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 release March performance data
U.S.: During March, the U.S. hotel industry’s occupancy was up 2.9% to 65.3%; its average daily rate rose 4.1% to $115.28 and its revenue per available room increased 7.2% to $75.31, according to data provided by STR, parent company of Hotel News Now.
Americas: Compared to March 2013, the Americas region reported a 2.8% increase in occupancy to 65.2%, a 3.4% increase in ADR to $117.93 and a 6.3% increase in RevPAR to $76.89, according to STR Global, sister company of Hotel News Now.
… and March pipeline data
U.S.: The total active U.S. hotel development pipeline comprises 3,127 projects totaling 381,503 rooms, according to the March 2014 STR Pipeline Report. This represents a 14.7% increase in the number of rooms under contract compared with March 2013 and a 41.9% increase in rooms under construction.
Caribbean/Mexico: The Caribbean/Mexico hotel development pipeline comprises 162 hotels totaling 26,647 rooms, according to the March 2014 STR Construction Pipeline Report. This represents a 21.5% increase in rooms under contract, compared with March 2013, and an 11.7% increase in rooms under construction.
Central/South America: The Central/South America hotel development pipeline comprises 390 hotels totaling 63,780 rooms, according to the March 2014 STR Global Construction Pipeline Report.
SFG betting on Mexico
Santa Fe Grupo Hotelero is banking on the continued evolution of Mexico’s hotel industry to grow its presence across multiple segments, according to a report from HNN’s Jeff Higley.
During the past 12 months, Mexico City-based Santa Fe has grown more than 50% by adding 1,134 additional rooms to its portfolio, including 680 rooms that it owns, said CEO Francisco Zinser Cieslik. The company, which counts Nexxus Capital, Walton Street Capital and Grupo Chartwell as its partners, has 11 hotels in its portfolio. It owns 90% of the 3,327 rooms it manages.
Argentina faces hurdles amid muted performance
Argentina’s 2014 outlook is marred by flat performance, currency devaluation and continued pressure on margins, although opportunities do exist for investors, according to an analysis from Carolina Spinelli and Sergio Giorgetti.
On a positive note, global arrivals to Argentina reached nearly 5.5 million in 2013, according to the Argentina Tourism Board, which positions the country as the second most-visited South American destination in terms of inbound tourism, only surpassed by Brazil.
IHG, Maplewood plan 15 Candlewood Suites in Canada
InterContinental Hotels Group and Maplewood Hotels & Resorts announced plans to develop 15 new-build Candlewood Suites properties in target markets throughout Canada over the next few years, according to a news release. Formed in 2013, Maplewood is a joint venture between Driftwood Hospitality Management and Pacrim Hospitality Services.
Starwood to expand Latin American portfolio
Starwood Hotels & Resorts Worldwide announced it has opened Aloft Guadalajara, expanding its footprint to nearly 80 hotels in Latin America. The company plans to open 17 more hotels, increasing its portfolio by 20% by 2016, according to a news release.
JLL: Mexican hotel transactions to reach $700m
From a low of less than $100 million in hotel trades in 2009, transactions in 2013 topped $600 million as investors bet big on the Mexico hospitality sector. Despite the new development activity, investors feel steady performance growth has resurged investment prospect. JLL expects deal flow to rise 15% in 2014 to the second-highest annual level on record of more than $700 million in hotel transactions.
Hilton to debut in Haiti
Hilton Worldwide Holdings announced the signing of a management agreement with CAB, S.A. to operate the new build Hilton Garden Inn Port-au-Prince Louverture Airport. Scheduled to open in 2016, this Hilton Garden Inn hotel in Haiti will introduce the Hilton Garden Inn brand to the Caribbean and debut the company’s first hotel in Haiti.
Deals and developments
- Mexican real estate investment trust Fibra Inn acquired the Holiday Inn Tampico Altamira in the state of Tamaulipas and plans to add an additional 105 guestrooms. The REIT also acquired the 142-room Aloft Guadalajara Las Americas hotel.
- IHG opened its first Holiday Inn Express hotel in the Condado district of San Juan, Puerto Rico—the 115-room Holiday Inn Express San Juan Condado hotel, owned by A.F.N.S Condado Investment. www.ihgplc.com
- The 243-room Radisson Hotel Trinidad opened in Port of Spain.
- The 115-room Aranwa Paracas Resort & Spa opened in Paracas, Peru, in March.
Compiled by Samantha Worgull.