In this week’s roundup of news from the Americas region: RevPAR growth reaches 100-month mark; revenue management; Canada enjoys highest occupancy since 1999; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
RevPAR growth reaches 100-month mark in June
The current revenue-per-available-room recovery began in March 2010, and since then RevPAR for the U.S. hotel industry has stayed afloat without interruption for 100 months. RevPAR increased from $56.80 to $98.85 in June 2018, writes Jan Freitag, SVP of lodging insights at STR, parent company of HNN.
“Looking back at this extraordinary run in increasing hotel prices and room demand proves that the industry was and is very resilient to outside shocks. While the immediate demand impact on travel and tourism by an outside shock is very impactful, recovery is always imminent and can then even spark a long up-cycle just as the one we are living in now,” Freitag writes.
Canada enjoys record absolute occupancy in Q2
The Canadian hotel industry reported positive year-over-year results in the three key performance metrics during the second quarter of 2018, according to data from STR. In addition, the absolute occupancy level was the highest for a Q2 in Canada since 1999, while average daily rate was the highest for any Q2 on record.
Absolute occupancy was 74.8%, ADR was 177.90 Canadian dollars ($136.95) and revenue per available room was recorded at CA$133.03 ($102.41).
Marriott signs agreement for $500-million Ritz development
Marriott International announced an agreement with luxury hospitality development firm Flag Luxury Group to bring the The Ritz-Carlton brand to New York City’s NoMad neighborhood, a more than $500-million investment, according to a news release.
Flag Luxury Group will develop the hotel and residences tower, and architect Rafael Viñoly will lead the design. The property will include 250 hotel guestrooms as well as 16 branded residences, and is expected to open in 2021.
Mass-hiring strategies for new-builds
Hiring a large amount of staff for a new property presents a challenge as unemployment rates have hit historically low rates, but human resources experts are coping by altering their hiring and retention strategies to balance automation, face-to-face engagement and flexibility, writes HNN’s Dana Miller.
“If you’re not able to take applicants who walk in the door at any time, then you’re going to be missing out on a lot of potential talent,” said Steve Martin, VP of human resources at Marcus Hotels & Resorts.
Mexico hotel occupancy down, room rates growing
Mexico’s hotel industry reported lower occupancy levels in Q2, but room-rate growth was on the rise, according to data from STR.
Occupancy dropped 3.2% to 63.5%, ADR was up 1.3% to 2,260.02 Mexican pesos ($122.27), and RevPAR dropped 1.9% to 1,436.02 pesos ($77.69).
STR analysts note there have been indications in recent months that the U.S.-issued travel advisories and concerns over crime have begun to catch up with the hotel industry.
Deals and developments
- Chesapeake Lodging Trust announced the closing of the sale of the 200-key Hyatt Centric Santa Barbara in Santa Barbara, California, for $90 million.
- Hyatt Hotels Corporation announced it has completed management and franchise contracts for nine hotels across the globe (in the Americas and Asia/Pacific regions and Europe), under the brands Hyatt Regency, Grand Hyatt, Hyatt Centric, Hyatt Place and Hyatt House.
- Radisson opened the 254-key Radisson Hotel Panama Canal in Panama City. The hotel previously was a Country Inn & Suites by Radisson and underwent a $2-million renovation for the conversion.
- A new 227-room Hyatt Centric Hotel Memphis will serve as a partner in a $225-million mixed-use, multi-parcel development project called One Beale, including residential, retail, parking and office spaces along with the hotel. Construction is expected to being January 2019 with Carlisle, LLC leading the project.
Compiled by Dana Miller.