Latest news with #RevPAR
Skift
a day ago
- Business
- Skift
Premier Inn Turns to High-Margin Rooms to Offset UK Hotel Weakness
Premier Inn says it's outperforming rivals in a soft UK market, but it's doing so by squeezing more value from fewer guests, not a rebound in demand. Premier Inn-owner Whitbread reported a drop in UK accommodation sales in its fiscal first quarter and is trying to offset weaker demand by charging guests for room upgrades and add-ons. UK accommodation revenue declined 2% for the period that ended May 29. RevPAR also fell 2%, while occupancy dropped to 78.6%, down more than 3 points from last year. Trading "was against a softer demand backdrop," Whitbread CEO Dominic Paul said on the company's earnings call Thursday. 1. Upselling to lift spend per guest: With fewer bookings, Premier Inn is tryi
The Herald Scotland
a day ago
- Business
- The Herald Scotland
Premier Inn bosses upbeat as hotels planned for Edinburgh
Whitbread reported that total Premier Inn UK accommodation sales decreased by 2% in the 13 weeks to May 29, compared with the same period last year. Total revenue per available room (RevPAR) was also down 2%. Accommodation sales in London Premier Inns declined by by 2.4% and RevPAR plunged by 5.5%, although the company performed ahead of its competitors in the UK capital. In Germany, Premier Inn accommodation sales growth slowed from 23% in the first seven weeks to 15% for the first quarter. Meanwhile Whitbread, which operates restaurants trading under brands such as Beefeater, Brewers Fayre and Table Table, said food and beverage sales tumbled by 16%, in part because it offloaded some underperforming restaurants and converted some into more hotel rooms. Read more: Russ Mould, investment director at stockbroker AJ Bell, said: 'How much does it matter if you're doing better than the wider market and still struggling? That's the question in front of the market as Whitbread updates on its first-quarter trading. 'The Premier Inn owner has a proposition which is relatively affordable and reliable – anyone booking a room knows what they are going to get and that is a key selling point. 'However, the key revenue per available room metric is still trending negative for its domestic business thanks to the weak backdrop for the UK hotels market as a whole amid an uncertain economic backdrop. 'With visibility limited, all the company can do is control what it can and hope that it comes out of this difficult period with its competitive position enhanced thanks to weaker players and independent operators falling by the wayside.' Whitbread chief executive Dominic Paul gave an upbeat assessment of the company's performance, declaring it was 'making excellent progress' with its accelerating growth plan, which involves converting 112 branded restaurants into new hotel rooms and selling 126 more. The plans announced in April 2024 will also see around 1,500 jobs axed as it looks to save about £150 million over the next three years. Mr Paul highlighted progress with plans to expand Whitbread's hotel network in the UK and Germany, which currently numbers more than 900 properties. And he said Whitbread was 'on course to deliver £60m of cost efficiencies and meet our target of £250m-£300m of property disposal proceeds this year'. He added: 'Our five-year plan is on track and will deliver a step change in profits, margins and returns over the next few years. 'In the UK, we continue to outperform against a challenging market backdrop, with the strength of our brand and commercial programme continuing to drive total accommodation sales and RevPAR growth ahead of the market. Whilst the short-lead nature of our business means that our forward visibility remains limited, our forward booked position is ahead of last year and we remain confident that we can continue to outperform the market. 'In Germany, we delivered another strong trading performance, led by the increasing maturity of our estate and our commercial initiatives. Our total estate is outperforming the M&E (midscale and economy) market, and we remain on course to deliver profitability in FY26.'
