- Wyndham Hotels & Resorts expands in China as it adds five new Ramada properties in the current quarter
- Radisson expands in Poland as Radisson Blu Hotel, Sopot and the Radisson Hotel Szklarska Poręba, bringing its portfolio to 14 properties
- US states and local government could be hit by an almost USD17 billion revenue loss from collapsed hotel demand
- Data metrics - latest performance insights from STR
- News briefs - bitesize updates of latest industry news and developments
Wyndham Hotels & Resorts expands in China as it adds five new Ramada properties in the current quarter
Wyndham Hotels & Resorts has plans for further growth in China as travel in the country continues to show encouraging signs of recovery. The company confirms it will add five new hotels to its Ramada by Wyndham brand this quarter, three of which have already opened: the 142-room Ramada by Wyndham Luoyang Downtown, the 191-room Ramada by Wyndham Jianyang and the 140-room Ramada by Changsha Wuguang. Further new arrivals will be the 101-room Ramada by Wyndham Wuhan Qingshan and 179-room Ramada by Wyndham Kunming Yiliang, both scheduled to open before the end of Jun-2020. "As travel in China continues to pick up, Wyndham and its brands are well poised to meet the budding demand," says Joon Aun Ooi, president, Asia Pacific, Wyndham Hotels & Resorts.
Radisson expands in Poland as Radisson Blu Hotel, Sopot and the Radisson Hotel Szklarska Poręba, bringing its portfolio to 14 properties
Radisson Hotel Group has confirmed the opening of the Radisson Blu Hotel, Sopot and the Radisson Hotel Szklarska Poręba, bringing its portfolio to 14 properties in operation in Poland. Radisson Blu Hotel, Sopot is a new landmark property on the Baltic coastline. Founded by a doctor from Napoleon's army, Sopot is a famed Polish seaside health resort known for its healing mineral water spring. The 219-room new-build is located just 250 meters from the wide, sandy beach and in the immediate vicinity of beautiful gardens and recreational areas. Meanwhile, located at the Giant Mountains, the upscale, full-service Radisson Hotel Szklarska Poręba is located within one of the largest ski resorts in Poland's Karkonosze mountain range.
US states and local government could be hit by an almost USD17 billion revenue loss from collapsed hotel demand
As a result of the sharp drop in travel demand from Covid-19, state and local tax revenue from hotel operations will drop in the United States of America (USA) by USD16.8 billion in 2020, according to a new report by Oxford Economics released by the American Hotel & Lodging Association (AHLA). Hotels have long served as an economic engine for communities of all sizes, from major cities, to beach resorts, to small towns off the interstate - supporting job creation, small business opportunities and economic activity in states and localities where they operate. Hotels also generate significant tax revenue for states and local governments to fund a wide array of government services. In 2018, the hotel industry directly generated nearly USD40 billion in state and local tax revenue across the country. Some of the hardest hit states include California (-USD1.9 billion), New York (-USD1.3 billion), Florida (-USD 1.3 billion), Nevada (-$1.1 billion) and Texas (-$940 million). These tax impacts represent the direct tax revenue decrease from the severe drop in hotel occupancy, including occupancy, sales, and gaming taxes. These figures do not include the potential, significant, knock-on effects on property taxes supported by hotels (estimated at nearly USD9 billion). The dynamic growth of the hotel industry over the last decade has been upended by the pandemic, which has caused more than 70% of hotel employees to be laid off or furloughed. This year is projected to be the worst year on record for hotel occupancy, and experts estimate it will be at least 2022 before hotels return to their 2019 occupancy and revenue levels.
Data metrics - latest performance insights from STR
- Latest data for the week commencing 07-Jun-2020 shows Canada hotel performance showing a continued trend of moving up slightly from previous weeks, but with the same significant level of year-over-year declines. In comparison with the week commencing 09-Jun-2019, occupancy was down -68.0% to 23.6%, ADR fell -39.8% to CAD108.23 and RevPAR declined -80.7% to CAD25.57. British Columbia (28.1%), Manitoba (25.9%) and Saskatchewan (25.0%) were the provinces with occupancy at or above 25%. Vancouver (26.1%) was the only major market at or above that mark.
