Lodging Partners Announces Sale of Residence Inn Durango

Lodging Partners, LLC, a member of Hotel Brokers International, announced the 66-guestroom Residence Inn located in Durango has sold to a regional owner/operator of premium-branded select-service hotels.

Lodging Partners along with HREC Investment Advisors represented the seller on this transaction. The marketing and negotiations were led by Ford Barton of Lodging Partners and Jeffrey Duni at HREC Investment Advisors.

Durango is considered to be an authentic Colorado town with a rich history and an endless supply of recreational activities, making it an exceptional tourist destination with diversified demand drivers. 

 The Hotel recently completed a major renovation of all guest rooms and public areas. The Hotel is in great physical condition and is well-positioned to capitalize on the market’s continued economic growth and expanding leisure demand.

"This is the second Marriott property that Lodging Partners has represented for the seller, and we were pleased to assist them in reaching their goals and objectives," said Ford Barton, Principal of Lodging Partners.

Sandra Wigger Promoted General Manager At IntercityHotel Zurich Airport, Switzerland

30-year old Sandra Wigger began her career by training as a hotel specialist at the Mövenpick Hotel Zurich Airport and has continued to expand her knowledge base ever since.

In September 2019, she obtained a degree level qualification in "Hospitality Controlling & Hotel Asset Management" after completing a 6-month course of study at the IST University of Applied Sciences.

Sandra Wigger was employed at the Steigenberger Bellerive au Lac between November 2014 and December 2019. She held positions as Front Office Manager and then as Rooms Division Manager during this period before making the switch to IntercityHotel GmbH on 1 January 2020.

Payment Processing Data Shows Severe Impact on Hotels and Restaurants

Shift4 Payments, the leader in integrated payment processing solutions, has announced the launch of Shift4Cares.com, a round-the-clock online resource for government agencies, news outlets and businesses affected by COVID-19. The website offers a wealth of valuable information on the economic impact of this pandemic and is part of Shift4’s initiative to raise over $200 million for restaurants and other small businesses — including up to $10 million contributed directly from the company.

Nationally, restaurant transactions declined from 42 million to 11 million during this time period, while hotel transactions declined from 144 million to 20 million. Nationwide and state-by-state data is available at Shift4Cares.com.

Shift4 to Raise Over $200 Million for Small Businesses

In addition to this transaction data, Shift4Cares.com includes the ability for consumers to support local hospitality businesses greatly affected by the Coronavirus crisis by purchasing gift cards, with Shift4 contributing an additional 5% of the amount spent to each merchant. Shift4 is working to raise over $200 million for the small business community through this gift card initiative — with Shift4 donating up to $10 million of the company’s own money.

For every gift card purchased through the site, Shift4 Payments will contribute an additional 5% to the business — up to $10 million. For example, a $100 gift card purchase on the site would result in $105 for the merchant.

Exclusive Interview | Dinesh Pai, Pastry Chef at Four Seasons Hotel Mumbai

How did it all start? Share your culinary journey with us

I was always passionate about working in Luxury hotels and working as a Chef. My father & I would cook lunch on Saturdays and Sundays. We dint have much Culinary tv shows at that time, but what I can recollect was magazines showcasing charismatic and vibrant colours. 

I used to work part-time as casual while studying at my hotel school in IHM Mumbai to keep up paying fees. So I had a fair idea about the industry. 

After completing my studies they offered me a job at  Grand Hyatt Mumbai as an employee. I was working as a baker doing night shift baking bread, croissant and morning bakeries. 

Then I joined Four Seasons Mumbai pre-opening and then down the line I was transferred to many Four Seasons brands in the Maldives. 

Read The Full Interview > Click here

---

Interesting Interviews

London Hotel Industry Shows Significant Year-over-year Declines

London hotel occupancy fell 57.8% to 34.5% in March, according to preliminary STR data. ADR decreased 10.4% to £124.15 ($153.70) and RevPAR declined 62.1% to £42.88 ($53.09).

Reflecting the circumstances around the COVID-19 pandemic, STR’s preliminary March data for hotels in London shows significant year-over-year declines in the three key performance metrics.

Comparison with March 2019:

• Occupancy: -57.8% to 34.5%
• Average daily rate (ADR): -10.4% to GBP124.15
• Revenue per available room (RevPAR): -62.1% to GBP42.88

Daily data for the month shows 31 consecutive days of double-digit declines in occupancy and RevPAR.

