From the desks of the Hotel News Now editorial staff:
- New York room-rates slump easing up
- Henderson Park to acquire two big-ticket UK hotels
- Germany market is Europe’s driving force, despite slight falls
- Hospitality Properties Trust reports Q2 earnings
- London hotel ‘not the source’ of illnesses in athletes
New York room-rates slump might ease up: Hotel supply growth in New York saw an average rise of 4.8% annually from 2014 to 2016, while room rates in the city have slumped for about two years, according to a Bloomberg report that cites data from STR, parent company of Hotel News Now. For the first half of 2017, average daily rate in the New York market fell 1.8%.
However, with supply rate growth expected to taper off, New York hotels may be able to gain some pricing power, according to Joseph Rael, director of financial performance at STR.
Henderson Park to acquire two big-ticket U.K. hotels: Henderson Park, a property investor founded by former Goldman Sachs executive Nick Weber, announced it has acquired the Hilton London Metropole and Hilton Birmingham Metropole in a deal said to be worth a total of £500 million ($649.12), The Telegraph reports.
The deal marks the investor’s first foray into U.K. hotels, the newspaper reports. The two properties were sold by The Tonstate Group, a London-based property management company. Henderson previously acquired Paris’ largest hotel, Le Méridien Étoile, for €365m ($429 million).
Germany market is Europe’s driving force, despite slight falls: While Germany has seen slight decreases in hotel performance numbers, a healthy combination of strong feeder markets, robust transaction volumes, a diverse capital and stable politics continue to make the market attractive to investors and developers, reports Hotel News Now’s Terence Baker.
“We will see more consolidation. International investors are interested, and operators are following,” said Stefan Giesemann, SVP of hotels and hospitality at business consultancy JLL. “There probably will be fewer portfolio deals, but more single-asset ones. As long as activity remains high, sentiment will remain very good.”
Hospitality Properties Trust reports Q2 earnings: Hospitality Properties Trust is the latest company to report its second-quarter performance.
The company showed mixed results in the three key performance metrics for the quarter compared to Q2 2016. Average daily rate increased 0.8% to $127.78, while occupancy was nearly flat at 79.8%, and revenue per available room dipped 0.3% to $101.97.
The company acquired two hotels in June—the 389-room Chase Park Plaza Hotel in St. Louis and the 495-room Crowne Plaza Ravinia hotel in Atlanta. In its news release, the company also said in July it entered into agreements to acquire a portfolio of 14 extended-stay hotels and two additional Crowne Plaza hotels, one in Charlotte, North Carolina; and one in Columbus, Ohio.
London hotel ‘not the source’ of illnesses in athletes: The Tower Hotel in London, which is hosting several international athletes competing at the World Athletics Championships, has been under watch after many athletes became ill from a norovirus while staying at the property, causing some to withdraw from events, Reuters reports.
Tower Hotel worked with the Environmental Health Officer and the IAAF to determine the “origins of the illnesses,” and confirmed in a statement that the “hotel was not the source.”
“We have followed strict hygiene protocol, ensuring that those affected are not in contact with other guests and all public areas have been thoroughly sanitized," the statement said.
Compiled by Dana Miller.