Editor's Note: Some linked articles may be behind subscription paywalls.
1. Waldorf Astoria Washington DC Faces Foreclosure Auction
The Waldorf Astoria Washington DC, which was formerly the Trump International Hotel, is facing a foreclosure auction in June. Its owner, Miami-based GCI Merchant Group, defaulted on $252.7 million in outstanding debt earlier this year, the Commercial Observer reports. The main lender of the financing, BDT & MSD Partners, filed an affidavit of nonresidential mortgage foreclosure late last week.
GCI bought the leasehold on the 269-room hotel in partnership with Hilton in 2022 for $375 million from former U.S. President Donald Trump's company. The new owner rebranded the hotel to the Waldorf Astoria after it traded.
”CGI is engaged in productive discussions with the property’s manager, Hilton, and several other parties who want to reach a consensual financing solution that reflects the realities of today’s challenging, rising rate environment,” a CGI spokesperson told Commercial Observer in a statement. “MSD’s unilateral decision to file a foreclosure notice is inconsistent with the discussions and possibly invalid. Although our goal is to continue advancing constructive negotiations with all parties, including MSD, we’re prepared to take all necessary steps to protect the rights of CGI and its partners.”
2. Qatar To Build Off World Cup Demand
Qatar plans to "liberate the hospitality sector and remove any obstacles" on hotels in terms of operating hours and licensing to build on the record volume of tourists it has welcomed since hosting the FIFA World Cup in 2022, Bloomberg reports.
The Persian Gulf nation welcomed 4 million visitors in 2023, marking a 39% increase over the World Cup year. Qatar expected to experience a hard landing following the event.
Though sporting events have been a major draw for tourism, Saad bin Ali Al Kharji, the chairman of Qatar Tourism, said it's now time to attract families, medical tourists and business travelers with a calendar of conferences and exhibitions, the news outlet reports.
3. Volume of US Hotel Deals To Pick Up
Executives of hotel real estate investment trusts speaking during first-quarter earnings calls are predicting a stronger transaction market in the second half of this year despite it being slower in recent quarters due to cost of capital and uncertainty over interest rates, Hotel News Now's Bryan Wroten reports.
Much of this has to do with many owners needing to sell out of necessity as they can no longer afford to hold onto assets.
"We're hearing a little bit of chatter that we might see a more active [mergers and acquisitions] market in the second half of the year. That said, we don't sit around at Host and wait for marketed opportunities. We really prefer to continue to work with our long-standing partners [and] relationships that we have, and that's how we got the Nashville deal done," said Jim Risoleo, president and CEO, Host Hotels & Resorts, during his company's earnings call.
4. Hotels Are Getting By With Fewer Workers
The hotel industry today is operating with nearly 200,000 fewer workers than pre-pandemic. While this 9% decrease may signal the industry is in trouble, some owners feel it's possible hotels "may actually never need as many workers as they once did," NPR reports.
In 2020, more than 1 million hotel workers lost jobs, including housekeepers, front-desk agents and maintenance workers. Eventually, hoteliers learned to operate more efficiently with technology. Breakfast, for example, became more self-served and automated.
Vinay Patel, president and CEO of Fairbrook Hotels, which owns 11 hotels around Virginia, told NPR that he's noticed the act of guests physically checking into a hotel at the front desk is waning.
"People are now literally not wanting to go to the front desk," he said. "They'll check in online on the phone similar to the airlines and go straight to [the] room."
5. TUI Shifts Investment Strategy on Canary Islands
Protests against mass tourism on Spain's Canary Islands is leading German travel company TUI to invest in staff housing rather than investing in new hotels in the area that would contribute to more tourism, Reuters reports.
Thousands of protesters lined Tenerife and other islands in April, calling on authorities to relieve pressure on the environment, infrastructure and housing supply by limiting the number of tourists.
In a recent earnings call, TUI CEO Sebastian Ebel said, "We have offered to build housing for employees and others. We have proactively addressed the issue."