From the desks of the Hotel News Now editorial staff:
- Oyo buys Dutch home-rentals platform @Leisure
- Hilton focuses on net rooms growth
- Weekly performance results for US, Canadian hotels
- ESA sees Q1 RevPAR drop 1.6%, revenue 6.7%
- UK growth predicted to rise; interest rates stay level
Oyo buys Dutch home-rentals platform @Leisure: Indian hotel and homes-rental firm Oyo Hotels & Homes has bought Dutch home-rentals platform @Leisure Group for €369.5 million ($415 million), its first major acquisition in Europe, the Financial Times reports.
A news release from the seller, media company Axel Springer, said the total volume of the transaction had an earnings before interest, taxes, depreciation and amortization multiple of more than 15 for the year 2018. In the same release, Oyo’s founder and CEO Ritesh Agarwal said 115,000 “units of homes” have now been added to its portfolio. The deal is due to be completed in June.
In an interview with Hotel News Now on 23 April, Agarwal said “(Oyo is) investing heavily on strengthening our capabilities in technology, talent and network, while creating an ecosystem of efficiency.”
Hilton focuses on net rooms growth: Chris Nassetta, president and CEO of Hilton, said during the firm’s first-quarter 2019 results presentation that Hilton is focusing on net rooms growth, which he said grew 7% year over year in the first quarter and was on track to grow 6.5% for full-year 2019.
That Q1 percentage meant 12,100 rooms were added. A further 29,300 rooms were approved in the quarter for a total pipeline of approximately 371,000. If all those rooms open, Hilton would have close to 1.3 million rooms. Meanwhile, its revenue per available room for the quarter grew 1.8% compared with the same period in 2018.
Weekly performance results for U.S., Canadian hotels: Hotels in the U.S. reported negative year-over-year results for the week ending 27 April, according to data from STR, parent company of Hotel News Now. Occupancy decreased 1.4% to 68.9%, average daily rate fell 1.4% to $128.66 and revenue per available room was down 2.9% to $88.59.
Hotels in Canada also reported negative year-over-year results in all three major performance metrics for the same week, according data from STR. Occupancy decreased 6.1% to 64.9%, ADR decreased 1.1% to 148.97 Canadian dollars ($111.87), and revenue per available room decreased 7.2% to CA$96.67 ($71.11).
ESA sees Q1 RevPAR drop 1.6%, revenue 6.7%: Extended Stay America posted declines in ADR and RevPAR during the first quarter of 2019, according to the company’s first-quarter earnings results news release. RevPAR declined by 1.6% to $46.74, which president and CEO Jonathan Halkyard said was caused by a decline in ADR in the quarter of 3%.
Revenue for the period compared with the same period in 2018 fell 6.7%, though the company noted that “adjusting for asset dispositions, total revenues declined 0.8%.” EBITDA for the period saw a 12% year-over-year dip to $80 million.
On a call with analysts to discuss ESA's performance in Q1, Halkyard dismissed questions about whether the company might change its corporate structure via a sale or spinoff.
U.K. growth predicted to rise, interest rates stay level: The Bank of England has raised its growth expectations for the year from 1.2% to 1.5%, largely due to sunnier skies being seen across the global economy. The bank’s board also kept interest rates at the same level of 0.75%, according to a press release.
The bank has had a little breathing room since the announcement of a six-month postponement of Brexit to 31 October. The bank also projected unemployment would continue to fall by 3.5% to 2022 and thus be at its lowest level since 1973.
Compiled by Terence Baker.