Editor's Note: Some linked articles may be behind subscription paywalls.
1. KSL Buys UK-Based The Pig Hotels
KSL Capital Partners has announced the acquisition of U.K. boutique hotel brand The Pig Hotels for an undisclosed price. HNN's Terence Baker reports executives at Pig Hotels are looking to grow through the capital infusion from KSL.
“We are the size now where we’ve got to a stage organically, so this is really about getting to the next level," Managing Director Tom Ross said. "On a day-to-day level, nothing has changed. Our DNA is hotels and looking after people. All the cast of characters have not changed."
In other acquisitions news, Reuters reports Abu Dhabi, United Arab Emirates-based Aldar Properties has acquired the Rixos Bab Al Bahr hotel in Ras Al Khaimah for 770 million dirham [$210 million].
2. US Adds 431,000 Jobs, Expands H-2B Visas
U.S. employers added 431,000 jobs in March, according to the latest data release from the Bureau of Labor Statistics, with the unemployment rate falling to 3.6%
The release notes: "Employment in leisure and hospitality continued to increase, with a gain of 112,000 in March. Job growth occurred in food services and drinking places [+61,000] and accommodation [+25,000]. Employment in leisure and hospitality is down by 1.5 million, or 8.7%, since February 2020."
In a joint release Thursday, the Department of Homeland Security and the Department of Labor announced the addition of another 35,000 H-2B worker visas for the second half of 2022.
3. Rates, Revenues Jump at Extended-Stay Hotels
The Highland Group's latest report on extended stay hotels shows both rates and revenues saw a significant increase in that segment in February.
Average daily rate was up 29% year over year for the month, and revenue per available room was up 40%, with occupancy increasing 11%.
“Recent demand growth five times higher than supply and lower priced segments already recovering RevPar back to 2019 indicates a very strong near term outlook for extended-stay hotels” Highland Group Partner Mark Skinner said in a news release.
HNN's Dana Miller also profiled hotel operations and ownership group Sandpiper Hospitality, which is focusing squarely on the extended-stay segment.
President and CEO Jim Darter said their company's focus on extended stay hotels is paying dividends as hotel demand rebounds.
"Over COVID ... our hotels really didn't hurt that much," Darter said. "The first couple of months were iffy, but then it returned. By the time we got to June of 2020, we were beating 2019 numbers already. Since then, it's been nothing but upside."
4. UK Hotels See Significant Tax Increase Today
The value-added tax for hotels and restaurants in the U.K. is going up from 12.5% to 20% Friday, with the industry group UKHospitality warning that cost will be harmful to consumers in a period of high inflation. The tax was at 20% prior to the COVID-19 pandemic, but was in response to cratering demand at hotels.
“The now inevitable price rises for consumers will dampen demand and many hospitality businesses — one in three having less than a month of cash reserves and most are carrying heavy debt burdens — will fail as a result," UKHospitality CEO Kate Nicholls said in a news release. "This can only cause the U.K.’s wider economic recovery to falter."
5. Steigenberger Announces New Leadership Team
German hotel company Steigenberger Hotels AG has announced a new leadership team, with Wilhelm Bender taking over as chairman and Oliver Bonke as CEO.
Bender's experience in the travel industry includes 17 years as chairman of airport operator Fraport AG. Bonke is a 30 year veteran of the hospitality industry with companies like the Shangri-La Group, Loews Hotels & Co., InterContinental Hotels Group and Starwood Hotels and Resorts.
Steigenberger and its Deutsche Hospitality brands are owned by Chinese hotel company Huazhu Group Limited.