From the desks of the Hotel News Now editorial staff:
- LQ announces board approval, timeline for CorePoint spin
- Businesses scrambling to react to Iran shift
- Signs of hope at Meet the Money
- Hotels, businesses targets for terrorists in Africa
- Marriott, HPT, RLHC and La Quinta report Q1 earnings
LQ announces board approval, timeline for Corepoint spin: The La Quinta Board of Directors has officially approved the spinoff of the company’s real estate holdings as CorePoint Lodging, and has set a date for 18 May, according to a news release. The company also announced the planned sale of La Quinta’s management and franchise business is set to close on 30 May.
CorePoint, which is structured as a real estate investment trust, will begin trading on the New York Stock Exchange on 31 May.
Hotel News Now’s Danielle Hess writes that La Quinta President and CEO Keith Cline, who will take over the chief executive position with CorePoint, did not take analyst questions or provide further color during the company’s Q1 earnings call Tuesday.
Businesses scrambling to react to Iran shift: European companies are forced to react quickly to United States President Donald Trump’s announcement that he will pull the U.S. out of a nuclear weapons deal with Iran, which would reinstate economic sanctions, The New York Times reports.
“Officials in Europe want to protect its companies by finding ways to shield them from American sanctions while they continue doing business in Iran,” the newspaper writes. “The United States ambassador to Germany, Richard Grenell, did not strike an optimistic note, however, saying on Twitter that ‘German companies doing business in Iran should wind down operations immediately.’”
Signs of hope at Meet the Money: HNN’s Jeff Higley writes that the mood at the Meet the Money conference in Los Angeles is generally positive, amid continued growth of industry fundamentals, although some are gently lamenting the fact that growth isn’t as robust as in the recent past.
“RevPAR growth is slow, but it’s important for everyone to remember it is increasing. Although it is slow growth, it is growing nonetheless,” LW Hospitality Advisors President & CEO Dan Lesser said.
Feelings about the state of lending are particularly cheery though, with Troy Miller, SVP at Starwood Property Trust, saying now is the time to strike.
“If I’m a borrower, you back up the truck and borrow all you can borrow right now,” he said.
Hotels, businesses targets for terrorists in Africa: Reuters reports that a branch of al Qaeda is targeting western businesses, including hotels, in Africa and pushing Muslims to boycott those businesses. The group—al Qaeda in the Islamic Maghreb— previously has been tied to violent attacks on hotels in Mali, Burkina Faso and Ivory Coast.
Marriott, HPT, RLHC and La Quinta report Q1 earnings: Four companies have released first-quarter earnings results. Here are the highlights:
Marriott International: Systemwide comparable revenue per available room increased 3.6% and 7.5% outside of North America. The company added roughly 15,000 rooms in the quarter.
Hospitality Properties Trust: RevPAR for comparable hotels increased 2% in the quarter. Net income increased 210.4% year over year to $80.2 million.
LQ: Comparable RevPAR increased 4.3%, or 5.9% excluding the impact of hurricanes. Eight new franchised properties opened in the quarter, including the brand’s first in Chile.
RLH Corporation: The company saw a large year-over-year swing in net income, up to $7.3 million in Q1 2018 compared to a net loss of $5.3 million in Q1 2017. RevPAR for the quarter was down 0.5%.
Compiled by Sean McCracken.