David Eisen - 10 Minutes News for Hoteliers - Page 10

3 min

Hotel investment risk has normalized. That’s good news. Here’s why.

🏨 Hotel cap rate spreads decreased to 2.44% in Q1 2024, nearly 50 basis points below their long-run average since 2001, suggesting normalization in hotel investment risk. During the pandemic, hotel mortgage interest rates doubled, but by Q1 2024 spreads to 10-year Treasuries and 15-year residential mortgage rates returned close to pre-pandemic levels, at approximately 100 basis points and 124 basis points, respectively. The CBRE report indicates that these trends in the capital market signal a stabilization in the relative pricing of hotels.

2 min

L+R Hotels bulks up C-suite with Pettigrew appointment

🏨 Cody Bradshaw, CEO of L+R Hotels for two months, was previously with Starwood Capital for over 13 years. Joe Pettigrew, after 11 years with Starwood and six months as CCO at EOS Hospitality, joins L+R Hotels as Group Chief Commercial Officer. Pettigrew will oversee commercial strategies for the group’s approximately 23,000-room global portfolio, targeting efficiency and growth in North America, Palm Beach, Marbella, Venice, and beyond. He will be based in London, reporting to Bradshaw.

7 min

Commercial appeal: A Q&A with KSL Resorts’ CCO Kristie Goshow

📌 Kristie Goshow, Chief Commercial Officer at KSL Resorts, discusses advancement in hiring women in hospitality, with Marriott and Accor having 40% and over 50% women in leadership respectively. She stresses merit over quotas for leadership roles. A 2023 Korn Ferry Institute study found 1 in 4 women affected by menopause consider quitting, highlighting gender disparities in career advancement. Goshow advocates for greater recognition of women's potential in executive recruiting, emphasizing the use of predictive tools and AI to aid the process. Women in hospitality features will continue until boards reflect guest demographics and more women become CEOs. Key trends include AI integration, agility in teams, personalized brand experiences, and innovative revenue management. ????

2 min

The two biggest lessons I learned at the Lodging Conference weren’t at The Lodging Conference

🚗 The Lodging Conference, an essential hotel industry event, occurs annually in Phoenix as summer transitions to fall. Phoenix Sky Harbor Airport visitors have been intrigued by Waymo's autonomous taxis, especially after the company secured a $5.6-billion funding round for expansion. Driverless Waymo vehicles are available in cities including Phoenix, L.A., and San Francisco. A human driver's assistance, highlighted by a traveler's struggle with a malfunctioning Waymo vehicle trunk, contrasts the convenience of technology. Culinary Dropout, a Scottsdale restaurant, offers exceptional service, showcasing the value of human interaction in hospitality.

6 min

On rate: HOTELS Magazine’s top 5 revenue management companies

🏨 IDeaS, founded in 1989, partners with over 30,000 hotels in 164 countries and has a 98% retention rate. Duetto, started in 2012, serves more than 6,000 hotels, focusing on dynamic rate adjustments and profitability. FLYR, partnering with over 2,000 hotels, leverages AI for revenue management. RoomPriceGenie, assisting over 2,500 hotels, was founded to optimize pricing for independent hotels. Atomize, established in 2016, has 500+ hotel partners and specializes in real-time pricing optimization using AI and machine learning.

6 min

Virgin Territory: How Virgin Hotels fits into Richard Branson’s travel universe

🏡 Virgin Hotels CEO James Bermingham, who joined in 2021, has expanded the brand further with the opening of Virgin Hotels London Shoreditch in August 2024, marking the ninth Virgin hotel. This London location is a conversion of the former Mondrian, aligning with Virgin's strategy to have properties in all destinations Virgin Atlantic flies to. Virgin Hotels started in 2010, launched its first hotel in Chicago in 2015, and currently has properties in the U.S. and U.K. Upcoming expansions include Virgin Hotels Denver Fox Park, scheduled for 2026. Virgin Group, founded in 1970, encompasses various ventures, including airlines, cruise ships, and space travel. Virgin Atlantic Holidays generates thousands of room nights for Virgin Hotels in key cities like New York and Las Vegas. Virgin Hotels operates largely under long-term management contracts and franchises, like the 1,500-room Virgin Hotels Las Vegas. Virgin Limited Edition, the luxury resort arm, includes nine properties with room rates averaging $2,000 per night, and was founded in 2009. Virgin Hotels and Virgin Limited Edition were combined under Virgin Hotels Collection in 2023, following Jon Brown's departure.

5 min

Group, business travel shine for Marriott as leisure levels off

💰 Marriott International reported a third-quarter net income drop of $168 million YOY, despite a global RevPAR increase of 3%, with international markets leading. The company's development pipeline includes 3,800 properties with 585,000 rooms, and net rooms grew by 6% YOY. Group business RevPAR rose 10% YOY, with full-year 2024 projections up 8%. Business transient segment RevPAR also increased by 2% YOY, whereas leisure transient RevPAR remained stagnant. Marriott's focus is shifting to midscale with the City Express by Marriott brand, despite higher growth in luxury segments. The third quarter saw over 30% of room additions through conversions, and a multiunit deal with Sonder added 9,000 rooms, with 1,000 more in the pipeline. The company anticipates annual savings of $80-$90 million starting in 2025 from G&A cost reductions and continues its asset-light strategy by selling owned properties. Marriott Bonvoy's membership reached 219 million.

7 min

The hotel leisure transient boom may be over, but there are still reasons to cheer, Hyatt points to

🏨 Hyatt Hotels Corp. saw leisure transient revenue decline by about 4% in Q3, with flat revenues through the first nine months of 2024 compared to 2023. However, group rooms revenue increased 6% in Q1 of 2025, with U.S. and European markets performing strongly. Business transient revenue is up approximately 16% year-over-year. System-wide RevPAR (Revenue Per Available Room) increased by 3% in comparison to 2023, supported by a net rooms growth of 4.3%. New openings include the Park Hyatt Marrakech and the Alila Shanghai. Hyatt's pipeline consists of around 135,000 rooms, and net income reached $471 million. Membership in the World of Hyatt loyalty program has surpassed 50 million. The company noted a slowdown in new construction starts, although construction starts in China have risen in the last two quarters. Hyatt is forming new lifestyle and luxury groups, with Amar Lalvani leading the former. Attrition rates for rooms are higher than expected at about 1.5% for the year. For Q1 of 2025, Hyatt expects over 6% net rooms growth year-over-year. Hyatt has recently entered a strategic joint venture with Grupo Piñero and has sold several assets, including the Hyatt Regency Orlando for approximately $1.07 billion.

3 min

Hyatt stretches tentacles further into all-inclusive space via Grupo Piñero JV

🏖️ Hyatt, in a joint venture with Spain's Grupo Piñero, will manage all Bahia Principe hotels and resorts, expected to increase Hyatt’s all-inclusive portfolio by 30%. This includes 23 resorts with over 12,000 rooms in the Dominican Republic, Mexico, Jamaica, and Spain. The deal includes the ownership of the Bahia Principe brand and the Cayo Levantado Resort. Julio Pérez will remain CEO; Encarna Piñero will be the chairman. The transaction aims to enhance Bahia Principe resorts and expand opportunities globally.

0 min

Hyatt deepens all-inclusive tentacles with Grupo Piñero JV

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