Airbnb’s short-term rentals are being scrutinized in markets across the country, such as Santa Monica, Calif., where a landlord became one of the first hosts in the U.S. to be convicted for renting out units illegally on the platform. Airbnb has responded by filing lawsuits, holding rallies, and spending millions on lobbying campaigns. To read more, click here.
Travel search engine giant Trivago plans to raise $428 million in an initial public offering to tentatively take place around Dec. 15. The offering would be priced between $13 to $15 per share, putting the company’s value at about $5 billion. Trivago, which spends a staggering 88 percent of its revenue on advertising, hopes to use some of the money generated by the IPO to continue to increase its public profile and awareness. To read more, click here.
With 169 projects/19,885 rooms in the total construction pipeline, Houston has the second largest pipeline in the country, following New York City, according to Lodging Econometrics.
Of all markets, Houston has the most projects scheduled to start construction in the next 12 months with 87 projects/9,627 rooms, over half of its total pipeline projects. Houston also has the most projects in early planning with 40 projects/4,252 rooms. The remaining 42 projects/6,006 rooms are presently under construction.
With its total pipeline continuing to grow, Houston is an upward trending market that will likely soon top its previous peak of 171 projects reached in 2008.
Dallas has the third largest pipeline in the country, Lodging Econometrics reports. With 131 projects/15,819 rooms in the total pipeline, it increased by 25 projects or 24 percent year-over-year (YOY).
There are 51 projects/6,283 rooms under construction up 22 projects, or 76 percent YOY. Those scheduled to start construction in the next 12 months are at 57 projects/7,281 rooms adding 13 projects, an increase of 30 percent YOY. Projects in early planning are at 23 projects/2,255 rooms, down 10 projects YOY as older projects migrate up the pipeline toward construction.
President-elect Donald Trump was considering buying hotels in Cuba as recently as six months ago, according to the executive chairman of Grupo Iberostar. This is surprising, as it runs counter to Trump’s intentions to reverse President Obama’s moves to reopen the island to U.S. tourism. Read more here.
Airbnb has settled its lawsuit against New York City over a new law that imposes hefty fines on hosts who advertise illegal short-term rentals. Airbnb had voiced concerns that the law could expose online platforms like itself to significant penalties, but the city has agreed to enforce the law against individual violators, not the company. To read more, click here.
Hilton Worldwide Holdings today announced that its board of directors has approved the distribution to its shareholders of all of the outstanding shares of Park Hotels & Resorts, which will become the holder of a portfolio of hotels and resorts previously held by Hilton, and Hilton Grand Vacations, Hilton’s timeshare business. The spin-off transactions are expected to be completed on Jan. 3, and Park and HGV will begin regular-way trading on the New York Stock Exchange on Jan. 4. The Hilton board also approved a 1-for-3 reverse stock split for Hilton, which will become effective after market close on Jan. 3.
“As three independent companies, Hilton, Park Hotels & Resorts, and Hilton Grand Vacations will be well-positioned to capture incremental growth opportunities and capital market efficiencies in their respective business,” said Christopher J. Nassetta, president and chief executive officer of Hilton. “With the appropriate leadership, strategic vision, and capital structures now in place at both Park and HGV, I am confident that each business will enhance long-term value for its respective shareholders.”
To read more, click here.