HNN’s parent company STR has released preliminary May 2014 figures for the U.S. hotel industry and STR chain-scale segments. Year over year, the majority of U.S. chain scales recorded middle single-digit percentage growth in occupancy during the month.
The economy and upper-midscale segments both posted occupancy growth of between 4% and 6%, followed by the midscale and upscale segments that showed growth of between 3% and 5%. For the total U.S. hotel industry, STR predicts occupancy growth between 4% and 6%.
The industry overall experienced a revenue-per-available-room increase of between 9% and 11%, a range also exhibited in the economy and upper-midscale segments. Coming in with RevPAR of between 8% and 10% were the midscale, upscale and upper-upscale segments.
Singapore-based hotel company Banyan Tree Group will launch within the next two years an extended-stay brand named Cassia, according to Channel News Asia, to add to its Banyan Tree Hotels & Resorts and Banyan Tree Spa brands.
According to the report, five Cassia properties are being developed in: Thailand; Indonesia; Sri Lanka; China; and Australia. In the pipeline are properties in New York, Japan, The Seychelles, Vietnam and one more in each of Thailand and Australia.
The Green Street Commercial Property Price Index showed hotel sector prices increasing by 3% in May, according to Green Street Advisors.
The hotel sector’s CPPI finished the month at 93.5, which is up 14% during the past 12 months but still 7% below prior peak.
“Property appreciation is starting to pick up. Cap rates, which had been unchanged for several quarters, have recently begun to move lower,” said Peter Rothemund, an analyst at the company. “It’s likely the trend continues. Real estate pricing currently looks attractive relative to bond yields.”
Starwood Hotels & Resorts has plans to double the portfolio of its eco-lifestyle Element brand before the end of 2017, according to a news release.
The brand has 15 properties opened or in the pipeline to be opened before the end of this year. The Elements in the 2017 pipeline include properties in Boston; Orlando, Florida; Miami; Bozeman, Montana; and Newark, New Jersey. Globally, the company will open hotels in London, Vancouver, Frankfurt and Suzhou, China, among others.
The United Kingdom government unveiled a new body, The Tourism Council, to boost tourism, employment and best practices and on which will sit prominent members of the hotel industry, according to a news release.
To be a government-industry partnership, it will host its first meeting in June and be co-chaired by Helen Grant, minister for tourism; Matthew Hancock, skills and enterprise minister; and Simon Vincent, executive VP and president of Europe, Middle East & Africa for Hilton Worldwide Holdings. The British Hospitality Association also will be involved.
Compiled by Terence Baker.