Hotel Industry Newsletter- October 2023

Greetings, fellow hotel enthusiasts! ????

Welcome to the October 2023 edition of our Hotel Industry Newsletter! ???

In this month's newsletter, we've gathered the latest updates and trends from the ever-evolving world of hospitality. From the resurgence of the global hotel industry to the exciting developments in wellness-focused corporate retreats, and sustainability challenges, we've got it all covered.

But that's not all! We'll also explore the recent mergers and acquisitions in the hotel industry and unveil some of the most enticing new hotel developments.

So, grab a cup of your favourite brew ?, sit back, and let's dive into the exciting world of hotels!

Global Hotel Industry Enjoys Strong September

The global hotel industry enjoyed a robust September, with occupancy rates and RevPAR both showing significant growth compared to the same month last year. According to STR, global hotel occupancy reached 66.9% in September 2023, up from 62.9% in September 2022. RevPAR also witnessed a substantial increase, reaching ￡103.85 in September, representing a remarkable 10.2% rise compared to the same month in 2022.

This upward trend in global hotel performance reflects a growing demand for travel and accommodation, with travellers returning to hotels and contributing to their resurgence.

London Hotel Prices Increase at More Normal Levels

Hotel prices in London rebounded to a more stable level in September 2023 after experiencing a sharp rise in the previous month. According to Business Travel News Europe, the average daily rate (ADR) for a hotel room in London in September was ￡205, marking a modest increase of 2.3% compared to the same month last year. This stands in contrast to the remarkable 10.2% increase witnessed in August 2023.

The stabilized prices reflect the dynamic nature of the hospitality industry, where market conditions can change rapidly.

Corporate Retreats at the Intersection of Business Travel and Wellness Programming

Corporate retreats are becoming increasingly popular as a way for companies to provide their employees with a unique and memorable experience while promoting employee well-being. Many companies are now seeking hotels that can offer a diverse range of wellness-focused activities during corporate retreats, including yoga, meditation, fitness classes, and healthy cooking demonstrations.

Some hotels are going the extra mile by offering specialized corporate retreat packages that encompass everything from transportation and accommodation to activities and meals. These comprehensive packages help companies save time and resources while ensuring that their employees have a positive and productive experience.

Whitbread's Premier Inn and IHG Top Best Hotel Rankings

Whitbread's Premier Inn and IHG have secured the top spots in the best hotel rankings for the UK in 2023, according to Proactive Investors. Premier Inn emerged as the best hotel chain overall, closely followed by IHG and Holiday Inn. These rankings were based on a comprehensive survey of over 10,000 UK travellers.

This recognition highlights the commitment of these hotel chains to providing exceptional guest experiences.

Two Things That Make Your Hotel Unsustainable

Two significant sustainability challenges facing the hotel industry are single-use plastics and food waste. According to CNBC, single-use plastics account for a significant portion of hotel waste, contributing to environmental concerns. Food waste is another pressing issue in the hotel industry, with hotels generating an estimated 1.3 billion tons of food waste annually.

Addressing these challenges is crucial for hotels to minimize their environmental footprint and embrace sustainable practices.

Global Business Travel Industry Sees 2023 Rebound, Opportunities for 2024

The global business travel industry is experiencing a notable rebound in 2023, with promising opportunities on the horizon for 2024. Hotel Management reports that global business travel is expected to reach 80% of pre-pandemic levels in 2023. In 2024, it is projected to exceed pre-pandemic levels.

Amex GBT Projects Higher 2024 Hotel Rates and Occupancy

Amex GBT projects higher hotel rates and occupancy for 2024. According to Business Travel News, Amex GBT anticipates hotel rates to increase by 5-7% in 2024, while occupancy is expected to reach 70-75%. Several factors contribute to this optimistic outlook, including the ongoing global economic recovery, pent-up demand for travel, and shortages of hotel rooms in some markets.

Hotel Investments:

London Hotel Project Receives ￡450 Million Green Light In a landmark decision, a ￡450 million investment in a new London hotel project has been approved. C1 Capital Partners and Frogmore are set to make a significant impact on London's hospitality scene.

London, October 31, 2023 – Hotel Investment Partners (HIP), a prominent owner of resort hotels in Southern Europe, is pleased to announce the addition of GIC, a global institutional investor, as a new partner in the company's capital structure.

HIP, established in 2015 and subsequently acquired by Blackstone-managed funds in 2017, will see GIC assume approximately a 35% ownership stake. Blackstone-managed funds will retain the majority shareholding, maintaining approximately 65% ownership in HIP.

Since 2017, HIP has executed a strategic plan involving the acquisition and enhancement of well-located yet underinvested hotels, deploying over EUR 600 million in capital towards this initiative. HIP's collaborative partnerships with renowned global hotel operators such as Ritz-Carlton, Barceló, Melia, Hyatt, Hilton, Ledra, and Marriott have been instrumental in their success. Currently, the company proudly manages a diverse portfolio of 72 hotels, encompassing over 21,000 rooms across Spain, Greece, Italy, and Portugal, with a dedicated workforce of 10,000 individuals serving guests across these establishments. Impressively, 54 of their hotels have earned the prestigious BREEAM Very Good certification.

