In this week’s roundup of news from the Americas region: Park Hotels & Resorts buys Chesapeake Lodging Trust; Hilton celebrates centennial; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Park Hotels & Resorts to buy Chesapeake for $2.7b
Park Hotels & Resorts and Chesapeake Lodging Trust announced on 6 May the two companies entered into a definitive merger agreement in which Park would acquire Chesapeake. The deal will be in a cash-and-stock transaction for $2.7 billion, according to a news release.
The transaction has been approved by Park’s board of directors and Chesapeake’s board of trustees. Chesapeake will obtain $11 in cash and 0.628 of a share in Park common stock for each Chesapeake share, the release states.
On Park’s first-quarter earnings call, President and CEO Tom Baltimore Jr. told analysts that on a pro forma basis, this deal “helps solidify our position as the second largest hotel REIT.” When the deal closes, the combined company will be valued at $12 billion, according to the release.
Celebrating its 100 years, Hilton looks to the future
The Hilton legacy has weaved its way through the hotel industry for a century now, writes HNN’s Dana Miller, and the company continues to innovate and develop in ways that keep it ahead of the curve.
Gretchen Stroud, VP of talent, learning and engagement at Hilton, said innovation should be applied to both the guest and team member experience.
“We’re constantly challenging ourselves. How do we leverage that new technology or new ways of doing things to also change how we interact with our team members? In the learning space, for example, we are currently piloting the use of artificial intelligence and augmented reality,” she said. “We’ve already launched virtual reality training across all of our corporate offices globally.”
Q1 2019 performance
U.S.: During the first quarter of 2019, the U.S. hotel industry reported positive year-over-year results in the three key performance metrics, according to data from STR, parent company of HNN.
Occupancy rose 0.4% to 61.8%, average daily rate increased 1.1% to $129.02 and revenue per available room grew 1.5% to $79.68.
Central/South America: Hotels in Central/South America reported an increase in occupancy in 0.6% to 58.1%, while ADR decreased 4.5% to $100.35 and RevPAR dropped 4% to $58.27 during the first quarter.
Canada: Canadian hotel occupancy fell 0.5% to 56.7% during the first quarter as ADR increased 1.2% to 148.68 Canadian dollars ($110.45) and RevPAR rose 0.7% to CA$84.24 ($62.58).
Mexico: The Mexican hotel industry reported a 4.9% drop in occupancy to 61.9% in the first quarter, and ADR decreased 2.4% to 2,554.40 Mexican pesos ($133.39) and RevPAR dropped 7.2% to 1,582.40 pesos ($82.63).
Deals, developments, people on the move
- The DoubleTree Santa Monica will undergo a full renovation to convert into the West Coast Hilton Flagship, expected to open in spring 2020. The renovation will be led by Avenue Interior Design, and will include updates to all public spaces, meeting space, restaurant and bar and outdoor spaces.
- Kasa Hotel Collection appoints Kai Jockel as area manager in Mexico.
- Hilton announced the opening of the 120-room new-build Hampton Inn & Suites by Hilton Puebla in Mexico.
- The Reefs Resorts & Spas has appointed Edgar Fayad as sales and marketing assistant manager of all three of its properties.
- The Hilton Curacao in the Caribbean will undergo a $15-million renovation and conversion into the Dreams Curacao Resort, Spa & Casino by December 2019. AMResorts is the management company.
- AC Hotels by Marriott announced this month the opening of the 161-key AC Hotel Lima Miraflores in Peru.
- The new-build 131-room Holiday Inn Express Merida Centro hotel opened in Yucatan, Mexico, this month.
- AJ Capital Partners acquired the 112-key Hilton Garden Inn in Konxville, Tennessee. The hotel will operate independently during its renovation to become the Graduate Knoxville, which is expected to be complete by spring 2020.
- Chicago-based Arbor Lodging Partners announced in April the acquisition of six hotels for $135 million.
- Accor has named Heather McCrory as its new CEO for North and Central America. She will be based in the company’s Toronto office.
Compiled by Dana Miller.