Group items tagged

COMMERCIAL REAL ESTATE direct lender and Peachtree Group affiliate, Stonehill, completed $1.2 billion in investments in 2022. Most were through loan originations and commercial property assessed clean energy financing primarily in the hospitality and retail sectors, a statement said. The investment includes $813 million in loans and $163 million as CPACE financing and the remaining $269 million was distributed across the industrial, land, mixed-use, multifamily, office and senior living real estate sectors, the company said. Stonehill said that its 2023 target is $1.5 billion and expects to invest $300 million in the first quarter. "Economic volatility coupled with uncertainty surrounding interest rates has severely decreased overall financing availability with capital providers. However, Stonehill not requiring capital markets execution has allowed it to remain active and to fill the gap in lending supply," said Mat Crosswy, Stonehill president and principal. In May 2022, Stonehill formed Stonehill CRE with Daniel Siegel as president to expand its commercial lending business. It focuses on heavy transitional assets and sectors of the credit market that are traditionally undersupplied. "We have spent years working on our capital formation, specifically so that we can be active and grab market share during periods of economic uncertainty. Also, by building our CPACE division in 2019, which completed $235 million in CPACE financing for the year, and now with Stonehill CRE, we are better positioned to provide lending solutions to a multitude of the market's current inefficiencies," said Crosswy.

THE MAJOR CHALLENGES faced by U.S. hotels are labor, the return of corporate, group and conference travel, the impact of inflation on cost lines and the energy crisis, said Michael Grove, COO of HotStats, in a recent presentation. In the same session at the International Hospitality Investment Forum, panelists debated the best metric by which to measure industry performance. While speaking during a panel session at IHIF titled "Decoding the Data", Grove said that the most pressing issue is fixed costs are being replaced by oncoming growth in the variable areas which changes the dynamic of the cost base. "One of the key items around the average rate growth is what's going to happen when the full business mix returns," Grove said. "We still have a lot more of the lower-rated business to come back-the tours and groups and the other segments. We need to look at the impact on the cost lines themselves, the expense items around the P&L and what impact inflation is having on those, what impact the labor challenge is having.

PROPOSED FEDERAL REGULATIONS defining a "joint-employer standard" would have a "chilling effect" on the hospitality industry and franchises in general, according to the American Hotel & Lodging Association. The National Labor Relations Board's latest version of the standard could define two companies as joint employers if they both control certain elements of employees' terms and conditions. The period for comments on the proposed regulations ended Nov. 21 and the would rescind and replace the joint-employer rule that took effect on April 27, 2020. That previous rule established that "a business must possess and exercise substantial direct and immediate control over one or more essential terms and conditions of employment of another employer's employees" to be considered a joint employer. However, a ruling by the U.S. Court of Appeals for the D.C. Circuit in July reversed that rule. Now, under the new rule, "two or more employers would be considered joint employers if they 'share or codetermine those matters governing employees' essential terms and conditions of employment,' such as wages, benefits and other compensation, work and scheduling, hiring and discharge, discipline, workplace health and safety, supervision, assignment, and work rules," according to NLRB.

NISHANT "NEAL" PATEL assumed the chairmanship of AAHOA Friday as the culmination of the association's 2022 Convention & Trade Show in Baltimore, Maryland. More than 5,000 people attended the show, during which new officers also were elected, certain members were recognized for their service and face-to-face networking came back into style. This year's show came with less time after last year's, which was held in August due to delays from the COVID-19 pandemic. That time difference for planning was not as bad as it may seem, said Vinay Patel, outgoing AAHOA chairman, in a press conference before the show. "We start planning this convention way in advance. So yeah, our gap may be eight months from convention to convention, but this convention probably started literally in June, July or January of last year, so that time frame is still there," Vinay said. "There are always things, you pivot all the time. Especially in today's world of the pandemic. But, I think at the end of the day, the team has done a phenomenal job in putting everything together."

