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1. COVID-19 Outbreak Shutters Hotel Near G7
For the second time in two days, a hotel in the G7 host city of Cornwall, England, has been at least temporarily closed down, but this time it was due to a COVID-19 outbreak, Reuters reports. The Pedn Olva Hotel in St. Ives was playing host to some of the German delegation before staff members tested positive for the coronavirus.
The hotel will remain fully closed until it can undergo "a full COVID-19 deep clean."
"We fully appreciate the inconvenience given the limited accommodation options available in the area at the moment but the safety and security of our team and guests is our upmost priority," a spokesperson for the property said.
2. New York State Legislature Passes Hotel-Housing Conversion Bill
A bill to convert hotels and office spaces into affordable housing is awaiting the approval of New York Gov. Andrew Cuomo, The Real Deal reports. The Housing Our Neighbors with Dignity Act would give the state the "authority to finance the purchase and conversion of hotels and offices on behalf of state-approved nonprofits."
All converted properties must be permanently affordable housing.
“There are obvious tools to confront the state’s historic homelessness crisis and end the perpetual suffering of so many people, and converting hotels to permanent, high-quality affordable housing is one of them,” Paulette Soltani, political director of Vocal NY, told the news outlet.
3. Ian Schrager, Capella CEO Outline How Luxury Has Changed
The COVID-19 pandemic has lead to fundamental changes for every segment of the hotel industry, but luxury hotels in particular have dealt with a paradigm shift and changing customer desires, HNN's Danielle Hess reports from the Boutique Hotel Investment Conference.
Capella Hotel Group CEO Nicholas Clayton said his hotels have had to put a greater emphasis on entertainment.
"It's not enough to have a soft bed, nice pool, a spa to go to, a meal to dine at. People want to be entertained," he said. "We have been focused on [entertainment] as a brand for some time now, and it's really serving us well during this pandemic and this kind of transition between domestic and international travel."
Meanwhile, boutique hotel icon Ian Schrager said he took the year to reinvent his flagship Public Hotel in New York.
"It's not very often you get an opportunity to start over, to re-calibrate and redirect your life," he said. "I think that opportunity was really a gift. I took advantage of it in my personal life and also my business life to really make Public better. To refine it. Enhance it. To make sure everybody understands my idea of what luxury for all is."
4. Permanent Changes Expected for Hotel Operating Model
As portions of the hotel industry start to reopen in earnest after the most difficult year on record, The Washington Post reports those hotels have "undergone dramatic transformations and might never return to [the industry's] pre-pandemic business model."
"But one thing that hotels across the board are considering is whether many of their customers are willing to accept fewer services than before, such as daily room cleanings and sizable breakfast spreads, analysts say, and that might mean a smaller hotel workforce in the years following the pandemic," the newspaper reports.
5. Preliminary Data Shows Big Rebound for Luxury
Luxury hotels were the big winners for U.S. hotels in May, according to preliminary data from CoStar's hospitality analytics firm STR. The data shows a 382% to 384% increase in revenue per available room for the luxury chain scale compared to May 2020, which was driven primarily by a 247% to 249% increase in occupancy.
Overall, the total industry saw a 159% to 161% increase in RevPAR, with a 75% to 77% occupancy increase and a 47% to 49% jump in average daily rate.