Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
STR, STR Global reports June pipeline data
U.S.: The total active U.S. hotel development pipeline comprises 2,724 projects totaling 327,293 rooms, according to the June 2013 STR Pipeline Report. STR is the parent company of Hotel News Now.
Caribbean/Mexico: The Caribbean/Mexico hotel development pipeline comprises 131 hotels totaling 21,957 rooms, according to the June 2013 STR Construction Pipeline Report.
Central/South America: The Central/South America hotel development pipeline comprises 247 hotels totaling 39,537 rooms, according to the June 2013 STR Global Construction Pipeline Report.
STR, STR Global reports June performance results
U.S.: The U.S. hotel industry’s occupancy fell 0.3% to 69.9%, its ADR was up 3.3% to $111.27 and its RevPAR increased 3% to $77.76 during June 2013, according to data from STR, parent company of Hotel News Now.
“The hotel industry reported the highest monthly room revenue ever in June ($11.5 billion), a clear indicator that the U.S. hotel industry is healthy and that most benchmark metrics are recovering to their old highs,” said Jan Freitag, senior VP of strategic development at STR.
Americas: The Americas region reported in June a 0.2% decrease in occupancy to 69.6%; a 3% increase in ADR to $113.03; and a 2.8% growth in RevPAR to $78.69.
Park Lane deal shows NYC’s strength
The Wall Street Journal reported 16 July that a team led by New York development company Witkoff Group planned to buy the approximately 600-room Park Lane Hotel in Manhattan for a price that equates to more than $1 million per key. Much of the property could be converted to condominium use, the newspaper reported, citing unnamed sources.
The Park Lane transaction exemplifies the high cost acquirers are willing to pay to get a slice of the New York market. Earlier this year, the James Hotel sold for nearly $750,000 per key.
New York’s history of strong performance is driving a lot of the interest in the market, sources said. Year-to-date through May, revenue per available room is up 8.5% to $192.04 in the city; average daily rate increased by 4.3% to $235.50; and occupancy was up 4% to 81.5%, according to data from STR.
Asia/Pacific investors discover the Caribbean
Asia/Pacific investment capital is flowing into luxury hotel development projects and acquisitions in the Caribbean.
The most high-profile project underway is the $3.5-billion development of Baha Mar, a 1,000-acre complex in Nassau, the Bahamas, that will be the largest single-phase luxury resort project in the history of the Caribbean. It will include Rosewood Hotels & Resorts, Mondrian and Grand Hyatt hotels, as well as a major casino-hotel.
Baha Mar almost certainly will drive more interest and investment in Caribbean hotels, said Jonathan Kracer, Hotel News Now columnist and managing principal of Sion Capital, a Miami-based hospitality and real estate advisory and investment firm. "Clearly, a $3.5-billion master-planned resort project is going to make global headlines," he said. "So it definitely is going to catch the attention of other Asian investors.”
Wheelock acquires six-hotel portfolio
Wheelock Street Capital acquired a six-hotel portfolio with a total of 703 rooms located in Texas, Tennessee and Ohio. The portfolio includes five Marriott-branded hotels and one Hilton-branded asset.
Wheelock acquired the hotels from affiliates of LinGate Hospitality Group, an owner-operator and developer. The hotels include three assets in Texas, two hotels in Nashville and one in Cincinnati. The terms of the transaction were not disclosed. LinGate Hospitality Group will continue to manage the hotels on behalf of Wheelock.
Meliá: Americas region leading the way
During the first half of 2013, Meliá Hotels International’s properties in the Americas region saw RevPAR increases of 13.2%.
Regarding Brazil, where the Spain-based company already operates 12 hotels and has others in the pipeline, Meliá signed two new hotels in the state of Pernambuco, known as the “development capital of the north.” The 192-room Meliá Paiva and the 280-room Innside Barra are scheduled to open in 2015 and 2016, respectively.
Mexico gets another Holiday Inn Express
InterContinental Hotels Group and Selfi Grupo Operador de Estacionamientos, S.A. de C.V., on 22 April broke ground on the 114-room Holiday Inn Express Hotel Xalapa in Veracruz, Mexico. The five-story hotel is being developed by GILCA, with an investment of more than $6 million. The 13-story building will have multiple levels of underground parking, two stories devoted to business use and a multi-purpose hall capable of seating up to 400 people.
IHG’s portfolio in Veracruz includes seven hotels comprising two Crowne Plaza hotels, three Holiday Inn hotels, one Holiday Inn Express hotel and a Hotel Indigo.
Omni to manage, reflag famous Toronto hotel
Omni Hotels & Resorts on 1 August became the long-term operator of The King Edward Hotel, the first luxury hotel in Toronto. The property will be flagged The Omni King Edward Hotel. The venture with owners King Edward Realty continues Omni’s enterprise of strategic expansion to own, operate and/or manage distinctive luxury hotels and resorts throughout North America, with a focus on major convention centers, leisure destinations and city centers.
Starwood Hotels growing presence in Mexico …
Starwood Hotels & Resorts Worldwide expects to grow its hotel footprint in Mexico. The company has eight hotels representing nearly 1,100 rooms in its pipeline and a portfolio of 24 hotels and 4,800 rooms. During the next three years, the company intends to open two Aloft hotels in Merida, Guadalajara, and two Four Points by Sheraton hotels in Queretaro and Cancun.
“Mexico has been a central part of our strategy in the Americas for many years, and we are pleased to see an upswing in the country as U.S. tourists return and business travel picks up," said Frits van Paasschen, president and CEO of Starwood Hotels, in a news release.
… as is AMResorts
The AMResorts unit of Apple Leisure Group plans to expand its presence in Mexico with the addition of six resorts in Quintana Roo, Puerto Los Cabos and Puerto Vallarta, according to Travel Pulse. The resort chain, a unit of Apple Leisure Group, will invest $600 million to build the properties.
AMResorts has 20 properties in Mexico. The new hotels will add 2,800 rooms to its portfolio.
Compiled by Samantha Worgull.