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1. World’s Tallest Building in Jeddah Resumes Work, Includes Hotels
The Jeddah Economic Co. has announced it will resume construction on its Jeddah Tower project, MEED reports. Once finished, it will be the world’s highest building, more than 160 feet higher that Dubai’s Burj Khalifa. Towering more than 3,250 feet, the Saudi Arabian building started development in 2011, but work stopped in 2017 when Saudi ruler Mohammad bin Salman came to power and instigated an anti-corruption drive, according to Middle Eastern news outlet B1M. Work was further stalled by the COVID-19 pandemic.
The JEC has said that it is requesting contractors return request-for-proposal bids. The original plans included hotels and an open-air observation deck on the 157th floor. Kingdom Holding Company owns 40% of the project, as does the Bakhsh Group, with the remaining stake in possession of the Sharbatly Group.
2. Expanded London Auto Emissions Law Adds to Hotel Woes
The expansion of London’s Ultra Low Emissions Zone from Central London to cover all the capital is placing more pressure on hotel staff and might discourage employment and guest overnights, writes Hotel News Now’s Terence Baker. The expansion, which was enacted on Aug. 29, charges a fee of £12.50 every day for older cars. Newer cars are exempt.
Some sources said lower-paid employees, including those in hotels, might not be able to afford a car with a new engine and that London’s politicians should instead concentrate on expanding the city’s electric-charging facilities and bicycle lanes. Ilhan Keles, general manager of the 61-room hotel The Petersham Richmond, which is now located within the ULEZ expansion, said, “guests and diners are certainly affected, and the cost of raw materials increases due to the investment contractors have to make. … Contractors' and suppliers' vehicles should be exempt.”
3. US, Canada Hotels Open September With Slightly Higher Performance
During the week ending Sept. 3, U.S. hotel performance saw slight drops in both occupancy and revenue per available room. Occupancy declined by 1.9% year over year to 60.3% and RevPAR dipped by 0.1% to $90.86. But average daily rate increased by 1.9% to $150.66 according to CoStar hospitality data.
Of the top 25 markets, Denver posted the highest year-over-year RevPAR lift, up 21.4% to $124.56. The poorest-performing RevPAR market was in St. Louis, which saw a 19.8% fall to $60.02.
In Canada, occupancy decreased 1.4% to 68.6% and RevPAR dipped 0.2% to 142.93 Canadian dollars ($105.32) for the week. ADR in Canada increased 1.3% to CA$208.35. Newfoundland and Labrador posted the best results in that period, with all three metrics increasing. Its occupancy increased 4.5% to 71.1%, its ADR increased 10% to CA$168.83 and its RevPAR increased 14.9% to CA$120.
4. Banyan Tree To Convert Caesars Dubai
Accor and Banyan Tree Group have signed an agreement with owner Dubai Holding to open a 179-room Banyan Tree Dubai in Nov. 2023, Bloomberg reports. Accor’s lifestyle hotel division Ennismore will co-manage the property with Banyan Tree in an operational model that has already been put in place for two additional hotels in the Middle East: the Banyan Tree La Cigale Doha, Qatar, and Banyan Tree AlUla, Saudi Arabia.
The development, which is a debut for the Banyan Tree brand in Dubai, will be a conversion of the Caesars Palace Dubai, which opened in 2018 and is on Bluewaters Island, just south of The Palm and close to the Dubai Marina. Bloomberg News added that Caesars Entertainment is exiting Dubai and the United Arab Emirates at a time when the country is beginning to put together a legal framework to permit casino gaming.
5. Omni Hires Hotel Veteran Parrotta as New COO
Omni Hotels & Resorts has announced the appointment of Vince Parrotta as its chief operating officer, a new post for the company. He arrives from Four Seasons Hotels & Resorts, where his last role was as president, hotel operations, Americas.
According to a news release, Parrotta will also be responsible for “hotel operations, as well as related brand- and guest-experience roles.”