5 things to know: 23 May 2016
 
5 things to know: 23 May 2016
23 MAY 2016 9:50 AM

From the desks of the Hotel News Now editorial staff:

  • Anbang’s involvement with InnVest raises eyebrows
  • Caribbean hotel performance drops as Zika fears grow
  • Fonciere des Regions spends $1b for 18 hotels
  • Concerns about supply and demand in DC
  • Largest Dutch hotel chain sold

Anbang’s involvement with InnVest raises eyebrows: The Wall Street Journal is reporting that there are some who believe Anbang Insurance Group played a part in Bluesky Hotels and Resorts’ purchase of Toronto-based InnVest Real Estate Investment Trust for 974 million Canadian dollar ($741 million). The deal was first announced 10 May.

Citing anonymous sources, The Wall Street Journal claims that Anbang pursued a portfolio of hotels from InnVest almost immediately after failing in its bid to acquire Starwood Hotels & Resorts Worldwide, and similar to its attempts to win that company, suddenly dropped out of the process before Bluesky swooped in to buy the REIT.

In the story, Anbang officials denied any connections to Bluesky.

Caribbean hotel performance drops as Zika fears grow: There are concerns that fears of the Zika virus could be hurting demand for Caribbean hotels, and those concerns seem to be well founded based on recent hotel performance, according to a data analysis from STR’s Steve Hennis. (STR is the parent company of Hotel News Now.)

Through the first four months of the year, 58% of Caribbean hotels have seen occupancy declines, 47% have seen average daily rate fall and 56% have shown a drop in revenue per available room as well. Several companies, including Marriott International, have cited Zika fears during first quarter earnings calls as a cause for sliding performance.

Fonciere des Regions spends $1b for 18 hotels: FDM Management, a unit of France-based Fonciere des Regions, is buying a portfolio of 18 European hotels for €936 million ($1.05 billion), according to a report from Bloomberg.

The portfolio includes nine properties in Germany and nine more split between France and Belgium. They are flagged under Marriott, Starwood and InterContinental Hotels Group brands.

Concerns about supply and demand in DC: Some concerns seem to be bubbling up about new hotel supply in Washington, D.C., and whether demand in the U.S. capital will be able to keep pace, according to The Washington Post.

The Post writes that 14 hotels are slated to open in the market in 2016, which will add more than 2,200 rooms, with another 16 properties expected to come online in 2017.

Professor Bjorn Hanson of New York University’s Preston Robert Tisch Center for Hospitality and Tourism said that the combination of a building boom with decelerating demand growth is “kind of a troubling mix.”

Largest Dutch hotel chain sold: A group of management and equity partners are taking over Fletcher Hotels, the largest hotel chain in the Netherlands, according to a news release from Jones Lang LaSalle’s Hotels & Hospitality Group, which brokered the deal.

The company was sold by founder Chris Luken for an undisclosed price. Fletcher has a portfolio of 73 hotels and generates annual revenue of €125 million ($140 million).


Compiled by Sean McCracken.

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.