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  • 6 min

Racing to win: How BWH Hotels is hitting the gas to the checkered flag

🚌 BWH Hotels, known as Best Western, operates 4,300 hotels in 100 countries. In 2024, the chain added nearly 300 properties and achieved $8.5 billion in international hotel revenue, ranking as the world’s 10th-largest hotel company by room count. At its Accelerate 2024 conference in Charlotte, BWH highlighted its record profit and growth, including $64 million in profits for members in 2023, a $17 million increase from 2022. The brand also reached $1 billion in sales revenue for the first time and saw a 6.2% increase in North American revenue ($1.75 billion) in 2023. BWH Hotels plans to open Zion Wildflower Resort in Utah in March 2025 and expand into Vietnam with properties like the Noble Crystal Tay Ho, set to complete in December 2026.
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  • 9 min

Far from town, travelers are choosing nature, naturally

🏕️ Hilton partnered with AutoCamp in February and Hyatt with Under Canvas in July to enter the "glamping" market, boosting their loyalty programs with diverse, nature-focused experiences. AutoCamp uses Airstream travel trailers and operates six locations, with two more opening in 2023 and one in 2025. Under Canvas, founded in 2009 with its first site in 2012, has locations that range from 40 to 750 acres near national parks. Hilton's 2025 Trends Report notes that 25% of travelers seek unique experiences, and 20% aim for outdoor adventures. An Under Canvas location costs up to $25 million, with KSL Capital providing equity and market knowledge, and Blackstone as a lender. Collective Retreats, a competitor, since 2015, has raised over $40 million and has locations across the U.S. with plans for international expansion, including Saudi Arabia's NEOM project.
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  • 3 min

How 2024 became South America’s breakthrough year for revenue and profit growth

🏨 South America's hotel industry saw significant growth in TRevPAR (12.1%) and GOPPAR (12.5%) from January to August 2024, outpacing Central America and the Caribbean. In Q2, South America's TRevPAR and GOPPAR soared by 16.9% and 19.0%, respectively. Peru's TRevPAR and GOPPAR jumped by 42.2% and 80.5%, while Chile's increased by 21.2% and 38.6%, and Brazil saw rises of 10.8% and 9.0%. South America's flow-through rate stood at 38%, higher than the Caribbean (32%), Canada (27%), and the United States (6%), with a 2-percentage-point higher profit margin than the Americas average, attributed to lighter labor costs.
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  • 3 min

How the BUBL method can be a winning formula for guest satisfaction

🔔 The BUBL (pronounced "bubble") method is a framework for providing exceptional guest service by recognizing the guest's need for solitude or interaction. Key steps include: Begin immediately, Untangle guest’s messages, Break your schedule, and Leave room for more interaction. This approach emphasizes the guest's importance and aims to make them feel at the center of the service provider's world. Micah Solomon, a customer service expert, advocates the BUBL method as a business-building strategy for hospitality professionals.
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  • 6 min

In the hotel industry, there are no mixed signals on mixed-use development

🏠 Mixed-use developments are integrating hotels, trending towards branded hotel residences. JLL, Hilton, and Marriott note a growing preference for mixed-use due to live, work, play consumer trends. Four Seasons has 54 locations with residential components since 1985, with 65% of new projects including residences. Accor's One Living, with 7,000 homeowners and nearly 50 locations, has over 110 projects underway. A JLL study in 2023 found luxury hotels in mixed-use developments achieve a 27% average rate premium, boosting RevPAR by 21%. Branded residences can command a 30% value premium. Marriott's St. Regis Longboat Key Resort and Residences in Florida offers extensive amenities, emphasizing the benefits of mixed-use projects.
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  • 6 min

Key considerations for hospitality borrowers tapping the CMBS market

🏨 CMBS loans offer lower capital costs for hotel borrowers and can involve complex structures with "sliced and diced" tranches of varying risk and return levels. Post-closing, the master servicer handles day-to-day operations while a special servicer manages loans with performance issues. Borrowers should negotiate loan terms for operational flexibility and tailor recourse carveouts at the term sheet stage. CMBS loans require adherence to strict financial covenants and consideration of unique asset particularities, such as seasonality in revenue. Michael D. Maloff, a partner at Dentons in Louisville, highlights the importance of proactive loan document negotiations to navigate the CMBS market successfully.
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