From the desks of the Hotel News Now editorial staff:
- Jurys Inn portfolio acquired in £800-million deal
- Wynn looks to expand in Vegas with $336-million land grab
- Experts say hotel revenue managers not paid enough
- Fed raises interest rates, projects three hikes for 2018
- US, Canada hotel performance for week of 9 December
Jurys Inn portfolio acquired in £800-million deal: Swedish hotel group Pandox and Israel-based Fattal Hotels have partnered on a deal to acquire a hotel portfolio from U.S. private equity group Lone Star, which includes the entire Jurys portfolio, for £800 million ($1.1 billion), reports The Irish Times.
In addition to the 37 hotels in the Jurys Inn portfolio, the deal also includes the Hilton Garden Inn London Heathrow Airport. Pandox will assume ownership and take over operations at 20 of the Jurys Inn hotels, along with the Hilton Garden Inn in London. The remaining 17 hotels in the Jurys Inn portfolio, which are on long-term leases, will be managed by a division of Fattal, according to the article.
Wynn looks to expand in Vegas with $336-million land grab: In a deal announced today, Wynn Resorts will buy approximately 38 acres of land directly across from its Wynn Las Vegas hotel on the Las Vegas Strip for $336 million, according to a news release.
“The agreement completes a unique assembly of contiguous real estate of approximately 280 acres that spans from the Las Vegas Convention Center on Paradise Road from the east, to Industrial Road on the west. The combined frontage on the Las Vegas Strip is over 3,500 feet, including rights to approximately 1,000 acre feet of water. It is adjacent to nearly 6 million square feet of convention and exhibition space. The average cost of the full assembly of 280 acres is less than $3 million per acre,” the release states.
“The future development of the land will further change tourist visitation patterns in Las Vegas drawing more visitors to the north end of Las Vegas Blvd and its collection of luxury resorts, including the existing Wynn Las Vegas and the Paradise Park development slated to begin construction in January 2018 on the site of the former Wynn Golf Course.”
Experts say hotel revenue managers not paid enough: Based on new research by Aethos Consulting Group into hotel revenue manager compensation, the industry is not paying salaries high enough to attract the best analytical minds in the discipline, reports HNN’s Sean McCracken.
David Mansbach, managing director at Aethos and primary author of the study, said the numbers show the hotel industry has “a disconnect at so many levels” when it comes to how revenue managers are paid.
Meanwhile, competitive pay scale isn’t only a challenge when it comes to hiring revenue managers. HNN contributor Brendan Manley reports on what hoteliers are doing and should be doing to cope with a labor shortage in the U.S.
Fed raises interest rates, projects three hikes for 2018: As expected, the Federal Reserve announced Wednesday it will raise a benchmark lending rate to a target range of 1.25% and 1.5% and projected three more hikes in 2018, while forecasting economic growth next year, Bloomberg reports.
The announcement came during the last scheduled press conference by outgoing Fed Chairwoman Janet Yellen, whose term ends 3 February. Yellen noted that her successor, Jerome Powell, has been involved in shaping the rate-hike strategy.
“This change highlights that the committee expects the labor market to remain strong, with sustained job creation, ample opportunities for workers and rising wages,” Yellen said.
U.S., Canada hotel performance for week of 9 December: Data from STR, parent company of Hotel News Now, shows year-over-year growth for the U.S. and Canada hotel industries across three key performance indicators for the week ending 9 December.
For the week, the U.S. hotel industry reported revenue per available room growth of 6.8% to $75.97, driven by occupancy growth of 2.7% to 60.7% and a 4% increase in average daily rate to $125.07.
Over the same week, the Canadian hotel industry saw RevPAR grow 9% to 83.96 Canadian dollars ($65.48), lifted by 4.5% occupancy growth to 59.5% and a 4.4% increase in ADR to CA$141.16 ($110.09), the data shows.
Compiled by Robert McCune.