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1. Marriott Makes Extended-Stay Brand Plans Official
Marriott International offered new details on a midscale extended-stay brand, now under the working title of Project MidX Studios, which executives teased in a first-quarter earnings call on May 2, saying a launch was imminent.
The first hotel opening could be as soon as 2024, the company said in a news release Monday. The brand will have properties in the U.S. and Canada.
“Marriott has long believed in having the right accommodations in compelling destinations at the right price point. Whether our guests are traveling for business, leisure or a mix of both, our portfolio of 31 brands offers something for everyone,” said Anthony Capuano, president and CEO of Marriott. “As consumers look for new, flexible accommodation solutions, we are thrilled to announce our plans to launch an affordable midscale extended-stay offering to meet the needs of guests seeking long-term comforts at a moderate price point.”
Concord Hospitality and Whitman Peterson are collaborating to break ground on three Project MidX Studios hotels by the end of this year with plans to open in late 2024 or early 2025.
2. Park Stops Payment on Loans for Two San Francisco Hotels
Park Hotels & Resorts discontinued payments toward a $725 million non-recourse CMBS loan that is secured by two of its San Francisco hotels — the 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 San Francisco — and is scheduled to mature in November 2023, the company said in a news release Monday. It’s expected that the two properties will be removed from Park’s portfolio.
“This past week we made the very difficult, but necessary decision to stop debt-service payments on our San Francisco CMBS loan,” said Thomas J. Baltimore, Jr., chairman and CEO of Park. “Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges — both old and new: record-high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker-than-expected citywide convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future.”
3. Belmond Appoints New CEO
Belmond, a hospitality and leisure company that operates luxury hotels, train services and river cruises worldwide, has appointed Dan Ruff as its new CEO, the company said in a news release Monday. Ruff, who had been serving as chief operating officer for the company since 2018, will succeed Roeland Vos, who will retain his role as chairman of the board of Belmond.
"I'm truly honored to become CEO of this extraordinary company, with its passionate and genuine people, and legendary properties. Together, we will continue to strive to offer incomparable travel experiences to our guests, and become the world's most desirable luxury travel brand,” Ruff said in the release.
4. American Airlines' Business Travel Plan
With business travel still lagging pre-pandemic levels due to the emergence of remote meeting options, American Airlines is cutting its losses and shifting its strategy, the Wall Street Journal reports.
The airline is going to offer fewer discounts and corporate contracts and instead rely on its flight network and loyalty program in an effort to save millions on travel agent commissions and corporate discounts. American’s new approach to business travel has competing airlines watching closely to see how it goes, the newspaper reports.
“We’re just realizing there can be more ways to go and try to win your business than just through a corporate contract,” said Vasu Raja, chief commercial officer of American Airlines.
5. US Hotel Developers Struggle With Funding
Stricter lending standards from regional banks, the largest lenders to hotels and other commercial real estate markets, is causing funding issues for U.S. hotel developers and forcing postponements on some projects, Reuters reports.
According to the news outlet, 59 of the 98 hotel projects that broke ground or were in the pre-construction phase since March have been paused.
"The regional banks that used to be active for us 9 to 12 months ago are not showing up to finance hotels for us today," said MCR Hotels Chief Investment Officer Joseph Delli Santi.