In this week’s roundup of news from the Americas region: April’s KPIs; enhanced cleaning procedures; Q1 earnings coverage; M&A activity; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
April takes ‘worst month ever’ crown
According to STR’s Jan Freitag, U.S. hotels set a new record for RevPAR declines in April as group demand “continued to evaporate and more hotels in the upper-class segment took rooms out of service.” STR is the parent company of HNN.
Monthly RevPAR decline was the worst ever on record, he notes, at 79.9%.
“When people ask how this pandemic compares to 9/11 or the Great Financial Crisis (GFC), the chart above shows all you can say is: ‘it does not.’ The Global Coronavirus Recession (GCR – a term that Oxford Economics uses, and I will adopt) is different, and by different, I mean worse. But it is also different because it is an economic crisis in times of a global health emergency. Any economic metric you want to look at—from unemployment to stock-market gyrations to room demand drop to RevPAR decline—is unprecedented and therefore it is a bit unhelpful to study prior recoveries as a guide,” Freitag writes.
Hotels enhance cleaning protocols, partnerships
In light of COVID-19, several hotel companies announced more rigorous cleaning and safety procedures on-property, report HNN’s Terence Baker and Dana Miller.
Some hotel brands even partnered with third parties that already have a strong customer awareness, such as Lysol, Mayo Clinic and SGS, for guidelines and operational procedures.
Q1 earnings coverage
Public hotel companies and real estate investment trusts held calls with analysts discussing performance results for the first quarter. Most companies suspended full-year guidance due to impact from COVID-19.
A common perception among executives is that hotels in markets with high drive-to-leisure demand will likely rebound first into double-digit occupancies, writes HNN’s Robert McCune.
“That was the reality for some companies already in Q1,” he writes.
Central/South America hotel RevPAR declines 85.5% in April
For the month of April, STR reports that hotels in Central and South America reported occupancy fell nearly 80% to 11.6%. Average daily rate declined 28.7% to $61.83, which drove RevPAR to drop 85.5% to $7.17.
Of note, Ecuador’s RevPAR declined 90.6% to $5.56 for the month.
Deals, developments, people on the move
- Benchmark Hospitality acquired Arizona-based Westroc Hotels & Resorts and will now manage two of Westroc’s properties, Hotel Valley Ho in Old Town Scottsdale and Paradise Valley, Mountain Shadows Resort Scottsdale.
- Hostmark Hospitality Group acquired RAR Hospitality management group. The deal results in a combined portfolio of 40 hotels.
- Charlestowne signed a deal with development company The Thrash Group and will oversee its entire hotel portfolio. Through the deal, Charlestowne will add 10 hotels to its portfolio.
- Dream Hotel Group announced the signing of a 207-key Dream Cleveland to open in 2022. Beaty Capital Group will be the developer.
- Radisson Hotel Group has signed the 164-key Radisson Blu Resort & Residences Punta Cana in the Dominican Republic for Q4 2020.
- The Heathman Hotel Kirkland appointed Mike Hill as GM.
- RLH Corporation appointed Gary Kohn as CFO.
Compiled by Dana Miller.