Skift Take
Less hotels are being built in the U.S. this year because of rising expenses and supply-chain issues. Plus, talk of a Star Wars concept hotel, and other news on offers and advancement.
Sean O’Neill
Here are some excerpts from Daily Lodging Report from the previous week. If you’re not a subscriber, you need to be. Get news on hotel deals, advancement, stocks, and profession relocations. Sign up here, now.
Sunday, July 24
W Hotels Worldwide announced the opening of W Toronto. The 11-story property features 254 visitor spaces, consisting of 30 suites; five occasion spaces encompassing 4,679 square feet; a sixth flooring Welcome Desk and Living Spaces, 5,000 square foot space consisting of a common “fire” pit, a circular bar, and access to The Backyard and a FIT health club.
According to STR, U.S. hotel building has declined for seven consecutive months. Rooms under construction in both New york city City and Nashville represent a considerable portion of those markets’ existing supply. In addition, preparation activity continues to rise nationally, albeit at a slower speed, with markets such as Miami, Nashville, and Phoenix revealing increased interest from designers.
Skift Note: On the brilliant side, existing hotel owners won’t face much fresh competitors from brand-new U.S. hotels for the rest of this year. Professionals stated that headwinds consist of increasing financial obligation expenses due to the fact that of hikes in rate of interest combined with supply chain problems.
Monday, July 25
Selina announced the opening of Selina Tranquility Rawai Phuket in Thailand. This is the very first Selina home to be totally functional in Southeast Asia. They currently have an international portfolio of 155 open and guaranteed homes developed for digital nomads and contemporary travelers.
Virgin Hotels revealed appointments are live for Virgin Hotels Glasgow for reservations beginning December 1. Situated on the banks of River Clyde in Glasgow, U.K., the hotel will feature 240 Chambers spanning 15 floorings. It will hosts 4 dining and drinking alternatives. The hotel has been established and is owned by Silk Property Group and managed by Virgin Hotels.
With the year’s first half now in the books, 2022 has actually provided an unexpected and turbulent flight. The LWHA Q2 2022 Significant U.S. Hotel Sales Survey consists of 133 single asset sale deals over $10 million, which totaled approximately $5.3 billion and included approximately 21,000 hotel spaces with an average list price of $248,000 per room.
STR reported China hotel RevPAR fell -18.3% year over year for the week ended July 16. Compared to the exact same week in 2019, hotel RevPAR was down -22%. China has approximately a fifth of its population under full or partial lockdowns, according to one count, as another increase in coronavirus cases lengthens the unpredictability hanging over the nation’s economy, Nikkei reported.
Skift Note: Selina’s growth to Asia Pacific is significant provided its close ties to Gen Z and Millennial tourists and remote employees. It might have the ability to take advantage of the “gringo trail” of ex-pats and space year students when international travel gets.
Tuesday, July 26
Singapore’s hotel space rates surged last month to the highest in nearly six years. The Singapore Tourist Board reported that the typical rate in June was S$ 238.32, the highest given that September 2016 and up 63% from a year earlier. Singapore is anticipating between 4 million and 6 million visitors in 2022.
Marriott International, Inc, revealed the opening of The Ritz-Carlton New York, Wanderer in the heart of Manhattan. The freshly constructed 50-story hotel and houses were developed by Flag Luxury Group. The project uses 250 guestrooms, including 19 suites, with an additional 16 one-and two-bedroom penthouse homes. The residential or commercial property boasts 4 food and beverage ideas, The Ritz-Carlton Sap and Gym, Ritz-Carlton Club Lounge and 10,000 square feet of meeting area, consisting of a vast, personal outdoor terrace.
Skift Note: It’s a surprise to see Singapore’s rebound provided the absence of Chinese outbound travelers.
Wednesday, July 27
Hotel Equities has been picked as the brand-new management business for seven complete and select service hotels owned by Sejwad Hospitality. The properties, which broaden Hotel Equities’ reach in the South Carolina market, consist of the 180-room Delta Columbia Northeast; 134-room Sheraton Columbia Downtown; 129-room Moxy-Columbia, under construction; 104-room SpringHill Suites-Columbia, under construction; 100-room Holiday Inn Express-Garners Ferryboat; 83-room Holiday Inn Express-Two Notch; and the 83-room Fairfield Inn & Suites Columbia Downtown.
The group behind the 2 Bit Circus micro theme park in downtown LosAngeles, CA, prepares to take the Star Wars hotel principle pioneered by Wall Disney Parks add a virtual reality video arcade twist with a set of new interactive storytelling hotels, according to the Los Angeles Daily News. 2 Bit Home entertainment has acquired two previous conference hotels in Denver, CO, and the New York City location, where they plan to open the world’s first Revelers Resorts interactive gameplay hotels. The brand-new Star Wars: Galactic Starcruiser at Disney’s Hollywood Studios in Florida is a design for the immersive hotel experience prepared for Revelers Resort. The business does not have the Star Wars brand name, however will be developing its own brand name. The immersive hotel playgrounds are expected to take a year to build once building begins. Opening dates have not yet been set for the Revelers Resorts in Denver and Stamford, CT, outside New York City City.
Skift Note: On the Star Wars hotel principle, it’s uncertain whether they can actually get the licensing to do this, and if not, exactly what it is they would create rather.
Thursday, July 28
The American Hotel & Accommodations Association’s 2022 Midyear State of the Hotel Market Report anticipates that 2022 nominal space profits and state & local taxes will go beyond 2019 levels. Hotel space earnings is projected to surpass $188 billion by the end of 2022, eclipsing 2019 figures on a nominal basis. Hotels are forecasted to create nearly $43.9 billion in state and regional tax revenues this year, up practically 7% from 2019 levels. Additional key findings of AHLA’s 2022 Midyear State of the Market Report are: hotel tenancy is anticipated to typical 63.4% in 2022, approaching pre-pandemic levels. By the end of 2022, hotels are anticipated to use 1.97 billion individuals, 84% of the pre-pandemic workforce.
Arriba Capital has actually closed a $63.9 million syndicated construction loan for the development of an air conditioner Hotel by Marriott in downtown Seattle, WA. The 200-key hotel is being developed by RevPAR Business.
Skift Note: Being a hotel owner has been unpleasant for two years. But 2022 is forming up to be a lucrative one, in spite of some ongoing headaches.