How quickly will Chinese consumers start spending in earnest again? Find out what Fitch said and read all the breaking hotel news from around the world.
China recovery. Based on evidence that consumption and
activity in China are recovering faster than initially anticipated, Fitch
Ratings said it expects China’s economy to grow 5% in 2023 – an improved
outlook from its previous 4.1% growth prediction. While many economists foresee
a consumption-led recovery, UBS wrote that spending will be rather “cautious”
due to strains in consumer confidence. Ultimately, UBS expects China’s
household consumption growth to jump to 10% to 11% in nominal terms and 7.8% in
real terms in 2023. “Further normalization of consumer behavior and more
release of excess savings could help underpin future consumption recovery in
2024 and beyond,” a UBS analyst wrote.
IHG grows in Shanghai. InterContinental Hotels Group has
signed the Crowne Plaza Shanghai Snow World and Shanghai Snow World Hotel,
Vignette Collection – the first Vignette Collection hotel in Greater China. The
hotels (rendering above) are part of the Shanghai Yaoxue Snow World Complex, an integrated
sports-entertainment-tourism resort with the world's biggest alpine-themed
indoor ski park. IHG has 618 hotels in China and another 474 in the pipeline
with a total footprint of over 1,000 hotels, reaching more than 200 cities.
Fasel moving to Maybourne. Former Aman COO Roland Fasel is
joining London-based luxury player Maybourne Hotel Group as COO starting in
April 2023. He will be responsible for the commercial success and quality of
the current portfolio of hotels as well as helping spearhead a program of
international expansion. Maybourne just completed a big project at Claridge’s
in London and recently announced its fourth hotel in the capital city, The
Emory.
Hyatt House in Japan. Hyatt Hotels Corp. will manage Tokyu
Land Corp.’s 126-room Hyatt House Tokyo Shibuya, slated to open by mid-2024 and
marking the entry of the Hyatt House brand in Tokyo. It will be the second
Hyatt House-branded property in Japan, joining Hyatt House Kanazawa in Ishikawa
prefecture.
IHCL grows Vivanta. Indian Hotels Company has signed its
fourth hotel in Hamshedpur, Jharkhand, a 94-room conversion project to its
Vivanta brand slated to become operational in 2024. With the addition of this
hotel, IHCL will have four hotels across Vivanta and Ginger brands in
Jharkhand, including one under development
Canada’s recovery. The Canadian hotel industry roared back
in 2022, according to HVS research, with ADR 10% higher than 2019 in spite of
occupancy remaining 6% lower, resulting in a 3.5% RevPAR lift from pre COVID
market performance. Prince Edward Island and Newfoundland were the Provincial
leaders with pre Covid RevPAR increases of 16.7% and 16.1% respectively.
Belmond adds in Italy. Belmond has entered into an agreement
with Sardegna Resorts S.r.l., an entity ultimately wholly owned by Qatar
Investment Authority, to manage Hotel Romazzino in Porto Cervo, Sardinia. Under
Belmond’s management and upon its reopening in 2024, the property will be known
as Romazzino, A Belmond Hotel, Costa Smeralda. Belmond currently operates eight
hotels in Italy, as well as the Venice Simplon-Orient-Express, A Belmond Train
which covers routes across Italian destinations such as Rome, Florence and
Venice.
MGM earnings. MGM Resorts came out with quarterly earnings of $0.69 per share,
beating the Zacks Consensus Estimate of a loss of $1.60 per share. This
compares to earnings of $0.12 per share a year ago. This quarterly report
represents an earnings surprise of 143.13%. A quarter ago, it was expected that
this casino and resort operator would post earnings of $0.22 per share when it
actually produced a loss of $1.39, delivering a surprise of -731.82%. MGM
posted revenues of $3.59 billion for the quarter ended December 2022,
surpassing the Zacks Consensus Estimate by 7.26%. This compares to year-ago
revenues of $3.06 billion.