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 report February performance
U.S.: The U.S. hotel industry’s occupancy was up 3.3% to 60.3%; its average daily rate rose 3.9% to $111.94; and its revenue per available room increased 7.3% to $67.49 during the month of February, according to data provided by STR, parent company of Hotel News Now.
Americas: The Americas region reported a 3.2% increase in occupancy to 60.6%, a 3.1% increase in ADR to $114.90 and a 6.5% increase in RevPAR to $69.58 during the month of February, according to data compiled by STR and STR Global. STR Global is a sister company to Hotel News Now.
STR, STR Global report February pipeline data
U.S.: The total active U.S. hotel development pipeline comprises 2,924 projects totaling 358,228 rooms, according to the February STR Pipeline Report. This represents an 11.8% increase in the number of rooms in the total active pipeline compared with February 2013 and a 32% increase in rooms under construction.
Among the U.S. regions, the West North Central region reported the largest increase in rooms in the total active pipeline, rising 22.2% over last year with 20,429 rooms in the pipeline.
Caribbean/Mexico: The Caribbean/Mexico hotel development pipeline comprises 152 hotels totaling 25,850 rooms, according to the February STR Construction Pipeline Report. This represents a 26.4% increase in rooms in the active pipeline, compared with February 2013, and a 12.2% increase in rooms under construction.
Central/South America: The Central/South America hotel development pipeline comprises 319 hotels totaling 51,482 rooms, according to the February STR Global Construction Pipeline Report. This represents a 40.9% increase in rooms in the total active pipeline and a 44.2% increase in rooms under construction over February 2013.
North Dakota losing steam
After weathering the Great Recession, North Dakota’s hotel industry is seeing some of the steepest RevPAR declines in the country, according to an analysis from STR Analytics’ Chesley Price. STR Analytics is a sister company to Hotel News Now.
Perhaps one of the biggest problems in the market is the introduction of North Dakota’s new supply during the last 18 months, which has stifled the state’s hotel performance boom.
Investor interest in California stays strong
California was a market of choice in 2013 for hotel investors, and interest continues this year, sources told HNN’s Ed Watkins.
Last year, 332 hotels were sold in the state, up from 308 transactions in 2012, according to the “California hotel sales survey year-end 2013,” published by Atlas Hospitality Group. The strong demand for hotel real estate pushed dollar volume up nearly 35% to $4.7 billion, while the median price per room rose 17.7% to $68,648.
IHG expands its presence in Brazil
InterContinental Hotels Group announced the signing of the new-build 244-room Holiday Inn Porto Maravilha and the 350-room Holiday Inn Express Porto Maravilha hotels. The 32-story hotels will be located in Rio de Janeiro’s revitalized downtown area of Porto Maravilha. The hotels, owned by Odebrecht Realizaçöes Imobiliárias and FII PM Caixa Fundo de Investimento Imobiliário Porto Maravilha, will be managed by IHG. Both hotels are expected to open by July 2016 for the Olympic Games.
Le Méridien ramps up expansion
Le Méridien is on track to more than triple its portfolio in the Americas since the French-born brand was acquired by Starwood Hotels & Resorts Worldwide in 2005, according to a news release. The brand will open 11 new hotels in the next 12 months, including: Le Méridien Tampa; Le Méridien Dhaka; Le Méridien Chicago-Oakbrook Center; Le Méridien Suvarnabhumi, Bangkok Golf Resort & Spa; Le Méridien Charlotte; Le Méridien Gandhinagar, Ahmedabad Road; Le Méridien Mahabaleshwar Resort & Spa; Le Méridien Indianapolis; Le Méridien New Orleans; Le Méridien Thimphu; and Le Méridien Jiaonan Resort.
Preferred Hotel Group expands in Central America …
During the past 12 months, Preferred Hotel Group has generated a 31% increase in reservations revenue and a 24% increase in roomnights on behalf of its member hotels in Central America, compared to the same time period in 2012, according to a news release. In addition, the company marked strong gains for its Preferred Boutique brand with the addition of two hotels to the portfolio during the past two months: Pelican Eyes Resort and Spa in Nicaragua and El Mangroove in Costa Rica.
… and in Mexico and Colombia
In 2013, Preferred added six member hotels in Colombia, tripling the size of its portfolio in the country compared to 2012. The new hotels were spread across the major markets such as Bogota, Barranquilla and Cartagena de Indias. In addition, over the past 12 months Preferred has produced a 33% increase in room revenue and a 38% increase in roomnights on behalf of its member hotels in Colombia, compared to the same time period in 2012, according to the company’s director of public relations Caroline Michaud.
In 2013, Preferred produced a 62% increase in room revenue, a 33% increase in bookings and a 16% increase in ADR, the highest increase in ADR of any country within the portfolio, for its member hotels in Mexico, compared to 2012. The company also added six new hotels in the country to its portfolio during the 12-month period.
Speakers mostly bullish about Mexico’s hotels
Despite economist Sergio Kurczyn’s cautious outlook, speakers at the Mexico Hotel & Tourism Investment Conference remained optimistic about Mexico’s hotel industry, according to a report from HNN’s Jeff Higley.
“We have seen great appetite coming back in all sectors,” said Blanca Rodriguez, managing partner of Real Capital Investment Management, through an interpreter while participating on the “Drilling down on demand: Business travel” panel.
Speaking on the same panel, Mónica Artigas, director of franchise development in Mexico for La Quinta Inns & Suites, said the Mexican economy is seen from the outside as robust, and the country needs to grow its external hotel guest base.