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1. US Removes Travel Ban After Nearly 20 Months
The United States on Monday ended its COVID-19 travel ban after more than 600 days of barring travelers arriving from more than 30 countries, USA Today reports.
A rush of international travelers began lining up at the Canadian and Mexican borders this morning and passengers were ready to board flights from Europe.
"The new U.S. entry requirements require foreign air passengers to test negative for the virus before boarding a plane to the country, and, if they are 18 or older, show proof of full vaccination. Travelers entering the U.S. on land or by ferry for nonessential reasons must need to show proof of vaccination," USA Today writes.
CNBC reports airlines have experienced a spike in bookings to the U.S. "and expect an immediate surge in travelers, even before peak holiday periods."
Countries that were barred during the travel restriction period include China, the United Kingdom, Ireland, Brazil and South Africa.
2. CorePoint Lodging To Be Sold for $1.5 Billion
Irving, Texas-based real estate investment trust CorePoint Lodging has entered into an agreement to be purchased by a joint venture between affiliates of Highgate and Cerberus Capital Management for a cash deal valued at $1.5 billion, HNN's Robert McCune reports. CorePoint's stock fell 13.8% in pre-market trading on Monday following the announcement.
It's expected this deal will close in the first quarter of 2022. Additionally, Wyndham Hotels & Resorts announced an agreement with CorePoint related to the termination of all hotel management agreements, effective when the CorePoint deal is closed.
CorePoint on Monday released its third quarter earnings performance results, noting a net income of $17 million and adjusted earnings before interest, taxes, depreciation and amortization for real estate of $34 million. The company sold 15 non-core hotels for a combined sum of $96 million.
3. Hospitality REITs Report Third Quarter Earnings
Several hotel real estate investment trusts reported third quarter performance results late last week, including DiamondRock Hospitality Company, Sunstone Hotel Investors, Apple Hospitality REIT and RLJ Lodging Trust.
HNN's Sean McCracken reports Sunstone's Chairman and interim CEO Douglas Pasquale said his company's decision to move on from previous CEO John Arabia was due to needing someone with a more extensive background in real estate transactions and "different leadership attributes."
"With the passage of time, as the company grew and evolved, it was the board's determination that — notwithstanding the fact that over certain periods of time the company performed well on a relative basis — there was significant more opportunity to create value," Pasquale said on a Friday call with analysts. "In order to best accomplish that, it was the board's view that new attribute traits were important, including someone who had more of a real estate background and transaction background."
During the third quarter, Sunstone reported a net loss of $22.1 million, up from a net loss of $91.1 million year over year.
4. PM Hotel Group To Merge With Paramount Management Associates
Chevy Chase, Maryland-based PM Hotel Group announced on Monday its merger with Fairfield, New Jersey-based Paramount Management Associates, bringing the combined portfolio to 70 branded and independent hotels across 22 states, according to a news release.
“This merger presented us with the opportunity to do something truly transformational. Relationships, with our owners, associates, and partners, have always been our focus. Now with the people and scale of our combined portfolio we are positioned to leverage our size for greater success,” said Joseph Bojanowski, president and CEO of PM Hotel Group. He added that, “Paramount’s senior executives bring exceptional operational and acquisition expertise that further enhances our team and positions us for continued strategic growth.”
The merged company will operate as PM Hotel Group and keep its headquarters in Maryland.
5.Extended-Stay Hotel Occupancy Premium Exceeds Overall Industry
According to the latest data from hotel research and consultant group Highland Group, the extended-stay hotel segment continues to recover at a healthier rate than the overall industry.
Economy extended-stay hotels recorded the highest revenue per available room recovery index compared to any other segment in September. Additionally, mid-price extended-stay hotels posted the biggest gain in RevPAR recovery during the month compared to August. Upscale extended-stay hotels' RevPAR recovery remained unchanged from August.
“Extended-stay hotels’ occupancy premium above the overall hotel industry widened to 16 points in September and is expected to widen further during [the fourth quarter of] 2021,” Mark Skinner, Partner at The Highland Group, said in a release.