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 share 2014 performance data
United States: In year-over-year results, the U.S. hotel industry’s occupancy was up 3.6% to 64.4%; its average daily rate rose 4.6% to $115.32; and its revenue per available room increased 8.3% to $74.28, according to year-end 2014 data from STR, parent company of Hotel News Now.
Americas: The region recorded positive results in the three key performance metrics during the year, according to data provided by STR and STR Global, sister company of HNN. Overall, occupancy increased 3.4% to 64.4% in 2014. ADR increased 4.1% to $117.27, while RevPAR grew 7.6% to $75.48.
Caribbean: In year-over-year comparisons, Caribbean hotels during 2014 experienced a 1.5% increase in occupancy to 68%; ADR was up 6.4% to $194.66; and RevPAR rose 8% to $132.28, according to data from STR.
STR, STR Global release pipeline data
U.S.: There are 3,443 projects totaling 412,878 rooms under contract in the U.S., according to the December 2014 STR Pipeline Report. This represents a 14.3% increase in the number of rooms under contract compared with December 2013 and a 31.4% increase in rooms in the in-construction phase.
Canada: The country’s hotel development pipeline comprises 210 projects totaling 23,885 rooms, according to the December 2014 STR Pipeline Report. This represents a 3% decrease in the number of rooms under contract compared with December 2013.
Caribbean/Mexico: The Caribbean/Mexico hotel development pipeline comprises 161 hotels totaling 27,378 rooms, according to the December 2014 STR Construction Pipeline Report. This represents a 9.9% increase in rooms under contract compared with December 2013 and a 3% increase in rooms in construction.
Central/South America: The Central/South America hotel development pipeline comprises 416 hotels totaling 67,466 rooms, according to the December 2014 STR Global Construction Pipeline Report.
Cabo still has it all
Devastated by Hurricane Odile, Cabo has seen a resurgence led by luxury brand developments, according to a report from HNN columnist Jonathan Kracer.
New hotel investors in recent years have introduced new segments and niches in the Los Cabos market, such as lifestyle concepts and limited/select-service hotels. And now the market is attracting more development after its resilience following Odile. For example, many luxury brand affiliations have announced plans to enter the market, including Ritz-Carlton Reserve, Park Hyatt and Montage resorts. The market is undoubtedly making a comeback, Kracer explains.
NH Hotel Group buys Colombian-based Hoteles Royal
NH Hotel Group on 4 February announced that it had acquired Colombian-based Hoteles Royal for a sum of €65.6 million ($74.9 million), according to a news release. The deal will boost the company’s portfolio in Latin America from two hotels to 21 (2,379 rooms) across Colombia, Chile and Ecuador.
Caribbean hoteliers unfazed by Cuba potential
While full-fledged development likely remains a long way off, the reopening of diplomatic relations between the U.S. and Cuba has raised the possibility of Cuba as a viable travel destination in the Caribbean.
Rather than fear another destination soaking up of demand, however, hoteliers in the region have indicated their enthusiasm over the potential increase in travel to Cuba, according to a report from HNN’s Shawn A. Turner.
HNN attends ALIS
HNN’s Jeff Higley, Patrick Mayock and Stephanie Ricca attended this year’s Americas Lodging Investment Summit, which was held 26-28 January 2015 in Los Angeles. The team reported several stories from the conference including Hyatt Hotel Corporation’s unveiling of its lifestyle brand Centric and Marriott International’s acquisition of Canada’s Delta Hotels & Resorts, among other tidbits.
Read the team’s full lineup of coverage here.
Strategic buys Montage Laguna Beach for $360m
Strategic Hotels & Resorts acquired the 250-room Montage Laguna Beach from an affiliate of Ohana Real Estate Investors for $360 million, plus customary working capital adjustments, according to a news release.
Montage Hotels & Resorts will continue to manage the destination resort, which features 250 ocean-facing guestrooms and is located on approximately 30 acres of fee simple owned land sitting atop a 50-foot bluff overlooking the Pacific Ocean. Opened in 2003, the hotel features 60 suites, 16,000 square feet of indoor meeting space, a 20,000-square-foot spa and multiple food-and-beverage outlets.
First Virgin Hotel opens in US
The first Virgin Hotel has opened in Chicago, Crain’s Chicago Business reports.
The hotel is the first of three Virgin properties in development, in addition to hotels planned in New York City and Nashville, Tennessee.
In spring, the Chicago hotel will open a 26th-floor, 4,000-square-foot rooftop space. It will seat about 50 inside and 80 outside; most seats will have city views. The bar was carved out of the elevator shaft, and the vibe will be “edgy and eccentric,” according to the report.
Hotel tax slashed in The Bahamas
The Caribbean island nation of The Bahamas has cut its 10% hotel tax to 7.5% in an effort to woo more tourists, according to Travel Weekly.
The new sales tax/value-added tax rates imposed by the Bahamas Ministry of Finance will be charged on hotels and home rentals, as well as services purchased by guests, according to the report.
The 2.5% tax savings indicates the government’s determination to make a Bahamas vacation a value for money spent, according to the country’s Tourism Minister Obie Wilchcombe.
Compiled by Samantha Worgull.