In this week’s roundup of news from the Americas region: Recent deals in Caribbean; November 2016 pipeline data; deals and developments; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Increasing confidence in Caribbean with recent deals
Three large transactions were announced in the Caribbean region on 13 December, which signify a maturation of the region’s hotel industry, HNN’s Sean McCracken writes.
Last week, KKR and KSL Capital Partners bought Apple Leisure Group, an affiliate of TPG joined Playa Hotels & Resorts, and Chow Tai Fook Enterprises announced a purchase agreement for the Baha Mar Resort.
“When you see these kind of acquisitions and joint-venture structures occurring, it shows money that has been watching this region … feels the time is right to get in and make a full-blown commitment,” Ronald Sutherland, president of the Hemisphere Group, said.
OT rule put on hold after Texas court ruling
The new U.S. overtime rule, put in place by President Barack Obama's administration, was pushed back in November after a federal judge in Texas sided with a coalition of business groups, HNN’s Sean McCracken writes.
U.S. District Judge Amos Mazzant halted the implementation of the rule in a 20-page ruling. Reuter’s reported that Mazzant said the OT rule “creates essentially a de facto salary-only test.”
There’s uncertainty around the OT rule, but experts still encourage hoteliers to prepare for the change.
5 adaptive-reuse hotels funded by tax credits
Using historic tax credits from the federal and state governments is a popular way for hotels to be built through adaptive reuse in the United States, HNN’s Danielle Hess writes.
Projects such as the Trump International Hotel in Washington, D.C., which used to be the Old Post Office building, and the Kimpton Schofield Hotel in Cleveland, Ohio, constructed by Levi Schofield in 1901, received some kind of historic tax credit funding to complete the projects.
Here’s a look at five hotels that have opened, broken ground or are currently being constructed in 2016.
STR pipeline data for November
The November 2016 pipeline report from STR, HNN’s parent company, shows 64,259 rooms under contract in 410 projects in the Central/South America region, which represents a 4.8% decrease year over year.
The region saw a 10.9% decrease in projects in construction for the month, with 27,976 rooms in 172 projects.
Data from the Caribbean/Mexico region showed 31,782 rooms in 191 projects under contract in November, which is a 13.6% increase compared with November 2015.
The region also reported an increase of 9.1% of rooms in construction when compared with November 2015. For the month, there were 13,081 rooms in 87 projects in construction.
Deals and developments
- The 140-room Courtyard by Marriott Bonaire near Kralendijk, Bonaire, opened 14 December.
- City Express announced the opening of seven hotels on 16 December. Three opened 16 December, and the four other properties are slated to open within the next few weeks.
- The Andaz Mayakoba Resort Riviera Maya opened, marking the first location in Mexico for the brand.
- Tom Klein joined Playa Hotels & Resorts’ board of directors on 20 December.
Compiled by Danielle Hess.