TEXAS-BASED G6 HOSPITALITY launched 'Light Her Way' program to empower women seeking hotel ownership opportunities with tools and resources, a statement said. The company announced the program during AAHOA's inaugural HerOwnership Conference & Retreat in October. The Carrollton, Texas-based G6 owns Motel 6 and Studio 6 brands in the U.S. and Canada. "We have always promoted the belief that everyone has the right to travel, but it is just as important that everyone have the right to ownership," said Tina Burnett, chief development officer, G6 Hospitality. "The launch of 'Light Her Way' will empower women on the path to ownership and is an example of how we live up to our values."

GOPPAR FOR U.S. hotels improved in September compared to the month before and it exceeded the pre-pandemic levels, according to STR. Meanwhile, the cost of labor per available room came in higher than the pre-pandemic comparable for the first time. GOPPAR was $84.03 for the month, up from $64.26 reported in August. It was $78.30 for July and $91.23 in June. The performance index was $88.63 in May and stood at $90.96 in April. EBITDA PAR was $60.71 for September, TRevPAR was $222.97 and labor costs per room were $71.52. "Labor costs moved ahead the 2019 comparable due to continued high levels of hospitality unemployment and more spending on contract labor," said Raquel Ortiz, STR's director of financial performance. "Total labor costs were up 5 percent year to date, with all departments reporting higher expenses, except F&B, due to less group demand earlier this year. GOPPAR was the strongest since June 2022, and profit margins came in higher than September 2019. Profit margins have been strong for some time caused by lower employment levels and reduced services."

DESPITE THE CHALLENGES of 2020, hihotels by Hospitality International added 18 properties throughout the U.S. Most are conversions owned by Asian American hoteliers. The five hihotels brands include Red Carpet Inn, Scottish Inns, Master Hosts Inns, Downtowner Inns and Passport Inn. Hospitality International said the brands' franchising model includes customized support, advanced technology and overall value. "Last June, we announced a new branding identity for the company that expanded franchisee services and development opportunities and refocused our goal of becoming the best choice for economy hotel franchising. The response has been tremendous and we look forward to building on this great momentum in 2021," said Chris Guimbellot, hihotels president and CEO.

U.S. TRAVELERS SAID that gas prices and inflation will impact their summer travel decisions more than COVID-19 concerns, according to a survey commissioned by the American Hotel & Lodging Association. The survey, conducted by Morning Consult and released just ahead of the Memorial Day holiday weekend ending May 30, revealed that more than half of the respondents, 57 percent, are likely to take fewer leisure trips and 54 percent will take shorter trips due to current gas prices. The majority of people surveyed, 82 percent, said that gas prices will have at least some impact on their travel destinations.

VIRAL "VICTOR" PATEL and Mahmood "Mike" Merchant are new members of Best Western Hotels & Resorts board of directors. Patel will represent several Midwest states and Ontario, Canada, and Merchant will represent California, Nevada and Hawaii. Patel has been a member of Best Western for more than 20 years, according to the company. He has served as a governor and as the chair of the Best Western Kentucky marketing co-op, liaising between the brand and hoteliers. He is currently the owner and operator of the Best Western Corbin Inn in Corbin, Kentucky, and will represent that state as well as Illinois, Indiana, Michigan, Iowa, Minnesota and Wisconsin. "I've witnessed tremendous growth within our brand over the years and am excited to join my fellow Board members as we move forward under Larry's leadership," said Patel. "Service is extremely important to me, and I feel grateful to have served my colleagues and community in a variety of roles over the years. I look forward to this new set of responsibilities and am fully committed to serving our hoteliers across the Midwest and parts of Canada and our hoteliers at large."

THE U.S. ADDED 428,000 jobs in April, keeping the unemployment rate at 3.6 percent, just above the level two years ago, according to the U.S. Department of Labor. However, the leisure and hospitality sector saw some of the slowest growth in job creation. After spiking to 14.7 percent in April 2020 following business closures across the country due to COVID-19, unemployment has declined steadily and is now just a hair above its 3.5 percent rate before the pandemic, the latest jobs report indicates. The number of unemployed people was at 5.9 million in April, not far from where it was in February 2020, new data showed.

