From the desks of the Hotel News Now editorial staff:
- Colliers says only 17% of leisure biz paid UK rent
- UK GDP shrinks by almost 20%
- Mandarin Oriental, Oberoi share loyalty platform
- IHG boss: Only reputation will solidify hotel health
- Caesars Entertainment announces new stock pricing
Colliers says only 17% of leisure biz paid UK rent: Global real-estate and business-advisory firm Colliers International said 48% of all business tenancies it manages in the United Kingdom complied with their most recent quarterly rent obligations, which were due on 29 September, but the percentage in the leisure segment dropped to 17%, according to CoStar News, the sister publication of Hotel News Now and, along with HNN’s parent company STR, part of the CoStar Group.
Mark Jarrett, its head of property management, said “tenants have indicated their confidence for the future by paying half their rent on time. … This is very encouraging for landlords when you consider many are now allowing tenants to pay rent monthly rather than quarterly.” In the preceding quarter ending at the end of June, the leisure sector paid an even smaller percentage—12%.
U.K. GDP shrinks by almost 20%: Gross domestic product in the U.K. shrank by 19.8% in the quarter between June and September, according to the government’s official statistician, the Office for National Statistics. The drop is an improvement on the forecast of a decline of 20.4%.
The report said it is the “largest quarterly contraction in the U.K. economy since quarterly records began in 1955 and marks the second consecutive quarterly decline after a fall of a revised 2.5% in the previous quarter.” It added “compared with the same quarter a year ago, the U.K. economy fell by a revised 21.5%.”
Mandarin Oriental, Oberoi share loyalty platform: Mandarin Oriental and Oberoi Hotels & Resorts have reached an agreement in which loyalty-platforms members of the former M.O. program and the latter's Oberoi One platform can participate, according to a news release. The two luxury brands have approximately 50 hotels between them.
“We have long been fans of Mandarin Oriental,” said Vikram Oberoi, managing director and CEO of EIH Limited, the flagship company of The Oberoi Group. “Our brands complement each other extremely well as do our organizations values and culture.”
IHG exec says only reputation will solidify hotel health: Speaking at the online conference AHIC on the Road, InterContinental Hotels Group’s CEO, Europe, Middle East and Asia, Kenneth Macpherson said that no degree of short-terms smarts to ensure trading survival will add up to anything if a firm’s reputation for doing what is right is not firmly established, writes HNN’s Terence Baker.
“The approach we have taken has reputation at its core. What I mean by that is that when we re-open hotels, we have to be really clear of the confidence to book and the confidence to stay, where every experience is one guests feel safe in. There also needs to be a balance between continued delivery and the financial situation of owners,” he said.
Caesars Entertainment announces new stock pricing: Caesars Entertainment, which owns and operates 55 hotels among other hospitality offerings, has announced it has priced its underwritten public offering of 31 million shares of common stock at $56 per share.
The Las Vegas-based firm also announced it had bought for £2.9 billion ($3.7 billion) British betting chain William Hill, which part of its latest stock round will help fund.
Compiled by Terence Baker.