David Eisen - 10 Minutes News for Hoteliers - Page 7

Hotel Equities and Springboard Hospitality merge

🏨 Hotel Equities and Springboard Hospitality merged effective May 1, with Ben Rafter as CEO and Brad Rahinsky as chairman. The combined entity operates over 250 hotels across the U.S., Canada, Caribbean, and Latin America. Hotel Equities manages nearly 200 hotels, while Springboard Hospitality oversees 51 properties. The merger aims for revenue generation, technology innovation, and providing long-term value. Al Smith becomes COO; Rob Robinson is now president of Springboard Hospitality. Terms were not disclosed.

Hyatt moderates RevPAR outlook as it races to get Playa deal over the finish line

🏨 Hyatt Hotels is set to complete a $2-billion purchase of Playa Hotels & Resorts. In Q1, Hyatt's RevPAR grew by 5.7% year-over-year but CFO Joan Bottarini noted slowing bookings, predicting full-year RevPAR growth of 1-3%. CEO Mark Hoplamazian reported softer U.S. booking trends, with high single-digit declines, but stronger international RevPAR expectations. Hyatt's luxury segment is strong, but upscale and select services see less business travel. Roughly 50% of 2026's bookings are pacing over 10% ahead, with healthy rate increases. U.S. GDP fell by 0.3% in Q1 2025, the first decline since Q1 2022. Hyatt's acquisition of all Playa shares for $2.6 billion, including $900 million net debt, is underway, with the tender offer extended to May 23, 2025. The company is selling real estate, including Hyatt Grand Central New York and Andaz London, as part of an asset-light strategy. Hyatt's Q1 room pipeline increased by 7%, reaching approximately 138,000 rooms, and net-rooms growth hit 10.5%. Hyatt's loyalty program reached 56 million members, up 22% from the previous year.

3 min

Retailer Anthropologie and Philadelphia’s Hotel Anna & Bel get suite on each other

🏠 Anthropologie collaborates with Hotel Anna & Bell to launch a suite in Philadelphia's Fishtown. The 950-square-foot Anna Suite boasts two bedrooms, two bathrooms, and 360-degree views. It features Anthropologie's furniture and decor, fully shoppable via QR code. The boutique hotel, opened by Foyer Project in August 2024, is the first full-service property in Fishtown, built on historic grounds. The suite's design includes vintage-inspired elements and is the sole room on the fourth floor, with private staircase access.

4 min

The CEO of Wyndham Hotels conjured grim events of the past to explain why he’s not afraid of the future

📌 Wyndham Hotels & Resorts' CEO Geoff Ballotti referenced past crises to illustrate the company's resilience during their Q1 earnings call. Despite a 2% to 1% downward RevPAR guidance for 2025, Wyndham's global RevPAR grew 2% in Q1, though it fell 8% in China. The company is less affected by international travel, with less than 3% of U.S. bookings from abroad. Wyndham's domestic focus is on driving markets, with 90% of their footprint and consistent booking patterns. Adjusted EBITDA rose 9%, the global system expanded by 4%, and the hotel pipeline increased by 5% to 2,143 hotels. New construction is normalizing, now representing nearly a third of openings. Ballotti highlighted domestic sourcing to mitigate tariff impacts and the relevance of infrastructure projects to their business.

As Hilton guides down, its CEO remains reassured

🏨 Hilton President & CEO Chris Nassetta highlighted Q1 results with a 2.5% RevPAR increase year-over-year but forecasted a full-year RevPAR between flat to 2% growth. Hilton opened 186 hotels, adding over 20,000 rooms in the quarter, marking a 20% annual increase and 7.2% net unit growth. Approximately 40% of new openings were conversions, half located internationally. The luxury segment contributed 30% to openings, including the 252-room Waldorf Astoria Osaka. The development pipeline featured 503,000 rooms, a 7% rise, with over 32,000 approved in Q1, up 10% year-over-year. Hilton anticipates a 6%-7% net unit growth in 2025 and plans to expand from 24 to 27 brands.

3 min

Marriott snaps up citizenM in $355M deal

💰 Marriott International to acquire citizenM for $355 million, adding 36 hotels (8,544 rooms) across 20+ cities including New York and London to its portfolio. Three new hotels (over 600 rooms) expected by mid-2026. Annual stabilized fees from the portfolio estimated at $30 million, with potential earn-out payments up to $110 million. Marriott anticipates full-year 2025 net rooms growth nearing 5% post-acquisition. citizenM, founded in the Netherlands in 2005, opened its first hotel in 2008. In 2019, GIC acquired a 25% stake for €2 billion. Marriott aims to leverage its global ecosystem and the Marriott Bonvoy platform to grow the brand.

