From the desks of the Hotel News Now editorial staff:
- GSA documents show DC Trump hotel makes $2m profit
- Choice Hotels speeds up Pat Pacious’ succession to CEO
- Revised forecast at Hotel Data Conference shows higher demand
- Heat wave hinders travel across Europe
- STR monthly US preliminary data for July 2017
GSA documents show DC Trump hotel makes $2m profit: Unredacted financial documents released by the General Services Administration show the Trump International Hotel in Washington, D.C., turned a $2-million profit within its first four months of operation, The Wall Street Journal reports. The documents show the hotel raised its rates above the budgeted amount by about 60% after President Donald Trump took office, bringing in $18 million in revenue.
During the first four months of 2017, the hotel’s average daily rate was $660.28, up from the projected ADR of $416, and higher than the ADR of $495.91 of comparable hotels, the newspaper reports. The hotel had originally projected a $2.1-million loss.
The GSA oversees the Trump Organization’s lease of the Old Post Office.
Choice Hotels speeds up Pat Pacious’ succession to CEO: Choice Hotels International President and CEO Steve Joyce will leave the company and board of directors sooner than previously announced as he start as the CEO of DineEquity, parent company of IHOP and Applebee’s Neighborhood Grill & Bar, on 12 September 2017, according to a news release. As a result, President and COO Pat Pacious will take the role of CEO at Choice Hotels, ahead of the previous succession plan for January 2018.
“We are grateful to Steve for his many valuable contributions and wish him the best in his future leadership role,” the board stated in the news release. “The board of directors is delighted to have Pat at the helm of Choice Hotels, as he is an accomplished leader in the organization. We know that Pat is the right person to drive continued success for Choice today and in the future.”
Revised forecast at Hotel Data Conference shows higher demand: STR, parent company of Hotel News Now, released a revised full-year 2017 forecast showing demand will be higher than expected, reports the HNN editorial staff from Day One of the Hotel Data Conference in Nashville, Tennessee. However, the revised forecast also showed lower-than-expected average-daily-rate growth.
“Our transient demand numbers are higher than ever,” said Amanda Hite, president and CEO of STR. “That fuels growth (of travel). It’s tough to run a business and deal with people taking time off, but if we want to encourage demand in our industry, we need to encourage people to take their time off and take the vacation days they have.”
Heat wave hinders travel across Europe: A heat wave stretching across continental Europe, at times reaching the low 100s, has thrown a wrench into the plans of many travelers, and hoteliers are doing what they can to make their guests more comfortable, The New York Times reports.
Ingrid Koeck, one of the owners of Torel Palace in Lisbon, has been telling her guests to adjust their sightseeing plans by slowing down and choosing cooler times of the day to walk around the hilly city, the newspaper reports.
“We have air conditioning in all rooms and common areas, but we have two old buildings from the turn of the 19th century, so we have to take specific precautions,” she said. “We also provide extra fans, close the shutters, offer plenty of cool water and have an outdoor pool.”
STR monthly U.S. preliminary data for July 2017: Preliminary July 2017 data from STR shows mixed performance for the U.S. hotel industry. Overall occupancy performance ranged from a 2% decline to flat while ADR growth ranged from flat to 2%, resulting in a revenue-per-available-room range of 1% decline to 1% growth.
The overall performance numbers reflect luxury, upper upscale, upscale, upper midscale, midscale and economy.
Compiled by Bryan Wroten.