From the desks of the Hotel News Now editorial staff:
- 134K jobs created in US in September
- Wyndham exec on La Quinta, Knights Inn deals
- Germany’s Union Investment acquires four-hotel development portfolio
- No savings held by 53% of UK 22- to 29-year-olds
- STR: US, Canada weekly results
134K jobs created in U.S. in September: The U.S. Department of Labor’s September jobs report issued Friday shows that non-farm jobs rose by 134,000, resulting in unemployment falling to 3.7% of the working population, the lowest percentage in 49 years. The number of unemployed people fell by 270,000 to 6 million.
U.S. job growth, meanwhile, slowed, with analysts stating this was likely caused by Hurricane Florence’s effect on restaurant and retail businesses, and hotels, which saw employment numbers fall by 17,000. Reuters reports approximately 120,000 jobs need to be created every month to keep up with the growth in the working-age population.
Wyndham exec on La Quinta, Knights Inn deals: Wyndham Hotels & Resorts had two or three looks at acquiring La Quinta, but when La Quinta decided to spin off its real estate investment trust CorePoint Lodging from its brand and franchise business, that was when Wyndham decided it could wait no longer, according to Tom Barber, Wyndham’s chief strategy and development officer.
Speaking to Hotel News Now at the recent Lodging Conference, Barber said the two companies have integrated very well in the three to four months since the deal. Barber said the acquisition has “achieved some good, quick wins, such as having a status match on the two loyalty programs, meeting with and gaining the support of the La Quinta brand council and having the brand adopt the “by Wyndham” name.
Germany’s Union Investment acquires four-hotel development portfolio: German fund Union Investment Real Estate GmbH has bought a four-asset portfolio from Benchmark Real Estate Development for an undisclosed price, according to a news release.
The four German properties, three of which will be new-builds, contain a total of 675 rooms, with all four being long-term lease agreements. The largest of the four will be a 190-room Hyatt House in Eschborn, Germany, due to open in early 2020 and be operated by HR Group.
No savings held by 53% of U.K. 22- to 29-year-olds: They might all be spending their money on hotels and travel, but a report by the United Kingdom’s Office for National Statistics said that 53% of people between the ages of 22 and 29 had no savings either in saving accounts or any other financial vehicle, according to the BBC.
The ONS said for the same group 10 years ago that percentage was 41%, a year that marked the start of the financial crisis.
STR: U.S., Canada weekly results: The U.S. hotel industry during the week of 23-29 September reported positive results in the three key performance metrics, according to data from STR, the parent company of HNN. Occupancy rose 1.7% to 71.5%, average daily rate rose 7.3% to $137.31 and revenue per available room rose 9.1% to $98.15.
San Francisco hotels shined due to the presence of the innovation conference Dreamforce 2018, with San Francisco/San Mateo, California, reporting the largest jump in RevPAR (+60.5% to $334.78), driven by the largest increase in ADR (+52.0% to $369.01).
During the same week, the Canadian hotel industry also reported positive year-over-year results, with occupancy rising 2.1% to 80.3%, ADR rising 4.3% to 174.52 Canadian dollars ($134.85) and RevPAR rising 6.5% to CA$140.06 ($108.18).
Compiled by Terence Baker.