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1. Accor Co-Founder Pélisson Dies
Gérard Pélisson, co-founder of global French hotel brand Accor, died Monday at age 91, reports HNN’s Terence Baker. Pélisson created the company with business partner Paul Dubrule, opening their first Novotel hotel in 1967.
Since then, the company has grown to 5,445 hotels with 802,269 rooms around the world, operating under several brands, such as Novotel, Ibis, Sofitel and Mercure. The two founders took inspiration from American hospitality, particularly the Holiday Inn brand, as they developed their brands and growth strategy.
In a news release, Accor Chairman and CEO Sébastien Bazin said Pélisson “was an entrepreneur par excellence. A true revolutionary of our industry who, together with Paul Dubrule, made Accor a global force to be reckoned with.”
2. Homebuyers Seek Out Hotel-Branded Residences
While the housing market generally has dropped from its pandemic peak, buyers are still paying a premium, an average of 30%, for luxury hotel-branded residences, the Wall Street Journal reports. There were 38,900 branded residences in more than 200 developments across the U.S. by the end of 2022, a 40% increase compared to 2010, according to data from real estate firm Savills.
Mandarin Oriental opened two residences in 2022 in Beverly Hills, California, and Barcelona, the newspaper reports. A third is scheduled to open in Manhattan later this year. Four Seasons has opened sales for a lakefront private residences resort with 179 homes and villas near downtown Austin, Texas.
Virgin Hotels CEO James Bermingham spoke with HNN’s Sean McCracken about the company’s plans to open its first branded residences as well.
3. Hotel Buffets Make Their Return
Once thought to be lost to the pandemic, hotel buffets have made a comeback with increased safety standards, efficiencies and quality, writes HNN contributor Harvey Chipkin. Hoteliers have changed up menu offerings, plating, service by staff as well as table layout for their buffets.
Another factor under consideration was how everything comes together to be aesthetically pleasing.
“We’re in the business of building experiences,” said James Samson, president of consulting firm Samson Hospitality. Guests have phones, he added, “and if you can sharpen up the images they take of your buffets that’s a marketing tool that hotels can showcase. “
4. Business Hotels Face Challenges with Lenders
Owners of business-demand-focused hotels are expecting to run into trouble working with lenders as their existing debt matures, reports the Wall Street Journal. Though leisure travel recovered faster and stronger than predicted, the slower return of group and corporate travel has lenders taking a tougher stance to refinance loans.
During the height of the pandemic, lenders were working with their hotel clients on extensions and forbearance, but economic uncertainties are causing lenders to pull back, said Michelle Russo, founder and CEO of hotel asset manager HotelAVE.
Russo said one of HotelAVE’s client hotels “got a letter from the bank saying, ‘We just want you to know, nine months out, we are not renewing [your loan]. Don’t come to us.'”
5. JetBlue Expects Attempt To Block Merger
JetBlue Airways said there's a "high likelihood" the U.S. Department of Justice will sue to stop its acquisition of rival budget airline Spirit Airlines, reports the New York Times. Critics of the $3.8 billion deal say it would result in less competition in the industry.
“We believe there is a high likelihood of a complaint from DOJ this week, and we have always accounted for that in our timeline to close the transaction in the first half of 2024,” the company said.
Currently, JetBlue controls more than 5% of the U.S. airline market, but the acquisition would increase that share to 10%, the newspaper reports. That would make it the fifth-largest in the U.S.