STR continues to monitor the COVID-19 impact on global hotel industry performance.

U.S. Hotel Industry Reports 21.6 Percent Occupancy for Week Ending April 4th - 2020

Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of 29 March through 4 April 2020, according to data from STR.

In comparison with the week of 31 March through 6 April 2019, the industry recorded the following:

• Occupancy: -68.5% to 21.6%

• Average daily rate (ADR): -41.5% to US$76.51

• Revenue per available room (RevPAR): -81.6% to US$16.50

  Aggregate data for the Top 25 Markets showed steeper declines across the metrics: occupancy (-74.7% to 19.4%), ADR (-47.0% to US$85.61) and RevPAR (-86.6% to US$16.57).  

  Among those Top 25 Markets, Oahu Island, Hawaii, experienced the largest decrease in occupancy (-90.7%) and the only single-digit absolute occupancy level (7.0%). The decline in occupancy resulted in the steepest drop in RevPAR (-93.7% to US$10.83). 

  Minneapolis/St. Paul, Minnesota-Wisconsin, posted the largest decline in ADR (-57.0% to US$68.23). 

  Of note, occupancy in New York, New York, was down 79.1% to 18.3%. In Seattle, Washington, occupancy dropped 73.3% to 19.5%

Castle Hotel, Autograph Collection in Orlando, Florida Sold

Waramaug Hospitality announced that it acquired the Castle Hotel, Autograph Collection, located in Orlando, Florida.

The 214-room lifestyle getaway property, part of the Autograph Collection by Marriott, offers boutique hotel rooms adorned with luxurious bedding and ample workstations, providing a seamless stay for both business and leisure travelers alike.

The property is conveniently located along International Drive moments from the Orange County Convention Center, Wheel at ICON Park, Pointe Orlando as well as Universal Orlando Resort, SeaWorld, and Walt Disney World. Universal's newest theme park, Epic Universe, currently scheduled to open in 2023, is located across the street from the hotel.

The property will continue to be managed by Schulte Hospitality Group. 

Red Roof Opens Doors to First Responders As Part of Room in Your Heart Program to Show Love for Essential Workers Across the Country

Room in Your Heart: Opening Doors to First Responders shows love and provides assistance and support for essential workers on the frontlines in the battle against COVID-19

The country's first responders, including dedicated nurses, doctors, firefighters, police and emergency medical providers, are fighting tirelessly to combat COVID-19 while selflessly putting their own lives at risk. Many are also self-quarantining away from their homes and spending time apart from their families to protect their loved ones.  Through May 31, Red Roof is donating a limited number of available rooms to these brave heroes, giving them a place to sleep and stay in between shifts at participating properties across the country.

Rooms can only be booked directly at participating hotels. Each guest must provide valid medical, firefighter, or police identification.*  In addition, many Red Roof locations are exterior corridor properties where separate hotel room doors open to the outside of the building, instead of an interior hallway. After check-in, guests drive to their room instead of walking through the building, reducing contact with interior touchpoints.

Rooms have free WiFi and a communication package that includes free local and long-distance calls, fax, flat-screen TVs and a workstation, as well as complimentary, in-room coffee in most rooms. One well-behaved domestic pet - cat or dog - is always welcome to stay at no charge.

Himmat Anand, Founder at Tree of Life Resorts says 'I also believe that if some heads have to roll, as an absolute necessity for the survival of the rest of the flock, so be it.'

MORE COVERAGE ON COVID-19

IHG Completes Sale of Holiday Inn Melbourne Airport Leasehold Interest to Pelligra Group

IHG has successfully completed the sale of its leasehold interest in Holiday Inn Melbourne Airport to Pelligra Group, owners of upcoming Holiday Inn Melbourne Werribee and Holiday Inn Melbourne Richmond.

The decision supports IHG’s global asset-light strategy, which ensures its business model is focused around what it does best: franchising and managing hotels, with its business partners owning the bricks and mortar. Since 2003 IHG has completed the sale of almost 200 hotels globally as part of its move to an asset-light business model, and the sale of the Holiday Inn Melbourne Airport lease continues that global approach.

As part of the sale, Pelligra Group has agreed that they will invest in a major refurbishment of this hotel over the coming years, bringing it in line with the best of the Holiday Inn brand.

Abhijay Sandilya, Vice President Development, Australasia, Japan & Pacific said: “We are particularly thrilled to expand our partnership with Pelligra Group. We have a fantastic relationship and together we will open Holiday Inn Melbourne Werribee in 2021 and Holiday Inn Melbourne Richmond in 2023. We’re pleased that the deal means that we not only continue to support IHG’s global strategy, but that the iconic Holiday Inn Melbourne Airport will benefit from a refurbishment.”

