In this week’s roundup of news from the Americas region: Marriott’s all-inclusive; the industry’s likelihood for a downturn; U.S. August RevPAR; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Rate drives August RevPAR
Revenue per available room in the U.S. stayed afloat during August with average-daily-rate growth acting as a preserver as occupancy change remained mostly flat, writes Jan Freitag, SVP of lodging insights at STR, parent company of Hotel News Now.
ADR moved up 0.9% from 2018, which drove all RevPAR gains since there was no change in occupancy. This means the RevPAR upcycle hit 112 months, Freitag writes, marking the longest run ever.
Marriott sees global opportunities for all-inclusive platform
In August, Marriott International entered into the all-inclusive hotel space and signed five resorts representing more than 2,000 rooms across the Caribbean and Latin America. But Marriott’s platform is much bigger than these five hotels in those regions, writes HNN’s Robert McCune from the South America Hotel Investment Conference in September.
Laurent de Kousemaeker, Marriott’s chief development officer for the Caribbean and Latin America, said the company has been looking into the all-inclusive space “for a while, over a decade,” and decided that now “is the right time to penetrate the market in a significant way.”
There’s plenty of opportunity in the Caribbean and Latin America, but in other parts of the world, too, he said.
“There’s a lot more going to come from this region. But what I’m hearing, and again it’s fairly recent, from my peers, is they’re getting a strong reaction in Middle East/Africa, so places like Egypt, Europe as well and in Asia, interestingly, the team is very interested in it. They believe there is a lot of demand for that product in the coming years,” he said.
Is the industry in a downturn or approaching one?
In Part one of a new series, the Hotel News Now editorial staff answers your most pressing questions about the hotel industry. First: How close is the next downturn, or has it already begun?
STR’s Freitag said there’s still reason to be optimistic that a recession is in the distance.
“Growth in the U.S. hotel industry is closely related to growth in the economy as measured by private domestic investment, a subset of GDP,” he said in an email interview. “We have seen over time that when American consumers are spending, and when American companies are investing, the outcome is more lodging demand. So far the outlook for GDP is positive, according to our colleagues from Tourism Economics, hence we do not expect that lodging demand will decline. It is true that growth in hotel demand will slow, but the outcome will still be positive, just not at the levels we have seen.”
Deals and developments
- JLL closed on the sale of the 114-room Ames Boston Hotel on 25 September. JLL marketed the hotel on behalf of Invesco Real Estate, who was the seller.
- Hunter Hotel Advisors announced the sale of SpringHill Suites Ashburn/Dulles Virginia to SAK Developers.
- Pebblebrook Hotel Trust completed the sale of the 137-room Kimpton Rouge Hotel in Washington, D.C., to joint venture Kemmons Wilson Hospitality Partners and Valor Hospitality Partners for $42 million.
- Hilton’s luxury collection LXR Hotels & Resorts announced its debut in the Americas with the 65-key Zemi Beach House Hotel & Spa in Anguilla. It is slated to become part of the LXR brand this November.
- Radisson Hotel Group announced the singing of the 208-key Radisson Blu Hotel and Residence Aruba for 2020 as a new-build, constructed by Beachside Development Company and Radisson Hotel Group.
Compiled by Dana Miller.