From the desks of the Hotel News Now editorial staff:
- Owners, operators say still time for right deals
- Weekly performance results for US hotels
- Virginia Tech housing students in hotels
- Battery Wharf Hotel staff might strike
- Treasure Island to join Radisson
Owners, operators say still time for right deals: Hotel industry growth is showing some signs of deceleration, but owners and operators at the ALIS Summer Update in Boston said they are still seeing opportunities for deals, writes HNN’s Bryan Wroten.
Russ Shattan, MCR Development’s SVP of acquisitions and development, said the company will be a net buyer this year as it looks for opportunities to add value as an owner/operator.
“Through an operating-driven investment thesis, we can design our organization to buy hotels through strong periods and weak periods,” he said.
He added that MCR sells on occasion, and gave an example of a property in Baltimore that was doing well until 2015. The market has seen challenges since then, so MCR sold the hotel.
Occupancy decreased 0.5% to 77.9%, average daily rate increased 0.5% to $136.49, and revenue per available room was flat at $106.34.
Minneapolis saw the highest rise in occupancy (+8.3% to 88.5%) and RevPAR (+12.9% to $120) among the top 25 markets for the week.
New Orleans recorded the steepest drop in RevPAR (-29.1% to $67.52) as a result of the only double-digit decrease in occupancy (-23.7% to 56.4%)
Virginia Tech housing students in hotels: A spokesperson from Virginia Tech said the university will spend $3 million on hotel rooms to house the incoming freshman class for the entire upcoming school year, local news outlet WDBJ 7 reports.
The rooms will be at the Holiday Inn in Blacksburg, and 75% of rooms at the Inn at Virginia Tech will be reserved for students, at a cost of $5 million.
“The university will be charging room and board rates based on the kinds of rooms students will be given,” according to the news outlet. “Although it won’t totally offset what the university is spending, they said they want the students to be as comfortable as possible.”
Battery Wharf Hotel staff might strike: Many hotels in Boston agreed to adopt a contract brokered with Marriott International after a strike last fall, but the Battery Wharf Hotel is “resisting new provisions” and employees are prepared to strike, The Boston Globe reports.
The hotel “is not only resisting the new provisions, but refusing to sign off on language combating discrimination and offering job security for immigrants that has been in the citywide hotel contract for years, according to Unite Here Local 26, the union that represents hospitality workers in Boston,” the newspaper reports.
If an agreement with Marriott is not reached, workers will vote on whether to strike on 5 August.
Treasure Island to join Radisson: Radisson announced that Treasure Island – TI Hotel & Casino in Las Vegas will join its portfolio of hotels, according to a news release.
Guests will be able to book at the hotel through the Radisson website later this year. In 2020, members of Radisson Rewards will be able to earn and redeem points.
“TI is a true resort destination in a one-of-a-kind city, and one we’ve been keen to offer to our loyal guests for quite some time,” Ken Greene, president for the Americas at Radisson Hotel Group, said in the release. “Treasure Island is home to one of the best locations and values in Las Vegas, and we’re honored to welcome such a well-known resort and casino to our growing portfolio.”
Compiled by Danielle Hess.