From the desks of the Hotel News Now editorial staff:
- HNA selling stake in Park Hotels & Resorts
- Recent tourism rebound boosts Hong Kong hotels
- US, Canada hotels report strong performance
- Thomas Cook launches fund to grow own-brand hotel portfolio
- Brazil’s hotels see occupancy boost as supply growth stabilizes
HNA selling stake in Park Hotels & Resorts: Upon completion of a common-stock repurchase by Park Hotels & Resorts, China conglomerate HNA Tourism Group “will no longer beneficially own any shares of Park’s common stock,” according to a news release.
In the deal, HNA will potentially reap “up to $1.4 billion to help tackle its liquidity crunch … following a $50-billion acquisition spree over the past two years,” Reuters reports.
In connection with the secondary offering of 34,479,524 shares of Park common stock by HNA, Park underwriters are exercising an option to purchase 5,171,929 additional shares of common stock at a price of $25.57 per share, according to the release. The closing of the option is expected Friday.
Recent tourism rebound boosts Hong Kong hotels: For the first time since Hong Kong implemented measures in 2015 to limit arrivals from mainland China, hotels in the region reported an increase in room revenue in 2017, according to research from Hotel News Now parent company STR.
STR’s Jesper Palmqvist and Jan Freitag report that revenue per available room at Hong Kong hotels was up 5.5% in 2017, helped by absolute occupancy of 88.5% and a 2.6% increase in average daily rate to 1,381.26 Hong Kong dollars ($176.27). This was despite adding 224 hotels with just under 70,000 rooms.
“STR expects that the healthy increase in Hong Kong room demand will continue for the coming years,” Palmqvist and Freitag write. “Supply growth will be well over 2% in the next few years, but occupancy growth should remain positive, albeit at a slowing pace.”
US, Canada hotels report strong performance: For the week ending 3 March, the U.S. and Canada hotel industries reported gains across all three key performance indicators, according to data from STR.
In the U.S., hotels reported a 1.7% year-over-year increase in occupancy to 65.9% for the week. Average daily rate grew 2.3% to $126.06, which combined with occupancy growth boosted revenue per available room by 4.1% to $83.04, the data shows.
Leading the top 25 markets in the U.S., Philadelphia, Pennsylvania-New Jersey saw occupancy increase 14.9% to 71.4% and a 22.6% RevPAR grow to $90.66.
Canadian hotels reported 59.6% occupancy for the week, a 1.7% increase year over year, and 3.4% ADR growth to 147.04 Canadian dollars ($113.80), which lifted RevPAR by 5.1% to CA$ 87.68 ($67.86).
Thomas Cook launches fund to grow own-brand hotel portfolio: With the launch of Thomas Cook Hotel Investments, British global travel company Thomas Cook Group is seeking to accelerate growth of its own-brand hotel portfolio, the company announced in a news release.
The fund, a joint venture with Swiss-based hotel developer LMEY Investments, is starting with five seed hotels worth approximately £150 million ($207.8 million)—two Thomas Cook hotels and three LMEY hotels (two of which are in Spain). The first joint project of the venture will be the development of a Casa Cook hotel in Ibiza, Spain, expected to open in summer 2019, according to the release.
Brazil’s hotels see occupancy boost as supply growth stabilizes: STR data shows Brazil’s hotel industry saw a double-digit increase in occupancy during January 2018, pointing to hotel performance recovery following a year in which hotel revenue declined due to an economic recession and the impact of new supply, linked in part to hosting the World Cup and Rio Olympics.
In the 12 months ending with January 2018, Brazil’s hotel occupancy was up 2.3% to 53.4%, though ADR dropped 11.2%.
“Brazil endured sizeable performance decreases due to the economic recession as well as the fluctuations and new supply impact that came with hosting the World Cup and the Rio Olympics,” said Patricia Boo, STR’s area director for Central/South America. “As the economic environment and hotel supply situation continue to stabilize, hotels are seeing much more reliable demand growth that is helping occupancy levels and pricing power.”
Compiled by Robert McCune.