In this week’s roundup of news from the Americas region: U.S. flag flies outside hotel in Cuba; U.S. occupancy expected to be flat in 2017; deals and development; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Flat occupancy expected US in 2017
Hotel revenue growth in the United States is expected to continue to slow through 2017 because occupancy is expected to flatline, HNN’s Sean McCracken reports. http://hotelnewsnow.com/Articles/53546/US-forecast-Cloudy-with-a-chance-of-flat-occupancy
“I don’t think we’re in for a totally systemwide panic like we’re in a recession,” Paul Breslin, managing director for Horwath HTL, said. “I don’t think this is that kind of cycle. I think we’re in a downward trend or softening of a strong cycle. The fundamentals are still strong.”
Occupancy is anticipated to be flat in 2017 as a result of supply growth catching up to demand growth, according to STR, HNN’s parent company. Revenue per available room is expected to grow 3.8% in 2017, STR officials said.
Four Points opens in Cuba
The Gaviota 5th Avenue Hotel in Havana now has a “Four Points by Sheraton” sign and a U.S. flag flying outside of the building, according to Reuters. Starwood Hotels & Resorts, which owns the property, is the first hotel brand to open a U.S. operated hotel in the country in more than half a century.
“We chose the Four Points brand because of its focus on business travel as well as because the former hotel Quinta Avenida was a good match for the Four Points profile,” Jorge Giannattasio, Starwood SVP and chief of Latin America operations, told HNN contributor Bruce Serlen.
The property is set to undergo renovation, but will remain open during construction, Reuters reports.
Hoteliers aren’t overly worried about Zika
Caribbean hoteliers have experienced some performance dips because of Zika fears, but they’re still not overly worried about Zika’s effect on business, HNN’s Danielle Hess reports.
“The fact of the matter is, if you look at the numbers, Puerto Rico does not have a Zika problem,” Milton Segarra, president and CEO of Meet Puerto Rico, told HNN. “The problem is the publicity Puerto Rico has received because of Zika.”
Zika fears resulted in a loss of bookings and cancellations in Puerto Rico in March, April and May, but Meet Puerto Rico made up for its losses by booking 57 new pieces of business in the same 90-day period.
May 2016 hotel performance
U.S.: The hotel industry’s occupancy decreased 0.5% to 67.0% in May 2016, according to data from STR. Average daily rate was up 2.4% to $123.87, and RevPAR grew 1.9% to $83.01.
Dallas, Texas, had the largest increase in occupancy (+5.3% to 73.3%) among hotels in the Top 25 Markets. Dallas also saw a double-digit rise in RevPAR (+12.9% to $76.32.) Houston, Texas, had the largest decreases in all three performance metrics.
Americas: In the Central/South America region, occupancy dipped 8.8% to 51.9%, according to data from STR. ADR increased 7.7% to $88.86, and RevPAR decreased 1.8% to $46.11.
Deals and development
- The 226-room DoubleTree by Hilton Veracruz in Veracruz, Mexico, opened on 29 June.
- The 623-room Hilton Garden Inn Waikiki Beach opened in Hawaii on 21 June in Hawaii.
- Hilton Worldwide signed a franchise license agreement with Free Way Group to build the Hampton by Hilton Bariloche in San Carlos De Bariloche, Argentina. This is the first Hampton by Hilton signing in Argentina.
- Hilton Worldwide signed its first Curio property in Belize, The Resort at Mahogany Bay Village in San Pedro, Belize, on 15 June.
Compiled by Danielle Hess.