- The Mandarin Orchard Singapore will be rebranded as a flagship Hilton property in 2022, becoming the largest Hilton across Asia-Pacific
- Webjet believes 'severe financial pressure' will deliver a 'significant change in the competitive landscape'
- Airbnb will pay USD250 million to hosts to help cover the cost of COVID-19 cancellations
- Data metrics - latest performance insights from STR
- News briefs - bitesize updates of latest industry news and developments
The Mandarin Orchard Singapore will be rebranded as a flagship Hilton property in 2022, becoming the largest Hilton across Asia-Pacific
Real estate owner, developer and operator OUE has confirmed plans to re-brand the existing Mandarin Orchard Singapore into Hilton's flagship property in Singapore and largest hotel across Asia and the Pacific. The property, managed by Meritus Hotels and Resorts, will become the Hilton Singapore Orchard from 2022 following a major USD90 million transformation that will see the introduction of new meeting facilities, as well as food and beverage offerings. Taking advantage of the current period of weak demand, initial refurbishment will commence in 2Q 2020 with the phased work scheduled to be completed by the end of 2021. Upon its relaunch in 2022, the hotel will have 1,080 rooms and five restaurants and bars. Its meeting and function spaces will span 3,765 square metres and include three ballrooms.
Webjet believes 'severe financial pressure' will deliver a 'significant change in the competitive landscape'
Travel agency and lodging specialist Webjet believes the "severe financial pressure" on smaller players in the industry will "likely see a significant change in the competitive landscape once the impact of COVID-19 passes". It sees this as an opportunity for the business to gain market share as competitors come under financial pressure. However, on a positive note, while some regions are reaching their peak with infections, it to is starting to see green shoots of recovery in China. It describes the country's market as "slowly beginning to see early signs of normalisation". It reports that hotel bookings for the week to 01-Mar-2020 increased 40% compared to the previous week, while peak daily bookings for domestic services increased 230% from the lowest level recorded in Feb-2020.
Airbnb will pay USD250 million to hosts to help cover the cost of COVID-19 cancellations
In a letter to Airbnb hosts, the company's co-founder, CEO and head of community Brian Chesky, outlined a series of actions to support hosts through the COVID-19 crisis, including a support payment for hosts in the event of guest cancellation. When a guest cancels an accommodation reservation due to a COVID-19 related circumstance, with a check-in through to 31-May-2020, Airbnb says it will pay hosts 25% of what a Host would normally receive through the cancellation policy. This applies retroactively to all COVID-19 related cancellations back to the middle of Mar-2020. Guests with reservations booked on or before are still be able to cancel and receive a standard refund or travel credit equivalent for 100% of what they paid. The company has also created a USD10 million Superhost Relief Fund for those who rent out their own home and need help paying their rent or mortgage, plus long-tenured Experience hosts trying to make ends meet.
Data metrics - latest performance insights from STR
- The Caribbean hotel industry reported negative year-over-year results in the three key performance metrics during the week commencing 15-Mar-2020. In comparison with the week commencing 17-Mar-2019, occupancy fell -61.3% to 30.6%, ADR was down -29.1% to USD217.34 and RevPAR declined -72.6% to USD66.45. Among data-sufficient islands within the Caribbean region, STR says, the Bahamas saw the steepest year-over-year decline in demand. That led to the largest decline in occupancy (-72.7% to 22.1%), which coupled with the largest drop in ADR (-19.5% to USD292.58), caused the steepest decline in RevPAR (-78.0% to USD64.67) around the region.
- The Mexican hotel industry reported negative year-over-year results in the three key performance metrics during the week commencing 15-Mar-2020. In comparison with the week commencing 17-Mar-2019, occupancy more than halved, down -54.2% to 30.2%, ADR slipped -2.7% to MXN2,655.20 and RevPAR fell-55.4% to MXN801.79. The Mexican Caribbean and Puerto Vallarta are both maintaining an absolute occupancy above 40%, according to STR. Nevertheless, the Mexican Caribbean saw a steep decline in RevPAR (-48.2% to MXN1,668.65), due to a substantial drop in occupancy (-44.6% to 42.6%). Puerto Vallarta was able to grow ADR slightly (+1.7% to MXN4,182.63) but experienced a decline in occupancy (-44.2% to 44.4%).
News briefs
- Luxury hospitality brand Anantara Hotels Resorts and Spas is delivery online content designed to inspire and provide a positive form of travel escapism during this period of global social distancing. Using the hashtag, #AnantaraEscapism, company's properties from all corners of the world are sharing bitesize video content and healthy living tips to inspire and stimulate guests.
- Diamond Resorts has become the latest brand to launch a global initiative to help provide those responding to the COVID-19 pandemic with safe, comfortable and convenient places to rest while they carry out their critical work. The company is offering complimentary accommodation to medical personnel and first responders across its managed property portfolio.
- Ovolo Hotels sees these current challenging times as an opportunity to adapt and innovate. It is developing packages for guests to isolate in comfort with '7 day Recharge' to '14 Day Lock In' long-stay packages for guests "to work, rest and play in comfort". It is also offering home delivery services from its restaurants in properties in Australia and Israel.
- Rentals United, has published 'The Who's Who of Property Management Systems', a guide to choosing the best PMS to help scale vacation rental business. PMS software is a key part of any short-term rental business and enables managers to streamline operations internally and deliver an enhanced guest experience. Almost two in three property managers are though to use a PMS.
- Xenia Hotels & Resorts has entered into an agreement to sell the 522-room Renaissance Atlanta Waverly Hotel & Convention Center for USD155 million. The transaction was initially expected to close in Mar-2020, but the parties have subsequently agreed to extend the closing until 31-Jul-2020. The buyer has a reported USD7.75 million non-refundable deposit at risk should the transaction not proceed.