5 things to know: 15 April 2019
5 things to know: 15 April 2019
15 APRIL 2019 9:38 AM

From the desks of the Hotel News Now editorial staff:

  • Supply, demand concerns hit Kansas City hotel market
  • The Standard Hotels looks to quadruple footprint
  • Fattal plans ROI growth around Leonardo, Nyx and Jurys
  • California looks at banning hotels’ mini toiletry bottles
  • Small businesses hiring fewer out of fear of slowing economy

Supply, demand concerns hit Kansas City hotel market: Kansas City saw a steady pace in new hotel construction start in 2016, but that pace hasn’t slowed, The Kansas City Star reports. Now area officials are worried about data that’s showing demand isn’t keeping up with all the new supply.

A Visit KC-commissioned study by JLL found occupancy rates are below the threshold “for what is considered a healthy hotel market,” according to the article. Occupancy rates, which dropped after peaking in 2017, are expected to continue falling without new demand. With 1,635 new hotel rooms expected to open over the next few years, hotels will need to book 483,938 more reservations by 2020 to maintain its current occupancy rate.

“What I’m saying is we have done a great job of developing supply,” the newspaper reports Visit KC CEO Jason Fulvi said at a meeting last week of the Tax Increment Financing Commission of Kansas City. “At this point, it might be wise to take a pause, let demand catch up and re-evaluate.”

The Standard Hotels looks to quadruple footprint: In an interview with WWD, The Standard Hotels CEO Amar Lalvani shared that his company plans to quadruple its hotel portfolio to 20 properties. Two-thirds of the 15 new properties will be outside of the U.S., and of those, three-quarters will be in Asia, he said.

Hong Kong in particular is a priority for the company, Lalvani said. The market is a challenge because of the cost of land and most developers are interested in building offices, not hotels.

“It’s a hub of activity,” he said of Hong Kong. “It’s a showcase for the world. To me, Hong Kong is amazing—culturally, culinarily.”

Fattal plans ROI growth around Leonardo, Nyx and Jurys: As Fattal continues its growth in Europe, it’s becoming clearer how its Leonardo, Nyx and Jurys brands will fit into the company’s strategy, writes HNN’s Terence Baker. While the company is pushing for the growth of Leonardo and Nyx, there’s a possible end in sight for the Jurys brand.

“The official line is that (Jurys Inn) will be retained, but we will take a look at things in due course. That decision will be based around (return on investment). Jurys Inn is 25 years old. It has stability,” said Jason Carruthers, managing director of Jurys Inn and Leonardo at Fattal.

“The main push, though, is the development of the Leonardo brand in the U.K. and Ireland,” he added.

California looks at banning hotels’ mini toiletry bottles: Lawmakers in California are considering a bill that would ban single-use mini bottles of shampoo, conditioner and lotion in hotels around the state, CBSLA reports. The law, if passed, would go into effect in 2023.

While banning the use of the single-use mini bottles, the law would encourage hotels to offer guests these products in bulk dispensers to cut down on plastic waste, according to the article. Santa Cruz was the first community to enact a similar ban.

Click here to read about some hotel companies across the globe that are eliminating single-use plastics.

Small businesses hiring fewer out of fear of slowing economy: Small-business owners learned a difficult lesson on overstaffing during the recession, the Star Tribune reports. As there are signs of a potentially slowing economy, some small businesses are cutting back on their hiring.

Payroll provider ADP reported its small-business customers created 6,000 jobs in March, a decrease from February’s 19,000 jobs, which was already a decrease itself from January’s 98,000 new jobs, according to the article.

A recent Capital One survey showed that 29% of 500 small-business owners intended to hire within the next six months, but that was a decrease from 33% six months earlier, the article reports. Of those who reported they wouldn’t be hiring, 30% said “the economy is making them too nervous to spend more on staffing.”

Compiled by Bryan Wroten.

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