Group items tagged

FRENCH HOTEL CHAIN B&B Hotels launched its U.S. expansion with the opening of its first property in Orlando, Florida. The 218-room hotel, located near Universal Studios, will be followed by additional hotels in Miami and Jacksonville, Florida. The mid-scale brand plans to establish 400 hotels across the U.S. within the next 10 years, representing $4 billion in real estate value, B&B Hotels said in a statement. "We are thrilled to bring B&B HOTELS to the United States and to offer travelers affordable high-quality accommodations," said Valerio Duchini, B&B Hotels' U.S. CEO. "We're also eager to engage with real estate investors here who share our vision for growth. Drawing from our success in Europe, we aim to establish ourselves as a prominent player in the U.S. market." B&B Hotels rebrands existing properties and constructs new ones, the company said. Batipart, a private equity firm based in Luxembourg, partnered with B&B Hotels for the Orlando property, with plans to renovate the hotel to improve the guest experience.

THE 2020 COVID-influenced lodging industry recession resulted in some noticeable changes to the way hotels provide F&B service. Social distancing regulations forced operators to be creative in the way they served food and beverages to guests. Rising wage rates and sharp increases in the cost of food and beverage products compelled hotel managers to find ways to control costs. The inability of hotels to attract employees to fill the positions eliminated during the recession required creative solutions to improve productivity and offer more with less. These factors resulted in the following hotel food and beverage trends during the subsequent recovery period: The increased offering of kiosks and grab-and-go venues The closing of traditional three-meal-a-day restaurants A reduction in the menus, number of seats, and hours of remaining F&B venues Reductions in in-room dining and mini-bar service The conversion of food and beverage space to other revenue generating purposes To learn how these recent changes in hotel food and beverage operations have impacted revenues and expenses, we have analyzed the operating statements of 2,500 U.S. full-service, resort, and convention hotels that participated in CBRE's annual Trends in the Hotel Industry in 2021 and 2022. In 2022, these 2,500 properties averaged 285 rooms in size, and achieved an occupancy of 64.7 percent, along with an ADR of $225.60. To provide more current information, we also relied on the monthly operating statements of 1,200 properties during the period January through June of 2023.

THE U.S. HOTEL industry will continue its recovery in 2022, but the path will be uneven and potentially volatile, according to a report by the American Hotel & Lodging Association. It added that a full recovery from the impacts of the COVID-19 pandemic will take several years. AHLA's 2022 State of the Hotel Industry report also revealed shifts in consumer and business sentiment. The report was created in collaboration with Accenture and is based on data and forecasts from Oxford Economics and STR. According to the report, hotel occupancy rates and room revenue will approach 2019 levels this year, but the outlook for ancillary revenue, which includes F&B and meeting space, is less optimistic. Leisure travelers will continue to drive recovery, the report added. Hotels lost a collective $111.8 billion in room revenue alone during 2020 and 2021. Business travelers made up 52.5 percent of industry room revenue in 2019 and it will be 43.6 percent in 2022. Business travel will be down more than 20 percent for much of the year, the report said. As the full effects of Omicron is not yet known, just 58 percent of meetings and events are expected to return. AHLA report said that the rapid rise of bleisure travelers-those who blend business and leisure travel-are impacting hotel operations now. A recent study revealed that 89 percent of business travelers wanted to add a private holiday to their business trips in the next twelve months.

WYNDHAM HOTELS & RESORTS and lifestyle hospitality developer sbe launched a new soft brand during the American Lodging Investment Summit in Los Angeles last week. Temporarily dubbed "Project HQ Hotels & Residences," the new brand aims to attract younger travelers looking for an experience. Project HQ is meant to represent sbe's "smart lifestyle" hotel category that is designed to draw in Millennial and Gen Z guests by providing memorable experiences at more affordable rates, according to Wyndham. The name is based on the idea that Project HQ hotels, which will be affiliated with Wyndham's Registry Collection Hotels, will serve the guests' headquarters in the heart of cities where they are located. Project HQ hotels will include pre-approved FF&E packages, supply chain, technology integrations, OS&E packages and programming to monetize otherwise underutilized spaces of the property. Led by Sam Nazarian as chairperson, sbe provides F&B packages that include Casa Dani from Chef Dani García; MXO, a Mexican Steakhouse by Chef Wes Avila; and Katsuya by Chef Katsuya Uechi.

