From the desks of the Hotel News Now editorial staff:
- Schroders moves into hotel space with Algonquin buy
- New York’s Plaza Hotel sold for $600m
- Hilton refreshes all-suites brands with F&B updates
- AHLA says fraudulent hotel bookings equal $5.2b
- Earnings reports from IHG, Ashford and Park
Schroders moves into hotel space with Algonquin buy: United Kingdom-based real estate investment firm Schroders has bought Belgium-based hotel investment vehicle Algonquin, which has 43 assets within Europe with more than 7,500 hotel rooms, according to a news release from Schroders. The deal marks Schroders first foray into hotel ownership.
The buy represents €1.8 billion ($2.2 billion) worth of assets. “These hotels are primarily managed through Algonquin’s own brands or internationally renowned franchises including Sheraton, Marriott, Hyatt, Radisson and Sofitel,” the release states.
New York’s Plaza Hotel sold for $600m: Two investors, Shahal Khan of White City Ventures and Kamran Hakim of the Hakim Organization, have reached a deal to purchase a majority of the Plaza Hotel for $600 million from owners with Sahara Group, the New York Times reports.
The deal is set to close on 25 June. Current owners Sandeep Wadhwa and Sant Singh Chatwal confirmed the sale, according to the report.
Hilton refreshes all-suites brands with F&B updates: Hilton leaders are energizing all-suites brands Embassy Suites, Homewood and Home2, with changes to food-and-beverage programs, Hotel News Now’s Jeff Higley reports.
Brand leaders said the brands have wide-ranging ages, but each brand needs to evolve to meet the needs of owners and guests.
“Things have changed a little bit in travelers’ preferences, and that’s what launched us into taking a look at how we do food and beverage,” said Alan Roberts, global head of Embassy Suites by Hilton.
AHLA says fraudulent hotel bookings equal $5.2b: The American Hotel & Lodging Association published new research that states “online booking scams and fraudulent and misleading travel websites” cost misguided guests approximately $5.2 billion in 2017.
AHLA added “23% of consumers report being misled by third-party traveler resellers on the phone or online, translating to 28.5 million hotel stays. … 46% say they were charged extra fees on their credit card; 34% had their reservation lost and had to book another room, losing the cost of their original reservation.”
Earnings reports from IHG, Ashford and Park: InterContinental Hotels Group, Ashford and Park Hotels & Resorts reported first-quarter earnings results, according to news releases from the companies.
IHG saw revenue per available room increase 3.5%, occupancy increased 1% and average daily rate rose 1.9%.
Ashford’s results revealed the company’s total revenue increased 270% to $48.2 million year over year, and the company agreed to purchase the project management of privately-held Remington Holdings, which is subject to approval.
Park reported a 1.1% increase in comparable RevPAR to $165.57, occupancy remained flat at 78.5% and ADR rose 1% to $210.83.
Compiled by Terence Baker.