The Blue Swan Daily brings you a round up of the latest key hotel news from across Europe, Middle East and Africa.
- Staycity to open first Berlin property in 2019 as it seeks grow portfolio beyond 15,000 apartments by 2022.
- Strong corporate demand helps deliver a strong Nov-2017 performance for Europe’s hotels.
- Hyatt adopts new 48 hour cancellation policy to better manage availability.
- Almost 190,000 new hotel rooms in European construction pipeline.
Staycity to open first Berlin property in 2019 as it seeks grow portfolio beyond 15,000 apartments by 2022
Staycity claims its apartment hotels offer “a cooler alternative” to traditional hotel stays for business and corporate customers as well as family and leisure travellers. With a current portfolio of 3,000 apartments across 16 different properties in ten cities across France and the UK it has ambitions to boost its portfolio by five times to 15,000 apartments over the coming four years and has confirmed plans for new properties in existing markets such as Dublin, Manchester and Paris as well as its debut in Germany, in its capital Berlin. New locations for 2019 include a 284-apartment site near Disneyland Paris, a property in the Venetian mainland suburb of Mestre, a Wilde Aparthotel (its premium brand) within Charlie Living – one of several new buildings located at the former Checkpoint Charlie in Berlin – a 50-key property on Dublin’s Chancery Lane and a third Manchester site in St Peter’s Square. Meanwhile, 2020 will see the opening of a further 142 apartments in Dublin’s Mark Street.
Strong corporate demand helps deliver a strong Nov-2017 performance for Europe’s hotels
Europe’s hotel industry reported positive results in the three key performance metrics during Nov-2017, according to data from benchmarking specialist, STR. The latest monthly data shows an absolute occupancy level of 71.2%, the highest for any November in STR’s database and up +1.9% on the same month in 2016. This performance is deemed “especially notable” by STR analysts given several acts of terrorism earlier in the year and the added challenge of political instability in several of the region’s major markets. When examining specific days of the week, STR data shows Tuesdays (80.3%) and Wednesdays (77.8%) display the highest occupancy rates, suggesting that corporate demand remains a strong factor in overall performance results in Europe. This is seemingly confirmed by the Average Daily Rate (ADR) on those same days —Tuesdays (EUR108.83) and Wednesdays (EUR108.37) —producing the highest absolute levels and up on the monthly average of EUR105.45, which was up +3.8% on Nov-2016. The STR data also shows Revenue per available room (RevPAR) in Europe rising +5.8% versus Nov-2016 to EUR75.11 in Nov-2017. At the country level, Turkey reported the largest year-over-year increases in occupancy (+13.4% to 62.7%), ADR (+16.7% to TRY266.26) and RevPAR (+32.3% to TRY166.98), while The Portugal reported the second-highest jump in RevPAR (+23.1% to EUR57.11). STR also notes that performance in the United Kingdom was relatively flat overall: occupancy (-1.3% to 77.6%), ADR (+1.9% to GBP93.52) and RevPAR (+0.6% to GBP72.59).
Hyatt adopts new 48 hour cancellation policy to better manage availability
Hyatt has followed other major hotel chains such as Hilton, IHG and Marriott by introducing a revised cancellation policy that is says will allow “hotels to manage guestroom availability more effectively, including offering rooms and upgrades to rooms that would have otherwise gone unoccupied”. The new minimum cancellation policy means that guests at most Hyatt properties will now be subject to a 48-hour policy to avoid cancellation fees for reservations made or changed on or after 01-Jan-2018. The use of the word ‘most’ is deliberate as Hyatt notes that each hotel “may continue to set its own cancellation policy based on local market dynamics and expectations”. While the new policy may impact corporates, premium tier members of its World of Hyatt loyalty programme will in most cases be exempt from any cancellation changes. World of Hyatt Explorist, Globalist or Lifetime Globalist members will continue to be able to cancel up to 24 hours before arrival. ”We recognise that flexibility is important and will offer relaxed criteria for our most frequent guests,” explains Hyatt.
Almost 190,000 new hotel rooms in European construction pipeline
A recent Hotel Construction Pipeline Trend Report for Europe states that the total pipeline has 1,228 hotel construction projects offering 189,490 rooms, up 22% by projects year over year, according to real estate specialist Lodging Econometrics. The report highlights 586 hotels and 95,775 rooms ‘Under Construction’, up 17%; 388 hotel projects with 58,008 rooms ‘Scheduled to Start Construction in the Next 12 Months’, up 51%, while 254 hotel projects with 35,707 rooms are in ‘Early Planning’, up by 2%. The top countries in the Europe Construction Pipeline are: United Kingdom with 228 hotel projects with 34,614 rooms, Germany with 185 hotel projects with 36,221 rooms, and France with 116 hotels with 14,672 Rooms. Cities in Europe with the largest pipelines are: London with 79 hotels with 14,234 rooms, Paris with 37 hotel projects with 6,748 rooms and Moscow with 28 projects and 5,541 rooms. Lodging Econometrics’ global construction pipeline trend report, which compiles the construction pipeline for every country and market in the world, found that the total pipeline stands at 12,427 hotels and 2,084,940 guestrooms, up 8% by hotels year over year. There are 5,885 hotels with 1,086,966 guestrooms already under construction. The leading franchise companies in the global construction pipeline by project-count are Marriott International with 2,274 hotels and 383,984 guestrooms, Hilton with 2,029 hotels and 305,229 guestrooms, InterContinental Hotels Group with 1,339 hotels and 199,045 guestrooms and Choice Hotels with 529 hotels and 43,121 guestrooms.