Mexico’s crime problem is a challenge to hotels hoping to fill resort areas, reports HotelNewsNow.com’s Shawn A. Turner.
At the same time, branded development efforts in the country are addressing high demand in the hotel market, according to a story by HotelNewsNow.com’s Jason Q. Freed.
The majority of supply opening in Mexico during the next few years is expected to come by way of new-builds. There are 86 hotels in the Mexico pipeline, which would add to the 2,077 hotels already operating in the country, according to data from STR.
The recovery that began in the company’s main markets (France, Germany and the United Kingdom) gradually extended to most European countries. Occupancy rates again improved while average room rates continued to rise in the fourth quarter. The business was also lifted by a strong rebound in emerging markets, which posted double-digit revenue increases.
In light of the fourth quarter’s revenue performance, particularly in key European capitals, and a more favorable currency effect, full-year earnings before interest and taxes should come to approximately €440 million (US$591.6 million) (compared with €236 million, or US$316.3 million, in 2009), versus the €400-420 million (US$537.8-US$564.7 million) target announced in late October.
The company, which operates 70 hotels in the Middle East/Africa region, is slated to open six new properties in the UAE during the next 11 months.
More than 90 existing AC Hotels in Spain, Italy and Portugal will be rebranded and enter into long-term management or franchise agreements with the joint venture.
Antonio Catalan, chairman and founder of AC Hotels said, "We are thrilled to be partnering with Marriott. The new AC Hotels by Marriott co-brand combines the strengths of both AC Hotels and Marriott International—AC Hotels' exceptional product and expertise and the power of Marriott's engines, global footprint and the power of its development organization. We see tremendous growth potential for AC Hotels by Marriott and will be aggressively pursuing development opportunities throughout Europe and Latin America."
The 9,100-room venture is a significant driver of Marriott's European growth strategy, according to the company. At launch, it will represent almost a quarter of the progress toward the company's goal of doubling its portfolio in Europe during the next five years to 80,000 rooms.
The story sites a note from Craig-Hallum Capital Group senior research analyst Frank McEvoy, which claims one of LodgeNet's largest hotel customers implemented a policy that prohibits adult video-on-demand movie offerings in its new properties and bans the offerings at existing properties after its contracts with LodgeNet expire. Any guesses on which hotel company is giving up this revenue source?
Compiled by Stacey Higgins.