Skift
3 days ago
- Business
- Skift
U.S. Hotels Face a Challenging Landscape This Year
The DJIA fell 299 points, the Nasdaq was down 180, the S&P 500 fell 50 points and the 10-year treasury yield was down .06 to 4.39%. Lodging stocks were modestly in negative territory on the day. In 2025, the U.S. lodging sector faces a challenging landscape, characterized by a combination of macroeconomic and capital market factors, according to PwC. As a result of the macroeconomic headwinds, GDP in 2025 is expected to grow by 0.7%, compared to 2.5% in 2024, on a fourth-quarter over-fourth-quarter basis. Inflation is anticipated to rise 2.7% in 2025, which, coupled with geopolitical uncertainties, is expected to significantly influence consumer behavior, particularly impacting the lower-priced chain scale segments. As a result, PwC expects RevPAR growth to decelerate significantly to 0.8%. The key risks continue to be on room night demand, just as lodging supply growth is reverting to its long-term average of ~2.0%. Key demand performance trends and risks include: International leisure travel has declined noticeably, marked by a 3.3% drop in visitors in the first quarter compared to last year. In contrast, inbound corporate travel has improved, with a 10% and 17.4% increase from Europe and Canada, respectively. Domestic leisure travel growth has slowed significantly due to a combination of inflation concerns and declining consumer sentiment, while domestic corporate travel is showing mixed results, with stable premium offerings and group travel demand despite softened lower-tier demand. Hotel operating performance continues to be bifurcated, with luxury hotels outperforming economy properties. YTD through April luxury RevPAR grew by 7.1%, while economy hotels saw only a 0.9% increase, compared to the same period last year. Despite a slowdown in hotel development, upscale segments continue to see new projects. PwC's outlook anticipates significant deceleration in travel demand in Q2, with expected positive momentum recommencing in the second half of 2025. As a result, PwC expects RevPAR in the second quarter to decline by 1.2% year-over-year, driven primarily by occupancy. PwC also expects RevPAR in the third and fourth quarters to increase by 1.1% and 1.8% respectively. For 2026, global events like the FIFA World Cup could boost tourism. HHM Hotels announced the Courtyard by Marriott Philadelphia Downtown has announced a new name following an all-encompassing property renovation that included the renovation of every guestroom and public area of the hotel. Formerly the Le Meridien Philadelphia, the 202-room hotel features an onsite restaurant and bar, 9,165 square feet of flexible event space, a fitness center, and an onsite market. Hilton's Canopy brand has made its debut in Nashville, Tennessee. Located in the city's Gulch district, Canopy by Hilton Nashville The Gulch features 181 rooms, including 27 suites and five distinctive dining experiences. Hotel Indigo Nashville - The Countrypolitan has completed the second phase of its multi-year transformation. This latest phase included a full renovation of all 134 guestrooms and suites, modernization of the hotel's 6,500 square feet of meeting and event space, and a new fitness center. This renovation completes The Countrypolitan's upgrade to an authentic Nashville experience. HEI Hotels & Resorts has added Waymore's Guest House and Social Club in Nashville to its growing portfolio of upper-upscale independent boutique hotels and resorts throughout the United States. Owned by L+R Hotels, Waymore provides 93 rooms, approximately 4,200 square feet of meeting space, and two F&B outlets. Margaritaville Hotel Kansas City, in Kansas City, Kansas, will host a ribbon cutting and preview event today. The 229-room hotel will start taking reservations on July 1. The hotel will feature an indoor pool, an outdoor resort-style pool, retail and family entertainment centers, along with a bar and grill. The historic Casa Marina Hotel, in Jacksonville Beach, Florida, is under contract to be sold, according to News4JAX. The property has a planned renovation for 2026. It's unclear when the pending sale will be finalized. The Avila Village Inn, in Avila Beach, California, has unveiled an expansion that blends upgraded guest amenities with thoughtfully designed new accommodations. The boutique property has added 18 brand-new rooms in the Forest Building and completed enhancements to its original 30 rooms in the Craftsman Building. Hotel El Roblar, in Ojai, California, is reopening on June 19, according to the Ojai Valley News. Eric Good, Jeremy McBride, Warner Ebbink and Ramin Shamshiri purchased the property and transformed Hotel El Roblar to highlight its Spanish Revival and early Californian architecture while updating its bones. The revamped hotel remains an intimate property, featuring only 50 rooms. There are 31 rooms in the main house, 11 rooms are bungalows, and eight rooms are in a new building on the property called the Sycamore House. There's also a pool, gym, treatment room, and event space. The first patients will be seen in early 2025 inside the new Sanford Orthopedic Hospital, which will open a boutique hotel inside at