From the desks of the Hotel News Now editorial staff:
- Barceló, NH confirm courtship
- US tax bill sees more opposition
- How global holidays, events affect hotels this time of year
- US October hotel performance data
- Have you considered marketing your hotel to Thanksgiving turkeys?
Barceló, NH confirm courtship: Reuters reports NH Hotel Group has confirmed it has received overtures from competitor Barceló Hotel Group to merge and create the largest hotel company in Spain. NH is currently valued at €1.75 billion ($2.1 billion). Madrid-based NH Hotel Group confirmed the deal talks in an announcement to the Spanish stock exchange, which froze trading on the company’s shares.
According to Reuters, Palma de Mallorca-based Barceló is offering to buy a 60% stake in the company, whose current largest shareholder is HNA Group.
U.S. tax bill sees more opposition: With Republicans in the U.S. Senate holding little margin for defections, yet another Republican senator has voiced some level of concern about the tax-reform bill currently working its way through Congress, The Wall Street Journal reports. Sen. Susan Collins, of Maine, said over the weekend that she wants, and expects, changes to be made to the bill as it stands.
Among Collins’ preferred changes are keeping the corporate tax rate at a slightly higher rate than currently proposed—22% instead of 20%. The current rate is 35%. She also opposes a proposal repealing the requirement for people to carry health insurance without some corresponding move to stabilize insurance markets.
How global holidays, events affect hotels this time of year: Hotel News Now took a look at some of the biggest events and holidays that take place in October and November to gauge how they affect hotel performance. Some of the key takeaways include the fact that Indian travelers seem to stay home for Diwali, but lots of people seem to flock to special events tied to Thanksgiving in the U.S.
U.S. October hotel performance data: Each of the three key metrics rose for U.S. hoteliers during October, according to the latest data from HNN’s parent company STR. Occupancy increased 1.6% to 69.6%, while average daily rate went up 2.5% to $130.20. This combined for a 4.1% increase in revenue per available room to $90.56.
Given the events of the past couple months, it probably isn’t surprising to hear that Houston saw the greatest percentage increase in each of the three key metrics, with occupancy up 32.6% to 83.8%, ADR up 11.7% to $116.92 and RevPAR up 48.1% to $98.01.
Have you considered marketing your hotel to Thanksgiving turkeys? Looking for a unique sales opportunity around the upcoming holiday? How about selling rooms as a final getaway for some Thanksgiving turkeys?
As silly as that idea might seem, it has some precedent. The pair of turkeys expecting to get presidential pardons during their upcoming visit to the White House are staying at the Willard InterContinental Washington D.C. Hotel, according to a report from The Hill. The stay is apparently paid for by The National Turkey Federation.
Compiled by Sean McCracken and Terence Baker.