5 things to know: 27 November 2017
 
5 things to know: 27 November 2017
27 NOVEMBER 2017 10:29 AM

From the desks of the Hotel News Now editorial staff:

  • Bali volcano eruption shuts down local airport
  • Japan’s major hotel markets continue to see growth
  • US, Canada weekly performance numbers
  • Hotel boom in Providence
  • Hotels in Central Midwest in demand

Bali volcano eruption shuts down local airport: Indonesia’s second-busiest airport, Ngurah Rai International Airport, shut down after Mount Agung erupted, leaving travelers stuck in Bali, The Wall Street Journal reports.

The airport closed Monday morning, “forcing seven flights already in the air to divert to cities on the main island of Java,” the newspaper reports. Arie Ahsanurrohim, a spokesman for the airport, told The Journal 59,000 passengers were affected by the airport closing.

Mount Agung “spewed black ash more than 2 miles into the sky,” according to the newspaper. The airport will be closed for at least 24 hours, and people within an off-limits zone 6 miles from the volcano’s peak will need to evacuate, officials said, according to the newspaper.


Japan’s major hotel markets continue to see growth: With continued growth in visitors from Asian markets and international arrivals expected to surpass 28 million in 2017, major hotel markets in Japan continue to see growth, Jesper Palmqvist, STR’s area director for the Asia/Pacific region, writes. (STR is the parent company of Hotel News now).

Japan is one of the top 10 most visited nations in the world, and the Japan Tourism Agency expects to see 40 million arrivals by 2020, the year Tokyo will host the Summer Olympics.

“Japanese authorities believe that existing infrastructure, along with current expansion plans in regional cities, is enough to handle the large influx of arrivals initially,” Palmqvist writes. “But the potential and secondary expectation of 60 million arrivals years down the line would most likely mean that the country will need additional infrastructural help in airports and more, particularly around the Tokyo Narita area.”

Japan’s revenue per available room grew 2.6% year to date through September, according to data from STR. The fastest growth is being seen in the north Hokkaido and south Kyushu regions.


U.S., Canada weekly performance numbers: The U.S. hotel industry reported positive year-over-year results while the Canadian hotel industry reported mixed year-over-year results for the week ending 18 November, according to data from STR.

In the U.S., occupancy grew 0.8% to 66.1% while average daily rate increased 1.9% to $124.08, combining for a RevPAR increase of 2.6% to $82.42. 

Canada saw occupancy decline 0.5% to 62.7%, ADR grow 3.3% to 143.39 Canadian dollars ($112.59) and RevPAR increase 2.8% to CA$89.92 ($70.60). 


Hotel boom in Providence: With multiple new hotels in planning stages, the number of hotel rooms available in Providence, Rhode Island, could increase by more than a third over the next several years, the Providence Journal reports. 

A 124-room WoodSpring Suites is close to being completed, construction on a 120-room Homewood Suites began in October, and the ground breaking on a 48-room boutique property, Hotel Beatrice, is set for February.

Bryan Lavin, assistant professor at Johnson & Wales University’s College of Hospitality Management, told the newspaper “the industry in general is in growth mode.”

“And cities are looking at hospitality more favorably; there is more emphasis on economic development through hospitality. To recruit big companies to bring their offices into town, cities need the hotel infrastructure to go along with it,” Lavin said.

 

Hotels in Central Midwest in demand: Hotel transactions are up in Central Midwest states such as Kansas, Missouri and Oklahoma, and hotel rooms are still in demand, RE Journals reports.

Marcus & Millichap’s Central Midwest hospitality report shows that “as room vacancy rates fall, hospitality transactions have increased in each of the three states of Oklahoma, Kansas and Missouri,” the newspaper reports.

The report also states that occupancy in the Central Midwest region rose 0.5% to 68.9% since last June.

Compiled by Danielle Hess.

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