57% of Branded Hotels in India Have Become Non-operational

The Indian hospitality sector is undergoing one of its worst-ever crises in living memory and is putting every effort to deal with this unprecedented invasion. Even now, hotels are relentlessly providing quality services to their guests. So, who are the guests staying at these hotels?

The few hotels that are operating are running with occupancies ranging at circa 10% or even lower.

So, who are the guests staying in these hotels?

Hotels are being offered as quarantine facilities for new arrivals
Hotels are offering their facilities for quarantine purposes to people who have traveled into India recently and have been asked by the Government to adhere to a 14-day, self-isolation period. These hotels are providing guests with all possible comforts, albeit within the confinement of their rooms, following government regulations and safety standards.

Guests who were not able to return due to the lock down
Several foreign and domestic guests, some of whom were long staying guests at the hotel, who were not able to return home to their respective countries or cities due to the lock down are also continuing their stay. For these stranded guests, hotels are providing them a ‘home away from home’.

Hotels as ‘offices’ for business continuity teams
In some cases, hotel rooms are getting converted as ‘office spaces’ for organizations. As we all know that essential services need to run even in the current challenging environment. Several organizations have set-up small Business Continuity teams to continue their operations. These teams are staying and working from hotel rooms to ensure that they are able to maintain essential services for their clients. Meanwhile, hotels provide these teams all the facilities and infrastructure required for their operations, along with stay and meals, while maintaining ‘social distancing’ protocols required in the current situation.

Marriott in Strong Position to Tackle COVID-19

As even the largest players are forced to contend with unprecedented levels of disruption thanks to COVID-19, Marriott has announced mitigation plans that outline a number of strong measures to minimize the impact of coronavirus. This swift, decisive action should stand the company in good stead, says GlobalData, a leading data and analytics company.

“Marriott is in the fortunate position of having large cash reserves and has just under 50% of its $4.5bn revolving credit facility left to tap into. This is a huge advantage for Marriott as it attempts to overcome the inevitable financial hardship caused by COVID-19.”

Marriott’s strong brand image, across 30 brands in 130 countries, will work in its favor and enable loyal customers to return safely to travel while making the most of the company’s feted loyalty scheme. Marriott is the second largest hotel chain in the world. This brand and market power puts Marriott in prime position to cope with the impact of the coronavirus, compared to other competitors.

Hilton and American Express to Donate Up to 1 Million Rooms To Frontline Medical Professionals During COVID-19 Crisis

Hilton (NYSE:HLT) and American Express (NYSE:AXP) announced that the companies, in partnership with Hilton’s ownership community, will donate up to 1 million hotel room nights across the United States to frontline medical professionals leading the fight against COVID-19.

Hilton is initially working with 10 associations who collectively represent more than 1 million healthcare workers to provide access to the program, designed to support individuals who would otherwise have to spend their own money on accommodations.

American Express, Hilton’s long-standing strategic partner, is investing alongside Hilton in the donation of the hotel rooms, which will be provided at or below cost by Hilton’s network of independent owners and franchisees.

Rooms will be available across a variety of Hilton brands, including Hampton by Hilton, Hilton Garden Inn, DoubleTree by Hilton and others. Hotels will be staffed by Team Members who have received additional training on relevant health and safety measures to safeguard their own and their guests’ well-being. Hotel rooms and common areas will continue to be sanitized using industrial-grade cleaners and updated cleaning protocols. In some high-demand locations, room availability may be limited at times.

The following organizations will provide their networks with further details about booking rooms through this program, which is currently planned to cover stays from April 13 through May 31.

• American Association of Critical Care Nurses

• American College of Emergency Physicians

• American Hospital Association

• American Nurses Association

• Emergency Medicine Residents’ Association

• Emergency Nurses Association

• National Association of Emergency Medical Technicians

• Society of Critical Care Medicine

• Society of Emergency Medicine Physician Assistants

• Society of Hospital Medicine

Changes in the Housing Market Amidst the COVID-19 Pandemic Are the Result of Forces Much Larger Than Airbnb’s Community of Hosts According to Airbnb

COVID-19 has placed enormous pressure on just about every aspect of the economy. With thousands of planes grounded, scores of restaurants shuttered, and few people seeking overnight accommodations, the travel and tourism industry is at a standstill.

