From the desks of the Hotel News Now editorial staff:
- California hotel sales pick up during second quarter
- New brands could be an issue in a downturn
- Global stocks see mixed results
- Madison should see benefits from DNC 2020
- AAA recognizes cleanest hotels
California hotel sales pick up during second quarter: Total transaction and dollar volume for hotels in California slowed during the first half of the year, but Atlas Hospitality Group’s California Hotels Sales Survey 2019 Mid-Year shows that the median price per room was $130,025, setting a mid-year record, writes HNN’s Bryan Wroten.
While hotel sales in the state were off to a slow start at the beginning of the year, Alan Reay, president of Atlas, said there was a turnaround in the second quarter, showing that hotel investors were feeling good about the economy, “especially following the reduction in interest rates,” Wroten writes.
Reay said that financing has somehow become more attractive. Commercial-mortgage backed loans reached a low 4% range “and the reduction of the prime rate has helped on the U.S. Small Business Administration 504 loan side,” Wroten writes.
New brands could be an issue in a downturn: Big companies such as Marriott International, Hilton, Hyatt Hotels Corporation and Wyndham Hotels & Resorts have added a number of brands over the years, which could be a problem during a downturn, The New York Times reports.
These new brands could face issues in a downturn, such as owners who are struggling financially possibly suing to end franchise agreements or letting buildings move into disrepair, the article states.
STR’s SVP of Operations Bobby Bowers told the news outlet that there are a lot of “flavors” to choose from in terms of brands, so companies “almost have to launch brands.” STR is the parent company of HNN.
“Companies kind of have to do it even if they don’t want to,” he said. “If they don’t, competitors will eat into their share.”
Global stocks see mixed results: Stock futures in the U.S. “bounced between small gains and losses following mixed trading in European markets, after Asian shares jumped on optimism over trade negotiations between the U.S. and China,” The Wall Street Journal reports.
Dow Jones Industrial Average futures increased 0.3% while S&P 500 futures rose 0.5%. The Stoxx Europe 600 increased 0.5%.
In Asia, the Shanghai Composite was up 1.4% and Japan’s Nikkei increased 1%. The outlier in Asia was Hong Kong’s Hang Sang, which dropped 0.1% due to the ongoing protests and political uncertainty, the outlet reports.
Madison should see benefits from DNC 2020: Next year’s Democratic National Convention is set to be held in Milwaukee, but the hotel industry in Madison, Wisconsin, should also benefit from the event, according to the Wisconsin State Journal.
While hotels in Milwaukee will host the state delegations, hotels in the Madison area have committed 1,500 rooms for the convention to host media, organized labor, lawmakers, donors and volunteers. The rooms haven’t been filled yet, but Joe Solmonese, CEO of the 2020 DNC Committee, said he expects those rooms to fill.
The DNC is expected to bring in millions of dollars to the state and approximately 50,000 visitors.
AAA recognizes cleanest hotels: Hotels across 20 states were recently recognized for their cleanliness by AAA’s Best of Housekeeping awards, CNBC reports.
AAA inspects 27,000 hotels and resorts in North America using its ratings system “of one to five diamonds to advise its 59 million members on property upkeep,” according to the news outlet.
Hotels are inspected for traces of dirt, dust, pests and equipment performance. California ranked in at No. 1 with 982 properties that passed the housekeeping inspection. New York, Houston and Washington, D.C., were at the top of the list for cities.
Compiled by Danielle Hess.