In this week’s roundup of news from the Americas region: revenue management in 2018; U.S. tax overhaul bill; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Revenue managers to ‘adapt and adopt’ in 2018
For revenue managers, planning ahead and being flexible in the face of disruptors such as calendar shifts and emergence of new supply can help teams and their properties be less vulnerable to changes, sources said.
“One key date to consider every year will be where the Easter holiday falls on the calendar. This year Easter will be on 1 April. This date typically creates a condensed holiday break with more public schools going on recess during the same period. This should allow revenue managers the opportunity to account for a more compact timeframe of demand in leisure travel on spring break and as a result, less of a decline on corporate pace throughout the month. Revenue managers can maximize opportunities and get ahead of calendar shifts and holiday trends by reviewing these dates well before the booking window arrives and understanding how the elements of demand will differ during these periods. … Our revenue-management team is already taking the time to identify these calendar shifts now and adjust sell strategies for the entire year 2018. By adjusting the sell strategies outside of the booking window, we will be able to truly understand the adverse effect on market demand these calendar shifts can create,” said Isaac Rodriguez, VP of revenue strategy and distribution, Twenty Four Seven Hotels.
What U.S. tax reform could me for hotel industry
Voting began in congress in mid-December on a Republican tax-overhaul bill that aimed to resolve the differences between its two versions that passed separately in the U.S. House of Representatives and the Senate in mid-November and earlier last month. Aran Ryan, director of lodging analytics at Tourism Economics,and Jan Freitag, SVP of lodging insights at STR, examined the possible impact the tax overhaul could have on the U.S. hotel industry. (STR is the parent company of HNN.)
“… The greatest stimulus impact of the tax occurs in 2018. Oxford (Economics) now expects business investment to expand 6% in 2018, with consumer spending growing 2.7%. After the bump in 2018, GDP growth is anticipated to slow to 1.9% in 2019 and 1.5% by 2020,” Ryan and Freitag write, which for the hotel industry could mean demand and business travel is expected to strengthen.
STR: US, Canada hotel results week ending 30 December
During the week of 24-30 December 2017, the U.S. hotel industry reported negative year-over-year results across the three key performance indicators, according to data from STR.
Occupancy dropped 5.4% to 51.6%, average daily rate fell 1.4% to $131.56 and revenue per available room decreased 6.7% to $67.90. Negative results, according to STR, were attributable to a comparison with the week that included New Year’s Eve in 2016.
During the same period, the Canadian hotel industry also reported negative year-over-year results in the three key performance metrics. Occupancy decreased 6.6% to 44.7%, ADR was down 0.6% to 161.35 Canadian dollars ($129.50) and RevPAR fell 7.2% to CA$73.09 ($58.66).
Arash Azarbarzin appointed president of SH Group
Starwood Capital Group’s brand management company SH Group announced that former SBE lead executive Arash Azarbarzin will be its next president effective immediately, according to a news release.
In his new role, he will oversee all operations and expansion for SH Group—which currently operates 1 Hotels.
"I have always wanted to reunite with Barry Sternlicht, one of my long-time mentors, and someone with the vision and resources to build a world-class hospitality organization. This is an opportunity of a lifetime and I am honored to join this industry-leading team," Azarbarzin said.
Deals and developments
- AC Ocean Walk purchased the 1,399-room Revel Casino Hotel in Atlantic City, New Jersey, for $200 million and will rebrand it as the Ocean Resort Casino
- Interstate Hotels & Resorts announced it will manage the 349-room Renaissance Philadelphia Airport Hotel, which was recently acquired by Amena Hotels.
- The Buccini/Pollin Group has acquired the 238-room Hilton Melbourne Rialto Place in Melbourne, Florida.
- Harbor Club Hotel, a 115-key property in St. Lucia, opened in January under new ownership.
- Elegant Hotels Group opened its seventh property in Barbados, with the 35-room Treasure Beach Resort following a $10.5-million renovation.
- Mexico gains its first Curio Collection property with the 93-room The Fives Downtown Hotel & Residences in Playa del Carmen. This also marks Hilton’s first hotel in Playa del Carmen.
Compiled by Dana Miller.