- United States of America hotel performance data for the week commencing 07-Jun-2020 showed another small rise from previous weeks and less severe year-over-year declines. In comparison with the week commencing 09-Jun-2019, occupancy was down -43.4% to 41.7%, ADR slipped -33.9% to USD89.09 and RevPAR was down -62.6% to USD37.15. Aggregate data for the Top 25 Markets showed lower occupancy (37.2%) than the national average, but slightly higher ADR (USD91.65). Norfolk/Virginia Beach, Virginia, was the only one of those major markets to reach a 50% occupancy level (53.3%). The next highest occupancy levels were registered in Phoenix, Arizona (47.6%); New York, New York (45.7%); and Tampa/St. Petersburg, Florida (44.7%).
News briefs
- Cambria Hotels, the upscale franchise brand of Choice Hotels International has signed several franchise agreements since the beginning of the year, adding to its robust pipeline in major markets such as Jacksonville and Tampa, Florida; Nashville, Tennessee; and Atlanta, Georgia. The brand has also broken ground on three new hotels in Austin, Texas; downtown Minneapolis; and Somerville, Massachusetts, which join 26 other Cambria hotels currently under construction.
- Budget chain easyHotel has signed a 12-year lease to establish a 180-room property within the JUMP building, opposite the Front Populaire metro station in Aubervilliers, at the entrance to the Parc des Portes de Paris business park. The new property is due to open in the fourth quarter of 2022 and will be the third easyHotel in France.
- eDreams ODIGEO announced enhancements to its 'Prime' subscription programme to respond to new traveller needs in the post Covid-19 era. The Prime product offering has been expanded across eDreams, Opodo and GO Voyages to now include over 2.1 million hotels worldwide within the same yearly subscription fee. The product, which previously only covered flights, offers subscribers access to discounts and special promotions as well as a priority customer service telephone line.
- The 80-room Fairfield by Marriott Inn & Suites Duncan has opened in Oklahoma as a Marriott franchise, owned by Apollo Hospitality and managed by Integral Hospitality. The property offers guests convenient access to the Duncan Golf and Tennis Club, Main Street Duncan, the Chisholm Trail Heritage Center and the Rock Island 905 Railroad Museum.
- Cologne/Bonn Airport reported construction of the new Moxy Hotel adjacent to the airport terminal is "progressing rapidly" despite the Covid-19 pandemic, with commissioning scheduled for 2Q2021. The 250 room hotel project represents investment of EUR35 million.
- Nobu Hospitality will expand into the Polish market this summer with the opening of the Nobu Hotel Warsaw currently planned for 03-Aug-2020. The property will feature 117 rooms which will be housed across a former hotel building and a new-build property.
- The first NoMad property outside of the US will arrive this year with the opening of the NoMad London in late 2020. The Covent Garden property will be housed inside a historic, grade II-listed building, previously the Bow Street Magistrates' Court and Police Station. Led by Sydell Group, the iconic 19th century building is being transformed into a 91-room hotel which will retain much of its original architectural features.
- Melia, World2Meet, Logitravel, Abreu and Prestige are some of the first travel firms to join the Open Payment Alliance, through the early adopters programme created by Voxel Group and Mastercard to advance a new standard for B2B payments in the industry. In just 15 days, over a dozen companies, including hotels, tour operators, bedbanks and PMSs have already shown interest in the initiative. Originally born of the need to eliminate inefficiencies and to optimize B2B payments in the travel industry, it now makes more sense than ever in the post-Covid-19 world.
- SpringHill Suites by Marriott Texas City opened earlier this month (Jun-2020). The 103-suite hotel is located across from the Tanger Outlet Mall and offers guests convenient access to Galveston Island, the Kemah Boardwalk and the Texas City Museum. It will operate as a Marriott franchise, owned by DS Management and managed by Lodgic Hospitality.
- The TownePlace Suites by Marriott Fresno Clovis has been officially opened for business. The new 114-suite hotel will operate as a Marriott franchise, owned and managed by Axis Hotel Group. The new Californian property is located just three miles from Fresno International Airport and 10 minutes from downtown Clovis, just a short drive from the Fresno Convention Center.