Accor Q1 offers glimpse of first cracks in global travel demand

🏨 Martine Gerow, CFO of Accor, led the Q1 sales and revenue call in absence of CEO Sébastien Bazin. Accor, which operates predominantly outside the U.S., has 108 hotels in North America out of over 5,500 globally, drawing just 5% of its room revenue from the U.S. In March, U.S. bookings declined by 10%, with larger drops from Europe. Canada, with 27 Accor hotels, showed a trend of locals staying in-country rather than traveling to the U.S. For Q1 2025, Accor reported a RevPAR increase of 5% YOY, with a 13.1% rise in the Americas despite China's negative impact. Accor opened 45 new hotels adding over 5,900 rooms and had a network of 847,290 rooms. The company aims to accelerate net unit growth in the second half of 2025 and expand to 300 hotels in India by 2030, with recent deals including a partnership with InterGlobe and potential management of 17 Royal Holiday Group properties.

6 min

AAHOA is a stentorian voice in hospitality. It’s never needed to be louder.

📌 The AAHOA Convention, a significant event for Asian American hotel owners who control over 60% of U.S. hotels, highlights the community's influence. Facing post-pandemic challenges, including high interest rates, scarce debt, and costly construction, hoteliers and brands like Marriott opt for conversions over new builds. Wyndham's select-service hotels show resilience with a strong pipeline. Concerns over tariffs affecting costs and travel demand echo the unease of 9/11's impact on travel, but with hope for a quicker recovery. Sonesta plans to sell 114 hotels, potentially generating $1 billion. Oyo's Ritesh Agarwal, now overseeing G6 Hospitality, emphasizes the significance of cash flow in the industry. Extended Stay America outperforms the sector, while Hilton focuses on brand growth. Advocacy remains crucial, with proposed legislation like the "LIONs Act" and "Main Street Tax Certainty Act" aiming to support small business finances and tax benefits.

5 min

For Mark Harmon, Waldorf Astoria Texas Hill Country is not a reclamation project, it’s something prophetic

🍷 Mark Harmon, founder and CEO of Auberge Resorts Collection for 30 years, is spearheading a new venture with Waldorf Astoria Texas Hill Country. His father, Bob Harmon, opened Auberge du Soleil in Napa Valley in the late 1980s. The Texas project, partnered with Robert Radovan and Tim Sparapani, involves a brand and management agreement with Hilton and will feature 60 guestrooms, 37 resort villas, and 50 residences on 106 acres, with a groundbreaking set for later this summer and a 2027 opening. The resort aims to capitalize on Texas Wine Country's growth, with Fredericksburg at its heart. Waldorf Astoria has 34 properties and 30 more planned, expanding into resort areas like Costa Rica and Los Cabos. Harmon's vision aligns with the brand's commitment and rapid response. Texas Hill Country, one of the fastest-growing regions, is attractive due to its business-friendly environment and absence of personal income tax.

7 min

Hotel investors aren’t throwing in the towel. They are waiting for the climate to dry out.

🏦 At the Hunter Hotel Investment Conference, predictions for 2025 include possible growth or reckoning for hotel investments. Blackstone and Brookfield, with a combined $2 trillion in assets under management (AUM), are selling more than buying, with Blackstone offloading $2 billion in assets last year including the Motel 6 chain to India's Oyo and considering selling Spain-based Hotel Investment Partners. Brookfield sold high-profile properties like The Diplomat Beach Resort and Conrad Seoul. Blackstone's recent purchases focused on Japan and Greece, buying three hotels in Japan and the Grand Hyatt Athens in December 2024. Interest rate expectations affected Blackstone, with only three cuts compared to the seven they anticipated. Brookfield looked at $6 billion in assets last year, acquiring $800 million, with an aim to be a net buyer in 2025. Noble Investment Group plans to sell $1 billion and buy $2 billion in assets despite a "wonky" investment environment. Hilton CFO Kevin Jacobs discussed efforts to drive cost savings to owners and franchisees and highlighted Hilton's technology revamp with its Property Engagement Platform and connected room interfaces. Labor efficiency remains a focus, with AI's role in reducing costs and improving operations being explored, while consumer confidence issues loom over the industry.

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