We kick off “5 things” with a piece of news from outside the hotel sector: Social media network Facebook filed for an initial public offering Wednesday that could value the platform between US$75 billion and US$100 billion.
The company hopes to raise as much as US$10 billion when it begins selling shares this spring, reports The Wall Street Journal, citing people familiar with the matter. Potential buyers got their first look at Facebook’s financials Wednesday, which showed the company produced a US$1-billion profit last year from US$3.71 billion in revenues. The company derives 85% of those revenues from advertising with the rest from social gaming and other fees.
Now if only the hotel industry can figure out a way to make some money off the platform as well …
There’s been a spate of development announcements recently from some of the world’s biggest brands highlighting their expansion efforts into India—and for good reason. The emerging country boasts a population of more than 1 billion, a tally comprising a burgeoning middle class who for the first time in the country’s history have the discretionary income needed for travel. The country’s available hotel offerings are limited; the entirety of India has less hotel rooms than Las Vegas.
And while developing product can be challenging, the major brands are eager to help fill the void. Hyatt Hotels Corporation, for example, has 53 hotels in its pipeline in India, while InterContinental Hotels Group has 45.
For a brand-by-brand breakdown of existing portfolios and planned pipelines in India, read “Hotel brands bullish on India” from HotelNewsNow.com’s Patrick Mayock.
A cursory look through Starwood Hotels & Resorts Worldwide’s fourth-quarter earnings suggests the hotel industry recovery is in full swing. The Stamford, Connecticut-based company reported a 5.9% increase in revenue per available room compared to the same quarter in 2010, while earnings per share was 71 cents.
Net income for the full year was US$489 million and US$2.51 per share compared to US$477 million and US$2.51 per share in the same period during 2010.
Starwood opened nearly 21,000 rooms during the year—the most in its history. When combined with a full-year RevPAR increase of 7.4%, the company’s fees increased 14.3%
European hoteliers lag their U.S. counterparts in social-media adoption, according to a study from eHotelCheck.com. Their “Global Hospitality Social Media Scan” shows that hoteliers in the U.S. and Middle Eastern cities take the lead in social-media adoption. For the second year in a row, San Francisco topped the ranking while hotels in Dubai surged to the second spot, up nine places compared with last year. Hotels in Europe, on the other hand, lag behind despite an active group of consumers in London, Paris and Rome.
Facebook saw an 84% increase in its adoption by hoteliers compared to last year, while Twitter showed a slower adoption with an increase of only 46%.
eHotelCheck.com’s “Social Media Scan” comprised major destinations ranked based on their “TripAdvisor Top 10” listed hotels’ adoption of Internet users’ response to social-media tools.
U.S. seasonally adjusted unemployment initial claims were down 12,000 to 367,000 for the week ending 28 January, according to the U.S. Department of Labor. The four-week moving average was 375,750, a decrease of 2,000 from the previous week's revised average of 377,750.
To provide a bit of perspective, the prior-year comparable was 424,000 initial unemployment claims.
Compiled by Patrick Mayock.
