The total active U.S. hotel development pipeline comprises 3,512 projects totaling 367,080 rooms, according to the April 2010 STR/TWR/Dodge Construction Pipeline Report. This represents a 31.2-percent decrease in the number of rooms in the total active pipeline compared to April 2009.
IHG released its first quarter results this morning. Highlights include:
• global constant currency first-quarter RevPAR growth of 0.2 percent, including growth of 4.1 percent in March;
• Asia/Pacific was the strongest region, reporting RevPAR growth of 10.0 percent, including a 22.2-percent increase in Greater China;
• 5,151 net rooms (38 hotels) added in the quarter, increasing total system size to 651,830 rooms (4,476 hotels);
• 9,872 rooms (82 hotels) added to the system, 4,721 rooms (44 hotels) removed in line with the company’s quality growth strategy; and
• 8,160 rooms (55 hotels) signed, taking the pipeline to 200,895 rooms (1,344 hotels).
Sol Meliá presented results for the first quarter of 2010 showing a profit of €1 million or US$1.3 million (124 percent above the same period in 2009), above market expectations, and registering revenues of €258.5 million (US$328 million) compared to €266.7 million (US$338.5 million) in the first quarter last year. EBITDA grew for the first time since the presentation of the annual results in 2007 to €40.6 million (US$51.5 million), growth of 3.1 percent over the €39.4 million (US$50 million) in 2009.
A hung British Parliament could benefit hospitality businesses fed up with government-imposed red tape, according to a story from CatererSearch.com.
That's the view of outgoing British Hospitality Association chief executive Bob Cotton, who called for certainty over future policy, whoever ends up in power.
"What business will actually want is certainty of policy over the immediate future. They will want a clear steer on tax and expenditure, whether we have a Tory minority Government or a Tory coalition or Lib Dem/Labour coalition," he said.
Chicago-based Strategic Hotels & Resorts announced late yesterday that it plans to make an offering of 40 million shares of its common stock. The company expects to grant the underwriters an option to purchase up to 6 million additional shares of common stock to cover over-allotments, if any. The estimate of net proceeds from the offering will be approximately US$203 million (US$234 million if the underwriters exercise their over-allotment option in full).
The company also announced it commenced a cash tender offer to purchase any and all of the outstanding 3.5 percent exchangeable senior notes due in 2012 issued by its subsidiary, Strategic Hotel Funding LLC, at a purchase price per US$1,000 principal amount of exchangeable notes.
Compiled by Stacey Higgins.