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1. China To Start Processing Visas For Arrivals
After months of its zero-tolerance policy toward COVID-19, China will resume processing visas for foreign arrivals Wednesday, according to the BBC. Valid visas issued before March 28, 2020, when the country closed its borders, will be honored once again.
Chinese authorities added that tour groups to Hong Kong and Macau and cruise-ship passengers to Shanghai and Hainan Island now will be able to enter visa-free. For outbound travelers, the new policy will allow Chinese citizens to visit 60 countries, up from the current 20.
2. Bank Shares Tumble Following US Financial Jitters
Banks shares fell Monday as jittery financial markets responded to the weekend collapse of Silicon Valley Bank and two other banks, with the largest falls in value being in other banks and financial institutions. Shareholders are worried that continued increases in interest rates “are approaching a tipping point and may be cracking the banking system,” according to CBS News.
The broader market was not subject to the same noise, with investors believing that the current banking wobbles mean “the [U.S. Federal Reserve] would have to take it easier on its economy-rattling hikes to interest rates.” The decreases in stock values have come despite a Monday televised address by President Joe Biden seeking to reassure investors.
3. Extended-Stay Secures Occupancy 19% Higher Than Overall Hotel Industry
Extended-stay hotels saw an average occupancy in January of 72%, which was 19% higher than the overall hotel industry occupancy average that month as announced by STR, the hotel analytics division of CoStar. Extended-stay hotel occupancy also is 5% higher than it was in January 2019, according to Atlanta-based investment advisory Highland Group.
“Higher-priced extended-stay hotels led the gains … as most lower-rated properties experienced occupancy declines following months of some of the strongest increases in room rates ever reported. Consistent with the overall hotel industry, lower-priced extended-stay hotels continued to report markedly lower revenue per available room gains than higher-rated properties in January 2023,” said Mark Skinner, a partner at Highland Group.
4. PPHE Launches European Hotel Fund
PPHE Hotel Group, which owns brands Park Plaza, Art’otel, and also has a master franchise agreement with Radisson Hotel Group, is launching a new European hotel fund valued at 250 million euros ($267 million). Its initial plans involve opening a hotel in Rome, according to a news release.
The initial investor in the fund is Tel Aviv-based Clal Insurance, which has committed 75 million euros and has agreed to an upper limit of 49% of the entire fund at any point. The two firms are existing partners in two London hotels. PPHE added that “in its initial form, participation in the fund will be 51% by PPHE and 49% by Clal. In consideration for its 51% participation, PPHE will contribute the ownership of its existing Rome asset to the fund for an agreed value of 29.3 million euros. Clal will subscribe an initial 28.1 million euros in cash for an initial 49% participation in the fund.”
5. Spring Travel Demand Indicates Strong Performance
Demand for travel during spring break, a popular vacation period for Americans, especially young adults, will be consistent in 2023. However, hotel demand might not be as good as it was in 2022 as more people became comfortable with traveling after months of isolation during the COVID-19 pandemic, writes Hotel News Now’s Bryan Wroten.
“I think last year was almost manic just because people wanted to get out. Now, most of them have been able to travel this past year. They’ve been able to relatively do whatever they want,” said Carolee Moore, vice president of revenue strategy at Crestline Hotels & Resorts.
She added spring group business is causing a ripple.
“It’s creating a lift across the calendar. Some of that weekday business demand is rolling over to the weekends as well,” she said.