Latest HITs: Four Seasons to NEOM; Scandic Go launch; US pipeline update

Four Seasons to NEOM. Four Seasons Hotels and Resorts and the hotel development division of NEOM in Saudi Arabia that is responsible for building a future-centric hospitality ecosystem in the developing region have announced plans for a luxury resort as part of the NEOM master project located on Sindalah Island. Extending over an area of approximately 840,000 square metres (9,041,684 square feet), Sindalah is one of a group of islands in the Red Sea that will be developed in NEOM. In addition to the upcoming Four Seasons resort, Sindalah will be home to a luxury marina and yacht club, 9-hole golf course and a variety of dining destinations. It will also host cultural, sports and social events. The resort will feature 225 guest rooms and suites with terraces overlooking the beaches of the Red Sea, as well as 52 villas with one to four-bedroom configurations with plunge pools and beach views, and with the Presidential and Royal Villas offering private swimming pools, gyms and access to private yacht docks. The resort architecture is being led by LUCA DINI Design & Architecture, with interiors for guest rooms and public areas by RBTA and LW Design respectively.

Scandic goes economy. After stalling during COVID, Scandic Hotels, Stockholm, in September will open in Stockholm its first Scandic Go economy brand project. Instead of full-service restaurants, gyms and meeting facilities, guests will be offered a more limited but carefully selected offering of meals and beverages, breakfast options and room experiences. The Scandic Go configuration will provide more compact rooms and fewer shared spaces than the company’s full-service hotels. In addition to conversions, the plan is to primarily grow the brand through new builds and takeovers of existing hotels. Scandic Go is expected to contribute to Scandic’s growth by adding between 1,000 and 1,500 contracted rooms per year to the company’s portfolio. The first hotel in downtown Stockholm will be in an existing Scandic hotel on Upplandsgatan that will be renovated before opening as the first Scandic Go hotel.

Rosewood to Maldives. Developed by Qatar’s Estithmar Holding, Rosewood Hotels & Resorts will open the Rosewood Ranfaru in 2027 on the South Male Atoll in the Maldives. The property will offer approximately 120 beachfront and overwater villas, ranging in size from one- to five-bedrooms, all with private pools and a select number located on private islands.

AHLA, HSMAI alignment. The American Hotel & Lodging Association (AHLA) and the Hospitality Sales and Marketing Association International (HSMAI) Americas have announced a partnership to more closely align and benefit their respective members.  AHLA will provide HSMAI with opportunities to participate in AHLA’s On the Road events, and HSMAI will promote the events to its members. AHLA and HSMAI will promote each other’s events, campaigns, and education and certification programs, and have reciprocal participation in distribution focused committees. AHLA and HSMAI will also explore opportunities to align the work of both organizations’ foundations to address industry-wide initiatives on workforce and promoting Diversity, Equity, and Inclusion (DEI). AHLA and HSMAI leadership will meet regularly to discuss and coordinate key strategic industry issues and shared objectives.

US pipeline update. Construction pipeline projects in the U.S. continue to increase, standing at 5,545 projects/658,207 rooms at the close of Q1 2023, according to Lodging Econometrics. Up 9% by both projects and rooms year-over-year; project totals at Q1 ‘23 are just 338 projects, or 5.7%, behind the all-time high of 5,883 projects recorded in Q2 2008. At the close of the Q1, projects currently under construction stood at 1,051 projects/140,365 rooms, each showing 9% growth YOY. Projects scheduled to start construction in the next 12 months are at 2,060 projects/241,568 rooms, each up 8% YOY. Projects in the early planning stage account for 44% of the projects in the total U.S. construction pipeline at Q1. Early planning projects increased 10% YOY, setting an all-time high of 2,434 projects/276,274 rooms. Renovation and brand conversion activity in the U.S. continues to boom in early 2023, reaching record project counts of 1,953 hotels/253,533 rooms, for a 38% YOY increase by projects and a 37% YOY increase by rooms.  A total of 103 new hotels/11,762 rooms opened in the U.S. in the first quarter. For the remainder of the year, LE forecasts another 493 new hotel projects/59,355 rooms to open, representing a combined 1.3% supply growth rate.

Boost to UK results. Multiple events in the U.K., including the King’s coronation and Eurovision, are driving hotel occupancy on the books in both London and Liverpool, according to STR. London’s occupancy on the books as of April 24 shows May highs during the coronation weekend: Friday, May 5 (67.7%) and Saturday, May 6 (66.8%). Liverpool’s occupancy on the books is currently at its highest point for Saturday, May 13 (at 82%), the day of the Eurovision Grand Final.