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1. Wyndham, LuxUrban Strike a Deal
Wyndham Hotels & Resorts and hotel operator LuxUrban Hotels have signed a deal to add 16 LuxUrban hotels to Wyndham's Trademark Collection portfolio, according to a news release. That amounts to 1,400 rooms across New York, Los Angeles, Miami, New Orleans and Washington, D.C.
"In just a few years, LuxUrban has created a significant position in the U.S. urban hotel market, proving the success of its unique, asset-light operating model," said Chip Ohlsson, chief development officer at Wyndham. "We're excited to have their hotels join what continues to be one of Wyndham's fastest-growing brands and even more excited by the long-term growth opportunities that exist for both LuxUrban and for Trademark."
2. Bank of England Raises Interest Rate
The Bank of England raised its key interest rate by a quarter percentage point, lifting the rate from 5% to 5.25%, the Wall Street Journal reports. This is the 14th consecutive rate increase, and bank officials indicated they may not be done as they try to bring inflation down to 2%.
“We know that inflation hits the least-well-off hardest and we need to make absolutely sure that it falls all the way back to the 2% target,” Bank of England Gov. Andrew Bailey said.
3. Hyatt Reports Record Fee Revenue
In the company's second-quarter earnings release, Hyatt Hotels Corp. reported that systemwide revenue per available room grew by 15% year over year, generating a record $248 million in fee revenue during the quarter. The company's pipeline has grown to 119,000 rooms, representing about 40% of Hyatt's existing portfolio.
"We believe our increasing asset-light earnings mix and free cash flow define a clear path for continued success and enhanced shareholder value into the future," Hyatt President and CEO Mark Hoplamazian said in the release.
4. Extended-Stay Hotels Outperform Industry
The Highland Group's 2023 Mid-Year U.S. Extended-Stay Hotel Market Report found that total extended-stay hotel average daily rates and revenue per available room have grown faster than the overall U.S. hotel industry while sacrificing some occupancy. However, the segment's long-term average occupancy remains at a premium over all other hotels.
Room revenue for the segment through June reached $9.2 billion, a 9% increase, according to the report. Rate reached $119.19, a 7.3% increase compared to the first half of 2022. Occupancy remained flat at 75%.
5. 43 Massachusetts Hotels House Immigrants
The Massachusetts Executive Office of Housing and Livable Communities reports that 43 hotels across the state are being used as emergency housing for about 1,800 immigrant families across 38 communities, according to CBS News. The city of Framingham recently received word that a dozen families seeking asylum would be staying at a local hotel.
The state's hotel and permanent housing capacity has grown by 40% since late 2022, according to the article. Massachusetts is the only right-to-shelter state that guarantees housing to homeless families.