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5 Things to Know: 6 December 2011

From the desks of the HotelNewsNow.com editorial staff: • Protests a drag on Cairo hotels; • Deloitte study: 2012 business travel looking strong; • panelists: Capital available for global luxury hotels; • Starwood buys nearly 50% stake in Design Hotels; and • Finland hotels showing strength.
By the HNN editorial staff
December 6, 2011 | 9:15 P.M.

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A new round of political protests is weighing on hotel performance in Cairo, according to a report from HotelNewsNow.com’s Stephanie Wharton.

The city’s hotel market began the month of November with low occupancy, just 35.9% on 5 November, according to data from STR Global. Occupancy slightly picked up toward the end of the month, even after the start of the protests on 19 November, to 40.4% on 26 November. While the data does not indicate the protests negatively affected hotel occupancy, several hoteliers in Cairo reported otherwise.

“We were fairly confident we would have a good November and December, and then after the 19th when the next round of protests started, we did see a high level of cancellations,” said Rick Zeolla, GM at the Cairo Marriott Hotel & Omar Khayyam Casino.

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Business travel in 2012 is expected to increase, according to the findings from
Deloitte’s new Business Traveler Survey

A total 85% of the survey’s 1,000 respondents expect to take the same number or more trips next year. Further, 81% of respondents said they will take the same or more trips in 2011.

Other highlights from the study include:
• A total 27% of business travelers in the 18-44 age group expect to take the same number or more trips next year compared to 16% of travelers 45 or older.
• In the 18-29 age group, 46% of travelers indicated they prefer to stay at their favorite hotel brand even if it is not conveniently located, while 37% of those 30 and older feel the same way.
• Among the 18-44 group, 36% said they often work in the lobby or common area, compared to 17% of those 45 and older.

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Capital is flowing into the global luxury hotel segment, HotelNewsNow.com’s Jeff Higley reports as part of his coverage of Deloitte’s recent European Hotel Investment Conference.

“Even in these difficult times, there’s still a huge amount of capital out there,” said Ramsey Mankarious, CEO of London-based Cedar Capital Partners.

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While development remains a challenge, hotel executives said they are eying aggressive expansion of their luxury portfolios.

“This year was a good for us, next year is equally as good,” Mankarious said. “Assets are coming on the market you wouldn’t be able to buy a couple of years ago, still at a fair price.”

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Starwood Hotels & Resorts Worldwide has
acquired a nearly 50% stake

in Berlin-based Design Hotels AG, a company that represents and markets a selection of 200 independent hotels in more than 40 countries. 

Starwood bought the 49.8% stake in Design Hotels from Arabella Hospitality SE. The deal is expected to close

during the first quarter of 2012. 

"This is an investment presented to us by a longtime partner," Frits van Paasschen, Starwood’s president and CEO, said in a news release. "With our own passion for design and innovation, we have long admired Design Hotels, its founder, CEO Claus Sendlinger, and his executive team, who have worked closely with some of the world's most exciting independent hotel owners to curate a unique collection of hotels around the globe. As a shareholder, we are delighted to have a seat at the table of this dynamic company."

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The Finland hotel market is showing strength in all three key performance metrics, according to data from STR Global, sister company of HotelNewsNow.com.

The Finland region is showing year-to-October occupancy growth of 2.5%, average-daily rate growth of 3%; and revenue-per-available-room growth of 5.5%.

In Helsinki, demand has grown by 6% year-to-October, according to STR Global data.

Compiled by Shawn A. Turner.


News | 5 Things to Know: 6 December 2011