AAHOA MADE CHANGES to two leadership positions Monday with a promotion and a new hire. Heather Carnes to executive vice president for communications and chief strategy officer and hired Phelps Hope as its new executive vice president for operations and chief development officer. Carnes has been with AAHOA for three years, most recently as the association's vice president of marketing and communications, and has worked nearly her entire career in the association space, according to AAHOA. In her new role, she will focus on organizational strategy, marketing and communications, organizational culture and HR, education/program development and strategic partnerships. "It's an incredibly important time for AAHOA and our industry," Carnes said. "I'm thrilled to be moving into this new role where I can have an even greater impact on the organization, our overall strategic initiatives, and working alongside Laura Lee, Phelps, and the rest of the AAHOA team to make big things happen on behalf of our nearly 20,000 hotelier members."

DURING HIS LIFE and career, Jayanti P. "J.P." Rama touched a lot of lives and inspired people on all levels of the hospitality industry. Below are tributes from some of Rama's many friends and colleagues, as well as two of his brothers, following his death on Thursday. Hasmukh "H.P." Rama, brother "My bother JP was man of principle and in his own way he pursued what he strongly believed in. He was man of tremendous courage and stood up for a number of causes, many of which he made his life's mission. He was, like a coconut : from outside he appeared tough but inside was very soft and willing to accommodate anyone and do the right thing at the right time. He was a great entrepreneur who willingly learned all trades of the hospitality business, be it technology, understanding all aspects of the construction process or absorbing or financial information.

TWO-THIRDS OF U.S. travelers think that family and friend reunions bring the most joyful summer vacations, according to a survey from G6 Hospitality's Motel 6. The survey, conducted by SWNS Media Group, revealed that 57 percent of the respondents plan to attend a family or friend reunion this summer. The poll conducted May 20 to 26, also found 2,000 adults traveling this summer said that an average respondent has not gathered with extended family in four years. U.S. travelers will journey nearly 80 miles to reunite with their favorite people and places, while about 32 percent will venture more than 100 miles. More than half of those surveyed believe that reunions will look and feel different this year. The reunion invitee lists include friends (42 percent), significant others (39 percent), neighbors (34 percent) and pets (36 percent). According to the survey, 55 percent of those attending a family reunion this year look forward to celebrating both old traditions while creating new ones, and 64 percent are interested in becoming more connected to their family traditions.

AS COVID-19 FEARS subside, travelers are significantly less concerned about safety during travel, driving a significant rebound in travel activity, according to a survey by travel risk and crisis response provider Global Rescue. Most are vaccinated, or have recently recovered from COVID-19. The 2021 fall Global Rescue Traveler Sentiment and Safety Survey revealed that nearly 86 percent of travelers have taken domestic trips, and 42 percent have traveled internationally, since the start of the pandemic last year. The survey was conducted among more than 1,500 of the firm's current and former members between Oct. 26 to 30, 2021. "Between April and October, there's been a 74 percent jump in people taking domestic trips and an enormous 207 percent increase in individuals traveling internationally," said Dan Richards, CEO of Global Rescue and a member of the U.S. Travel and Tourism Advisory Board. According to the survey, fear of COVID-19-related quarantine or infection while traveling declined by 37 percent compared to January 2021.

CBRE HOTELS RESEARCH has once again revised its forecast for the second half of 2022. The revision is mainly due to strong gains in the second quarter and expectations of positive growth next year. RevPAR for the second half of the year will rise to 14.7 percent year-over-year, up from the previous projection of 13.1 percent in May, according to CBRE. The reasons for the spike are a 3.5 percentage point increase in ADR and a 2.2 percentage point reduction in CBRE's demand forecast. Second quarter RevPAR reached $98.84, up 38 percent year over-year, and an all-time quarterly high at 106 percent of 2019's level. RevPAR growth was driven mainly by ADR, up 25.5 percent, followed by occupancy, up 9.9 percent.

ALL FORMS OF travel are experiencing a post-pandemic resurgence, including cruises, according to a survey from risk and crisis response provider Global Rescue. Some have concerns about their destination, but most are ready to hit the seven seas. According to the Global Rescue Traveler Sentiment and Safety Survey, 30 percent of respondents were experiencing some hesitancy about where to go, or when to get back to travel after two years of pandemic-related travel restrictions. Meanwhile, 70 percent of respondents are not experiencing any re-entry to travel anxiety in general or on cruise ships, according to the survey. "Nineteen percent of survey takers say they feel safer or much safer about taking a cruise compared to last year," said Dan Richards, CEO of Global Rescue and a member of the U.S. Travel and Tourism Advisory Board at the U.S. Department of Commerce.

