From the desks of the Hotel News Now editorial staff:
- Hilton execs talk future after celebrating centennial
- Hotel occupancy rates drop in Asia/Pacific
- Weekly results for the US hotel industry
- ‘Safer stocks’ outperforming amid uncertainty
- City center Manchester hotel a scam
Hilton execs talk future after celebrating centennial: Hilton is celebrating 100 years, and executives at various conferences talked about what’s next for the company going forward, HNN’s Sean McCracken writes.
At the recent NYU International Hospitality Industry Investment Conference, Hilton CFO Kevin Jacobs said there are a lot of opportunities for the company.
“The company’s growth rate is really strong,” he said. “We’re entering new countries every day. We’re now in 113 countries, and we have 30-odd some additional companies in the pipeline, so that’s really exciting. And growth provides opportunities. It provides opportunities to serve more customers; it provides opportunities for our people, and obviously there are financial benefits to growing as well.”
Also at NYU, Hilton President and CEO Chris Nassetta said the company does best when it is purpose-driven like founder Conrad Hilton intended it to be.
“He started the business with a noble premise,” Nassetta said. “He believed travel could make the world a better place, and bring people closer together.”
Hotel occupancy rates drop in Asia/Pacific: A report from Colliers International shows that consumer confidence fell in the Asia/Pacific amid U.S.-China trade war tensions, which led to a dip in hotel occupancy rates and revenues in the first quarter, the South China Morning Post reports.
Revenue per available room decreased 7.2% year over year in the first three months of 2019 and occupancy dropped to 67.4%, the news outlet reports.
“It is evident that the recent ¬escalation in the trade dispute and the political impasse between the U.S. and China is starting to weigh on business and consumer confidence, thereby tempering demand growth,” said Govinda Singh, executive director for ¬valuation and advisory in Asia at ¬Colliers and the report’s ¬author.
Weekly results for the U.S. hotel industry: Data from STR, HNN’s parent company, shows the U.S. hotel industry reported mixed year-over-year results in the three key performance metrics for the week ending 8 June, according to a news release.
Occupancy decreased 1.3% to 72%, occupancy increased 0.5% to $132.40 and RevPAR dipped 0.8% to $95.36.
Philadelphia saw the largest increases in each of the key performance metrics among the top 25 markets: occupancy rose 6.4% to 81.8%, ADR increased 16.2% to $161.23 and RevPAR jumped 23.7% to $131.87.
Fourteen of the top 25 markets recorded a decrease in RevPAR for the week.
‘Safer stocks’ outperforming amid uncertainty: Stocks seen as being safer by S&P 500 sectors, such as real estate, consumer staples and utilities, have been “outperforming the broader market,” which is a signal that investors are “seeking certainty as trade tensions and central bank policy push and pull markets,” The Wall Street Journal reports.
Indexes saw the worst May since 2010 amid trade tensions, but stocks recently have rebounded with the Dow Jones Industrial Average and the S&P 500 sitting within 3.1% of their records.
“At least 69% of the companies in each of those (safer) groups are trading above their 50-day moving average,” according to the news outlet.
City center Manchester hotel a scam: Travelers are being warned about an online scam for reservations at The Grand Pearl hotel in Manchester, United Kingdom, which doesn’t actually exist, Manchester Evening News reports.
A website for the fake luxury hotel claims it has 235 rooms, an Olympic-sized swimming pool and a glass-walled riverside restaurant. Guestroom photos listed on the site show one room with a view of the ocean and another with a cityscape that looks like Tokyo.
It’s uncertain of when the site went live or if anyone has attempted to book a room, but “experts have warned that those unfamiliar with the city may easily believe it is a legitimate website and send the fraudsters their personal details,” the news outlet reports.
Compiled by Danielle Hess.