SVC transfers 99 hotels, launches extended-stay concept: Service Properties Trust, or SVC, announced Wednesday it has completed the branding and management transfer for 99 hotels to subsidiaries of Sonesta International Hotels Corporation from InterContinental Hotels Group, according to a news release.
Three more hotels in Canada and Puerto Rico are expected to transfer to the Sonesta brand in mid-December. One hotel in Atlanta will continue under IHG’s management. Additionally, Sonesta has launched its new extended-stay hotel concept, Sonesta Simply Suites, with an initial 61 locations.
“We are excited to complete this milestone in transitioning 99 hotels to Sonesta and the launching of the Sonesta Simply Suites brand. We believe that as a 34% owner of Sonesta, SVC will benefit from Sonesta’s growth as well as share in more of the upside from the recovery of these hotels,” John Murray, president and CEO of SVC, said in the release.
Aimbridge’s structure put to the test during the pandemic: Aimbridge Hospitality and Interstate Hotels & Resorts completed its merger in October 2019, which executives touted the increased scale and combined resources would help hotel owners. Now, during the pandemic, that’s been put to the test, writes Hotel News Now’s Bryan Wroten.
After the pandemic began, the company invested further into its integration, spending $17 million on technology and a combined platform, said Global President Mike Deitemeyer, who will become president and CEO of the company 1 January 2020. The company also invested more into business analytics, appointing leadership in operations and business sales analytics.
“These investments are going to pay a dividend in helping us be that best-in-class operator going forward,” he said.
Some service industry jobs might not come back: Millions of low-paid workers in service industry jobs including retail, hospitality, building maintenance and transportation could find their industries permanently transformed due to the pandemic, The New York Times reports. Moving those workers into new occupations remains a challenge, the article writes.
“The damage to the economy and particularly to workers will probably be longer lasting than we think it is going to be,” Peter Beard, SVP for regional work force development at economic development group Greater Houston Partnership told the Times.
Beard added that the use of automation will likely accelerate as many businesses look to protect themselves from future interruptions like the pandemic.
Merkel rallies against reopening plans: Chancellor Angela Merkel said Germany could see a third wave of COVID-19 infections over the next few weeks if citizens let their guard down, Reuters reports.
The number of new infections in Germany has remained at a high level since its 2 November partial lockdown, the news outlet writes.
“Merkel also railed against plans of some regional governments to let hotels open for family visits over Christmas, warning it risked worsening the coronavirus surge sweeping Germany,” Reuters reports, adding Merkel “could not understand the plans for some northern and western states (where the pandemic is less severe) to allow hotels to open to allow far-flung families to get together.”
AMS Hospitality, Black Salmon form JV: AMS Hospitality, which consists of The Allen Morris Company and Stormont Hospitality Group, and commercial real estate investment firm Black Salmon have formed a joint venture with plans to acquire $300 million in hospitality assets over the next 18 months in the U.S., according to a news release.
The JV’s first acquisition is The Pelham Hotel in New Orleans, a 65-room boutique hotel. The hotel will undergo a multimillion-dollar renovation to modernize its design.
“The partnership between AMS Hospitality and Black Salmon leverages the key strengths and expertise of both firms across the disciplines of acquisitions, asset management and capital raising. The JV will seek hotel properties that have undergone a price reduction from pre-pandemic values,” the release states.
Compiled by Dana Miller.