The U.S. hotel sector saw growth in occupancy, average daily rate and revenue per available room during the second quarter, according to data compiled by HotelNewsNow.com’s parent company, STR.
The industry’s occupancy increased 4.5% to 63.4%, ADR rose 3.5% to US$101.44, and RevPAR was up 8.1% to US$64.28.
“The second quarter was solid, reflecting continued improvement in the industry’s recovery cycle,” said Bobby Bowers, senior VP at STR. “RevPAR increased more than 8%, which was slightly lower than Q1 but on a much more difficult prior-year comparison. ADR growth continued at a frustratingly sluggish pace, and occupancy increased for the sixth consecutive quarter. In the second half of the year, we expect increased ADR contribution to RevPAR gains as occupancy growth settles to more sustainable levels and improved operator confidence translates into more aggressive pricing.”
Indian Hotels Company plans to raise 2.5 billion rupees (US$56.43 million) through a bond sale, according to The Wall Street Journal.
The hotel company, which operates Taj Hotels Resorts & Palaces as part of the Tata group, plans to sell 10-year bonds paying a yield of 9.95%.
Taj Hotels could not be reached for comment by HotelNewsNow.com.
InterContinental Hotels Group CEO Richard Solomons said he’s trying to close a value gap compared to its competitors, according to a Bloomberg story.
IHG’s shares trade at a multiple of 19.3 times earnings, less than U.S. competitors such as Marriott International and Starwood Hotels & Resorts Worldwide, which have price-to-earnings ratios of 28.3 and 42.2, respectively.
“We are undervalued relative to U.S. competitors,” the 49-year-old executive said in an interview at the company’s headquarters in Denham, England. He cited the stability of InterContinental’s midscale hotels during the 2009 recession, its ability to generate cash, reduce debt and increase its dividends faster than competitors.
HEI Hotels & Resorts purchased the 360-room San Diego Marriott La Jolla in La Jolla, California, for an undisclosed amount. The hotel is the ninth acquisition by HEI’s Fund III and is the 41st hotel in the company’s portfolio.
HEI plans to execute a US$20-million renovation beginning in 2012, which will include guest rooms, lobby, meeting space and expanded fitness facilities.
The Pod Hotel brand is expanding with a second property in New York, reports HotelNewsNow.com contributor Rayna Katz.
Beyond New York, the Pod brand will soon be coming to Washington, D.C., and Chicago, where owning company BD Hotels has taken over existing buildings for conversions, according to Richard Born, a partner at BD Hotels.
“I’m sure Pods six and seven will be new builds. The concept works for new construction, too,” he said. “But we want to get going sooner rather than later, and it’s faster to use existing buildings.”
Compiled by Stacey Higgins.