From the desks of the Hotel News Now editorial staff:
- Saudi Prince Alwaleed bin Talal detained
- JHM Hotels announces business split
- Industry experts on factors affecting hotel performance
- European shares affected by earnings misses
- Some Caribbean islands doing fine after hurricanes
Saudi Prince Alwaleed bin Talal detained: Authorities in Saudi Arabia arrested 11 princes, including Prince Alwaleed bin Talal, who co-owns the Four Seasons hotel chain, recently gained control of the Plaza Hotel in New York from President Donald Trump and owns London’s Savoy Hotel. The arrests came early Sunday morning in an “anti-corruption crackdown that strengthens Crown Prince Mohammed bin Salman’s grip on power,” the Telegraph UK reports.
The crown prince’s father, King Salman, announced the creation of a “powerful new anti-corruption committee,” led by the crown prince, hours before the arrests were ordered by the committee, The New York Times reports.
Last month, Prince Alwaleed gave interviews to Western news outlets about Saudi Arabia’s plans to make a public offering of shares in Aramco, the state oil company, the newspaper states. Prince Alwaleed and Trump have also had public disputes, while Trump and the crown prince reportedly have formed a “mutually supportive relationship.”
JHM Hotels announces business split: Effective 1 November, the JHM Hotels name has been retired as the company announced today it will transition into four new independent hotel companies to help the second generation of the business, according to a news release.
The four new entities are Auro Hotels, Sima Hotels, Sarona Holding and Siddhi Hotel Group.
“The retirement of the JHM Hotels brand allows the numerous family shareholders involved to pursue their own vision and maintain their core values of integrity, reliability, balance and corporate citizenship” H.P. Rama, founder of JHM Hotels, said in the release.
Industry experts on factors affecting hotel performance: Based on performance data, transaction volume and consumer spending trends, analysts at the 2017 Lodging Conference gave their perspectives on factors affecting the hotel industry both short term and long term, writes HNN’s Danielle Hess.
One of those factors is the decline in transaction volume nationally, according to Adam Lair, managing director and senior partner at HVS.
“CMBS had dried up, (real estate investment trusts) and institutional capital had moved largely to the sidelines, and at the end of the year, (we were) down 30% in total transaction volume,” he said. And this year, CMBS loans and institutional capital has resurfaced and stabilized the market a bit, he added.
European shares affected by earnings misses: After a good run, shares in Europe edged downward on Monday amid declines in Asia and earnings disappointments, Reuters reports.
The pan-Europe STOXX 600 decreased 0.1%, while Dutch firms SBM Offshore (-12%) and Vopak (-7%) declined significantly after poor results. Strategists at JP Morgan said it was “prudent to take profits in European cyclicals, downgrading them to neutral from overweight,” Reuters reports.
Concerns have been raised about the possibility of Saudi money dropping out of world markets, according to Reuters.
Some Caribbean islands doing fine after hurricanes: While Hurricanes Irma and Maria damaged many Caribbean islands, about 70% of the region was not affected, including Aruba, Bonaire, central Cayman Islands, Jamaica and Curaçao,“prompting tourism officials to their bullhorns,” reports The New York Times.
And even in many of the affected areas, resorts are starting to reopen and expand with new builds.
Among those projects is the addition of the 299-room SLS Baha Mar to the $4.2-billion Baha Mar resort in Nassau.
Compiled by Dana Miller.