From the desks of the Hotel News Now editorial staff:
- Caesars selling Harrah’s Las Vegas for $1.14b
- German economy booming despite political turmoil
- Freitag’s 5: A look at October data
- LA developer could receive $103m in financial assistance
- STR’s weekly report for US, Canada
Caesars selling Harrah’s Las Vegas for $1.14b: Caesars Entertainment Corporation has plans to sell Harrah’s Las Vegas real estate assets to VICI Properties for $1.14 billion in cash, Reuters reports.
Caesars will continue to operate Harrah’s Las Vegas, and the proceeds from the sale will be used toward a $1.7 billion buy of casino company Centaur Holdings, the report states.
Reuters reports Caesars also plans to develop a 300,000 square-foot convention center and will buy 18.4 acres of land for the project from VICI.
German economy booming despite political turmoil: Germany is having some trouble forming a government, but “the economy and markets are buzzing along as if nothing is happening,” The Wall Street Journal reports.
After acting Chancellor Angela Merkel’s “disappointing win” in September elections, “coalition talks among a disparate group of parties collapsed after two fruitless months,” the newspaper reports. Following the collapse, the DAX-30 benchmark stock index dropped, but recovered and is slightly lower than the all-time high achieved earlier in the month of 13,525.
Hermann Binkert, of opinion polling company INSA, told The Wall Street Journal, “Everything is running smoothly; it’s not as if things aren’t getting done or affecting people directly.”
Freitag’s 5: A look at October data: The shift of the Jewish holiday negatively affected September data, but that reversed in October, STR’s SVP of Lodging Insights Jan Freitag writes. (STR is the parent company of Hotel News Now.)
Revenue per available room in the U.S. increased 4.1%, which marked the 92nd-straight month of continuous RevPAR growth. Occupancy reached its second-highest growth this year of 1.6%, and average daily rate increased 2.5% for the month of October.
LA developer could receive $103.3m in financial assistance: New York City-based developer Lightstone Group is working to develop 1,130 hotel across three hotels in a site near the Los Angeles Convention Center, which could receive $103.3 million in public financial assistance over 25 years if the City Council passes the proposal, The Los Angeles Times reports.
Council will vote Friday on the proposal. “Under a 25-year agreement with the city, the project—formally known as Fig+Pico—would have blocks of rooms reserved for future conventions and the 2028 Olympics,” the newspaper reports.
One organizer with the NOlympics LA is opposing the plan, saying “the city should spend money on projects for the actual people who live here,” the newspaper reported.
STR’s weekly report for U.S., Canada: The U.S. and Canadian hotel industries both reported positive year-over-year results in the three key performance metrics for the week ending 25 November, data from STR shows.
U.S. occupancy increased 1.4% to $51.4%, ADR rose 2% to $109.99 and RevPAR increased 3.4% to $56.52.
The Canadian hotel industry saw occupancy rise 5.1% to 61.8%, ADR increased 4.3% to 141.30 Canadian dollars ($109.90) and RevPAR increased 9.7% to 87.34 Canadian dollars ($67.93).
Compiled by Danielle Hess.