In this week’s roundup of news from the Americas region: Strategizing for U.S. calendar shifts; top issues for Mexican hotels; U.S., Canada hotel performance; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Strategizing for U.S. calendar shifts
To eliminate surprises around annual calendar shifts, hoteliers need to implement strategies well in advance, especially around group business, writes Hotel News Now’s Dana Miller. Calendar shifts affecting holidays, such as Easter and the Jewish holidays, impact group travel the most.
In the instance of Easter, Jan Freitag, SVP of lodging insights at STR, parent company of HNN, said hoteliers should compare Easter week to Easter week and not pay as much attention to the actual calendar dates.
“Start now … tell your owners ‘hey this data is shifting; it has nothing to do with the underlying strength or weakness of the market comp set. This is purely because of what happens with groups around the Easter or the Jewish holiday shift,’” he said.
US, Canada hotel performance for week ending 6 April
The U.S. hotel industry reported positive year-over-year results in the three key performance metrics during the week of 31 March to 6 April, according to data from STR, parent company of HNN. Occupancy rose 0.4% to 68.7%, average daily rate rose 1.5% to $130.79, and revenue per available room increased 1.9%.
Minneapolis/St. Paul, Minnesota-Wisconsin posted the largest rise in RevPAR (55.1% to $106.96) among the top 25 markets, driven by the highest lift in ADR (41.6% to $158.33).
The Canadian hotel industry also recorded positive year-over-year results in the three key performance metrics during the same week. Occupancy was up 6.3% to 60.9%, ADR rose 5.9% to 150.81 Canadian dollars ($113.09) and RevPAR grew 12.6% to CA$91.87 ($68.89).
Hunter Hotel Conference
HNN editors recapped the 2019 Hunter Hotel Conference in Atlanta between 20-22 March. The sentiment on the first day was hoteliers were wary of squeezed margins. On the second day, hoteliers expressed that labor concerns were still top of mind. CEOs stressed the importance of hiring the right people, training them and creating a good company culture to promote growth within.
5 things to watch for Mexican hotels in 2019
The industry outlook for Mexican hotels in 2019 looks to be somewhat difficult and perhaps volatile at times, as political, economic and other industry-specific challenges are present; however, there’s still room for optimism for Mexican owners and investors, writes HNN contributor Jonathan Kracer.
One of the top concerns is the how political changes will affect tourism.
“On 10 March 2019, Mexican President Andrés Manuel López Obrador completed the first 100 days of his six-year term. Much has already occurred, but the three main policy impacts to the tourism industry in Mexico include: cancelling the construction of Mexico City’s new international airport; eliminating the Mexico Tourism Promotion Council (CPTM) and redirecting these important marketing funds to finance a Mayan Train route; and closing the Mexican Investment Promotion Agency (ProMexico) offices and redirecting these efforts to the embassies and consulates,” Kracer writes.
Deals and developments
- Hilton opened its first full-service hotel in Bogota, Colombia, with the 410-room Hilton Bogota Corferias. This is also Hilton’s 20th property in the country.
- Melia Hotels International held its official opening ceremony for its newest of seven hotels in the Dominican Republic with the 432-room Grand Reserve at Paradisus Palma Real as well as the 144 one- and two-bedroom Circle by Melia membership resort.
- The Caribe Hilton in Puerto Rico, which opened in, is reopening on 15 May following a $100-million restoration. P3 Design Collective led the restoration and the hotel is owned by Park Hotels & Resorts.
- Homewood Suites announced its newest property, the 84-room Homewood Suites by Hilton Steamboat Springs in Steamboat Springs, Colorado.
- Blue Sky Equity Partners has bought the Red Lion Inn & Suites Tucson Foothills in Tucson, Arizona. The new owner plans to rename and reposition the 156-room hotel as a boutique called 3 Palms Tucson North Foothills.
- The 206-key Four Seasons Hotel Montreal will open on 8 May in Montreal’s Golden Square Mile.
Compiled by Dana Miller.