From the desks of the Hotel News Now editorial staff:
- HNA sells Radisson to Jin Jiang-led consortium
- Crown sues to protect views from its Sydney hotel
- Cobblestone CEO says brand buy was unexpected
- Preliminary US lodging data for July
- Instagram’s influence on hotel design
HNA sells Radisson to Jin Jiang-led consortium: Confirming recent speculation about a potential sale, Radisson Hospitality confirmed in an announcement late Thursday that a deal is in place for a consortium led by Shanghai-based Jin Jiang International Holdings to acquire the company from China’s HNA Group.
The sale of Radisson Holdings, which includes Radisson Hotel Group, is expected to close at the end of the year. Reuters reports that the deal is for 100% of Radisson Holdings, as well as 51.5% of the outstanding shares of Radisson Hospitality AB for a per-share price of 35 Swedish crowns ($3.87), a total of about 3 billion Swedish crowns ($332 million). Additionally, the consortium has agreed to buy an 18.5% stake in Radisson Hospitality, which HNA has “pledged and transferred to a lender as security for a loan,” the news agency reports.
Hotel News Now has reached out to HNA and Jin Jiang for comment. Stay tuned for updates.
Crown sues to protect views from its Sydney hotel: In a lawsuit filed this week against the government of Sydney, Australia, casino operator Crown Resorts is seeking to block approval of developments that would obstruct views from its under-construction Crown Sydney Hotel Resort, Reuters reports.
The waterfront resort development, valued at 2.2 billion Australian dollars ($1.6 billion), will have sight lines to the Sydney Opera House and Harbour Bridge, which the lawsuit aims to protect.
The lawsuit, filed against the government’s Barangaroo Delivery Authority, seeks an order requiring the authority to comply with its contract with Crown, according to a statement issued as part of the company’s earnings report.
“The Crown statement did not give details on any specific development application threatening to obstruct its views,” according to Reuters.
Cobblestone CEO says brand buy was unexpected: A deal announced this week in which Cobblestone Hotels has acquired two new brands came somewhat as a surprise to President, CEO and founder Brian Wogernese, reports Hotel News Now’s Dana Miller.
In the deal, announced 6 August, Cobblestone will acquire the Centerstone Hotels and Key West Inns, Hotels & Resorts brands, which brings the hotel’s portfolio to five brands and more than 120 properties across 25 states.
In an interview with HNN’s Miller, Wogernese shared how the deal came together, saying that the seller, Vimana Franchise Systems, reached out to Cobblestone.
“I think (they) were just looking at stepping back a bit,” he said. “They reached out; fortunately for us, we had enough cash on hand, so we didn’t have to finance anything. It was a good buy for us.”
Preliminary U.S. lodging data for July: The U.S. lodging industry reported revenue per available room was flat to up 2% in July, according to preliminary monthly data from STR, parent company of HNN. Despite total U.S. occupancy that ranged from a 2% decline to flat, average daily rate for the industry grew 1% to 3% during the month, the data shows.
By chain scale, luxury hotels led performance growth for July, with RevPAR growth of 2% to 4% and ADR growth of 3% to 5%. Upper upscale came in second with RevPAR growth of 1% to 3% and ADR growth of 2% to 4%; and upscale followed with RevPAR that was flat to up 2% and ADR that increased 1% to 3%, according to the data. The upper-midscale, midscale and economy segments each reported RevPAR that ranged from down 1% to up 1%.
For each chain scale segment, occupancy was down 2% to flat.
Instagram’s influence on hotel design: Instagram has to be constantly in mind for hoteliers, from the development to design phases and beyond, hotel sources and social media influencers told BBC.
“(Guests) are looking for a space that is cozy as well as gives them nice photos for their Instagram feed, so that is what we strive to do during the process of construction and design,” Natasha Shah, marketing manager at the Hotel G Singapore, told the news agency.
HNN’s Danielle Hess wrote about how some hoteliers are creating “Instagrammable” areas with unique design on-property, as well as how some are finding ways to influence and share photos that guests take.
Compiled by Robert McCune.