5 things to know: 28 December 2015
28 DECEMBER 2015 9:08 AM
From the desks of the Hotel News Now editorial staff:
• Hyatt the latest in wave of data breaches
• Conflict between states, TSA could slow travel
• Supply a top concern for 2016
• US metrics up for week ending 19 December
• Apartments in hotels catching on with the most affluent
Hyatt the latest in wave of data breaches: Hyatt Hotels Corporation became the latest hotel company to announce a data breach involving credit card information on 23 December, according to a report from Reuters. Company officials said a malware attack involving payment processing systems was discovered on 30 November.
No information has been released whether that malware was successful in stealing any credit card information or which of Hyatt’s properties were affected.
Since October, Hilton Worldwide Holdings, Starwood Hotels & Resorts Worldwide, Noble House Hotels and Resorts, and Trump Hotel Collection have all announced breaches involving similar systems.
Conflict between states and TSA could slow travel: An argument between some states and the U.S. Transportation Security Administration could soon make travel more difficult for American travelers, reports The New York Times.
Decade-old Department of Homeland Security regulations that require “more stringent proof of identity” and allow for a national database of license holders’ information is at the core of the conflict. Multiple states have explicitly rebuffed those regulations in the past, but increasing security concerns following recent terrorist attacks have led to an added push to enforce the existing rules. That would mean travelers from states like Minnesota, New Mexico and Washington would no longer be able to use state-issued driver’s licenses to get through airport security.
Supply a top concern for 2016: A recent virtual roundtable of hoteliers told HNN Editor-in-Chief Stephanie Ricca that they expect changes to supply to be a big issue for the industry heading into the new year.
“New supply is a constant issue for our business. In terms of development it forces us to look at underlying demand, barriers to entry and infill locations to ensure that we are somewhat safeguarded,” said Rick Takach Jr., president and CEO of Vesta Hospitality. “In terms of operations, it is important to keep the hotels fresh and the service levels up to compete well with any new competition.”
Supply added through alternative accommodations also is expected to have a significant effect.
“These alternative accommodations will erode pricing power of hotels especially during peak demand days,” said Aik Hong Tan, principal of Greenwood Hospitality. “This will have an impact on the overall (average daily rate) of hotels in markets where such alternative accommodations are prevalent.”
U.S. metrics up for week ending 19 December: Each of the three key performance metrics saw increases for the week ending 19 December, according to data from HNN’s parent company, STR. Occupancy increased 4.4% to 51.8%; ADR grew 4.1% to $106.22; and revenue per available room jumped 8.7% to $55.01.
The numbers were a bit less favorable for our northern neighbors for that same week. In Canada, occupancy stayed mostly static, falling 0.1% to 44.1%; ADR grew 1.2% to 125.83 Canadian dollars ($90.48); and RevPAR grew 1.1% to CA$55.48 ($39.89).
Apartments in hotels catching on with the most affluent: A report from Forbes claims there’s a new trend among high net-worth individuals: buying permanent residences in luxury hotels. The trend apparently started in New York City, according to Forbes and Johannesburg-based New World Wealth, but has since caught on in other major global markets.
Owners of theses apartments in hotels are treated the same as the other guests. Hotel residences are appealing to the wealthy at least in part because of the built-in amenities such as roomservice and housekeeping, according to the report.
Compiled by Sean McCracken.