From the desks of the Hotel News Now editorial staff:
- Accor posts global RevPAR upticks, reopens Raffles Singapore
- Federal Reserve cuts rates for first time since 2008
- Park, Hyatt report Q2 earnings
- Weekly performance results for US, Canadian hotels
- Wyndham to open 500 China hotels in next three years
Accor posts global RevPAR upticks, reopens Raffles Singapore: Accor posted global revenue-per-available-room growth of 2.9% for the first six months of 2019 and a 30.1% increase to €375 million ($414 million) in earnings before interest, taxes, depreciation and amortization, writes Hotel News Now’s Terence Baker.
Jean-Jacques Morin, Accor’s CFO and deputy CEO, said it is predicted that full-year 2019 RevPAR will reach 3%. Of concern to the company is a dip in RevPAR in Asia, which officials said was due to ongoing trade squabbles between China and the U.S. and China’s lowest gross domestic product numbers in 27 years.
Accor also is celebrating Thursday the reopening of its famed hotel Raffles Singapore, following a top-to-bottom renovation that began in February 2017, according to a news release. One of the most famous hotels in the world, the property has undergone a renovation overseen by interior designer Alexandra Champalimaud and architectural firm Aedas, and its total number of accommodations units, all of which are suites, has grown from 103 to 115.
Federal Reserve cuts rates for first time since 2008: The U.S. Federal Reserve lowered interest rates on Wednesday by a quarter-percentage point, which was the first cut since 2008, “in a pre-emptive strike to cushion the economy from a global slowdown and continuing trade tensions,” The Wall Street Journal reports.
Economists are unsure of how the rate cut will help businesses and “cushion a broader slowdown driven by some factors outside the Fed’s control,” another article from The Journal states.
“The real issue facing the global economy is trade uncertainty, and monetary policy is not well targeted to address that uncertainty,” Catherine Mann, chief global economist at Citigroup Inc., told the news outlet.
Park, Hyatt report Q2 earnings: Park Hotels & Resorts and Hyatt Hotels Corporation released earnings results for the second quarter of 2019.
Park reported that comparable RevPAR increased 0.8% to $191.72 compared to the same period in 2018, and adjusted EBITDA was $207 million.
Hyatt reported adjusted EBITDA decreased 2.1% year over year during the quarter. Global RevPAR rose 1.3% in the second quarter.
Weekly performance results for U.S., Canadian hotels: Hotels in the U.S. reported slight year-over-year declines in all three major performance metrics for the week ending 27 July, according to data from STR, parent company of Hotel News Now. Occupancy decreased 1% to 77.5%, average daily rate decreased 0.5% to $136 and RevPAR decreased 1.6% to $105.43.
Hotels in Canada, too, reported negative year-over-year results in all three key performance metrics for the same week. Occupancy decreased 2.2% to 78%, ADR decreased 2.3% to 178.71 Canadian dollars ($135.04) and RevPAR decreased 4.4% to CA$139.47 ($105.39).
Wyndham to open 500 China hotels in next three years: Wyndham Hotels & Resorts said it expects to open 500 hotels in China over the next three years, according to a news release.
The Parsippany, New Jersey-based firm already has more than 1,500 hotels and approximately 149,000 rooms in Greater China, with Leo Liu, president, Greater China, stating “we have sustained our strong growth momentum and delivered robust hotel opening and net rooms growth figures in China … especially in Hong Kong and in the northern and southwestern parts of China, where there is rapid growth and strong potential for further expansion of our footprint.”
Compiled by Terence Baker.