In this week’s roundup of news from the Americas region: July Fourth impact on performance; June Hotel Stock Index up; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
US performance dips with weekday July Fourth
When the U.S. Independence Day holiday lands on Sunday, data shows a better-than-expected lift to hotel performance. However, that’s not the case for the rest of the week, writes STR’s M. Brian Riley and Brannan Doyle. STR is the parent company of Hotel News Now.
“When the Fourth of July falls on Monday, Tuesday or Wednesday, nationwide occupancy falls far below normal, averaging a 35% deficit across the three days. Independence Day falling on Tuesday (which occurred in 2009 during the Great Recession, and then again in 2015) averaged the steepest occupancy deficits (50% compared to the seasonally expected 77.3%). On Sundays, the industry has averaged small but notable occupancy gains of around 10% with ADR gains of 5%. Performance shortfalls/gains related to the holiday appear to be driven largely by occupancy rather than ADR,” Riley and Doyle write.
Hotel Stock Index up 6.2% in June
According to a news release, the Baird/STR Hotel Stock Index jumped 6.2% in June to 4,935. Year to date, the index was up 21.3% through the first six months of the year.
“Hotel stocks continued their up-and-down performance this year with better results in June after a tough May,” said Michael Bellisario, senior hotel research analyst and VP at Baird. “The broader stock market rebounded in June on optimism about a trade deal and that lifted the hotel brands more than the hotel REITs, although both sub-indices still were relative outperformers during the month. However, RevPAR growth expectations remain fairly muted heading into the second half of the year.”
Where groups are going
In June, Hotel News Now rolled out its latest Special Report, Where Groups are Going. This report explores thriving markets and alternative spaces for meetings and events, insights from hoteliers, revenue managers and meeting planners on what groups look for and ways hotels can capitalize off of them.
Monthly hotel performance for May 2019
During the month of May, the U.S. hotel industry recorded positive results in the three key performance metrics. Occupancy rose 0.9% to 68.7%, average daily rate increased 1.6% to $132.43 and revenue per available room was up 2.5% to $91.01, according to data from STR.
During the same month, hotels in Central and South America reported mostly negative performance results. Occupancy increased 5.6% to 56.7% while ADR dropped 44.5% to $92.74 and RevPAR decreased 41.4% to $52.56.
Deals, developments, people on the move
- Castlerock Asset Management announced the acquisition of the Westin Tampa Bay. The real estate development group will renovate the property by 2020.
- Commonwealth Hotels added the 147-room Courtyard Columbus-Dublin to its portfolio as of 14 June. This brings the management company’s portfolio to 48 hotels.
- Hotel Indigo Williamsburg Brooklyn has appointed Tracey Rucks as GM and Ryan Ocker as director of sales and marketing. This new hotel will open July 2019 in Williamsburg, Brooklyn.
- Graduate Hotels is developing a 14-story, 164-room hotel in Tucson, Arizona, that is expected to open in fall 2020. The Graduate Tucson will be near the campus of the University of Arizona.
- AC Hotels by Marriott announced the opening of the 219-room AC Hotel Kingston, Jamaica.
- Hyatt Hotels Corporation announced plans of a Hyatt affiliate entering into a franchise agreement with Coco Hotel 1 LLC for a new hotel. The 486-room is expected to open July 2019 as a Hyatt-affiliated hotel, then become the Hyatt Regency Coco Beach Resort once a renovation is complete this fall.
- Tapestry Collection by Hilton has signed a deal for the 168-room ROK Hotel, Kingston, Tapestry Collection. Slated to open in 2020, it will be the brand’s debut in the Caribbean.
- Melia Hotels International has opened the Meliá Cartagena Karmairí, a 147-room, adults-only, all-inclusive in the Manzanillo Del Mar.
- A newly constructed Radisson Resort Paracas is set to open this summer in Peru.
Compiled by Dana Miller.