Third-party real estate economists have rebutted these claims, but we have received several questions about this matter, so we wanted to address it directly. 

Our analysis indicates that these claims are inaccurate: 

• Today, there are more listings on the Airbnb platform than there were a year ago. 

• In large cities popular with tourists, such as Las Vegas, Montreal, Rome and Paris, the number of active Airbnb listings have increased over the last 30 days. 

• Among the top-20 U.S. and Canada cities, 80 percent saw a net change of fewer than 200 listings over the last 30 days. 

• There has not been any meaningful change to Airbnb’s supply in our top-20 U.S. and Canada cities or in our top-10 European cities.

  We are at an unprecedented moment globally. Unemployment and lost income are rising quickly, leading to a decrease in demand for traditional, 12-month home and apartment leases. In recent weeks, web traffic to web portals has dropped as much as 40 percent, meanwhile U.S. searches for “rental” and “lease” are down 42 and 33 percentage points, respectively, in the last month, according to Google Trends.

How COVID-19 is Inspiring New Ideas in Food Retail

With social distancing rules in place, and restrictions on eating out to stop the spread of COVID-19, food retailers have been forced to reinvent their business models to maintain cash flow.

From restaurant kitchens turning into bakeries, to bars home delivering drinks packages, and takeaways turning to food apps, many are stepping up in how they connect with their customers and tap into new demand, boosting their readiness for future trends.

In Australia there are about 60,000 venues affected by measures to prevent people gathering, which include closing food courts, and allowing only takeaway or delivery options for cafes, bars and restaurants. In many cities across the world, venues have shut altogether.

The speed of the outbreak has forced retailers and landlords to think quickly about how to adapt to these new norms, when the sector was already subject to evolutionary pressures including e-commerce, increased urban living and changing shopping and social behaviours.

Necessity leads to invention

Around the world, there are pockets of quick and inspired thinking. With licencing restrictions in Australia relaxed to allow bars to deliver alcohol, Sydney bar Dulcie’s have put together a ‘Quarantini-hour’ pack, including glasses for hire, and a link to the bar’s playlist.

In London, the healthy meal delivery company and deli chain Detox Kitchen is working alongside its produce supplier to create food boxes for consumers with goods usually sold to restaurants, such as vegetables, fruit, eggs and dry ingredients.

“We’re also making sure shopping centre websites and social media accounts are listing all these details and that their profile and reach is being leveraged to support their retailers. It’s not just about writing a ‘we are still open’ post and hoping for the best. There’s a lot of strategy and some really techy stuff that goes into good social media.”

To support retailers and landlord through this period it refers to as ‘business unusual’, Brain and Poulter has created a ‘triage package’ for retailers including best practice guidelines for takeaway and delivery services, as well as cost management advice.

Hotel Stocks Experienced one of Their Worst Months on Record in March

The Baird/STR Hotel Stock Index dropped 36.0% in March to a level of 2,748. Year to date through the first three months of 2020, the stock index was down 47.9%.

“Hotel stocks experienced one of their worst months on record as investors contemplated worst-case liquidity scenarios for hotel companies driven by the COVID-19 demand shock and potential hotel closures,” said Michael Bellisario, senior hotel research analyst and director at Baird.

 “In the U.S., occupancy levels have fallen to unprecedented lows, and we are forecasting a 50.6% drop in RevPAR for the year. The industry will be positioned for recovery once concerns are abated, but there is obviously great uncertainty on when that time will come.”

March performance of the Baird/STR Hotel Stock Index posted greater declines than both the S&P 500 (-12.5%) and the MSCI US REIT Index (-22.2%). 

The Hotel Brand sub-index decreased 34.5% from February to 4,712, while the Hotel REIT sub-index declined 40.0% to 702.

Delay of 2020 Olympics Devastating for Tokyo Lodging Industry

Major players based in the Japanese capital will be relieved that an Olympic cancellation has been avoided, but smaller operators will be unable to see a silver lining, says GlobalData, a leading data and analytics company.

Ralph Hollister, Travel & Tourism Analyst at GlobalData, comments: “Many smaller establishments that do not have the high cash reserves that their large-scale competitors possess needed the Olympics to occur this summer

“The closure of major attractions in Japan that encouraged a constant flow of guests such as Tokyo Disneyland, combined with China banning overseas trips, has created a severe lack of tourism in recent months. This lack of guests meant that many lodging operators had to place more reliance on revenues being boosted through a successful 2020 Olympics.”

