A mobile tipping solution is a trend we welcome. Who already carries small amounts of cash? Plus, news on hotel deals and development around the world.
Here are some excerpts from Daily accommodation report from last week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks and career changes. Sign up here now.
Sunday, September 18
Wyndham Hotels and Resorts unveiled a new, across the portfolio, mobile tipping solution for its US and Canadian franchises, making it one of the first major hotel companies to do so. Developed and managed by Béné, the platform allows guests to easily digitally tip hotel team members via their preferred mobile device.
The research arm of the investment bank Berenberg go hotels as the main travel play. The brokerage firm says concerns about the hotel industry are overblown and RevPAR prospects for 2023 and 2024 will strengthen further. They see no evidence of increased structural risk to business travel or anything that points to migration to disruptors like Airbnb and other OTAs. They raised their ratings on Hilton, Hyatt and Marriott to buy.
jump note: For more on the subject, check out Skift’s story on this week’s hotel tipping.
Monday, September 19
Aimbridge Hospitality is building toward 2023 and beyond with an emphasis on acquiring talented industry veterans, expanding its strong portfolio, and evolving its operational focus to bolster its global growth plans and continued industry-leading innovation. The company’s new hires represent significant depth at the bank, including Mark Tamis, president of global operations; Allison Reid, Director of Global Growth; Mark Chloupek, General Counsel; Tim Pruiett, senior vice president of acquisitions and investments; and Emily Gerstner, vice president and philanthropic association and community outreach.
jump note: Aimbridge has over 1,500 open and signed properties. It has recently been reorganized to enhance its growth.
Tuesday, September 20
According to Hodges Ward Elliott Second Quarter Reportthe New York City hotel industry continues its recovery as travel picks up and hotels reopen. Highlights of the report include the following: According to Expedia Q1 2022 Travel Recovery Trends Report, New York is a top 10 city in terms of total bookings across all regions, NORAM, LATAM, EMEA and APAC, indicating strong domestic and international travel demand. Historically, business and leisure travel in New York City has shown a 20/80 split. Since the split was reduced to 12% in 2021, New York and company projects that this segment will reach 16% in 2022.
jump note: New York is back, honey.
Wednesday, September 21
Hyatt Hotels announced a subsidiary of Hyatt and kiraku inc. entered into a strategic joint venture that will launch a collection of modern style hot spring ryokans in Japan Target global travelers under the new hospitality brand. ATONA. Hyatt and Kiraku will each own 50% of the joint venture and will leverage the experience and strengths of both Hyatt and Kiraku to develop the new offering. Development plans are underway to introduce the ATONA-branded ryokan collection from 2025.
marriott international said it would expand its portfolio in the GCC region with more than 20 new properties by the end of 2023 to meet current demand. The hospitality assets will add more than 5,000 rooms to the region’s hotel supply stock over the next 15 months and will open in Saudi Arabia, Qatar, United Arab Emirates, Kuwait and Oman.
Accor is expanding its partnership with Al Raya Real Estate Groupwith whom Accor will open the Swissotel Living Jeddah shortly. Accor currently operates 40 properties in Saudi Arabia with a total of 15,173 rooms with a further 33 properties with 7,549 rooms in the pipeline.
IHG Hotels and Resorts said they signed a management agreement with Arabian Investment Group and Marketing Co., a wholly owned unit Ghazzawi Groupfor his second Hotel Indigo in Jeddah. Hotel Indigo Jeddah is expected to open in the first quarter of 2028 and will feature 267 hotel rooms and 173 serviced apartments.
Shangri-La Group announced the retirement of the CEO of the Group Lim Ben Chee after almost six years of leadership. He will leave the position of CEO of the Group on December 31.
ICT Hotels they said they signed five boutique properties in india under the new brand, History of ITC Hotels.
jump note: Hyatt’s new brand is a clever attempt to professionalize and brand the traditional Japanese inn concept. Meanwhile, the Middle East is a very, very hot market.
Thursday, September 22
truist reported on the meetings they held with the management of Wyndham Hotels. Demand trends continue to be favorable and while management is closely monitoring bookings, length of stay, cancellation rates and such, they don’t see any immediate cause for concern. They see additional opportunities for tuck-in acquisitions like the recent vienna house purchase and such financing for franchisees is very much available at similar LTVs to last year. WH is satisfied with echo project along with its two other new brands: alltra Y record collection and the three already represent almost 10,000 rooms. As for issues, WH said the number one issue for franchisees is labor, availability and cost.
As recent demand for hotel rooms breaks records and prices soar, hotel investors are taking notice, as 80% of them plan to buy during the rest of 2022 and into 2023. According to The latest JLL Global Hotel Investment Survey, 57% of investors expect the best hotel investment opportunities to emerge in the next six months. Key takeaways from the report: Despite broader economic headwinds, hotel accommodation and hospitality continue to recover at an encouraging and unexpectedly strong pace, driven by significant pent-up demand for travel and experiences. 80% of hotel investors plan to be net buyers in the rest of 2022 and 2023, as value-added properties return to the spotlight. 57% of investors expect the best investment opportunities to emerge over the next six months in more traditional hotel property types, including full-service and select-service hotels. London, Tokyo and Boston have emerged as the top three target markets for hotel investment, pointing to a resurgence of investor interest in urban markets. Hotel investors expressed increased appetite as fundamentals continue to recover with 20% of investors indicating they will deploy between $501 million and $1 billion or more of capital in the hotel sector, the highest proportion of investors wanting to deploy this level of capital since the pandemic began. .
jump note: While the macroeconomic outlook is uncertain, the outlook for hotel supply and development remains bright.