In this week’s roundup of news from the Americas region: a look at drive-to leisure markets; U.S. demand recovery; hotel leaders push for racial equality; people on the move; and more.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
Drive-to demand drives early stages of recovery
Hotel company executives are pinning hopes on an uptick in drive-to demand in leisure markets to carry them through the early stages of recovery in the U.S., reports Hotel News Now’s Dana Miller.
Scott LePage, president of the Americas region at Wyndham Hotels & Resorts, told HNN via email that Wyndham considers drive-to markets to be places travelers can access by car in one day. This typically includes a three- to four-hour driving time.
It’s expected that markets near beaches and national or state parks will benefit most, executives said. For a look at weekday vs. weekend occupancy in five warm-weather submarkets, view this infographic.
Historically, past downturns have indicated resilience of drive-to markets, STR’s Kelsey Fenerty writes. STR is the parent company of HNN.
Full recovery of US demand could take until 2023
STR and Tourism Economics project in their latest forecast revision that hotel demand will not fully return to pre-pandemic levels until 2023.
“Compared with our last forecast, we actually improved our demand projection for 2020 from -45.0% to -36.2%, but we expect it to take 11 quarters for the number of roomnights sold to rise to the corresponding levels of 2019,” said Jan Freitag, STR’s senior VP of lodging insights. “Similarly, it will take until 2023 for occupancy to reach the 20-year historical average. With lower occupancy levels, and the influence of discounting as hoteliers compete for market share, (average daily rate) could show a slower recovery timeline even with more normalization each quarter—we improved our 2021 ADR projection from +1.7% to +5.2%. Despite this better growth rate next year, we do not see ADR recovering to pre-2020 levels in the next five years.”
Hotel leaders weigh in on push for racial equality
During the past few months, the U.S. has been protesting against the death of George Floyd by police in Minneapolis, and HNN’s Danielle Hess reports some hotel companies have expressed their sentiments on racial injustice.
Salamander Hotels & Resorts’ CEO Sheila Johnson on 3 June put out a call to action on the company’s Instagram account asking for Americans to stay strong and continue working toward peace.
Recovery tricky in tourism-dependent Caribbean, Latin America
Hotel leaders speaking on the “CHRIS HOLA 6x8: Recovery top of mind” webinar hosted by the BHN Group highlighted what needs to be done for the regions to recover from the pandemic, reports HNN’s Danielle Hess.
Alex Zozaya, executive chairman of Apple Leisure Group, said it hasn’t been a typical year for tourism across the globe. What’s top of mind right now is the number of jobs lost because of the pandemic and working to get those jobs back, he said.
“Tourism internationally, we have lost about 100 million jobs and about $3 trillion (in) tourism GDP, and that will continue if we don’t start to recover fast,” he said. “That’s what concerns me the most, but then how can we start the recovery as fast as possible?”
Deals, developments, people on the move
- Brokerage firm Marcus & Millichap advised the $8-million sale of the 54-room Abby Hotel in San Francisco.
- A three-way venture group comprised of BentallGreenOak, Flank Management and Geolo Capital has acquired the Hutton Hotel in Nashville, Tennessee.
- Anagram Ventures, a private, independently owned hospitality-focused investment firm, appointed Taylor Jacobs as VP of real estate.
- Marcus Hotels & Resorts announced it reopened its Hilton Madison Monona Terrace property in Madison, Wisconsin, and appointed Carl Dees as GM in addition to his role as VP of operations at Marcus Hotels & Resorts.
- Marcus also reopened the Skirvin Hilton Hotel in Oklahoma City, Oklahoma, and promoted Skip Harless to GM.
- Extended Stay America opened its newest property, a 124-room hotel in Pooler, Georgia.
Compiled by Dana Miller.