From the desks of the Hotel News Now editorial staff:
- Hilton announces Tempo, its 18th brand
- Whitbread PLC inches forward in quarterly results
- US, Canada hotels show weekly performance declines
- PPHE Hotel Group acquires 50% of W2 Development
- Dow Jones index closes above 29,000 for first time
Hilton announces Tempo, its 18th brand: Hilton has announced its 18th brand, Tempo by Hilton, aimed at a demographic that Phil Cordell, global head of new brand development, calls “modern achievers,” reports Hotel News Now’s Sean McCracken.
The brand, which fits in the upscale segment between Hilton Garden Inn and Canopy by Hilton, will have an average room count of 140, with initial properties in Manhattan, Maui, Dallas, Boston, Atlanta, Los Angeles, Houston, Phoenix, Washington, D.C., and Lexington, Kentucky.
Check back with Hotel News Now Friday for more coverage of the brand launch.
Whitbread PLC inches forward in quarterly results: In its third-quarter 2019 results, Whitbread PLC, the parent company of Premier Inn, reported a “robust performance,” with a 1% increase in total sales across all of its hotels, according to a news release.
During an earnings call with analysts, CEO Alison Brittain said the United Kingdom total sales increase of 0.3% marginally improved the year-to-date run rate and that good trading and a strong pipeline in Germany “remains firmly on target as our confidence strengthens for the long-term market opportunity.”
Occupancy was down 3.1% year-over-year to 51.7%, as average daily rate fell 4.7% to $120.43, which resulted in a decline in revenue per available room of 7.7% to $62.30.
Canadian hotels showed mixed performance for the same week. According to data from STR, the country’s hotel ADR was up slightly (+0.4%), but that was not enough to overcome a 5.1% decline in occupancy to 43.8%, and RevPAR dropped 4.8% to $61.81 Canadian dollars ($47.40).
PPHE Hotel Group acquires 50% of W2 Development: Guernsey, Channel Islands-based PPHE Hotel Group, which owns and operates the Art’otel brand and has the exclusive license in Europe to develop and operate Radisson Hotel Group’s Park Plaza brand, announced that it has acquired a 50% interest in developer W29 Development LLC from a joint-venture partner for a total consideration of $3.3 million, according to a news release.
The deal increases PPHE’s consideration to $43 million in a project to develop three neighboring properties in Manhattan, including the hotel firm’s first Art’otel asset in New York City, which is due to open in 2023.
Dow Jones index closes above 29,000 for first time: A key economic indicator, the Dow Jones Industrial Average closed over the 29,000 mark for the first time on Wednesday, boosted by the signing of a trade deal between the U.S. and China, reports The Wall Street Journal.
The index has risen by 1,000 points in only 40 trading days, the shortest period in which that has been attained since January 2018 when it took eight trading days to reach 26,000. At press time, the average is at 29,030.22.
Compiled by Terence Baker.