From the desks of the Hotel News Now editorial staff:
- US jobs, wages on the upswing
- Caesars hires new executives for growth
- Raise the roof: Revenue-managing rooftop bars
- Hard Rock announces data breach
- Gauging the impact of the G20
U.S. jobs, wages on the upswing: The latest report from the U.S. Department of Labor shows the country’s employers added 222,000 jobs in June, and wages are up 2.5% year over year, according to The Wall Street Journal.
The Journal reports those wage growth numbers are viewed as “fairly consistent but hardly robust.” And the report added that “a decade ago, before the recession began, average hourly earnings rose 3.6% from a year earlier.”
Caesars hires new executives for growth: Looking to spur growth outside of casino operations, Caesars Entertainment Corporation has hired two new senior executives, including a long-time hotel industry veteran, according to a news release. The positions will be filled by former Starwood and Wyndham executive Marco Roca as president of global development, along with Michael Daly as SVP of strategy and mergers and acquisitions.
Roca most recently served as EVP and chief development officer for Hard Rock International. Daly was formerly responsible for strategy, M&A and corporate development with GE Capital.
"We have great opportunities to accelerate our top-line growth by taking advantage of our significantly reduced balance-sheet leverage and strong free cash flow profile," Caesars President and CEO Mark Frissora said in the release. "The additions of Marco Roca and Michael Daly will bring even more focus to our domestic and international network expansion initiatives, and help Caesars Entertainment unlock new growth channels."
Raise the roof: Revenue-managing rooftop bars: Consistent pricing and promotions is key for the success of rooftop bars, sources told HNN reporter Danielle Hess.
Joseph Adamczak, GM of The Outsider at the Kimpton Journeyman Hotel in Milwaukee, said he’s seen the rooftop bar generate more repeat business by keeping prices the same and not increasing them during periods of high demand.
“We generally keep our pricing consistent throughout the year,” he said. “We will fluctuate pricing as produce and other products increase in cost, but we rely heavily on repeat guests and don’t want to shock them with regularly increased pricing.”
Hard Rock announces data breach: Hard Rock Hotels & Casinos has announced that “unencrypted party card information” has been accessed via a vulnerability in a third-party hotel reservation system, according to a news release.
The breach took place between 10 August 2016 and 9 March 2017. The vendor, Sabre Hospitality Solutions SynXis, has hired a cybersecurity firm and notified law enforcement about the breach on 6 June 2017.
Customers who booked within that time frame have been urged to visit sabreconsumernotice.com.
The analysis shows the event seems to have a larger impact on rates than occupancy, although there seems to be some anecdotal evidence that rooms are hard to come by in Hamburg at the moment.
Average daily rate “was the driving factor in performance for all 11 previous G20 hosts, but it is interesting to note that spikes in hotel room prices were substantially higher during the past three G20 summits,” said Robert Bauer, senior analyst for STR. “While host markets routinely receive a performance boost in the days leading up to the event, Hamburg stands a very good chance to see additional benefit due to the event running into the weekend.”
Compiled by Sean McCracken.