PINAL PATEL WAS elected secretary of AAHOA in the culmination of 2024 AAHOA Convention & Trade Show held this week in Orlando. New members of the association's board of directors also were elected and new industry partners were announced. Pinal, of Goodlettsville, Tennessee, defeated H.K. "Hare Krishna" Patel for the secretary position. He was born in Bardoli, India, and his family moved to the U.S. in 1984 when he was 2, according to AAHOA. They lived in Nashville, Tennessee, Pinal said his parents did not speak any English when they brought him and his 1-year-old brother to America. Pinal's parents bought their first independent hotel in 1991, and he is a second-generation hotelier even after graduating flight school at Embry Riddle in Daytona Beach, Florida, before buying his first franchise property. Previously, he has served as an AAHOA ambassador and as AAHOA's director at large Eastern Division. "Hard work definitely pays off," Patel said. "I'm going to make sure we do what's right for the association and for the members. I promise to all my supporters, my family, and my fellow members that I will not let you down. I will do what's best for the association's interests."

THERE WAS A family in need, and California hotelier Sunil "Sunny" Tolani could not stand by and idly watch. So, he took action, even though the family was thousands of miles away in Afghanistan. A young girl's life was literally at stake. And now, Tolani is joining an effort to help other refugees from the war-torn country. It began when Tolani saw the story in the Wall Street Journal of Najiba, a 3-year-old girl who was facing being sold to a man to cover her family's $550 debt to the man. Najiba's mother, Saleha, is a housecleaner in western Afghanistan earning only 70 cents a day cleaning homes and her elderly husband does not work at all,according to the non-profit Afghan Assist. Saleha has six children altogether and also raises the children of her sister who died in childbirth. Najiba would not marry the man to whom the family owes money,the charity said.

HILTON HAS LAUNCHED a new extended-stay brand, Project H3, designed to meet the needs of the rapidly expanding $300 billion workforce travel market, looking for apartment-style accommodations for 20 nights or more. Launching in the U.S. as Hilton navigates the final stages of the trademark process, this lower midscale, extended-stay brand is the newest addition to Hilton's portfolio, the company said in a statement. Hilton is engaged in more than 100 active development conversations with many owners expressing interest in multiple locations. According to the statement, the product provides a foundation for the long stay, allowing guests to make the most out of every day, and delivers an exciting investment option for developers looking to diversify their portfolio under the Hilton name. "Project H3 is perfectly positioned to serve the unique needs of the long-stay traveler, thanks to its innovative design, strong value proposition for our owners and of course, the hospitality our team members offer every day," said Chris Nassetta, Hilton president and CEO. "We aim to serve any guest, anywhere in the world, for any travel need they may have, and this new brand represents a greater opportunity for us to grow our portfolio while providing the reliable and friendly service our customers expect from Hilton." Hilton's in-house research shows long-stay travelers, including traveling nurses, military personnel, and those experiencing workforce relocations, place quality time and comfort above all else. In addition, those looking for a long stay will book an average of 20 or more nights and desire a reliable home base that allows them to maintain their routines while delivering simplicity, consistency and convenience.

AMERICINN BY WYNDHAM has launched the State Fair Family contest with a $15,000 family payday, a statement said. The winning family will get a $10,000 travel stipend and $5,000 cash as prize. To participate in the competition, families need to attend at least three separate Midwest state fairs in one week. They then document their experience in photos and videos on social media and contribute to the future AmericInn Best of the Midwest Fair Guide, the statement added. A social-media savvy family with active social media accounts (TikTok and Instagram preferred) over 21 years old can participate in the contest. They must be a U.S. resident with a valid federal or state-issued ID. Entries should be submitted by Aug. 3 along with a 300-word minimum written entry and family photo or 1- to 3-minute video describing what makes your family the ideal candidate for the job. The winner will be selected during the week of August 4, the company said.