From the desks of the Hotel News Now editorial staff:
- Markets react to Iran uncertainty
- Airbnb units lack fire safety measures
- How dual brands work together but remain unique
- LIIC releases top 10 list
- Hotel stocks up in April
Markets react to Iran uncertainty: News that United States President Donald Trump was leaning towards exiting a nuclear deal with Iran, which would lead to stiff sanctions against the Middle Eastern country, pushed U.S. stocks down this morning, according to Reuters. There are concerns that those sanctions could ultimately impact oil exports and impact oil prices.
“Depending on the magnitude of energy markets being affected, it could spillover to the rest of equities in general,” Andre Bakhos, managing director at New Vines Capital, told the news agency.
Airbnb units lack fire safety measures: Another report from Reuters notes that many Airbnb units across the U.S. lack basic safety features like carbon monoxide detectors, fire extinguishers and first aid kits, according to a new study. Hoteliers have long decried the relative lack of regulation around things like safety and security for the alternative-accommodations platform.
Fewer than 50% of units had fire extinguishers and slightly more than a third had first aid kits, according to the study.
“This is really surprising because most fire deaths and carbon monoxide poisonings happen in residential housing,” study co-author Vanya Jones of the Johns Hopkins Bloomberg School of Public Health told Reuters.
How dual brands work together but remain unique: One of the big draws for dual-branded hotels is that several aspects, from amenities to back-of-house operations, can be shared between the two brands while keeping separate identities. Hotel News Now’s Danielle Hess took a look at how that’s accomplished on property.
“We’re very diligent in making sure that the two separate brands, whatever the brands may be, remain within their identity,” said Matt McClelland, EVP of operations and development at Concord, which oversees the dual-branded Hyatt House Washington D.C./The Wharf and the Canopy by Hilton Washington D.C. The Wharf. “We want to make sure we remain consistent to the brand DNA of each individual product. It’s important to the customers; it’s important to us. When you share spaces, you have to really think it through on your design.”
LIIC releases top 10 list: The Lodging Industry Investment Council has released the 2018 edition of the group’s top 10 list, detailing the top trends and challenges in the hotel industry, according to a news release.
Highlights from this year’s list include:
- Hoteliers view 2018 as a “business as usual” year;
- tax reform is largely viewed positively by the industry;
- real estate values are expected to remain flat; and
- Nashville is viewed as the scariest hotel market.
Hotel stocks up in April: The Baird/STR Hotel Stock Index crept up 1.6% in April from the previous month, although the index was still down 0.5% through the first four months of 2018, according to a news release.
Michael Bellisario, senior hotel research analyst and VP at Baird, viewed a strong first quarter as the catalyst for the April turnaround.
“Hotel stocks posted modest gains in April as first-quarter earnings have been better than expected and increased full-year outlooks reflect improving demand trends,” he said. “The hotel brands performed in line with the broader market, while the hotel REITs outperformed other real estate sectors as continued M&A speculation and renewed optimism about RevPAR growth re-accelerating boosted stock prices.”
Compiled by Sean McCracken.