October pipeline updates: October 2015 saw a 12.7% increase in the number of hotel rooms under contract compared to October 2014, and a 21.9% increase in rooms under construction, according to the October 2015 STR Pipeline Report. In total, the U.S. has 138,544 rooms in construction. Of the rooms in construction, the largest numbers are in the upscale (48,810 rooms) and upper midscale (44,897) segments.
Other October pipeline updates from around the world include:
- Middle East/Africa: There are 781 hotels totaling 195,705 rooms under contract in the Middle East/Africa region, according to the October 2015 STR Global Construction Pipeline Report. This represents a 29.1% increase in rooms under contract compared with October 2014 and a 43.1% year-over-year increase in rooms under construction. The region reported 105,177 rooms in 407 hotels under construction for the month.
- Europe: There are 812 hotels totaling 133,317 rooms under contract in Europe, according to the October 2015 STR Global Construction Pipeline Report. This represents a 6.6% decrease in rooms under contract compared with October 2014 but a 0.3% year-over-year increase in rooms under construction. The region reported 54,912 rooms in 336 hotels under construction for the month.
New looks for airport hotels: U.S. airport hotels are seeing a development resurgence, according to Bloomberg Business, with new upscale full-service airport projects planned in Minneapolis, New York City, Atlanta and Denver. The story cites rising demand for rooms and conference space near airports, along with passengers who have increased their expectations for airport hotels.
“Passengers in general have increased their expectations of airports,” said Kim Day, CEO of Denver International Airport. “They want higher-end shopping, better food, and they want better places to stay when they stay.”
A 500-room Westin hotel is scheduled to open 19 November at Denver International Airport.
CEOs hit hot topics: Turns out, international hotel company CEOs do think about the same topics the rest of us discuss; namely, millennials, loyalty, technology and more. Carlson Hospitality Group’s David Berg busts five myths about millennials in today’s installment of HNN’s three-part series where global CEOs talk about today’s hot topics.
“Many of the pre-conceived notions about millennials are somewhat off or just flat-out wrong,” he said during a presentation at the recent HICAP conference in Hong Kong. Some of the myths he said are wrong about that elusive millennial generation are that they don’t like face-to-face interaction, and that they have no loyalty to hotel brands.
Positive net profit for NH Hotel Group: Madrid-based NH Hotel Group posted positive net profit for the first time since 2008, according to the company’s third-quarter earnings release.
NH's third-quarter revenue increased by 8.3% to €347.3 million ($373.5 million), while EBITDA jumped by 25% to €38.2 million ($41.1 million). As a result, the group has presented a positive net profit, namely €4.4 million, for the first time in a third quarter since 2008. The company posted a loss of nearly €5 million in Q3 2014.
Americans not as interested in traveling abroad: A study from Hostelworld Global Traveler Report and reported on by the New York Daily News shows that Americans aren’t that worldly after all. That may come as no surprise to some; the survey shows that Americans are only half as likely as Europeans to go abroad to visit more than one country, and they cite costs as the No. 1 reason prohibiting travel abroad.
The report of 7,000 international travelers also showed that the average American has been to three nations, and that roughly 29% of Americans have never traveled abroad. This contrasts with the average U.K. citizen, who has visited 10 countries. The study also showed that Americans are most likely when traveling abroad to go north to Canada or south to Mexico.
Compiled by Stephanie Ricca.