5 things to know: 24 January 2020
 
5 things to know: 24 January 2020
24 JANUARY 2020 10:04 AM

From the desks of the Hotel News Now editorial staff:

  • Chinese travel bans grow
  • California readjusting after record openings year
  • Driftwood announces $3 billion investment plan
  • Canada saw RevPAR contraction in 2019
  • Trump pushes for European trade deal in Davos

Chinese travel bans grow: As concerns over the outbreak of the Wuhan coronavirus spread, so do bans on travel to the most affected cities in China. Government officials in that country are now restricting travel for 35 million people, The New York Times reports, and shutting down tourist attractions, including Shanghai Disneyland. The ban now covers 12 cities.

The Wall Street Journal reports there are now at least 881 confirmed cases with an official death count of 26.

California readjusting after record openings year: A total of 11,795 new hotel rooms opened in California throughout 2019, setting a new record for the state, but experts say there are lots of reasons to believe that rapid rate of supply growth could slow, HNN’s Bryan Wroten writes.

“The combination of increased construction activity, tariffs on materials, and a lack of recovery from the last recession in the number of people participating in the construction industry has created a perfect storm,” Corry Oakes, president and CEO of OTO Development, said.

Driftwood announces $3 billion investment plan: Executives with Driftwood Capital have announced a five-year restructuring and investment plan that includes spending $3 billion through development, acquisitions and mezzanine lending funds, according to a news release. The company was formerly known as Driftwood Acquisitions & Development.

The plan includes the pending $250 million acquisition of the 502-key Westin Resort in Cocoa Beach, Florida.

“The decision to scale up our existing acquisitions and development activities and launch a new lending business was driven by two main factors. First, we want to continue to meet the growing demand in the marketplace for alternative investments. Second, we want to ensure we have a long runway ahead of us for future capital deployments,” Chairman and CEO Carlos J. Rodriguez, Sr., said in the release.

Canada saw RevPAR contraction in 2019: Revenue per available room fell 0.2% year over year across Canadian hotels in 2019, according to the latest information from HNN’s parent company STR.

That drop in RevPAR, which amounted to 107.81 Canadian dollars ($82.07) for the year, was caused by a 1.3% drop in occupancy to 65.2%. Average daily rate grew 1.2% to CA$165.23 ($125.78).

Trump pushes for European trade deal in Davos: The second day of the World Economic Forum in Davos, Switzerland, was highlighted by U.S. President Donald Trump pushing for a new trade deal with the European Union and reforms for the World Trade Organization, Bloomberg reports.

The U.S. and French governments agreed to a deal on a global framework for digital taxation, which allows the two nations to avoid a trade war, the article states.

Compiled by Sean McCracken.

No Comments

Comments that include blatant advertisements or links to products or company websites will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff.