5 things to know: 8 August 2016
5 things to know: 8 August 2016
08 AUGUST 2016 9:10 AM

From the desks of the Hotel News Now editorial staff:

  • Chinese review of Marriott/Starwood deal extended
  • Anbang possibly considering acquisition of IHG
  • France hotel stays down 10%, minister says
  • UK consumer spending up despite Brexit
  • Japanese hotel REIT plans $175m stock issue

Chinese review of Marriott/Starwood deal extended: Marriott International and Starwood Hotels & Resorts Worldwide have agreed to allow the Chinese Ministry of Commerce to extend its review of Marriott’s acquisition of Starwood. The additional review period, known as phase three, could last up to 60 days, according to a news release from Marriott.

According to the news release, both Marriott and Starwood officials believe the planned merger poses no anti-competitive issues in China. This approval is the only remaining authorization required before the transaction can close.

Anbang considering acquiring IHG?: China’s Anbang Insurance Group, which in April withdrew its bid to buy Starwood Hotels & Resorts Worldwide, might be interested in making a £7-billion ($9.1 billion) bid for InterContinental Hotels Group, according to a story in The Sunday Times. The newspaper reports that “Anbang is said to be in the early stages of considering an offer for IHG” and has not yet approached the company. Chris Winans, a representative for Anbang, spoke to Reuters Sunday and refuted the report.

The London Stock Exchange lists IHG’s market capitalization currently at £6.38 billion ($8.3 billion).

France hotel stays down 10%, minister says: Following the recent spate of terrorism incidents in France, hotel stays in the country have fallen by 10% in year-to-year numbers for 2016 as opposed to 2015, according to Reuters, which quoted a 7 August interview of France’s tourism minister Matthias Fekl with French newspaper Le Journal du Dimanche.

Fekl said the decline in numbers was most prominent among U.S., Gulf Cooperation Council and Asian travelers, which comprised the country’s “high-spending visitors.” Fekl added that Europeans, which made up 80% of roomnight stays, continued to travel to France.

U.K. hotel consumer spending up despite Brexit: British consumers seemingly are not deterred by the United Kingdom’s decision to leave the European Union, as year-over-year spending increased by 1.6% in July—which was better than June’s figure of 0.9%—and the hotel industry led the charge, according to a report from Visa.

The Visa UK Consumer Spending Index said that of its eight monitored sectors, the largest percentage rise in spending was in hotels, restaurants and bars, which saw an increase of 8.9%.

Japanese hotel REIT plans $175m stock issue: Japanese real estate investment trust Ichigo Hotel REIT Investment Corporation said it will sell 17.9 billion Japanese yen ($174.5 million) in new shares via subscription, as well as another 864.6 million yen ($8.4 million) via private channels, according to a news release.

Ichigo said in the news release it plans to use the proceeds to acquire “10 hotel assets.”

Compiled by Terence Baker.

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