From the desks of the Hotel News Now editorial staff:
- LIIC survey notes continued hotel deals positivity
- US mulling electronics ban from Europe
- Marriott Q1 RevPAR increases 3.1%
- Dollar falls on news of FBI bombshell
- Summit prices new batch of 9m shares
LIIC survey notes continued hotel deals positivity: The Lodging Industry Investment Council’s Top Ten Survey shows that hoteliers continue to be positive concerning hotel deals and transactions volumes for 2017, a feel-good factor that is more upbeat than in 2016.
Among the findings of the report are that 68% of questioned investors believe the current investment cycle is in an “extra innings,” with 32% believing the industry has begun a new cycle. Of those reporting, 45% said they had successfully purchased a hotel in the last 12 months and 76% planned to sell a hotel over the next 24 months.
U.S. mulling electronics ban from Europe: Following the recent decision by the U.S. government to ban electronic equipment larger than mobile phones from being carried in cabin baggage from 10 airports in the Middle East and Africa, CBS News is reporting that the legislation might be extended to “include flights departing for the U.S. from Europe and possibly the United Kingdom.”
According to the news outlet, a decision on this issue might be announced “in the next few weeks.” Objections to the idea include the additional number of potentially dangerous lithium batteries that now would be stored in the cargo hold, and the possibility that computers and the sensitive data they might hold could be stolen or intercepted.
Marriott Q1 RevPAR increases 3.1%: Marriott International reported a 3.1% increase in revenue per available room in the first quarter of 2017, compared with the same period in 2016, both globally and in North America, according to published results.
Other highlights of the quarter included the addition of 17,000 rooms, and a reported net income for $365 million—a 67% increase from Q1 2016 numbers. Its pipeline currently is more than 430,000 rooms, including 36,000 that have been approved but not subject to signed contracts.
For more coverage of Q1 2017 earnings, view HNN’s roundup here.
Dollar falls on news of FBI bombshell: The U.S. dollar has fallen against major currencies, with the drop being attributed by analysts to the sacking of Federal Bureau of Investigation Director James Comey by President Donald Trump. The dollar, according to The Guardian, dropped against the pound sterling, to send sterling up to $1.298, and against the Euro, leaving that currency sitting at $1.09.
The New York Times, meanwhile, stated that first-quarter results across all industry have beaten expectations, resulting in a lift in stock markets around the globe. The newspaper said that, for example, “European full-year earnings forecasts (are) set to be their best since 2010 (and) the prospect of U.S. tax cuts have also helped push shares higher.”
Summit prices new batch of 9m shares: Real estate investment trust Summit Hotel Properties has announced the pricing of a new batch of nine million shares of common stock, which it projects will raise $142.4 million to be used for several purposes, including “acquisitions of additional hotel properties,” the company announced.
The offer is expected to close on or about 15 May.
Compiled by Terence Baker.