For a company like Jumeirah Group that is nearly synonymous with Dubai, adding nine hotels around the world can’t help but change its image.
“The look and feel of Jumeirah by the end of this year is going to be totally different than what it was at the beginning of the year if everything opens according to plan,” said Gerald Lawless, executive chairman of Jumeirah Group, who spoke to Editor Stacey Mieyal Higgins last week at the Jumeirah Essex House.
Hotels that have already opened this year: Jumeirah Zabeel Saray on The Palm Jumeirah island; the Jumeirah Himalayas Hotel in Shanghai; and Jumeirah Dhevanafushi, Maldives.
The total active U.S. hotel development pipeline comprises 2,965 projects totaling 310,762 rooms, according to the May 2011 STR/McGraw Hill Construction Dodge Pipeline Report. This represents a 3.6% decrease in the number of rooms in the total active pipeline compared to May 2010.
Among the nine geographical regions of the U.S., the West South Central region reported a 54.5% decrease in rooms in construction with 8,247, reporting the largest decrease among the regions. Two other regions experienced decreases in the number of rooms in the in construction phase of more than 30%: the Pacific region (-33.8% with 3,508 rooms under construction) and the New England region (-32.9% with 912 rooms).
Franchisors’ patience, like carpet on hotel floors, has worn thin from years of neglect. The hospitality business is recovering rapidly, so they are declaring an end to the truce and are putting owners on notice that PIPs must be adhered to. If not, the flag goes away.
That spells trouble for hotel lenders, who risk getting stuck with an asset worth less than its loan. Fortunately, lenders can enact measures to preserve the flag, writes HotelNewsNow.com columnist Steve Van.
The first step? Make absolutely sure the notice requirements the franchisor agreed to in the loan documents are current and valid.
The Brazil hotel market is booming in the build up to the 2014 FIFA World Cup and the 2016 Olympic Games. But what the country has boasted in momentum it’s also lacked in transparency—until now. The country has launched the Brazilian System for the Qualification of Accommodation Options, a rating system that classifies hotels from one to five stars. To use the symbol, hotels must endure a qualification process from the Ministry of Tourism.
According to the President of Embratur, the Brazilian Tourism Board, Mário Moysés, the model adopted by the country observes a global reference standard for tourism services. “With standardized international reference information, foreign tourists will be able to count on one more precious information element when choosing Brazil as a destination. With better quality information we become more competitive in the international market.”
Though temperatures in San Francisco have hovered comfortably in the mid-60s for the past few weeks, the city’s hotel transactions market is heating up. Deal volume in the Bay Area is expected to range from US$400 million and US$500 million by year end, according to Jones Lang LaSalle Hotels.
“Hotel trades are off to a fast start in the Bay Area, as (US)$220 million in transactions were completed during the first five months of 2011,” said John Strauss, a managing director for JLLH. “REITs, private equity investors and off-shore groups are actively targeting investments in this sought-after hotel market, and in some cases are paying close to historic peak levels.”
The firm’s projection is comprised of the estimated transaction value of properties on the market that are expected to transact during the course of the year.
Compiled by Patrick Mayock.