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Americas Hotel Pulse: Hyatt Inks $2.7 Billion Deal With Apple Leisure Group

Latest US Hotel Forecast; The Challenge of Keeping Guests Happy In Cost-Cutting Era; and More

Real Hospitality Group opened the Holiday Inn Express & Suites Woodside Queens NYC in Woodside, New York, shown here in this rendering. (Real Hospitality Group)
Real Hospitality Group opened the Holiday Inn Express & Suites Woodside Queens NYC in Woodside, New York, shown here in this rendering. (Real Hospitality Group)

Read the latest news from around the Americas region.

Hyatt Inks $2.7 Billion Deal with Apple Leisure Group

Hyatt Hotels Corp. will double its resort portfolio and add several all-inclusive resort brands following its $2.7 billion acquisition of Pennsylvania-based Apple Leisure Group, writes Hotel News Now's Terence Baker.

The previous owners of the development and ownership company were KKR and KSL Capital Partners.

“This deal will significantly accelerate our asset-light transformation and our industry-leading net-rooms increase,” said Hyatt President and CEO Mark Hoplamazian at a news conference announcing the deal, adding other benefits including offering a platform with more luxury, a wider choice for a wider clientele base and enhanced benefits for owners.

The deal is expected to close by fourth quarter of 2021.

Latest Hotel Forecast: Business, Group Have Long Way to Go

Reporting from the 2021 Hotel Data Conference, HNN's Sean McCracken writes that leisure demand is surpassing pre-pandemic levels, but there's a hazy outlook for business and group travel.

Speaking during the "Prognosticating Post-Pandemic: The U.S. Hotel Forecast" panel during the conference, STR President Amanda Hite said business transient travel will end the year at 70% of what was seen in 2019, compared to leisure transient ending the year 17% higher than that year. STR is CoStar's hospitality analytics firm.

"So we still have a long way to go to get back to prior 2019 numbers, and we don't expect a lot of group demand," she said.

Hotel Leaders Share Challenge of Maintaining Guest Experience in Era of Cost-Cutting

As travelers continue to demand unique and memorable experiences on property, hoteliers grapple with providing that level of service as more companies cut back on the operating model, writes HNN's Sean McCracken.

Speaking during the "Boardroom Outlook: The 'Experience' Factor Means Business" panel at the 2021 Americas Lodging Investment Summit, Kimpton Hotels CEO Mike DeFrino said as leisure demand spikes, driving up rates in some markets, customers are expecting the same, or better, service.

"The customer is not there yet is what I've found by talking to my general managers, especially if you're paying $500 or $600 in Key West and you don't have clean towels," he said. "You're miffed. And we've seen that reflected in our guest satisfaction scores, our TripAdvisor ratings and other things where people speak out. So there's an uphill battle ahead."

Deals, Developments, People on the Move

  • Real Hospitality Group opened the Four Points by Sheraton Flushing in Flushing, New York, as well as the Holiday Inn Express & Suites Woodside Queens NYC in Woodside, New York. Both properties are owned by Century Development Group.
  • W Philadelphia has appointed Ed Baten as complex general manager and Andrew Cifa as director of sales.

  • McKibbon Hospitality has announced plans to develop a new hotel project in downtown Asheville at 61 Biltmore. The hotel will include between 109-115 guest rooms. Construction will begin in 2022 and the property is intended to open in early 2024.
  • Aimbridge Hospitality announced its co-founder and Executive Chairman Dave Johnson is leaving the company.
  • LXR Hotels & Resorts is expanding in the Pacific Northwest with the signing of Hotel 1000 in Seattle.
  • Fairmont Hotels & Resorts has appointed Dan McGowan as general manager of Fairmont Empress in Victoria, British Columbia.
  • Marriott Cancun Collection has appointed Glaucia Canil as director of sales and marketing for its sister properties, JW Marriott Cancun Resort & Spa and Marriott Cancun Resort.