If hotels in Ireland do not get a €1.4-billion ($1.9-billion) debt write down, the sector will not remain viable, according to a report in the Irish Times.
The country’s hotels are €5.3 billion ($7.2 billion) in debt overall, down from €6.7 billion ($9.1 billion) at the end of 2011, but more still must be cut to return the properties to a long-term, sustainable basis, economist Alan Ahearne said in a report.
“If you’re so indebted that your interest payments absorb all your profit, you will have no money left to refurbish, maintain and improve the hotel. The quality of the hotel will thus decrease over time,” he said.
“My guess is that there will be fewer 5- and 4-star hotels in a few years’ time as a result. There will have been a downgrading. That’s a worry as the quality of the hotel is important for tourism.”
London officials have overturned the city’s ban on short-term rentals, opening the doors for sharing economy companies such as Airbnb and OneFineStay to begin operating, reports City A.M.
Regulations previously forced Londoners who wanted to rent out their homes for fewer than three months to apply for permission or be fined.
“The Internet is changing the way we work and live, and the law needs to catch up. We have already reformed the rules on renting out your unused parking spaces; now we want to do the same regarding renting out your home for a short period,” said Communities Secretary Eric Pickles.
STR Global, sister company of HNN, has released May preliminary data for Dubai, London, Singapore and Sydney.
Dubai: The emirate reported an 8.8% increase in supply, with demand increasing by 6.1%.
“Demand remained strong for Dubai. However, supply growth continued to pick up for the fifth month in a row, leading to a decline in occupancy performance for May,” Elizabeth Winkle, managing director of STR Global, said in a news release. “Continued ADR growth pushed the metric above 2008 levels. Further rate growth is expected to drive positive RevPAR performance throughout 2014.”
London: Occupancy fell by 1.7% to 84.5% during May, while average daily rate also edged down by 0.3%.
“May was the first month in 2014 to report negative hotel performance for London, primarily impacted by the 2013 UEFA Champions League Final, which pushed hotel performance to new levels for the month last year,” Winkle said. “The rest of the year, however, looks positive all through, as the U.K. economy and the eurozone are expected to grow further.”
Singapore: Revenue per available room declined by 1.3% during May, though RevPAR for 2014 is expected to increase by 3.3%.
“Occupancy for Singapore remained above 80% for the fourth month in a row, despite the decline in this measure, as supply grew faster than demand in May,” Winkle said. “For the rest of the year, occupancy is expected to decline further, while ADR solely will drive an overall positive RevPAR performance.”
Sydney: The city notched increases in demand (+5%); occupancy (+3.7%); ADR (+4.9%); RevPAR (+8.9%); and supply (+1.2%).
“Demand for Sydney picked up in May while supply growth continued to slow, leading to occupancy levels in excess of 80% for the fourth month in a row,” Winkle. “ADR growth remained strong, and at record levels, and is expected to drive an overall positive RevPAR performance for the remaining year.”
The 11th edition of the “Uniform System of Accounts for the Lodging Industry,” a critical tool for hotel finance and accounting professionals, was released last month following a two-year-plus review, according to HNN’s Ed Watkins.
“Revisions are necessary from time to time because of the significant changes that go on in our industry,” said Ralph Miller, president of Inntegrated Hospitality Management and vice chair of the Financial Management Committee of the American Hotel & Lodging Association. “As things change we try to update the Uniform System to reflect current advances in the industry.”
Included are updates related to technology; room revenue and fees and surcharges; labor; and food and beverage.
There are plenty of hotel development opportunities in Indonesia, though those opportunities do not come without challenges, according to a TTG Asia report.
Speaking during the Second Annual Indonesia Hotel Investment Conference late last week, Yanti Sukamdani, chair of the Indonesia Hotel and Restaurant Association, said 288 hotels will open in Indonesia by 2016. Development, however, is challenged in part by increasing land costs and lagging rate increases, she said.
Tourism overall appears to be doing well, however, with tourist arrivals in April up 10.6% and tourism receipts up 6.9% during the first quarter.
Compiled by Shawn A. Turner.