the same time. Located in Sioux Falls, South Dakota, the nine-story building will have 35 rooms to serve patients both before and after procedures, 12 operating rooms, and an intra-operative MRI attached directly to an OR. The building also includes the new Highpoint Hotel, a boutique hotel with high-end finishes and amenities developed and operated by Hegg Cos. The lobby is on the fourth floor, which includes a fireplace, an expanded gym, and a bar. The 56 guestrooms are on floors six and seven, while the fifth floor eventually will be built out as 19 inpatient hospital rooms. The hotel expects to start accepting reservations in mid-October and open for the first guests on January 12, 2026. HREC Investment Advisors arranged the sale of the 149-room Sonesta Select - Kansas City Airport Tiffany Springs located in Kansas City, Missouri. The property was acquired by KMG Hotels. HREC Investment Advisors exclusively represented an affiliate of Service Properties Trust, as the seller in this transaction. Personnel News Noble Investment Group announced the addition of Tim Bowes and Mark Klawitter to its asset management leadership team. Bowes will help lead asset performance across Noble's upscale select-service hotel portfolio, partnering with operating teams to implement innovative strategies that unlock value. Most recently he served at Hospitality Investors Trust, a Brookfield company. Klawitter will help spearhead execution across Noble's branded long-term accommodations platform, guiding initiatives that drive revenue, profitability, and operational innovations. He most recently served at Extended Stay America. Europe Highlights Together with landlord Vasakronan, Scandic plans to open a modern, new 236-room hotel in downtown Uppsala, Sweden. In addition to a gym, bar, and flexible meeting facilities, the new hotel will offer a large restaurant. The property is being developed as a mixed-use building, combining both hotel and office spaces, which means that hotel guests and office tenants will share the lobby and entrance areas. Construction is scheduled to begin in the autumn of 2025, with the grand opening planned for the second quarter of 2028. In the UK, the design overhaul of the Malmaison, on Newcastle's Quayside, will see a £3m refurbishment to revamp all of the hotel's 122 bedrooms and suites. The company had initially planned a £2m refurbishment program, but a more ambitious scheme has now been announced. The project is being phased in to minimize disruption and is expected to be completed later this year. Hilton is planning to build a new hotel with 142 rooms in Shropshire, England. Telford & Wrekin Council has signed an agreement with Hampton by Hilton for a six-story hotel within the town's new Station Quarter. A provisional opening date of 2027 was given.
Skift
6 days ago
- Business
- Skift
Jalisco Announces $1 Billion Hotel Development Program
The DJIA fell 770 points on Friday, with the markets reacting to the events in Iranand Israel. Nasdaq was down 256, the S&P 500 fell 68 points, and the 10-year treasury yield was up .07 to 4.42%. Lodging stocks were lower. PK was the biggest mover, down -5% on the day. CBRE released its U.S. Hotels State of the Union June 2025 Edition. Adjusting for Easter, RevPAR rose 0.4% in March/April combined. During March/April combined, ADR growth of 1.5% was offset by a 1.1% decrease in occupancy. While trends are softening across the board, upper price hotels outperformed, posting RevPAR growth of 2.9% over the period. Roughly 50% of markets are experiencing RevPAR increases and 50% experienced contraction over the March/April period. Short-term rental demand grew 6.0% in April, again outpacing hotel demand. STR share of demand increased again in April to 13.7%, though down slightly from 14.2% in April 2020. STR RevPAR increased 12.7% in April as ADR rose to 142% of 2019 and occupancy improved to 97% of 2019. Other key findings include: the Easter Shift from March to April drove total revenue growth of 2.9% in March. Increases in saving and discretionary income could support travel demand. The gap between outbound and inbound visitation continued to widen, and TSA throughput declined substantially in May, down 1.7%. The Ritz-Carlton Residences, Waikiki Beach, completed its multi-phase, multi-million dollar renewal. The 552-room property has refreshed its 'Ewa Tower guest rooms, front desk and both infinity pools and also debuted the Ritz-Carlton Suite Collection. In addition, the hotel debuted a brand new dining concept. Guests can also enjoy new programs and amenities inspired by the unique spirit of O'ahu. La Concha Resort, in San Juan, Puerto Rico, announced its official transition to Marriott International's Autograph Collection, following an extensive property-wide renovation, highlighted by the unveiling of the fully re-imagined Suite Tower featuring 238 newly redesigned rooms and suites. As the first Autograph Collection Hotel in Puerto Rico, La Concha Resort, Puerto Rico, an Autograph Collection Hotel, also features the Elemara Spa & Salon and multiple culinary offerings. Certares Management paid $47 million for the Hilton New Orleans, located on St. Charles Avenue in New Orleans, Louisiana. According