From the desks of the Hotel News Now editorial staff:
- UK leaders digesting new draft of Brexit agreement
- Detroit casino hotel to sell for $1b
- Hotel CEOs review performance of key markets, predict Q4
- More than 50% of Gen Z looking to enter hospitality workforce
- STR: US, Canada weekly numbers
U.K. leaders digesting new draft of Brexit agreement: United Kingdom Prime Minister Theresa May has drafted a new Brexit deal and claims most of her senior ministers are in support of the deal, according to NBC News, as time is ticking before the 29 March deadline to come up with a future plan for customs and border arrangements with the European Union—a vital trading partner.
May has faced backlash from the proposed deal, most notably from Brexit Secretary Dominic Raab, who resigned on Thursday. Raab is the second Brexit secretary to resign in less than six months, the news outlet reports.
The draft plan “reportedly involves a ‘swimming pool’ solution in which there would be no hard border, but Northern Ireland would face deeper levels of regulation in order to follow frictionless trade with Ireland,” and Britain would have to “restore full border controls at is ports facing France, with the likelihood of huge delays in the supply along key trading routes,” NBC News reports.
Detroit casino hotel to sell for $1b: The Greektown Casino-Hotel in Detroit, owned by an investment arm of Dan Gilbert, founder of Quicken Loans and owner of Cleveland Cavaliers, will be sold to a real estate investment trust and a partner for $1 billion, according to Reuters, which comes as a sign of gaming consolidation.
VICI Properties, which owns Caesars Palace in Las Vegas, will purchase the land and real estate assets of the casino hotel for about $700 million. VICI partner Penn National Gaming will buy the operating asset of the casino along with the 30-story hotel for $300 million, according to Jack Entertainment, an affiliate of Athens Acquisition, of which Gilbert is a majority shareholder.
Hotel CEOs review performance of key markets, predict Q4: During third-quarter earnings calls, CEOs from public hotel companies spoke about the different key markets in their portfolios, taking a look at how they performed amid disruptors, such as employee strikes and hurricane impact, and predicted how they will fare in future quarters, writes Hotel New Now’s Bryan Wroten.
“I think one of the data points I just pointed to in that large-scale convention booker is the value proposition that Las Vegas represents,” said Jim Murren, chairman and CEO of MGM Resorts International. “The U.S. economy as it has grown has made Las Vegas on a relative basis even a more attractive destination from a price perspective. And we monitor this against all of our major competitive cities around the country and in fact around the world.
“So, it has been something that we always focus on. We don't think it has been an issue. We always evaluate these market conditions. And we look at not only the data we have, but the data that the (Las Vegas Convention and Visitors Authority) puts out and we know that from an (average daily rate) perspective, we're still much lower than cities like Orlando or Chicago or Hawaii—but we continue to tweak it and we always will.”
More than 50% of Gen Z looking to enter hospitality workforce: Fifty-one percent of the Generation Z demographic is interested in working in hospitality, according to a new report from the American Hotel & Lodging Educational Foundation conducted by BW Research Partnership and Hcareers, which studies career preferences of Gen Z.
“We are very heartened to see the high level of interest from the Gen Z market. The $590-billion hospitality industry is continuously developing new programs to attract and retain talent,” said Rosanna Maietta, president of AHLEF, in the release. “We want to embrace this next wave of potential employees, and are committed to understanding their priorities so we can create career pathways that build a viable and fruitful environment for everyone in the future.”
The study also shows Gen Z is looking for “manager” positions but are also interested in fact-to-face jobs like front-desk associates or bartenders.
U.S., Canada weekly numbers: During the week of 4-10 November, the U.S. hotel industry reported positive year-over-year results in the three key performance indicators, according to data from STR, parent company of HNN.
Occupancy rose 0.7% to 69%, average daily rate increased 1% to $129.95 and revenue per available room was up 1.6% to $89.68.
During the same time, the Canadian hotel industry also posted positive year-over-year results. Occupancy saw a 2.4% lift to 66.2%, ADR was up 2.7% to 149.33 Canadian dollars ($112.85) and RevPAR increased 5.2% to CA$98.92 ($74.76), according to STR.
Compiled by Dana Miller.