From the desks of the Hotel News Now editorial staff:
- More than half of 2016 UK hotel deals were in London
- UK labor costs rise at fastest rate since 2013
- APAC transactions likely to heat up in 2017
- First hotel opens at Dubai Parks & Resorts
- All eyes in US aimed at December job report
More than half of 2016 U.K. hotel deals were in London: Investment in the London hotel market accounted for more than 50% of all United Kingdom hotel transactions in 2016, according to business advisory Savills.
In a news release, the firm said 2016 business transacted in London reached £2 billion ($2.46 billion), which is a marked increase on the 45.2% share of transactions the capital showed in 2015. Investment in the U.K. hotel market as a whole totaled £3.9 billion ($4.81 billion) in 2016 as “robust demand continues to drive activity in the sector.”
U.K. labor costs rise at fastest rate since 2013: United Kingdom labor costs rose at the fastest annual rate since late 2013 in the three months after the country voted to leave the European Union despite continued steady growth in productivity, according to Reuters, citing official figures from the U.K. government’s statistician, Office for National Statistics.
Reuters added that year-on-year growth in unit labor costs increased by 2.3% in the third quarter of 2016, its highest since the last three months of 2013.
APAC transactions likely to heat up in 2017: According to participants in Hotel News Now’s final installment of forward-looking virtual roundtables, the Asia/Pacific region will likely experience a marked growth in transactions and development in 2017, with Australia and Japan standing out as favorites for activity.
The Chinese hotel industry and its investors will continue to lead growth, experts said. Bill Barnett, managing director of C9 Hotelworks, said “the sleeping giant for transactions is clearly inside China. We’d expect in the next 12 to 24 months to see overseas investors look at stressed (assets) on the Mainland. In my opinion that’s the next great trading play.”
First hotel opens at Dubai Parks & Resorts: The first hotel has opened at the Dubai Parks & Resorts entertainment area and theme park. The Polynesian-themed Lapita has 504 guestrooms and operates under the flag of Marriott International’s soft brand Autograph Collection, according to United Arab Emirates newspaper The National.
The theme park, which officially opened 18 December, has three principal attractions—Legoland Dubai and movie-related Motiongate Dubai and Bollywood Parks.
All eyes in U.S. aimed at December job report: The U.S. Department of Labor reported 156,000 jobs were created in December, The Wall Street Journal reports, down from the expected 183,000.
While the numbers came in lower than projected, the article points out jobs reports for October and November were later revised to add 19,000 more jobs than previously reported. Average hourly earnings increased by 0.4% compared to last year, the fastest pace for wage increases since 2009.
Compiled by Terence Baker.