From the desks of the Hotel News Now editorial staff:
- Chinese currency restrictions threaten HNA’s Rezidor bid
- Hotels drive two-year high for small-business borrowing
- Experts share tips on pest management
- Saudi Arabia pushing Red Sea Tourism expansion
- ESA reports Q2 earnings
Chinese currency restrictions threaten HNA’s Rezidor bid: After reports yesterday that Anbang could be pressured to sell its international assets, news continues to trickle out that China’s biggest buyers could be facing a pinch from their own government. The New York Times now reports that HNA Group, which recently purchased Carlson Hotel Group and large stakes in both Hilton and Park Hotels & Resorts, could face a significant obstacle in getting money out of China to complete a mandatory purchase of Rezidor Hotel Group’s outstanding shares.
HNA currently owns 51% of Rezidor, which it picked up in the Carlson deal, and European Union rules require the company to either offer to buy the outstanding shares of Rezidor or sell down to roughly a third ownership in the company. But The Times reports currency restrictions so far have stymied HNA’s ability to complete those purchases.
Hotels drive two-year high for small-business borrowing: Reuters reports that borrowing by small U.S. businesses in June was higher than it has been in nearly two years, and this demand for lending was “driven by restaurants and hotels” seeking to “meet customer demand.”
The report, based on data from PayNet Inc., states “firms providing food and accommodation rose 5.5% from a year earlier.” Reuters points out that changes in borrowing figures typically correlate with changes in gross domestic product.
Experts share tips on pest management: There are few things that can kill a hotel’s reputation as quickly as online reviews noting a property has problems with bed bugs or other pests, so Hotel News Now’s Danielle Hess talked with experts to gain some insight into how to better deal with the legions of small, unwanted guests.
Vince Barrett, VP of food and beverage at New Castle Hotels & Resorts, said pest management needs to be a consideration from the earliest stages of the process—even during hotel development.
“From preventative programming, we’re in the process right now of building two hotels, and what we’ll do is we’ll get engaged with our vendor during the whole construction phase of the hotel being built,” he said. “We’ll actually treat the building as it’s being built so that from a long-term perspective we don’t have issues with spiders, ants, roaches and that type of thing.”
In other pest-related news, this handy infographic lets you know just how little guests really understand about bed bugs.
Saudi Arabia pushing Red Sea Tourism expansion: Saudi Arabia’s sovereign wealth fund is looking to make a significant investment in more than a 100-mile stretch of coastline on the Red Sea to draw more travel to the region, reports The National.
The news outlet says government officials hope the investment—which includes the development or an airport, a seaport, luxury hotels, residences and other services and infrastructure—will result in 35,000 news jobs and add 15 billion Saudi riyals ($4 billion) to the country’s economy.
ESA reports Q2 earnings: Extended Stay America is the latest hotel company to share its second-quarter earnings results, reporting a 2.4% year-over-year increase in revenue per available room for the quarter and net income of $49.7 million.
Company officials touted success driven by their “ESA 2.0” program, which focuses on the sale of owned assets, selling franchises for new build properties and building more owned and operated hotels.
Stay tuned to Hotel News Now for more Q2 earnings coverage.
Compiled by Sean McCracken.