From the desks of the Hotel News Now editorial staff:
- Belmond reviews shareholder-value options, including possible sale
- LWHA hotel sales survey: Positive outlook for near future
- Atlas survey shows California hotel transactions down
- Host execs see challenges in NYC despite recent performance surge
- US, Canada weekly hotel performance
Belmond reviews shareholder value options, including possible sale: Bermuda-based hotel firm Belmond announced that its board of directors “has initiated a comprehensive review of strategic alternatives to enhance shareholder value,” which could include a sale of the company, according to a news release.
“The Board is committed to pursuing a path that is in the best interests of all Belmond shareholders. Accordingly, we are conducting a robust review of the full range of strategic, operational and financial alternatives available to the Company, including a possible sale,” Roland Hernandez, chairman of the board of directors, said in the release. “We have made meaningful progress toward our long-term strategic goals, including growing earnings, increasing brand awareness, and expanding our global footprint. We believe that now is the right time to conduct a strategic review process in order to enhance value for shareholders, given Belmond’s truly exceptional and unique collection of iconic owned properties and strong fundamentals in our markets around the world.”
Belmond owns and manages hotels in 24 countries, with assets that include the Belmond Hotel Cipriani in Venice, Belmond Hotel Splendido in Portofino, Belmond Copacabana Palace in Rio de Janeiro and the Belmond Grand Hotel Europe in St. Petersburg.
LWHA hotel sales survey: Positive outlook for near future: LW Hospitality Advisors’ U.S. Hotel Sales Survey for the second quarter reports 44 single-asset transactions, each valued at more than $10 million and totaling more than $3.5 billion, according to an article by President and CEO Daniel Lesser, published by GlobeSt.
During the same quarter in 2017, the survey tracked 39 transactions, totaling about $2.8 billion.
Lesser’s take on the survey results is that “barring any black swan event(s), the near-term outlook for lodging remains very positive.”
Atlas survey shows California hotel transactions down: Through the first six months of 2018, California’s hotel market saw a 35% decline in the number of hotels sold, according to Atlas Hospitality Group’s mid-year California hotel sales survey.
The survey reports there were 134 single-asset sales in the first half of 2018, versus 206 during the same period in 2017. The number of sales was the lowest it’s been in 10 years, the survey points out. The total dollar volume also dropped (-28%) despite an increase (+11%) in median price per room.
“Only two major California submarkets saw an increase in the number of sales: Sacramento and San Francisco counties. Sonoma County showed the largest decline, with no hotel sales through the first half of the year,” the survey states.
Host execs see challenges in NYC despite recent performance surge: On a call with investors to discuss the company’s second-quarter earnings, Host Hotels & Resorts executives fielded questions about their confidence in the New York City hotel market following the recent sale of one asset there and plans to sell another, Hotel News Now’s Dan Kubacki writes.
Host closed on the sale of the former W New York (now The Maxwell New York City) and expects to close on a sale of the W New York – Union Square in the third quarter of 2018.
President and CEO James Risoleo said on the call that despite being “clearly … the highest (revenue per available room) market in the country … for the near term, I think New York is going to have supply headwinds … (and) it’s a high-cost market in which to operate.”
U.S., Canada weekly hotel performance: For the week ending 4 August, the U.S. hotel industry saw revenue per available room increase by 4.1%, driven by a 3.1% boost in average daily rate and 1% occupancy growth, according to data from STR, parent company of Hotel News Now.
Leading U.S. top 25 markets for the week was Chicago, which posted the largest increase in RevPAR (+15.2% to $146.20), as a result of an 11% boost in ADR to $171.97.
During the same period, the Canadian hotel industry reported 2.8% RevPAR growth despite a 0.6% decline in occupancy, thanks to a 3.4% increase in ADR, the data from STR shows.
British Columbia led Canadian provinces and territories with an 8.5% increase in RevPAR to 219.36 Canadian dollars ($168.13) and a 9.7% increase in ADR to CAD248.84 ($190.73).
Compiled by Robert McCune.