Lending Nears Historic Lows in Commercial Real Estate

The Wall Street Journal reports lending in commercial real estate "is shrinking to historically low levels," which in turn could lead to a wave of defaults and distress as owners struggle to refinance.

"Total volume of commercial real estate loans held by banks, the largest source of debt financing, declined during the first two weeks of October, according to analysis of Federal Reserve figures by Trepp, a data provider," the newspaper reports. "Bank commercial property lending has declined for only two months since 2014. Most other two-week periods since 2014 have shown positive growth." according to the Co-Star

Other latest openings around Europe.

1. Barceló Hotel Group's Debut in Navarre: Barceló Hotel Group has acquired and extensively refurbished the Hotel Reino de Navarra, opening it as the Occidental Pamplona in Navarre, Spain.
2. Hilton's LXR Hotels & Resorts in Italy: Hilton is introducing Italy's first LXR Hotels & Resorts property through a franchise agreement with Paval Holding and Apex Alliance.
3. Ascott's Growth with "The Crest Collection": Ascott's prestigious brand, "The Crest Collection," is expanding with a 40% increase in total unit numbers year-on-year.
4. Gran Meliá's New Hotel in Barcelona: Gran Meliá, a luxury brand of Meliá Hotels International, is set to launch Torre Melina, a Gran Meliá hotel in Barcelona, in 2024.
5. Elegant Hotel Collection's Debut: The Elegant Hotel Collection, a new soft brand for independent luxury hotels, has debuted with 25 high-end properties.
6. Deutsche Hospitality in Geneva: Deutsche Hospitality has opened its first hotel in French-speaking Switzerland, the Intercity Hotel Geneva.
7. Hilton's Canopy in Warsaw: Hilton is partnering with TFG Hotels to open its first lifestyle hotel, Canopy by Hilton, in Poland's Warsaw in 2025.
8. European Camping Group Expansion: The European Camping Group (Homair) has added three new campsites to its portfolio operating under the Maravilla Parks brand.
9. Rosewood's New Hotel in Crete: Rosewood is expanding its European portfolio with the Rosewood Blue Palace in Crete, set to open in 2025.
10. Hyatt's Thompson Hotel in Seville: Hyatt is opening a new Thompson hotel in Seville, marking the brand's presence in its second Spanish location.
11. Radisson RED in Helsinki: Radisson Hotel Group is opening the Radisson RED hotel in Helsinki, Finland, offering a blend of art and modern design.
12. Hilton's Debut in Lille: Hilton is opening its first property in Lille, France, following a full rebranding under Hilton Hotels & Resorts.
13. IHG's voco Hotels Expansion: IHG Hotels & Resorts continues to expand its voco? hotels brand within European markets with recent property signings.
14. Minor Hotels' First Property in Finland: Minor Hotels is opening its first property in Finland, the NH Hotel.
15. Travelodge's Expansion in Spain: Travelodge has expanded with the opening of its sixth hotel in Spain, located in Coslada, Madrid.
16. Kimpton Brand in Portugal's Algarve: IHG Hotels & Resorts is introducing its Kimpton Hotels & Restaurants brand in Portugal's Algarve region.
17. Gran Meliá Dubai Jumeirah: The Gran Meliá Dubai Jumeirah adds a luxurious addition to Dubai's hotel landscape.
18. Dolce by Wyndham in Versailles, France: Wyndham Hotels & Resorts is opening Dolce by Wyndham Versailles – Domaine du Montcel in France.
19. ibis Styles in Copenhagen: The ibis Styles brand opens its first hotel in Denmark, specifically in Copenhagen.
20. Comfort Hotel Prague City East Renovation: Choice Hotels EMEA unveils the renovated Comfort Hotel Prague City East.
21. Ibis Styles Hotel at Debrecen Airport: Accor is preparing to inaugurate an ibis Styles hotel at Debrecen Airport in Hungary in 2025.
22. Hilton's Expansion in Lisbon: Hilton is expanding its presence in Lisbon with the addition of three new hotels.
23. SmartRental's International Expansion: SmartRental Group has opened its first hotel outside Spain under the Akeah brand in Budapest.
24. Oceania Hotels' Growth and Projects: Oceania Hotels reports growth despite a challenging summer season and outlines development projects for 2024 and 2025.
25. Denizen House in Düsseldorf: Denizen and NUMA Group launched Denizen House, an innovative on-demand, subscription-based community and event workspace in Düsseldorf.
26. Novotel's Debut in Valencia: Novotel is making its debut in Valencia with the opening of a flagship hotel in the Turia Garden district.
27. IHG's Expansion in Budapest: IHG Hotels & Resorts is introducing two new properties in Budapest, Hungary, in collaboration with WING, a leading property development and investment group in Central Europe.Credit - Hospitality investors, Hospitality- on ?? That's a wrap for now! We trust you found the articles enlightening. Stay in the know and keep those sparks of inspiration alive with our Hotel Industry Newsletter. ?????? Have a great Autumn and an even better end of the year! ????Cheerio, Keba Vinod