Latest HITs: China rebound data; Fasel to Maybourne; IHG in Shanghai

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.