From the desks of the Hotel News Now editorial staff:
- Host Hotels buying $1b Hyatt portfolio
- LaSalle could cut dividend after tough 2017
- Small businesses ramp up recruiting efforts
- Three key metrics grow for week in US
- Rejoice! Hotel rooms now have beer taps
Host Hotels buying $1b Hyatt portfolio: Less than a week after Hyatt Hotels Corporation officials announced plans to sell a three-property portfolio for roughly $1 billion, Host Hotels & Resorts officials have announced they are buying the portfolio, according to a news release. The hotels included in the deal are the 301-room Andaz Maui, the 668-room Grand Hyatt San Francisco and the 454-room Hyatt Regency Coconut Point.
Hyatt will maintain management of the properties. The deal is expected to close by the end of the first quarter.
As noted last week, proceeds from selling the Andaz Maui and the Grand Hyatt San Francisco will go toward Hyatt’s stated goal of selling down $1.5 billion in owned assets by 2020.
LaSalle could cut dividend after tough 2017: A weak 2017, and projections for a weak 2018, have led officials with LaSalle Hotel Properties to publicly announce their dividend to shareholders could be reduced in the near future, HNN’s Sean McCracken writes.
While President and CEO Michael Barnello said that the decision hasn’t been finalized, and ultimately rest with the company’s board of trustees, he said the cut would be likely if the company’s current projections for 2018 come true. He did not say when a final decision will be made on the dividend.
“It’s (to be determined) as we go through the year and see performance in our hotels and markets,” he said during the company’s fourth-quarter earnings call with analysts. “The second part is what our outlook is for the second half of the year. A lot goes into (the decision), but we felt it was appropriate and responsible to give a likely scenario if the base case materializes.”
Small businesses ramp up recruiting efforts: It’s no secret that U.S. businesses are currently operating in a tight labor environment, thanks in large part to continuing low unemployment numbers. The Wall Street Journal reports that small- and medium-sized businesses have had to forge partnerships and get creative in their attempts to lure talent.
“Nearly two-thirds of small business owners reported facing a shortage of skilled workers, according to a February survey of 739 firms for The Wall Street Journal by Vistage Worldwide Inc.,” the newspaper reports. “Eighty-seven percent of firms have increased recruiting, while nearly 60% have boosted wages.”
Three key metrics grow for week in U.S.: U.S. hoteliers enjoyed increases in each of the three key performance metrics for the week ending 17 February, according to data from HNN’s parent company STR.
For the week, occupancy saw a 1.2% year-over-year increase to 62.9% while average daily rate increased 3.2% to $128.75 and revenue per available room increased 4.4%.
San Diego, California, saw the largest RevPAR and ADR jumps among top 25 markets. RevPAR was up 26.1% to $142.06, and ADR was up 16.9% to $174.51.
Rejoice! Hotel rooms now have beer taps: So it might not be a common amenity just yet, but the BrewDog brewery is planning to open a 26-room hotel attached to its Aberdeenshire, Scotland, headquarters which will feature in-room taps, according to a report from The Telegraph. The property would be called The DogHouse.
“This will be the ultimate destination for craft beer fans seeking hops with their holidays,” BrewDog cofounder James Watt said. “This is a beer Nirvana.”
Compiled by Sean McCracken.