Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
STR, STR Global share February performance data
United States: In year-over-year results, the U.S. hotel industry’s occupancy was up 3.2% to 62.3%; its average daily rate rose 4.7% to $116.55; and its revenue per available room increased 8% to $72.60, according to February data from STR, parent company of Hotel News Now.
Americas: Compared to February 2014, the Americas region reported a 2.8% increase in occupancy to 62.3%, a 3.9% increase in ADR to $118.66 and a 6.8% increase in RevPAR to $73.94, according to data from STR Global, HNN’s sister company.
… and February pipeline data
U.S.: There are 3,604 projects totaling 435,518 rooms under contract in the U.S., according to the February 2015 STR Pipeline Report. This represents a 17.6% increase in the number of rooms under contract compared with February 2014 and a 31.9% increase in rooms under construction.
Caribbean/Mexico: There are 163 hotels totaling 28,927 rooms under contract in the Caribbean/Mexico region, according to the February 2015 STR Construction Pipeline Report. This represents a 6.9% increase in rooms under contract compared with February 2014 and an 11.4% decrease in rooms under construction.
Central/South America: There are 451 hotels totaling 71,876 rooms under contract in the Central/South America region, according to the February 2015 STR Global Construction Pipeline Report. This represents a 17.8% year-over-year increase in rooms under contract compared with February 2014 and a 37.2% increase in rooms under construction.
Baha Mar faces more challenges
The 2,200-room megaresort on 24 March announced it would yet again delay its scheduled 27 March soft opening until early May, according to a statement provided to HNN by Baha Mar representative Alyssa Bushey.
The statement came in response to an exclusive report from HNN contributor John Buchanan (which ran the day Bushey shared the resort’s statement). The report outlined a detailed account of delays and hang-ups for the $3.5-billion project. The latest snags included delayed openings of the 300-room SLS Lux at Baha Mar and the 200-room Rosewood at Baha Mar.
Detroit hotels motor on
Hotels in Motor City are following the market’s broader economic rebound with double-digit RevPAR growth, according to a recent report from STR’s Jan Freitag.
The market, hit hard during the Great Recession, is on the upswing, notching a 10.1% increase in RevPAR during 2014 and a 7.4% rise in 2013. Not bad for a market that saw 20 consecutive months of RevPAR declines from June 2008 through January 2010. The peak decline was 25.9% in the first quarter of 2009, according to the report.
All-inclusives, lifestyle drive Mexico leisure
One vital decision stands above others for investors in Mexico’s leisure hotel industry: The determination regarding which business model—European plan or all-inclusive—must be made early in the development process and could easily make or break a property’s long-term viability, said speakers at the recent Mexico Hotel & Tourism Investment Conference.
Regardless of the level of service or the business model, one trend is becoming clear, according to Blanca Rodriguez, managing director for Banyan Tree Mexico Hospitality Fund.
“What we see very clearly is a flight to quality,” Rodriguez said during a panel that addressed leisure business. “If you’re in AI or EP, you need to supply this.”
Waterpark hotels on the rise in US
Hoteliers are making waves (the good kind) with guests by adding waterparks on property, according to research from Hotel & Leisure Advisors. The amenities have proven fun, safe and desirable for families with children, and are sparking demand to boot.
A total of 24 waterparks (including municipally owned, standalone parks) were added in the U.S. during the past year. More than 400,000 square feet of indoor waterpark space and more than 1,400 rooms are planned for 2015. The two largest indoor waterpark resorts, Camelback Lodge and Kalahari Resort, are opening in the Poconos region of Pennsylvania.
Airbnb takes on Cuba
As U.S. hoteliers continue to explore development opportunities in a newly open Cuba, home-rental service Airbnb already is securing its positioning. The Associated Press reports that Airbnb searches for “Cuba” now reveal more than 1,000 availabilities across the island. Booking is now open in Cuba on Airbnb, but the company has been working for three months to sign up Cuban homeowners for the sharing site, AP reports.
"We believe that Cuba could become one of Airbnb's biggest markets in Latin America," Kay Kuehne, regional director for Airbnb, told the AP. "We are actually plugging into an existing culture of micro-enterprise in Cuba. The hosts in Cuba have been doing for decades what we just started doing seven years ago."
Fën Hotels to bring brands to US
Fën Hotels Management, which operates more than 30 hotels in Latin America, has landed in the U.S. with its expected June opening of Dazzler Brooklyn in New York City. The company plans to manage more than 15 hotels in the next 18 months under its Dazzler Hotels and Esplendor Hotels Boutique brands, according to Lucia Maschwitz, marketing manager for Fën.
Fën already operates the Tides in South Beach; it will be followed by two more hotels in Los Angeles, to be launched in September, followed by the Esplendor Bossert Brookyln in November.
Candlewood Suites enters Mexico market
InterContinental Hotels Group announced plans to bring the Candlewood Suites brand to Mexico with the signing of two new properties in the states of Guanajuato and Queretaro. Both hotels are expected to open in 2016 and will be the brand’s first hotels outside the U.S. and Canada.
Both hotels, owned by OVQ Celaya, S.A. de C.V., and managed by Diamond Lodging, will be new build developments with 100 suites each.
Starwood pushes LatAm, Caribbean expansion
Starwood Hotels & Resorts Worldwide announced it anticipates another strong year of growth in Latin America and the Caribbean in 2015, fueled by hotel openings and high-quality deal signings, according to a news release. The company also announced the debut of Four Points by Sheraton Cancun Centro, expanding its portfolio to 94 hotels in Latin America and the Caribbean, with 13 additional hotels in the pipeline set to open by 2017.
“2014 was a great year for Starwood in Latin America and the Caribbean with growth at both ends of our business,” said Jorge Giannattasio, senior VP and COO for Starwood Latin America and the Caribbean. “Demand for business and leisure travel and interest in our innovative, design-led brands increased as demonstrated by solid growth in openings and signings, the two cornerstones of our aggressive expansion strategy.”
Compiled by Samantha Worgull.