Breaking news about development, M&A, performance and more.
Hotel
great Cooper dies. Legendary hotelier Simon Cooper has passed away from
complications with Leukemia. Cooper joined Ritz-Carlton in 2001 as president and
COO, taking over from Horst Schulze with a mandate to grow the brand through
hotel expansion and product diversification. Under Cooper’s watch, the company aggressively
expanded and added The Ritz-Carlton Residences, private residential units, and
The Ritz-Carlton Destination Club, fractional ownership residences, to the
company’s development program. Starting in 2010, Cooper led Marriott
International’s operating performance and growth of Asia Pacific which included
more than 173 properties and 70 hotels under construction. Prior to joining
Marriott, Cooper served as president and COO of Delta Hotels and Resorts in Canada,
and as executive vice president of Omni Hotels. Cooper began his hospitality
career when he immigrated to Canada in 1972 and worked for Canadian Pacific
Hotels and Resorts. He will be sorely missed by his wife Marcelle, children
Winkie, Susannah, Jason, their spouses Eric, Tony and Erin, and his
grandchildren Cole, Zachary, Benjamin and Evan.
Mixed week in US. U.S. hotel performance from April 14-20 showed
mixed results from the previous week, according to CoStar data. Occupancy
was 66.8% (-0.3% YOY); ADR was $158.60 (+1.5% YOY); and RevPAR was $105.94
(+1.2% YOY). Among the Top 25 Markets, Philadelphia reported the largest
year-over-year increases in occupancy (+14.3% to 72.1%) and RevPAR (+23.2% to $114.11).
Washington, D.C., posted the only double-digit lift in ADR (+10.0% to $226.25). The
steepest RevPAR declines were seen in Chicago (-16.2% to $105.97) and San
Francisco (-9.7% to $123.76).
Choice ESG update. Choice Hotels International published its
2023 Environmental, Social,
and Governance Report, which included new and expanded requirements to
help reduce utility usage and identify savings through its revamped Room to be
Green verification program. As part of this initiative, the report highlights
the adoption of Choice’s automated utility tracking dashboard, with over 2,600
properties participating. Initiatives detailed in the report include Property
Improvement Plans with 35 hotels selected for a pilot program to participate in
sustainability audits conducted by third-party experts and receive
recommendations and solutions to drive more sustainable operations and
investments. The recommendations included building envelope enhancements,
rainwater reuse, water mitigation solutions, energy-saving smart thermostats in
guest rooms, and the replacement of natural gas water heaters with electric
heat pump high-efficiency units. Choice plans to embed the insights obtained
from this initiative into existing property improvement plan processes.
Another Marriott in NEOM. Marriott International has signed an
agreement with NEOM to open its second Ritz-Carlton Reserve in Saudi Arabia. The
60-room hotel is anticipated to open in Trojena, a year-round mountain
destination located in the northwest region of the country. The signing of the
Ritz-Carlton Reserve in Trojena marks the seventh collaboration announced
between Marriott International and NEOM.
IHCL revives Gateway brand. During its earning call this
week, the Indian Hotel Company Ltd. stated it will introduce the
re-imagined Gateway brand, a full-service offering in the upscale segment,
to capture growth opportunities in emerging micro-markets in metros and Tier II
and Tier III Indian cities. The brand roll-out starting with 15 hotels will
commence with launches in Bekal and Nashik this quarter.
Capella deal with Galaxy Macau. Galaxy Entertainment Group
has announced a partnership with Capella Hotels and Resorts that will see
Galaxy Macau become home to the first Capella property in The Greater Bay Area.
Scheduled to open in mid-2025, Capella at Galaxy Macau will be Galaxy Macau’s
ninth hotel brand following the recent launch of Andaz and Raffles. Described
as “a gilded mansion in Asia’s cultural hub, the 17-storey hotel will offer 36
Sky Villas and 57 Suites with interiors designed by renowned Paris-based firm
Moinard Bētaille.
Deals in Ireland heat up. The value of Irish hotel
properties changing hands reached a record quarterly level of more than €600 million
in the first quarter of 2024, putting the market in a position to achieve €1 billion
in sales this year, according to research from CBRE. Two major hotel deals
accounted for most of the activity. The sale of a majority stake in eight
hotels in Paddy McKillen Jr’s Dean Hotel Group had an enterprise value of about
€350 million. The sale of the Shelbourne Hotel to Archer Hotel Capital was
reported at €250 million. Spend in the first three months of the year exceeded
total annual volumes for 2023. There are a number of hotels on the market at
the moment, including the Slieve Russell in Co Cavan which has a €35 million
price tag, and Mount Juliet in Co Kilkenny with a €45 million guide.