Red Roof Inn Charlotte-Airport in Charlotte, North Carolina, and Red Roof Inn Doswell-Kings Dominion in Doswell, Virginia, are now open. Shree Shradhaa Saburi LLC, led by Kiran Patel, owns the 108-room Charlotte property. SJ Hotel LLC, led by Nilang Maniarah, owns the 108-room Doswell hotel. Shree Shradhaa invested $700,000 in renovating the Charlotte hotel, while SJ Hotel spent $1.2 million in renovations of the Doswell property, Red Roof said in a statement. Both hotels are pet friendly. The Charlotte hotel is near the U.S. National Whitewater Center, Charlotte Convention Center, NASCAR Hall of Fame, Billy Graham Library, Harvey B. Gantt Center, Atrium Health Carolinas Medical Center, Carolina Raptor Center, Charlotte Douglas International Airport and Gastonia Municipal Airport, the statement said.

The Riverfront Hotel, SureStay Collection by Best Western is now open in Richland, Washington. The hotel is owned by Jitesh Desai. The 136-room hotel is near Howard Amon Park and outdoor event space John Damn Plaza. Also nearby are J. Bookwalter Winery and Tagaris Winery, Allied Arts-Gallery at the Park, REACH Museum and Manhattan Project B Reactor Tours. "Jitesh Desai is an established hotelier whose experience and commitment to the brand will undoubtedly deliver on the SureStay service promise at this impressive property," said Josh Miehl, regional manager of SureStay Hotel Group.

IN JUNE, GOPPAR for U.S. hotels reached its highest level since October 2019, according to STR. All profitability metrics were up in the month compared to the month before. GOPPAR was $91.23 for the month, up from $88.63 reported in May. In April GOPPAR stood at $90.96. EBITDA PAR was $69.53 for June, TRevPAR was $226.10 and labor costs per room were $68.40. "Each of the key bottom-line metrics increased from May due to a rise in room rates as well as improved revenue from F&B and groups," said Joseph Rael, STR's senior director of financial performance. "Profit margins have held strong the past 12 months but have been slightly reduced recently due to rising wages and costs. Hotels have brought back services, amenities and F&B operations that were previously reduced, which have increased profits overall but at lower margins. While F&B revenues remain strong, catering and banquet revenue has lagged with improvement in recent months due to rising group demand."

BANYAN INVESTMENT GROUP recently sold its Kimpton Goodland Hotel Fort Lauderdale Beach, Florida, to DiamondRock Hospitality Co. for $35.3 million. The sale is expected to bring a substantial return for investors in the Atlanta-based company, led by Andy Chopra as managing partner. The 96-room hotel is near Las Olas and Sebastian Street beach parks, Bonnet House Museum and Gardens, Sea Turtle OP Headquarters and multiple shops and eateries. Hotel amenities include an outdoor, heated pool, fitness center, loaner beach cruisers and beach items including boogie boards to folding chairs. F&B options include food and tiki-themed cocktails at Botanic at the Goodland or poolside drinks and snacks at the Good Bar. Originally the company was planning to hold the deal for a longer period, Chopra said. However, conditions changed to allow a deal that could generate a 49.4 percent internal rate of return for Banyan's investors.

THE PROFITABILITY OF U.S. hotels was above 2019 level for the third consecutive month in May, but was lower compared to April, according to STR. The GOPPAR and EBITDA PAR levels were down in May compared to the month before. GOPPAR was $88.63 for the month, down from $90.96 reported in April. In March, GOPPAR stood at $83.81. EBITDA PAR was $67.80 for May, TRevPAR was $219.58 and labor costs per room were $66.27. "After the top-line metrics showed mixed results in May, it wasn't a surprise that the bottom-line metrics came in a bit lower," said Raquel Ortiz, director of financial performance, STR. "Regardless, each of the four key P&L metrics showed improvement when indexed to 2019, with GOPPAR and EBITDA PAR coming in higher than May 2019 levels. We continue to keep a close eye on F&B as group demand levels rise. F&B revenues are gradually moving closer to 2019 levels, but catering and banquet revenues continue to lag."

AAHOA PAST CHAIRMAN Manhar P. "MP" Rama passed away Sunday at age 74. Rama was a co-founder with his brothers of JHM Hotels that later became Auro Hotels in Greenville, South Carolina. Rama was born in Africa and raised in India, according to Auro Hotels. He completed high school in Gurukul Supa, Navsari, and graduated from M.S. University of Baroda with a degree in civil engineering. In 1973, he came to the U.S. and attended California State Polytechnic University in Pomona, California, where he earned a master's degree in engineering. He worked with the city of Pomona before entering the hotel business. "In the teachings of Sri Aurobindo, we learn that life is a journey of the soul, and my brother, M.P., lived this journey with unwavering devotion, love, and integrity," said HP Rama, Founder of JHM/Auro Hotels. "His contributions to our family and the hospitality industry are immeasurable. We will honor his memory by continuing to embody the values he held dear. M.P.'s spirit will remain a guiding light for all of us."

