This week, Red Roof expanded its loyalty program so that, in addition to using rewards points for booking rooms, guests can now “buy” Amazon gift cards, Apple products, and other items through an online marketplace. Read about how more hotels are partnering with big-name retailers to expand loyalty perks here.
Yesterday morning, Hurricane Maria made landfall on Puerto Rico’s southeastern coast as a Category 4 storm. It lingered for 10 hours, knocking out power and water for the entire island, which has yet to be restored. Puerto Rico is also without cell service at the moment. Experts are estimating that it will take up to six months to restore power to the entire island, which is now just starting its cleanup efforts. Hurricane Maria is the third hurricane to have devastating effects on the southern U.S. and its territories over the last four weeks. To read more, click here.
COLUMBUS, Ohio—U.S. Realty Consultants, Inc. has released its Mid-Year 2017 Hotel Investor Survey, which shows strength and stability in the hotel sector, but with a dose of caution regarding future growth.
Discount rates were largely flat since the last survey in early in 2017, with full-service hotels increasing a modest 20 basis points, and limited-service hotels improving by 20 basis points. Full-service hotel capitalization rates decreased by a modest 10 basis points to 7.5 percent, and limited service hotels declined by the same margin.
While similar to the results last survey, ADR growth expectations are down significantly from a year ago. For both full-service and limited-service hotels, overall ADR growth expectations are only slightly higher than expense growth expectations.
Between Harvey and Irma, the damage so far this hurricane season has interrupted business at hotels across Texas and the U.S. Southeast, leaving many hoteliers struggling to arrange repairs and reopen properties. Complicating that process further is the fact that the damage on some hotels may not be fully covered by their insurance, requiring hoteliers to shell out more money to make repairs. To read about experts’ advice on navigating insurance claims after a storm and what steps hoteliers can take to ensure that they are getting the most coverage, click here.
Greater demand from travelers for unique experiences has driven some success for boutique properties and prompted an increase in large hotel companies launching soft brands to respond to guests’ changing tastes. However, this trend has not put an end to the development of massive hotels and resort properties across the globe. To read about five large hotel projects in the pipeline that are poised to make a splash in the hospitality landscape, click here.
PORTSMOUTH, NH—Analysts at Lodging Econometrics report that the total number of hotel construction projects in the Middle East is up 13 percent year over year (YOY), and currently at 561 projects/154,627 rooms. The number of rooms under construction is up 20 percent by projects YOY to 339 projects/98,653 rooms, those scheduled to start construction in the next 12 months are up 21 percent YOY at 125 projects/32,116 rooms, and projects in early planning are down 12 percent YOY at 97 projects/23,858 rooms.
The top hotel companies in the Middle East’s construction pipeline are Marriott International with 94 projects/22,641 rooms, Hilton Worldwide with 81 projects/22,456 rooms, and AccorHotels with 79 projects/24,491 rooms. The largest brand in the pipeline for each of the these companies is Courtyard by Marriott with 15 projects/3,112 rooms, Hilton’s full-service hotel with 26 projects/9,215 rooms, and Accor’s Adagio City Aparthotel with 13 projects/2,529 rooms.
The countries with the most hotel construction in the Middle East are Saudi Arabia with 202 projects/60,392 rooms, United Arab Emirates with 186 projects/53,717 rooms, and Qatar with 56 projects/14,307 rooms. Cities in the Middle East with the largest pipelines are Dubai, UAE, with 141 projects/40,266 rooms, Riyadh, Saudi Arabia, with 58 projects/11,364 rooms, and Doha, Qatar, with 52 projects/12,680 rooms.