From the desks of the Hotel News Now editorial staff:
- Caesars presents multibillion-dollar Japan plans
- Macau casino-hotel on block for $589 million
- Companies adjust full-year guidance due to macroevents
- US hotel construction shows first dip in six years
- US tax reform hits stumbling block
Caesars presents multibillion-dollar Japan plans: Caesars Entertainment Corporation has submitted proposals to build two casino-hotel resorts in the Japanese cities of Tomakomai, on the island of Hokkaido, and Osaka, according Gambling Insider.
According to the news agency, Caesars has allocated between $5 billion and $10 billion on the project, which follows the 2016 Japanese government to legalize gambling.
Macau casino-hotel sold for $589 million: Macau Legend Development has sold its Landmark Macau hotel, located in the Chinese special autonomous region of Macau, to a syndicate of buyers for 4.6 billion Hong Kong dollars ($589 million), according to documents filed with the Hong Kong Stock Exchange.
The buyers, according to the papers, include Dong Lap Hong Property Investment Co Ltd., which now has 58% of the property. The sale needs to be approved by regulators.
Companies adjust full-year guidance due to macroevents: Approximately 10 publicly traded hotel companies shifted their revenue per available room projections for full-year 2017 at some point during the year, including seven that changed their guidance during the third-quarter earnings season, according to HNN’s Sean McCracken.
HNN has compiled an infographic detailing the changes and when they occurred through the course of the year.
Reporter Bryan Wroten also gathered comments from hotel executives (made during recent earnings calls) on why they are changing their guidance. Many pointed to a stronger-than-expected third quarter and a combination of macroeconomic events for this year’s fluctuations.
U.S. hotel construction shows first dip in six years: The October 2017 Pipeline Report from STR, the parent company of Hotel News Now, has shown there are 584,052 rooms in 4,869 hotel projects under contract in the United States, a 5.4% increase in year-on-year numbers.
In the in construction stage, however, the U.S. reported 183,187 rooms in 1,407 projects, a 0.1% decrease in year-over-year comparisons, with Bobby Bowers, STR’s SVP for operations, stating “this is the first time there has been a year-over-year decrease in U.S. hotel construction since October 2011.”
U.S. tax reform hits stumbling block: Republican efforts to pass a comprehensive tax package has come across a significant hurdle as Sen. Ron Johnson, a Wisconsin Republican, has announced he won’t support the current bill, The Wall Street Journal reports. This marks a significant loss for the GOP, as they only have room to lose two party members assuming across-the-board opposition from Senate Democrats.
Johnson has complained about the process Senate Republicans have used thus far to craft the bill along with his belief that the current package “unfairly benefits corporations more than other types of businesses,” the newspaper writes.
Compiled by Terence Baker.