In this week’s roundup of news from the Americas region: Aimbridge and Interstate to merge; Hotel Data Conference 2019 coverage; California deals pace; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Aimbridge and Interstate announce merger
In an exclusive interview with Hotel News Now, Aimbridge Hospitality and Interstate Hotels & Resorts announced the two companies had entered into a definitive agreement to merge, which will by far form the largest third-party hotel management company in the world, reports HNN’s Bryan Wroten.
A merged Aimbridge and Interstate will create a company comprised of 1,400 branded and independent properties in 49 states and 20 countries. Once complete, Dave Johnson, Aimbridge founder and CEO, will serve as CEO of the combine company. Mike Deitemeyer, Interstate president and CEO, will serve as global president of the combined company.
“I think Dave and I can bring a level of excitement to the company to help propel it forward and help our teams achieve their personal goals,” Deitemeyer said. “I’m very excited about it. I certainly think it will be a game-changer in this space.”
2019 Hotel Data Conference
Hotel News Now covered the 11th annual Hotel Data Conference, which brought plenty of talk on labor, downturns, guest experience and more. Compared to 2018’s conference, hoteliers’ cautious optimism was fading as there’s reluctant pessimism about an impending—though not immediate—recession creeping in.
For coverage of sessions, panels and data dashes and dives at HDC, click here.
Central/South America July performancehttp://www.hotelnewsnow.com/Articles/297690/Hotel-Data-Conference-2019
Hotels in the Central/South America region reported mixed results in the three key performance metrics during July, according to data from STR, parent company of Hotel News Now.
Occupancy in the region grew 4.2% to 60.1%, while average daily rate dropped 70.9% to $92.16 and revenue per available room declined 69.7% to $55.36. STR analysts note that the region’s demand continues to grow, pushing occupancy levels up. ADR and RevPAR comparisons with 2018 are greatly affected by currency fluctuations.
California deals pace up after slow start to 2019
Hotel News Now’s Wroten spoke with Atlas Hospitality Group’s Alan Reay about hotel transactions during the first half of 2019 in California and what that could mean for the rest of the year.
According to the California Hotels Sales Survey 2019 Mid-Year from Atlas, the statewide median price per key is at 12.7% increase year over year and an increase of 146% over the past 10 years. Individual sales in California rose by 8% during the first six months of the year.
Reay said profits have gone up and the cost of borrowing has gone down.
Deals, developments and people on the move
- Banyan Investment Group purchased the 89-key Fairfield Inn & Suites by Marriott Peoria East in Peoria, Illinois. Banyan will also operate the hotel.
- Peachtree Hotel Group acquired the 111-room Home2 Suites by Hilton El Paso Airport in El Paso, Texas.
- Hawkeye Hotels announced it has closed on the acquisition of the Hampton Inn & Suites by Hilton Cranberry Township, in Cranberry Township, Pennsylvania.
- Hilton’s Curio Collection opened its first Utah property with the 117-key Hoodoo Moab.
- Hilton appointed Feisal Jaffer as global head of LXR Hotels & Resorts.
- Apple Leisure Group named Alejandro Reynal as CEO, effective 3 September.
- Range Developments, which specializes in developing luxury resorts in the Eastern Caribbean, broke ground for the Six Senses La Sagesse, Grenada. The project is scheduled to open in 2022.
- Planet Hollywood Hotels and Resorts announced the new Planet Hollywood Beach Resort Cancun will open on 1 March 2020.
Compiled by Dana Miller.