STR, TE prognosis; InterContinental Launches NFTs – HOTELSMag.com
STR, TE maintain ADR, RevPAR predictions: STR and Tourism Economics have adjusted ADR marginally downward, but maintained previous estimates for ADR and RevPAR in their latest US hotel forecast revision for this year. RevPAR continues to be on track for full recovery this year on a nominal basis, but not until 2025, adjusted for inflation. The updated forecast reduced occupancy by less than one percentage point. Labor challenges continue to be a concern with high levels of unemployment and increased spending on contract labor pushing costs per available room above 2019 levels. Oxford Economics expects a slight recession in the first half of 2023, with rising interest rates and inflation reducing real consumer spending and business investment. Although weaker economic momentum will moderate the recovery in travel, the recovery of business travel and continued prioritization of leisure travel will support the ongoing growth in demand for accommodation over the next year.
InterContinental launches NFTs: InterContinental Hotels & Resorts, in collaboration with British contemporary artist Claire Luxton, has launched 10 exclusive non-fungible tokens (NFT). A first for both the brand and the artist, each NFT is inspired by global travel using natural flora and fauna signature to Luxton’s work to illustrate InterContinental’s heritage and destinations. Each of the 10 NFTs includes a rare tool, an inclusion that adds value to the NFT beyond just the artwork; ownership of an NFT with 1-of-10 custom artwork from Luxton; Intercontinental Ambassadorial Status; and a one-night stay at the new InterContinental Rome Ambasciatori Palace opening in 2023. A selection of NFTs will initially be available to IHG One Rewards members, followed by more activations. Ownership of NFTs is permanent, giving access to all NFT trading rights. This will mark InterContinental’s third part of the collaboration with Luxton.
Flynn, Value acquire an 80% stake in the 89-hotel portfolio: San Francisco, Calif.-based Flynn Properties and Minneapolis, Minnesota-based Värde Partners have acquired an 80% joint venture interest in 89 select-service and extended-stay hotels in an implied $1.1 billion deal. The hotels were sold by affiliates of Highgate and Cerberus Capital Management. The portfolio includes 58 Marriott hotels, 24 Hilton hotels, four Radisson properties, two IHG hotels and one Choice hotel. The sellers will maintain a 20% stake in the investment and Highgate will continue to manage the properties on behalf of the JV. The acquisition brings Flynn’s limited service portfolio to 115 properties. This is the second JV between Flynn and Värde following the acquisition of 20 Marriott and Hilton hotels from Apple Hospitality in 2021.
Ascott Unveils Somerset: The Ascott Ltd. has launched Somerset, its refreshed brand championing sustainability and inclusion. The update includes new experiences rooted in sustainable travel for multi-generational families and follows Ascott’s recently announced Ascott CARES, a sustainability framework that aligns the company’s growth strategy with ESG considerations. The brand refresh is part of Ascott’s Brand 360 strategy, an initiative to strengthen the brand portfolio and introduce signature experiences and programs. While the company’s Citadines brand underwent a refresh in September, Ascott, Oakwood and The Crest Collection will also unveil new brand signatures and programs in 2023.
Accor, Lila.help partner: Accor has partnered with Lila.help to extend its commitment to ending violence against women. Launched as a collaboration between organizations including the Global Network of Women Shelters, UN Women, the National Network to End Domestic Violence and Meta, Lila.help is a platform and global directory of support services for victims of domestic and sexual violence. Supported by a charitable grant program, the ALL Heartist Fund, Accor will help Lila.help expand the reach of its global catalog by translating the platform’s content into the 15 most common languages. Accor will contribute to important awareness-raising activities to increase engagement with the platform among local authorities, organizations and vulnerable people.
Sancus buys in Spain: Sancus Hotels has made its debut in Spain with the acquisition of two Madrid hotels – Rosewood Villa Magna and Bless Hotel Madrid – from Mexican hotel operator RLH Properties for €130 million (US$133.35 million). RLH reportedly bought the 154-key Rosewood Villa Magna for €134 million (US$137.45 million) in 2018 and spent €49.6 million (US$50.87 million) to buy a 51% stake in Bless Hotel Madrid with 111 rooms in July 2021. Sancus Hotels is a division of the Spanish asset manager Sancus Capital.
Pyramid expands its portfolio: Pyramid Global Hospitality, Boston, Massachusetts, has added two hotels to its portfolio – the 55-room Pine Mountain Ski & Golf Resort in Iron Mountain, Michigan and the 55-suite Four Seasons Island Resort in Pembine, Wisconsin. Both properties are owned by Indianapolis, Indiana-based Storie Co. Pyramid’s portfolio includes over 220 properties across the US, the Caribbean and Europe.
Hmlet launches first hotel: Hmlet, the Singapore-based flexible living brand, together with real estate partners TCRE Partners and JMD Group, will launch Owen House by Hmlet in Singapore. TCRE and JMD bought the 106 key hotel earlier this year, and have worked with Hmlet to refurbish the property ahead of its opening as Hmlet’s first hotel. The property will open early next year. The hotel will offer rooms for both longer and shorter stays and a lobby and island bar. Hmlet merged with Germany-based housing network Habyt in April. Owen House by Hmlet will join the newly formed Habyt Group’s global portfolio, which consists of 8,000 rooms under management in 10 countries and 20 cities. The hotel will be part of the Hmlet Boutique Collection following the launch of its serviced apartment Hmlet Cantonment in August 2019.
Zleep adds 16th in Denmark: Zleep Hotel, Deutsche Hospitality’s economy brand, opens its 16thth hotel in Denmark in 2024 when it becomes the first hotel partner of Recharge City in Horsens. When it opens, the 164-room Recharge City hotel will be part of the new 270,000-square-foot center that will also include restaurants, parking lots and a gas station. The hotel will be spread over five floors and will contain a lounge and breakfast area and a bar and reception. Recharge City is an EU platinum certified parking and charging centre. The center has space for 450 lorries, wagon trains and a special train with wagons and will also contain a petrol station, filling station, charging stations, repair and washing area, restaurants and outdoor areas. Zleep Hotels’ portfolio currently includes 15 hotels in Denmark and one in Sweden with plans to operate 40 properties in 2025 together with Deutsche Hospitality.