to Sunstone Hotel Investors of California chose to sell the hotel at a loss rather than make the investment needed to keep the hotel competitive. The Hilton New Orleans boasts 252 guestrooms, an indoor pool, an executive club lounge and a restaurant. EVEN Hotels by IHG announced the opening of its newest Florida property, EVEN Hotel - Doral Area. The 125-room property is owned by ASI Global and operated by Buffalo Lodging. EVEN Hotel - Doral Area features an athletic studio, an outdoor pool and a restaurant concept. Blackstone last month registered an entity named Sunseeker Resort Owner LLC with the Florida Division of Corporations, along with others named Sunseeker Expansion I LLC, Sunseeker Expansion II LLC, and Sunseeker Golf Owner LLC. MSN reported this, saying this has many believing Blackstone will be buying the underperforming Sunseeker Resort in Port Charlotte, FL. The 785-room resort has had issues from the start, opening late and over-budget for various reasons, including hurricane damage and being a chronic underperformer since opening its doors. While the speculation in the SW Florida region was that this would become a casino, it can't due to the agreement the state has with the Seminole Tribe, owners of the Hard Rock and Seminole casino resorts. We've always viewed the place as being transformed into a convention hotel. There's a new destination for leisure getaways, celebrations, and corporate events in New York's Hudson Valley: Windrose on Hudson, formerly known as Crotonville Conference Center. Part of Benchmark Resorts & Hotel by Pyramid Global Hospitality, the Windrose on Hudson features 248 guestrooms, Café 56, 52,000 square feet of flexible indoor event space, more than 50 acres of outdoor gathering spaces, a fitness center, spinning studio, racquetball court, basketball and volleyball courts, and three fire pits. Red Roof announced the opening of the Red Roof Inn Sanford, located in Sanford, North Carolina. The 122-room hotel offers an outdoor pool and a guest laundry facility. Owner Jay Dan Gigev 2501, LLC has completed a $1.3 million renovation of the property. SAI Birmingham LLC purchased the 98-room Sonesta Simply Suites Birmingham Hoover hotel located in Birmingham, Alabama. The sellers were companies associated with The RMR Group. Glenwood Springs' newest boutique hotel, Hotel 1888, welcomed its first guests following a grand opening ceremony. Nestled within the Stone Bath House at the Glenwood Hot Springs Resort, in Glenwood Springs, Colorado, the exclusive hotel features 16 new rooms, including two high-end suites. Glenwood Hot Springs Resort also features the Glenwood Hot Springs Resort Athletic Club, multiple pools and a restaurant. Holiday Inn Club Vacations Incorporated celebrated the completion of the first phase of The Residences at Orange Lake Resort, located in Orlando, Florida. The expansion includes three completed six-bedroom luxury homes and one fully-furnished model home. Orange Lake Resort has grown into a 1,100-acre flagship destination featuring more than 2,400 villas across four villages. The property offers a wide range of amenities, including a lazy river, four golf courses, restaurants, mini golf, sports courts, and more. Westgate Resorts announced the official opening of River Country Water Park, the newest attraction at the Westgate River Ranch Resort & Rodeo in Central Florida. Situated on Westgate Resorts' 1,700-acre dude ranch, River Country Water Park features three waterslides, a Splash Pad, an oversized lagoon pool, chic cabanas, and a signature food and beverage stop. Graton Resort & Casino in Rohnert Park, California, celebrated the groundbreaking of its hotel expansion. Slated to debut in 2027, the project adds two new hotel wings featuring 220 new rooms, an expanded lobby, a retail shop and a new private VIP entrance. A cornerstone of this expansion introduces a second, adults-only pool boasting a dedicated poolside bar, a Jacuzzi and 12 cabanas. Furthermore, plans include a fixed stage to host dedicated poolside entertainment. Under Canvas announced the grand opening of its first camp in Washington State: Under Canvas Columbia River Gorge. The newest camp joins 11 other Under Canvas locations nationwide. The camp includes a lobby tent, featuring inviting lounge areas and communal dining spaces and an expansive yoga deck. The dining program highlights al fresco and indoor café-style options and grab and go lunches and snacks are available throughout the day. LuxUrban Hotels Inc. entered into a Stipulation of Settlement with 123 Washington LLC in connection with litigation concerning the Company's leasehold interest in the hotel property located at 123 Washington Street, New York, New York. Under the terms of the Settlement Agreement, the Company has agreed to make a total settlement payment of approximately $3.4 million, payable in installments through November 2026, in full satisfaction of a previously entered judgment in excess of $12 million. To fund a portion of the settlement, the Company utilized $2.625 million in previously restricted cash deposits that had been held in escrow under the lease. Latin American Highlights Jalisco announced a $1 billion investment for constructing 