Hotel companies should expect to enter the next round of corporate negotiations with an upper hand in pricing, though short-term rate gains shouldn’t undermine long-term relationships, experts agreed in a special report from HotelNewsNow.com’s Patrick Mayock.
“Most parties understand that long-term relationships matter a lot. Going into 2011 and 2012, there will be increases in average daily room rate. The question is just by how much,” said Jan Freitag, VP of global development for STR, the parent company of HotelNewsNow.com.
Accor announced further expansion of its network in Indonesia with 21 new hotels. These new hotels will be distributed throughout the archipelago and will add 4,526 new rooms to Accor's Indonesian hotel network. Accor operates 40 hotels in Indonesia and has previously announced a further 13 hotels that are in various stages of construction. With this most recent announcement, Accor has 34 new hotels committed to the country.
Michael Issenberg, chairman and COO, Accor Asia Pacific, said during a press conference in Jakarta: “The Indonesian economy continues to grow and benefiting from this growth is increased business travel and tourism volumes. Accor with its extensive and diversified Indonesian network is capitalizing on our strong brand recognition and significant resources that we have in the country in leveraging our expansion.”
Positive economic conditions in 2010 produced good operational results for hotels in Germany and also more than doubled the previous year’s investment volume, with a total investment turnover in the hotel sector of approximately €890 million (US$1.28 billion), according to CBRE Hotels Germany’s “MarketView: Hotel market Germany.”
CBRE expects the positive trend in the German hotel market to continue through 2011, due to strengthening demand in the leisure and business segment including conference business. Growth rates, however, are likely to be lower than in 2010.
United States employment in the nonfarm private business sector rose 38,000 from April to May on a seasonally adjusted basis, according to the latest ADP National Employment Report released today. The estimated change of employment from March 2011 to April 2011 was revised down slightly to 177,000 from the previously reported increase of 179,000.
The U.S. National Home Price Index declined by 4.2% in the first quarter of 2011, which put the index at a new recession low, according to Standard & Poor’s S&P/Case-Shiller Home Price Indices released Tuesday.
As of March 2011, 19 of 20 MSAs covered by the indices were down compared to March 2010.
“This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation. … Home prices continue on their downward spiral with no relief in sight,” said David M. Blitzer, chairman of the Index Committee at S&P Indices.
Compiled by Stacey Higgins.