From the desks of the Hotel News Now editorial staff:
- Anbang chairman detained as part of government investigation
- What Mike Deitemeyer has planned as CEO of Interstate
- Pipeline reports: US, MEA and Europe
- Zika cases down in the Americas
- Lifestyle hotels perform well in smaller US cities
Anbang chairman detained as part of government investigation: Anbang Insurance Group Chairman Wu Xiaohui was detained in Beijing Friday as “part of a government investigation into Anbang,” The New York Times reports.
The New York Times reports that Anbang said Wu was “for personal reasons no longer able to perform his duties.”
Wu has business connections in China and Wall Street contacts in the United States, “so his detention was likely to reverberate through circles in China and the U.S.,” the newspaper reports. He also has political connections in the U.S. and China.
Anbang bid on Starwood Hotels & Resorts Worldwide last year after Marriott International announced it was trying to buy the company, but the insurance group pulled out of the bidding war in April 2016. Marriott closed on the Starwood transaction on 23 September 2016. The Chinese insurance company owns the Waldorf Astoria in New York, which is currently under renovation to convert most of the guestrooms into condo units.
What Mike Deitemeyer has planned as CEO of Interstate: Former Omni Hotels & Resorts executive Mike Deitemeyer is entering a new chapter of his career as CEO of Interstate Hotels & Resorts, which marks his return to his start in the hotel industry as an intern at Interstate, Hotel News Now’s Sean McCracken reports.
In his new role at Interstate, Deitemeyer plans to focus on growth in the United Kingdom and Europe.
“At one point, Interstate had gone pretty aggressively at China, which was a little too stretched out and dilutive,” he said. “So now our focus is stepping into Germany and Spain and growing our business a little more organically there.”
Pipeline reports: U.S., MEA and Europe: STR, Hotel News Now’s parent company, released May pipeline reports for the U.S., the Middle East/Africa region and Europe.
In the U.S., last month’s pipeline report shows 580,068 rooms in 4,806 hotel projects under contract. There were 191,832 rooms in 1,477 projects reported in the in construction stage, which is a 16.4% increase in year-over-year comparisons.
The May Middle East/Africa pipeline report shows 159,711 rooms in 581 hotel projects under contract in the Middle East and 58,501 rooms in 318 projects under contract in Africa.
Europe reported 167,543 rooms in 1,074 hotel project under contract. This is a 15.3% increase in year-over-year comparisons. The region reported 77,360 rooms in 487 projects in construction in May.
Zika cases down in the Americas: The Zika virus is becoming less of a problem for areas in the Americas, NPR reports.
Zika cases in Brazil have decreased by 95% compared to last year, and outbreaks across the Caribbean have decreased.
Health officials “haven’t investigated a new Zika case for more than 45 days in (Florida’s) Miami-Dade County,” NPR reports, and the Centers for Disease Control and Prevention removed a travel warning for southern Florida. The CDC “is no longer recommending that pregnant women avoid the region,” according to NPR.
Lifestyle hotels perform well in smaller U.S. cities: Companies such as Marriott, Hilton and Dream Hotels have entered the lifestyle hotel space and have found these types of properties work well in smaller U.S. cities, The New York Times reports.
“Costs have increased dramatically in gateway markets, and many brands need to continue growing, so they are looking outside the typical cities,” Bjorn Hanson, a professor at the Jonathan M. Tisch Center for Hospitality and Tourism at New York University, told The New York Times.
Compiled by Danielle Hess.