38 new hotels, aiming to add 4,578 rooms across the state by 2028. InterContinental Hotels Group is set to operate seven new hotels with an investment of $165 million. Hilton plans to spend $90 million on four properties. Marriott has allocated $65 million for four hotels, while Hyatt will invest $295 million in three hotels in Puerto Vallarta. Additional investments include $230 million by Chable El Tezcalame Tomatlan, $45 million by ME by Melia, $26 million by NH Guadalajara Suites, and $15 million by Four Points by Sheraton. The Brada Collection will invest $8 million in two hotels and other smaller investments include Serenzzo Tapalpa at $2 million, Shaalam San Juan Cosala at $6 million, Suites Liveup at $20 million, and WorldHotels at $13 million. Furthermore, eight independent hotels will collectively invest $100 million. These developments are strategically located across various key destinations within Jalisco, including the Guadalajara metropolitan area, Puerto Vallarta, and Costalegre. In Montego Bay, Jamaica, the Montego Bay Hip Strip will be the host for the newly announced AC Marriott Montego Bay. Plans for the 165-room hotel include a sky terrace bar, and conference and banqueting space. Europe Highlights Capella Hotels & Resorts to make European debut in the heart of Florence with the opening of Capella Florence in 2027. In addition to 33 suites and 56 guestrooms, Capella Florence will also feature 10 exclusive residences with a dedicated entrance. Amenities include two restaurants, a rooftop bar, a subterranean speakeasy wine vault, Capella's signature Living Room, and an indoor amphitheatre. A separate Clubhouse will be home to a Capella Spa with a hydro pool, fitness center and café. For more context, read: Capella's Break-Out Year: Four Openings, Two Brands, Cracking Luxury's Toughest Challenge.
Hospitality Net
12-06-2025
- Business
- Hospitality Net
US Hospitality Directions: May 2025
In 2025, the U.S. lodging sector faces a challenging landscape, characterized by a combination of macroeconomic and capital market factors, including an uncertain tariff environment, an in-flux immigration policy, elevated interest rate environment, and potentially higher inflation. As a result of the macroeconomic headwinds, GDP in 2025 is expected to grow by 0.7%, compared to 2.5% in 2024, on a fourth quarter over fourth quarter basis. Steady, albeit still high, inflation is anticipated to rise to 2.7% in 2025, which coupled with geopolitical uncertainties is expected to significantly influence consumer behavior, particularly impacting the lower-priced chain scale segments. As a result, our forecast expects RevPAR growth to decelerate significantly to 0.8%. The key risks continue to be on room night demand, just as lodging supply growth is reverting to its long-term average of ~2.0%. Key demand performance trends and risks include: Inbound Travel International leisure travel has declined noticeably, marked by a 3.3% drop in visitors in the first quarter compared to last year. In contrast, inbound corporate travel has improved, with a 10% and 17.4% increase from Europe and Canada, respectively. Domestic Travel Domestic leisure travel growth has slowed significantly due to a combination of inflation concerns and declining consumer sentiment, while domestic corporate travel is showing mixed results, with stable premium offerings and group travel demand despite softened lower-tier demand. Continued Demand Bifurcation Hotel operating performance continues to be bifurcated, with luxury hotels outperforming economy properties. YTD through April luxury RevPAR grew by 7.1%, while economy hotels saw only a 0.9% increase, compared to same period last year. Despite a slowdown in hotel development, upscale segments continue to see new projects. Our outlook anticipates significant deceleration in travel demand in Q2, with expected positive momentum recommencing in the second half of 2025 as the macroeconomic picture becomes clearer and potential impacts of major economic and fiscal policies are better absorbed. As a result, we expect, RevPAR in Q2 to decline by 1.2% year-over-year, driven primarily by occupancy. We expect RevPAR in Q3 and Q4 to increase by 1.1% and 1.8% respectively, driven by an improving macroeconomic environment supported by stronger GDP growth in those two quarters. For 2026, while global events like the FIFA World Cup could boost tourism. RevPAR percent change, US and chain scales — Source: Source: PwC, based on data from STR About Hospitality Directions PwC Hospitality Directions US is a near-term outlook for the US lodging sector, commonly used by industry decision-makers and stakeholders to better understand the impact of policy and other macro-environmental factors on the sector's operating performance. Our outlook includes metrics for the overall sector as well as for the chain scales, and is used by our clients for strategic planning and capital allocation purposes demand and supply occupancy average daily rate revenue per available room About PwC US PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 157 countries with more than 195,000 people. We're committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. View source
