Following the implementation of new government restrictions, Chinese companies are facing having to limit their overseas spending. According to China’s Ministry of Commerce, Chinese investors invested 1.13 trillion Chinese yuan ($171.4 billion) overseas in 2016, which is up 44.1 percent, year-over-year. A number of Chinese firms and subsidiaries have significant stakes in the global hotel industry. Some of these companies, such as Anbang Insurance Group, Dalian Wanda Group, and HNA Tourism Group, have felt pressure from the Chinese government over the past several months. Read more here.
PORTSMOUTH, NH—Analysts at Lodging Econometrics (LE) have reported that the five U.S. markets with the largest number of hotel construction projects in the second quarter of 2017 are: New York with 190 projects/31,923 rooms; Houston with 159 projects/17,472 rooms; Dallas with 147 projects/18,429 rooms; Nashville with 125 projects/16,697 rooms; and Los Angeles with 109 projects/17,029 rooms.
Dallas had the most new hotel openings forecasted for 2017 with 42 hotels/5,029 rooms, followed by New York, which is expected to open 38 hotels/5,657 rooms, and Houston, with 31 hotels/3,182 rooms. In 2018, New York is forecasted to open the most hotels with 60 projects/9,666 rooms and in 2019, Houston is expected to lead with 39 projects/4,779 rooms.
New York is also the market with the most hotel projects in the pipeline (57 projects/9,342 rooms announced in the last 12 months), followed by Dallas with 53 projects/6,836 rooms and Houston with 46 projects/4,286 rooms.
Already taking a hit from weak oil markets, the Houston hotel market is poised to experience further disadvantages due to the impact of Hurricane Harvey. For two weeks, Texas will suspend state and local occupancy taxes to provide some relief to evacuees as well as to hoteliers responding to the crisis by lowering rates and accommodating storm victims. The long-term impact of the storm remains to be seen on hotels in the fourth largest city in the country. Read more about how Hurricane Harvey is expected to impact the Houston lodging market and how hospitality companies are responding here.
Hurricane Harvey has wreaked havoc in Texas along the Gulf Coast, forcing thousands to evacuate their homes. With many displaced people staying in hotels and motels, Texas Governor Greg Abbot has announced that Harvey victims, as well as relief workers, will be exempt from paying hotel occupancy taxes for two weeks. Houston, the eighth-largest hotel market in the United States, has been hit particularly hard by the storm and has had to close many of the city’s hotels. To read more, click here.
Nearly 500 hotels have already opened in the U.S. so far in 2017 with another 573 projects with 64,385 rooms forecasted to open by the end of the year, according to analysts at Lodging Econometrics (LE). The forecasted 1,021 hotel openings—totaling 114,906 rooms—represent a 20 percent increase over the number of hotels that openings in 2016 (849 hotels/99,872 rooms). Of the new openings in 2017, 34 percent (344) are in top 25 markets.
Almost half of the hotels that are expected to open this year are upper midscale properties (477 projects/46,093 rooms) and another 289 projects/37,914 rooms are upscale properties. These two chain scales represent 75 percent of the 1,021 projects anticipated to open through the end of 2017. Nearly 500 of the projects will have between 100 and 200 rooms and 464 of the projects will open in suburban locations.
LE forecasts that 1,160 projects/133,880 rooms will open in 2018 and another 1,193 projects/137,393 rooms will open in 2019—still a distance from 2009’s annualized new openings peak of 1,316 projects/140,227 rooms.
Hurricane Harvey is driving evacuees inland and hoteliers in cities like Austin are preparing for these guests in a number of ways. Many hotels are reducing their rates and softening animal policies to accommodate guests in emergency situations. Others are recognizing the need to take families’ minds off the storm by providing board games and other complimentary amenities to make guests feel more at home. Read about how hoteliers and hospitality companies in Austin are responding to the hurricane here.