HotelNewsNow.com each week features a news roundup from a different region of the world. Today’s review covers the Americas.
STR: US hotel performance for April
The U.S. hotel industry reported increases in all three key performance metrics during April 2013, according to data from STR, parent company of HotelNewsNow.com.
Overall, the U.S. hotel industry’s occupancy rose 3.5% to 63.8%, its average daily rate was up 3.8% to $110.02 and its revenue per available room increased 7.5% to $70.24.
STR Global: Americas results for April
The Americas region recorded positive results in the three key performance metrics when reported in U.S. dollars during April 2013, according to data compiled by STR and STR Global. STR Global is the sister company of HotelNewsNow.com.
In April, the Americas region reported a 3.5% increase in occupancy to 63.8%, a 3.4% rise in ADR to $112.31 and 7% growth in RevPAR to $71.67.
Marriott imports first brand to US
For the first time in the company’s history, Marriott International is importing a hotel brand into the North American market, according to a report from HotelNewsNow.com’s Patrick Mayock.
AC Hotels by Marriott, which has a footprint of 79 properties in Spain, Italy, Portugal and France, will launch first in the United States’ top travel markets before expanding to other urban, metro areas throughout the country and the rest of the Americas, said Brian King, global brand officer for Marriott Endorsed Brands.
On 5 June, it was reported by the Cincinnati Enquirer that the first AC by Marriott property in the United States might be in Cincinnati. According to the report, Remark Hospitality Development Company plans to convert the former School for Creative and Performing Arts in Cincinnati’s Pendleton area to the 140-room hotel.
Caribbean sees good hotel news
The worst is over for the Caribbean hotel industry, panelists said during last month’s Caribbean Hotel & Resort Investment Summit. /Articles.aspx/10488/Cautious-Caribbean-sees-good-hotel-news
According to Jim Burba, president of Burba Hotel Network and chairman of the annual event, 73% of attendees who responded to a preconference survey believe RevPAR in the region will increase during 2013; 53% said money for new construction will rise in the upcoming year.
Warren Jestin, senior VP and chief economist for Scotiabank, said the driving force is the growing U.S. economy. “The U.S. economy is coming alive, consumers are spending more,” he said. “Economies that depend on the U.S. economy should be doing better the next two or three years.”
Mexico attempts a comeback
Battered by perceptions of security problems, Mexico is trying to rebuild the country’s tourism industry, explained HotelNewsNow.com’s Ed Watkins in his blog about the country’s troubles.
President and CEO Josh Paine of CheapCaribbean.com, an online travel service focusing on the Caribbean and Mexico that combines booking capabilities with personal service, told Watkins that he’s bullish on the future of Mexican tourism, especially since 38% of his site’s business involves bookings to Mexico.
“It’s surprising how few people want to dig into the facts and learn the true nature of things,” Paine said. “Those who do, however, find the situation in Mexico not at all as it’s portrayed in the press. It takes tasting and seeing to change these perceptions.”
Meliá to expand in Chile
Meliá Hotels International signed an agreement to open five Innside by Meliá hotels in Chile with a private-investment fund led by Grupo Armas.
The agreement involves the construction of the five hotels, which will be managed by Meliá Hotels International.
Milwaukee sees surge in supply
Milwaukee, Wisconsin, and particularly its downtown submarket, is catching the eye of hotel developers, operators and brand companies looking for markets ripe for development. After several years of restrained supply growth, the city has seen a surge of new property openings and announcements, reports HotelNewsNow.com’s Ed Watkins.
“Back in the mid-2000s, there were about 20 hotel projects announced for Milwaukee, most of which never got built because of the recession,” said Greg Hanis, president of Hospitality Marketers International, a consulting firm with offices in Milwaukee and Florida. “Now that the market is doing well again we’re seeing hotel projects opening, under construction or announced.”
Six hotels with 1,083 rooms are in the in construction, pre-planning or planning stages of the development pipeline, according to STR, the parent company of HotelNewsNow.com. The submarket has 25 hotels and 4,089 rooms.
IHG to expand its footprint in Central America
InterContinental Hotels Group announced the signing of two new Holiday Inn Express hotels in Managua, Nicaragua, and Tegucigalpa, Honduras. Both properties are slated to open in 2014. Managed by Latin American Hospitality Management S.A., a subsidiary of Grupo Agrisal, the hotels will be franchised by an affiliate of IHG.
Together, the two Holiday Inn Express hotels will add 220 rooms to IHG's existing Holiday Inn brand family in the Latin America and the Caribbean region, which includes 18 Holiday Inn Express hotels and 24 Holiday Inn hotels.
Starwood to expand Latin America footprint
Starwood Hotels & Resorts Worldwide announced it will increase its operating hotel footprint in Latin America by 50% during the next five years, opening an average of seven new hotels per year in the region.
"Macro-economic trends continue to reshape the Latin American travel and business landscape, creating strong growth in lodging demand and many opportunities for Starwood to expand in the region," said Frits van Paasschen, President and CEO of the company. "At the same time, Latin America's middle class grew by 50(%) in the last decade and this increase in wealth means that there are more and more people with the means to travel and an increasing appetite for global, luxury brands like ours."
Since 2007, the company has grown by 36% in Latin America.
Deals and developments
- The 331-room Tryp by Wyndham Panama Albrook Mall hotel will open 1 August at the largest mall in Latin America.
- The Le Méridien brand will debut in New Orleans in 2014 following a $29-million extensive renovation and conversion from Starwood’s W brand.
- Hilton Hotels & Resorts opened the 349-room Hilton Lake Las Vegas Resort & Spa this month.
- Nylo Hotels announced it will be developing a 132-room hotel in Nyack, New York, set to open in 2014. It will be the company’s sixth hotel.
- Virgin Hotels is developing a 300-room hotel in New York set to open in 2016.
- Ashford Hospitality Trust acquired the 143-room Pier House Resort & Caribbean Spa in Key West, Florida, for $90 million in an all-cash deal.
- Aston Hotels & Resorts will operate its first boutique hotel and eighth hotel in Waikiki, Hawaii—the 72-room Hotel Renew by Aston.
Compiled by Samantha Worgull.