In this week’s roundup of news from the Americas region: Women under-represented in hospitality leadership; what to know about the Wyndham, La Quinta deal; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Women gaining but still under-represented in hospitality leadership
The percentage of women who hold titles of leadership roles, such as chief executive or president, is growing in the U.S. hospitality industry, but women in those roles are still largely outnumbered by their male counterparts, according to a study from the Castell Project comparing data from 2012 and 2016, reports HNN’s Dana Miller.
Women held only about 5% of CEO positions at U.S. hotel companies in 2012, and that percentage was the same for 2016, according to Peggy Berg, founder of the Highland Group and head of the non-profit organization Castell Project.
“The good news is … we actually made progress from 2012 to 2016; the industry isn’t leaping ahead, but it’s inching forward and that’s a very good thing,” Berg said.
5 things to know about the Wyndham, La Quinta deal
Wyndham Hotel Group President and CEO Geoff Ballotti shared details about what the deal to acquire La Quinta Holdings’ hotel franchise and management businesses will mean for Wyndham, as well as its franchisees and guests, reports HNN’s Bryan Wroten.
“One of the most attractive aspects of La Quinta’s footprint is how many markets in the United States of America they are not currently in … how many of STR’s tracts they are not currently in,” Ballotti said. “Roughly two-thirds of those tracts are available to put La Quintas into today.”
(STR is the parent company of Hotel News Now.)
Click here for an owner’s take on the deal.
Strong demand to propel 2018 hotel performance
The overall outlook of the U.S. hotel industry shows demand will continue to rise in 2018 and outpace supply, according to industry forecasters speaking at the recent Americas Lodging Investment Summit, reports HNN’s Stephanie Ricca.
Carter Wilson, VP of consulting and analytics for STR predicts a supply growth of 2% and demand growth of 2.3% in 2018 compared to 2017. He also projects year-over-year occupancy growth of 0.3%, average daily rate of 2.4% and revenue-per-available-room growth of 2.7%.
“New supply is not really a concern, though I know in particular markets it can be,” Wilson said.
STR: 2017 hotel performance
STR released 2017 performance results for hotels in the U.S., Canada, Caribbean and Mexico.
Mexico’s hotel industry reported positive year-over-year growth in the three key performance metrics. Occupancy rose 0.5% to 63.9% in 2017, while ADR jumped 6% to 2,323.31 Mexican pesos ($124.77) and RevPAR increased 6.4% to 1,484.81 pesos ($79.74).
Also reporting positive year-over-year growth in the three key performance metrics for 2017 was the Canadian hotel industry. Occupancy gained 2.4% to 65.9%, with a 5.2% increase in ADR to 156.73 Canadian dollars ($127.27) and RevPAR grew 7.7% to CA$103.31 ($83.89).
Hotels in the Caribbean reported mixed year-over-year results in the three key performance indicators during the same time. Occupancy dropped 1.2% to 66.4%, while ADR increased 1.9% to $204.64 and RevPAR rose 0.7% to $135.85.
Hotels in the U.S. reported record-breaking performance levels for 2017. Occupancy was up 0.9% to 65.9%, ADR rose 2.1% to $126.72 and RevPAR jumped 3.0% to $83.57. The absolute values in those metrics were the highest STR has ever benchmarked.
Deals and developments
- Noble House Hotels & Resorts is slated to open the 106-room Josie Hotel in Rossland, British Columbia, Canada, in 2018.
- The Aruba Marriott Resort & Stellaris Casino in Palm Beach, Aruba, announced it renovated all 411 guestrooms, which were updated with an overall modern, minimalism theme.
- Marriott broke ground in downtown Austin, Texas, with the 611-room Austin Marriott Downton. The full-service hotel is scheduled to open in summer 2020.
- Viejas Casino & Resort opened the 159-room Willows Hotel & Spa in San Diego.
- A 351-key Grand Hyatt Cayman Hotel & Residences is set to open in the fourth quarter of 2020.
- The 179-room Holiday Inn Lima Airport hotel opened just five minutes from the Jorge Chavez Lima International Airport. This is the second IHG-branded hotel introduced in Lima, Peru.
- Kimpton Hotels & Restaurants announced it will open its first property in the Grove District Anaheim Resort area in Garden Grove, California. The mixed-use hotel is set to open in 2021.
Compiled by Dana Miller.