GOPPAR FOR U.S. hotels in February exceeded the levels of the pre-pandemic comparable time period and was the highest since October 2022, according to STR's February 2023 Profit & Loss data. EBITDA was the only key bottom-line metric on a per-available-room basis to come in lower than February 2019, STR said in a statement. GOPPAR reached $77.37 for the month, up 1.6 percent over the same month in 2019, TRevPAR stood at $217.20, up 3.7 percent, and EBITDA PAR was $51.63, down 0.6 percent against February 2019. Labor costs were $73.70, a 2.9 percent increase. "The profit-and-loss metrics followed typical industry trends, improving from the prior month," said Raquel Ortiz, STR's director of financial performance. "Both GOPPAR and GOP margins were the highest since last fall, while profit margins came in just one percentage point below 2019. Profit margins for limited-service hotels are further behind in recovery than full service, likely due to increasing labor costs that bear heavier weight on the bottom line." "An increase in top-line group demand is beginning to show in the bottom line, as catering and banquet revenues are inching closer to 2019 levels and meeting space rentals and services charges surpassed that threshold. On a per-operating-room basis, nearly all F&B revenues outpaced the pre-pandemic comparables," Ortiz added. Of the major markets, 10 realized both GOPPAR and TRevPAR levels higher than the 2019 comparables, the statement said. "February was a slower month for markets that are more dependent on groups and conventions, such as Atlanta, San Francisco and Minneapolis," Ortiz further said. "Warmer markets have remained at the top, with Phoenix showing the highest TRevPAR recovery and second highest GOPPAR recovery for the month, helped by peak season and Super Bowl LVII."

MIT SHAH, FOUNDER and CEO of Noble Investment Group is the Penn State School of Hospitality Management in the College of Health and Human Development and the Penn State Hotel & Restaurant Society's 2023 Hospitality Executive of the Year. Shah will be recognized at a gala reception at The Penn Stater Hotel & Conference Center in State College, Pennsylvania, on April 4. Noble is a travel and hospitality real estate investment group that has invested nearly $6 billion in communities throughout the country through its institutional real estate funds since being Founded in 1993. The other accomplishments for which Shah is being honored include his family's endowment of the Bharat Shah Leadership Speaker Series at Georgia State's Cecil B. Day School of Hospitality in honor of his father, Dr. Bharat Shah. Speakers featured in the program include former Hospitality Executives of the Year Chris Nassetta, CEO of Hilton, and Arne Sorenson, former president and CEO of Marriott International who died last year following a battle with cancer. "It is an honor to be recognized by the Penn State School of Hospitality Management and the Penn State Hotel & Restaurant Society," Shah said. "As one of our country's oldest and most respected hospitality programs, the school, its faculty, administration, and staff continue to help ensure that our future hospitality leaders are well prepared to live lives that matter."

Sam Basu is the new general manager for JW Marriott Orlando Bonnet Creek Resort & Spa in Orlando, Florida. Previously he worked at hotels in Puerto Rico. Basu worked in managerial positions at the Ritz-Carlton San Juan for 10 years, including holding the position of executive assistant manager of rooms and F&B. He also worked at Marriott International and St. Regis Bahia Beach, all in San Juan, Puerto Rico. Last week, Kristin Assad was named vice president and general manager at Stockyard Heritage Development Co.'s Hotel Drover in Fort Worth, Texas.

PEACHTREE GROUP BAGGED multiple Marriott Select Brands Awards at this year's Marriott Select Brands Owner & Franchisee CONNECT Conference in Orlando, Florida. The awards recognize hotels for service, innovation and commitment to guest satisfaction. Peachtree is led by Greg Friedman as managing principal and CEO, Jatin Desai as managing principal and CFO and Mitul Patel as principal. "These awards are a testament to the exceptional work our hotel associates deliver every day," said Steve Mackenzie, Peachtree's senior vice president of operations, hospitality management. "These hotels have consistently excelled in guest and F&B satisfaction, setting a benchmark for unparalleled service, and we are proud to have them as part of the Peachtree family. Additionally, we extend our gratitude to our partners who entrust us with managing their properties. Their collaboration has been instrumental in achieving these accolades, showcasing our shared commitment to superior quality."