From the desks of the Hotel News Now editorial staff:
- UK hotel investment driven by overseas appetite
- European hoteliers face shifting rate-parity rules
- Red Lion files lawsuit against Hard Rock Café
- STR US, Canada weekly numbers
- Hotel market tightened by summer eclipse
UK hotel investment driven by overseas appetite: Investment in the U.K hotel market has reached £2 billion ($2.6 billion) in the first half of 2017, according to real estate advisor Savills. The firm predicts investment will reach £5.1 billion ($6.6 billion) for the full year. First-half investments were driven largely by London and individual sales from overseas investors.
Overseas investors have shown continuing appetite for big-ticket properties, which accounted for £1.2 billion ($1.6 billion) in transactions in the first half of the year in comparison to the £822 million transacted by domestic investors, according to a news release. Individual sales accounted for 92% of transactions with a value of £1.1 billion ($1.4 billion).
European hoteliers face shifting rate-parity rules: The battle to abolish rate parity across online travel agencies and the hotel industry is heating up across Europe, writes HNN’s Terence Baker, following recent bans of rate parity in Austria and France.
“The main debate is if settlements are reached only at the national level, are they consistent with one another?” said Dan Roskis, a Paris-based partner at law firm Eversheds Sutherland. “The French, Swedish and Italian national competition authorities’ positions were consistent with one another, but in Germany, where the company being investigated was HRS, the (December 2013) decision was not. If the (German) Bundeskartellamt had investigated an online travel agency with significant market shares in other European countries, then it might have adopted the same framework
Red Lion files lawsuit against Hard Rock Café: Red Lion Hotels Corporation filed a lawsuit with a federal court in New York against Hard Rock International on 12 July, alleging that Hard Rock’s recently launched hotel brand Reverb “copied” RLH Corporation’s “distinctive trade dress for its Hotel RL brand,” according to a release.
RLH Corporation is seeking compensatory damages and to enforce its rights and remedies under its contract with design and development firm The Gettys Group, which also was hired by Hard Rock.
STR U.S., Canada weekly numbers: During the week of 2-8 July 2017, the U.S hotel industry reported mixed year-over-year results in the three key performance metrics, according to data from STR, Hotel News Now’s parent company. Occupancy dipped 3% to 65.3%, average daily rate increased 1.1% to $122.73, while revenue per available room saw a decrease of 2% to $80.11
During the same week, the Canadian hotel industry also reported mixed year-over-year results in the three key performance metrics, according to data from STR. Occupancy dropped 1.7% to 73.1% while ADR increased 5.9% to $170.41 Canadian dollars ($133.48). RevPAR increased 4.1% to CA$124.65 ($97.68).
Hotel market tightened by solar eclipse: Several hotels in Casper, Wyoming, are putting rooms back on the market as they come available and are upping their room rates in anticipation for the solar eclipse on 21 August, according to Oil City News.
La Quinta, for example, has some rooms open available for $500 a night with a two-night minimum, the report said. And one-room studios in The Sterling are listed for $900 to $1,100 per night.
Hotel News Now’s Robert McCune wrote about how hoteliers revenue-manage around natural phenomena, and the key, sources said, is planning ahead.
Compiled by Dana Miller.