life span of 34 years.
Hilton adds its seventh hotel in Mexico
Hilton Worldwide has signed a management agreement for a 260-room new-build Hilton hotel in the Santa Fe area of Mexico City, Mexico. The hotel will form part of Samara, a mixed-use complex featuring more than 3.8 million square feet of space combining corporate offices, a shopping center and the upscale Hilton Santa Fe Mexico City.
Currently under construction, Hilton Santa Fe Mexico City is expected to open in March 2014.
First US chain hotel opens in Haiti in 15 years
For the first time in 15 years, a U.S. hotel chain has opened a hotel in Haiti, according to an Associated Press report on ABC News.
The 106-room Best Western Premier in Port-au-Prince opened 28 March. The seven-story hotel cost $15 million to build. The last U.S. brand in Haiti was a Holiday Inn property.
Business travel in Canada recovering
Business travel in Canada is in “full recovery mode,” according to a study released at the Business Travel Summit in Toronto. Best Western International, Concur, the Global Business Travel Association in Canada and Vision 2000 Travel Group collaborated on the study.
The study forecast that hotel stays will rise by 4% and domestic air travel will increase by 5% this year. Among other findings in the study:
- Business travel budgets have increased by 3% this year, and more travelers are on the road more often, said GBTA Canada;
- Best Western reported corporate travel demand is up by 1% to 2% and rates are going up; and
- business and meeting planning is up more than 15%, according to Vision 2000.
P Hotels expands its Argentine Collection
P Hotels, a luxury boutique hotel operator, acquired the 28-suite Arelauquen Lodge in Bariloche, Argentina. A renovation of the property will transform the lodge into a 5-star property that will house a world-class restaurant. Arelauquen Lodge plans to welcome its first guests November during the Argentine spring.
The luxury Argentine hotel portfolio and management company is owned by U.S-based Grupo EMR, which also developed each of the branded properties.
Key transactions, management contracts
- Huntington Hotel Group along with affiliate San Jose HHG Hotel Development LP will develop a 175-room Residence Inn and a 146-room SpringHill Suites half a mile east of the San Jose International Airport in California.
- The 170-room Red Lion Hotel Pendleton in Pendleton, Oregon, sold for $2.25 million to an undisclosed buyer.
- Waldorf Astoria Hotels & Resorts opened the 248-room Waldorf Astoria Panama, expanding its presence in Latin America.
- Blue Diamond Hotels and Resorts will manage the 210-room Breezes Negril Grand Resort & Spa in Jamaica effective 17 April 2013.
- Wyndham Vacation Ownership and Margaritaville Hospitality Group announced plans to redevelop the former Grand Beach Palace Resort in St. Thomas in the U.S. Virgin Islands. It will be called Wyndham St. Thomas, a Margaritaville Vacation Club resort.
- Portugal-based Group Pestana opened the 97-room Pestana South Beach Art Deco Hotel in Miami.
- P Hotels opened the 23-suite Palermo Tower luxury boutique property in Palermo Hollywood in Buenos Aires, Argentina.
Compiled by Samantha Worgull.