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1. Marriott CEO Teases New Midscale, Extended-Stay Brand
On a call with investors to present first-quarter earnings, Marriott President and CEO Tony Capuano teased a new midscale, extended-stay brand, which he said will be announced officially in a few weeks, HNN's Bryan Wroten reports.
Within the past few weeks, other global brands have ventured into the midscale, extended-stay hotel space: Hyatt Hotels Corp. launched its Hyatt Studios brand; and Hilton President and CEO Chris Nassetta says the firm will debut its own lower-midscale, new-build extended-stay brand within a few months.
Boosted by strong performance in the first quarter and positive hotel booking trends globally, Marriott International raised its guidance for full-year 2023. The company now expects year-over-year growth in revenue per available room to be in a range of 10% and 13%.
First-quarter RevPAR was up 34.3% year over year.
In other news, Marriott completed its acquisition of the City Express brand on Monday, which has made it "the largest hotel company in the Caribbean and Latin America," according to a company news release. The $100 million deal was announced in October.
2. Park Execs Weigh Options for Two San Francisco Hotels
Park Hotels & Resorts President and CEO Thomas Baltimore Jr. said all options are being explored regarding the soon-to-mature $725 million loans covering two hotels in San Francisco, including handing "back the keys" and selling the properties, HNN's Sean McCracken reports.
The loan on the Hilton San Francisco Union Square and Parc 55 San Francisco — a Hilton hotel — is slated to mature in November and currently carries an interest rate of 4.11%.
Selling the two hotels — which collectively have 2,945 rooms — would mark a dramatic shift in strategy for Park, for which a heavy presence in San Francisco has been a key differentiator from other hotel-focused REITs and a competitive advantage since the company's spinoff from Hilton in early 2017.
3. Housekeeping Jobs Down By Six Figures
A Las Vegas union representing hotel housekeepers is opposing Nevada state legislation "that would repeal daily-cleaning requirements as it tries to protect the jobs of thousands of hotel housekeepers," MarketWatch reports. This effort comes amid a nationwide staffing shortage at hotels, with more than 100,000 fewer U.S. housekeepers employed compared to 2019, according to the latest figures reported by the Bureau of Labor Statistics.
"Prior to the pandemic, it was standard that you paid a pretty penny for a nice room and you got service," Ted Pappageorge, the secretary-treasurer for the Culinary Workers Union Local 226, said in an interview with MarketWatch. "You didn't have to chase someone down the hall" to ask for towels or for trash to be taken out of your hotel room, he said.
"Now room rates are higher, 30% or more, [and hotels are] expecting guests to do without," he added.
4. Hotel Development Booms in Maine
The $26 million Lockwood Hotel project in Waterville, Maine, is just one of a handful of boutique hotel developments in the state to demonstrate the health of its hotel industry and tourism, Mainebiz reports.
"New construction and renovations are underway from southern Maine to Aroostook County, with focal points on spaces and amenities that meet evolving customer expectations while also contributing to local economies," the news outlet reports.
In Waterville, the 53-room Lockwood Hotel "is an important milestone in the downtown revitalization project, which has attracted close to $200 million in investments from private and public sources,” said Brian Clark, vice president of planning at Colby College, which is developing the project.
“It serves as an access point for visitors to experience and immerse themselves in the arts, culture and outdoor attractions in the area, and is the first boutique hotel in downtown in over a century.”
5. UK Hotel Temporarily Rebrands as 'Cor-Inn-nation'
The United Kingdom is gearing up in grand fashion for the coronation of King Charles III this Saturday, and one hotel has gone so far as to change its name in honor of the prestigious event, U.K. newspaper the Express reports.
The Premier Inn London Bank, on St. Mary-at-Hill in Billingsgate, on the north bank of the River Thames, has temporarily been rebranded as "Cor-Inn-nation." The change, reflected by a new sign at the hotel entrance, will last through coronation weekend.
"Millions of people across the nation will be celebrating the coronation, with many descending on the capital to celebrate this momentous day in person," said Simon Ewins, managing director at Premier Inn.
"It promises to be one of the city’s biggest days of the year, and we wanted to mark the occasion in a special way by renaming one of our central London hotels for the special even," Ewins said.