From the desks of the Hotel News Now editorial staff:
- Wanda to buy £470m London site adjacent to previous buy
- Dubai court bans hotel owner from barring operator
- US extended-stay segment remains in good health
- US Supreme Court’s final day to decide on travel ban
- Mediterranean hotels threaten to ban ‘sick-tummy’ Brits
Wanda to buy £470m London site adjacent to previous buy: Despite a Chinese government crackdown on credit outflows, Chinese company Dalian Wanda has agreed to splash out £470 million ($598.3 million) for London’s Nine Elms Square site, according to Mingtiandi, a Chinese news source specializing in real estate. The site, which is in development and will include a Wanda Vista hotel, is located in the district of Vauxhall on the River Thames and adjacent to its One Nine Elms, bought in 2013 for £88.8 million ($113 million).
Wanda is one of four “prolific cross-border investors” singled out by the China Banking Regulatory Commission for scrutiny “due to the potential for systemic risk from their borrowings,” according to Mingtiandi.
Dubai court bans hotel owner from barring operator: The Dubai International Financial Centre Courts has ruled that the owner of the Viceroy Palm Jumeirah Dubai does not have the right to replace current operator Viceroy Hotels & Resorts, according to Arabian Business.
Owner Kabir Mulchandani announced on 19 June that Five Hotels & Resorts would take over management of the 468-room property, which opened in March, reported United Arab Emirates news site The National. The hotel was built by Skai Holdings, a Dubai-based real estate investment trust firm headed by Mulchandani that this month was renamed Five Holdings.
U.S. extended-stay segment remains in good health: Broader guest appeal and demand that continues to slightly outpace supply continue to make the extended-stay segment attractive to U.S. hotel developers, reports Hotel News Now contributor Brendan Manley.
“(Extended-stay) demand has been growing (in the U.S.) between 5% and 7% a quarter for basically two years,” said Mark Skinner, partner with The Highland Group, a hotel investment advisory firm. “Although we’re having strong increases in supply, demand is close to catching up. Occupancies this year were projected to show a slight decline, but based on the first quarter, they’re not—although there is a record number of rooms under construction: more than 40,000.”
In another story later this week, HNN will take a look at the extended-stay segment in Europe.
U.S. Supreme Court’s final day to decide on travel ban: Heading into the last day of its current term, the U.S. Supreme Court is expected to decide whether to lift bans imposed by lower courts concerning President Donald Trump’s executive order for a 90-day ban on issuing U.S. visas to citizens of Iran, Libya, Somalia, Sudan, Syria and Yemen, according to The Wall Street Journal.
The Trump administration claims the ban is necessary for national security, while one court, the Fourth Circuit Court of Appeals, claims the order is unconstitutional.
Hoteliers, most recently during the NYU International Hospitality Industry Investment Conference, have lobbied the administration to consider the benefits of an open policy for travel to the U.S.
Mediterranean hotels threaten to ban “sick-tummy” Brits: U.K. government officials have met with Spanish counterparts to discuss concerns over potential fraudulent activities resulting from claims over stomach viruses and other food poisoning incidents, The Guardian reports. Hotels in several Mediterranean countries are threatening to ban guests, specifically British ones, from their hotels due to a spike in what they regard as “bogus” insurance demands.
Inmaculada Benito, president of the Federation of Mallorca (Spain) Hotel Businesses, told the newspaper that false claims cost hotels on the Balearic island €50 million ($56 million) last year and that cases had soared by 700% since 2015. One hotelier claimed all cases against his hotel derived from British guests. Others interviewed by the newspaper suggested that vacationers are urged to make claims.
Compiled by Terence Baker.