In this week’s roundup of news from the Americas region: Hotels navigate post-disasters; Caribbean developers gravitate toward select service; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Hotels navigate loss-of-business claims post disasters
Claims of business interruption at hotels after natural disasters hit are a bit harder to negotiate with insurance providers than physical-damage claims, but are just as imperative to make, Hotel News Now’s Bryan Wroten writes.
For example, with wildfires that swept through California’s wine country, David Wood, senior partner at Barnes & Thornburg, said if the hotel burns down, the owner should make sure the property still receives the revenue it would have if it didn’t burn down, through help of a certified public accountant.
Costa Rica could be ground for big development opportunities
While Costa Rica has room to grow, it will happen at its own pace and by its own rules, writes HNN’s Robert McCune while at the recent South American Hotel Investment Conference.
The slower pace, said Minister of Tourism Mauricio Ventura Aragón, “helps us to think about what we want to do with our tourism model … (and also) to be at peace with the population and clientele … to protect our nature, environment—not only for tourism, but also for Costa Ricans, also for our future as a population … if we opened too fast, maybe the results would not be what they are today,” he said. “People keep coming back to visit, which means they are finding what they are seeking.”
How events in October, November affect hotel performance
Data from STR, parent company of HNN, offered insights into hotel performance in markets across the globe that are celebrating holidays and events during these months.
Most of these holidays and festivals, with a few exceptions, are not huge demand generators for hotels, according to STR’s data. For instance, with Diwali—the festival of lights celebrated by millions of Hindu, Sikh and Buddhist people over the span of five days—most prefer to celebrate that at homes opposed to hotels. Hotel occupancies in India were only slightly above 50% during Diwali.
Select-service, soft brands may way in Caribbean
More hotel developers are starting to change their approach as they look to improve their returns on investment and fuel strength to their distribution formulas, reports HNN’s Jeff Higley.
“Since the recession there hasn’t been a lot of development in the Caribbean,” Bill Stadler, CIO for Aimbridge Hospitality, said during a panel at the Caribbean Hotel Investment Conference & Operations Summit. “We’re starting to see some select service.”
One reason developers are now gravitating toward select service is because that’s what consumers are seeking, said David Pepper, chief development officer for Choice Hotels International.
Deals and developments
- Noble House Hotels & Resorts announced it will manage The Josie Hotel in Rossland, British Columbia, Canada, which is slated to open in early 2018.
- Embassy Suites announced the opening of the 242-room Embassy Suites by Hilton Phoenix Downtown North. This is the brands first hotel in downtown Phoenix.
- Summit Hotel Properties completed the acquisition of four hotels, which comprises of 652 rooms, for a total of $164 million.
- Brazil Hospitality Group is in the process of completing a partnership with AccorHotels, which will manage 17 of the company’s owned hotels.
- A 94-room Homewood Suites by Hilton opened in downtown Milwaukee.
Compiled by Dana Miller.