5 things to know: 1 October 2020
 
5 things to know: 1 October 2020
01 OCTOBER 2020 9:03 AM

From the desks of the Hotel News Now editorial staff:

  •  Madrid enters second COVID-19 lockdown
  •  Weekly results for US and Canadian hotels
  •  US hoteliers struggle to analyze fall-winter demand
  •  Caesars completes sale of Reno Harrah’s for $41.5m
  •  England bans single-use straws, stirrers, cotton buds

Madrid enters second COVID-19 lockdown: Madrid has become the first major European capital to be placed by a central government into a second lockdown due to a spike in positive COVID-19 cases, the BBC reports. Residents now are unable to leave without a valid reason.

The greater Madrid area has accounted for more than a third of the 133,604 cases diagnosed in Spain over the past two weeks. Madrid’s regional government, which is run by a different political party than the national government, did not vote for the lockdown and said it might challenge the decision in court.

 Weekly results for US and Canadian hotels: Year-over-year performance metrics for U.S. hotels are once again down for the week ending 26 September, but revenue per available room is nearing the -50% mark, which could be seen as success in the current crisis, according to data from STR, the parent company of HNN.

RevPAR dropped 51.7% to $46.96 while occupancy declined 31.5% to 48.7% and average daily rate declined 29.6% to $96.38.

The Canadian hotel industry remains in the doldrums, too, with occupancy falling 53.7% to 35.6%, ADR falling 32.8% to $119.39 Canadian dollars ($89.85) and RevPAR falling 68.9% to CAN$42.46 ($31.95).

US hoteliers struggle to analyze fall-winter demand: What the fall and winter seasons hold as far as business for U.S. hotels is unclear, but sources said it’s not all doom and gloom, with some short-term booking trends maintaining some occupancy, writes Hotel News Now’s Bryan Wroten.

To better understand demand, Hospitality Ventures Management Group is closely watching reservations for the next 30, 60 and 90 days, said Cory Chambers, VP and chief revenue officer.

“If a hotel converted 500 net reservations this week for the booking window of 30 days versus 400 net reservations for 30 days in the last week, that is a very positive marker for us, which we will then have some confidence to forecast,” he said. “Conversely, when we see the reservations trends decrease week over week, then we know we’re looking at some sort of shift in demand.”

Caesars completes sale of Reno Harrah’s for $41.5m: Caesars Entertainment and VICI Properties have completed the previously announced $41.5-million sale of the Harrah’s Reno Hotel & Casino to an affiliate of CAI Investments, according to a news release.

The proceeds have been divided 75% to VICI and 25% to Caesars, and the annual rent payments between Caesars and VICI remain unchanged in their agreed regional master lease.

England bans single-use straws, stirrers, cotton buds: Hoteliers have enacted policies to reduce waste on their own, but now England has banned single-use plastic straws, drink stirrers and cotton buds, according to a government news release.

The government has said “it is estimated (the English) use 4.7 million plastic straws, 316 million plastic stirrers and 1.8 billion plastic-stemmed cotton buds … every year, many of which find their way into our ocean.”

Compiled by Terence Baker.

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