From the desks of the Hotel News Now editorial staff:
- US top 25 markets ‘underperforming’ as they lose share
- IHG projects 75% RevPAR decline in Q2
- PPP coming to a close with $134b left over
- Surges in COVID-19 cases delay states’ reopening
- Luxury hotel part of $2b Beverly Hills development plan
U.S. top 25 markets ‘underperforming’ as they lose share: Data from STR shows that hotels in the top 25 U.S. markets have lost 3% of their revenue share year to date, reports HNN’s Robert McCune from the first installment of the Hotel Data Conference webinar series. STR is the parent company of Hotel News Now.
Brad Garner, SVP of client services & relationships for North America at STR, explained that other markets are “stealing” that share of revenue from the top 25.
“Where is that stealing of share coming from, particularly with revenue? … The top 25 is certainly underperforming, while economy chain scales continue to hold up well in leisure, drive-to markets,” Garner said.
IHG projects 75% RevPAR decline in Q2: In a release ahead of its next scheduled earnings report later this summer, InterContinental Hotels Group reported that it expects its second-quarter results to show a 75% year-over-year decrease in revenue per available room. That breaks down to decreases of 82% in April, 76% in May and 70% in June, according to a news release.
The second-quarter RevPAR decline for the Americas region is estimated to be at 72%, the release states. The U.S. franchised estate benefits from a weighting toward domestic demand-driven mainstream hotels while it has a lower reliance on large group business and has higher distribution in non-urban markets. As a result, they have an estimated decrease of 67% in the second quarter. By comparison, the U.S. managed estate, which is mostly luxury and upper-upscale hotels in urban markets, is expected to see an 87% decline in RevPAR.
PPP coming to a close with $134b left over: The CARES Act’s Paycheck Protection Program’s loan application window closes Tuesday, but the program still had $134 billion available as of 29 June, The Wall Street Journal reports. There is now debate about how the government will handle the leftover funds.
The program’s first round of funding, amounting to $350 billion, ran out within two weeks of its start, the article states. Congress provided another $310 billion in late April, but demand following the new funding was less than the first. Congress and the administration eased some of the requirements for PPP funding, such as extending the duration of the loan period from eight weeks to 24 weeks as well as allowing more flexibility on how applicants spent the money.
The changes increased some demand from borrowers, the article states. Lenders who work with smaller businesses have reported seeing “last-minute spikes” in applications recently.
Surges in COVID-19 cases delay states’ reopening: The recent increases in COVID-19 cases and hospitalizations in several states are causing others to slow down their reopening processes, The Wall Street Journal reports.
New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio said they might postpone allowing indoor dining in the city because of the increase of cases in states like Texas and California. The state of New York already delayed the reopening of malls, gyms and movie theaters.
Luxury hotel part of $2b Beverly Hills development plan: A $2-billion condominium project with botanical gardens in Beverly Hills would also include a 10-story ultra-luxury hotel, the Los Angeles Times reports. The property would be built at the intersection of Wilshire and Santa Monica boulevards, which is “considered one of the most desirable real estate development sites in the country.”
The two condominium towers would have 303 units combined, the article states. The hotel would have 42 all-suite guestrooms with a fine dining restaurant and 37 residential units. The botanical gardens would include 3.5 acres exclusive to hotel guests and residents with another 4.5 acres open to the public.
Compiled by Bryan Wroten.