Japanese lodging companies – especially hoteliers – were banking on a strong tourist year to compensate for significant capital investments. These high-value investments amid already flagging economic growth were made in the confidence that revenue generated from the Olympics would kick start financial return for stakeholders.

“Cash flow problems were becoming of great concern to many Japanese hotels that were starting to feel the impact of the economic slump. Some will simply not have the financial power to stay open in order to reap the financial rewards of Tokyo 2021.”

Caesars Shuts Down Properties

The ongoing COVID-19 public health emergency has prompted the temporary shutdown of Caesars Entertainment Corporation's properties consistent with government or tribe-mandated directives around the world.

The Company furloughed employees as its properties were ordered closed. The furloughs are expected to impact approximately 90% of employees at its domestic, owned properties as well as its corporate staff. Those individuals who are furloughed remain employees of the Company throughout the furlough period.

"Given the closure of our properties, we are taking difficult but necessary steps to protect the company's financial position and its ability to recover when circumstances allow us to reopen and begin welcoming our guests and employees back to our properties," said Tony Rodio, Chief Executive Officer of Caesars Entertainment. 

The Company is paying furloughed employees for the first two weeks of the closure period and those employees can use their available paid time off after that.  For furloughed employees enrolled in the Caesars health benefit plans, the Company is paying 100 percent of health insurance premiums through June 30, or their return to work, whichever comes sooner.

More Than Six Million Jobs at Risk in the EU and One Million in the UK if Governments Don’t Provide Exceptional Flexibility, Says WTTC

Gloria Guevara, President & CEO of the World Travel & Tourism Council (WTTC), has urged EU authorities and the UK Government to implement flexibility around consumer refunds to alleviate the unbearable pressure on the Travel & Tourism sector.

Research conducted by WTTC shows that 75 million Travel & Tourism jobs are at risk globally due to the COVID-19 pandemic, with at least 6.4 million losses across the EU, and one million in the UK.

WTTC, which represents the global Travel & Tourism private sector, says that this important measure will have a profound effect to reduce the damaging situation that the majority of tour operators and travel agents, online and offline, and are facing due to the previously unimaginable impact of the COVID-19 pandemic.

 The current 14-day timeline for refunds is putting enormous burdens on businesses in the Travel & Tourism sector and will lead to major bankruptcies. These, in turn, will lead to more claims by consumers on credit card firms and ultimately government bonded schemes.

Gloria Guevara, President and CEO, WTTC said, “This measure should be implemented immediately and help lift the already crushing financial pressure on Travel & Tourism organisations and save the millions of livelihoods that depend on them.”

Europe’s Hotel Construction Pipeline Continues an Upward Trend Despite Some Economic Challenges

According to the recent Europe hotel construction pipeline trend report from Lodging Econometrics (LE), Europe’s total construction pipeline rose to 1,871 projects/297,490 rooms in the fourth quarter of 2019, a 19% increase by projects and 22% by rooms, year-over-year (YOY).

There are 879 projects/140,620 rooms currently under construction, 531 projects/81,235 rooms scheduled to start construction in the next 12 months, and 461 projects/75,635 rooms in early planning. All stages of the pipeline are at record highs and have counts more than double their cyclical lows set earlier in the decade.

Looking forward, the first quarter of 2020 could be rather sluggish too, due in part to the heavily export-dependent German economy, which is being negatively affected by the slowing of the Chinese economy as a result of the coronavirus, France’s weakening economic performance and widespread social turmoil caused by unpopular economic reforms, and the U.K.’s need to reestablish an economic relationship with the European Union by year’s end.

Europe’s leading countries in the construction pipeline are the United Kingdom with 346 projects/49,651 rooms, and Germany standing at 339 projects/61,836 rooms. France follows with 171 projects/21,173 rooms, and then Portugal and Poland with 118 projects/12,616 rooms and 90 projects/14,028 rooms, respectively. With the exception of France and Poland, these markets all have construction pipelines at record highs

The cities with the largest pipelines are London with 88 projects/15,575 rooms, Dusseldorf at an all-time high of 60 projects/11,443 rooms, Paris with 44 projects/6,896 rooms, Hamburg standing at 34 projects/7,302 rooms, and Lisbon with 34 projects/3,114 rooms. Moscow follows with 31 projects/6,536 rooms, Berlin with 27 projects/6,202 rooms, and then Frankfurt with 27 projects/5,642 rooms.