While all signs point to the hospitality industry continuing to make progress in its recovery this summer, the rebound may not be as big as expected as high gas prices could discourage some travel.
Here’s a sampling of what the Daily Lodging Report provided its readers with last week. If you’re not a subscriber, you should be. Do not wait. Register now here.
sunday april 3
the CBRE Hotels Research State of the Union presented an illustrated review of current hotel trends, leading and coincident indicators of hotel demand, and an update on cost pressures and margin flow. According to the report, GDP estimates for 2022 and 2023 have been revised down from 3.5% to 2.4% and from 2.1% to 1.9% respectively. Spring break travel had a positive impact on March performance data compared to January and February, which are less focused on leisure. CBRE is optimistic about the upcoming leisure-driven summer months. Chain-wide performance has shown improvement in high-priced segments, and CBRE is seeing some slowdown in lower-priced hotel performance. Market volatility is increasing due to high inflation rates as well as uncertainty over the conflict in Ukraine. There are also fears that rising air fares and fuel prices will affect future travel. February international travel data showed improvement for key gateway markets, however, markets dependent on Asia’s west coast continue to lag. Although higher inflation translates to higher ADR, inflation is likely to put pressure on hotel margins in the short term. In the longer term, higher construction input costs, including rising construction wages, are expected to moderate supply growth and support ADR growth. CMBS delinquency continues to decline as hotels begin to benefit from improved travel in February and March.
Remark : Although rising airfares and rising gas prices could hurt the anticipated summer recovery, hotel executives are still optimistic about an increase in visitor numbers.
Monday april 4th
Marriott International announced its intention to expand its portfolio by Vietnam, expecting to add nearly 9,000 rooms to the company’s portfolio. The expansion will see the launch of key brands such as Ritz-Carlton Residences, Marriott Hotels, Westin and Courtyard by Marriott. Marriott’s Sheraton Hotels & Resorts brand plans to debut in several new destinations across Vietnam, including Phu Quoc Island, the UNESCO World Heritage Site of Ho Long Bay, Dalat and the banks of Binh Chau. A new Renaissance hotel is set to open in the coastal city of Danang, while Le Meridien Hotels & Resorts plans to debut in Danang and Cam Ranh. The flagship Marriott Hotels brand is set to debut in Hanoi and Hoi An, while the Westin brand is set to open in Hanoi and Cam Ranh. Marriott Executive Apartments is expected to begin welcoming guests to Danang. The Ritz-Carlton residences in Hanoi are set to debut in 2024. Marriott’s Fairfield by Marriott brand is set to be introduced in places such as Vinh Yen, Ha Long and Hanoi, while several Courtyard by Marriott hotels are set to open in Danang. , Ha Long and Nha Trang. Marriott currently operates 10 properties in Vietnam, comprising 3,294 rooms and spanning six of the company’s brands. The hotels and resorts are located in six key business and leisure destinations, including Hanoi, Ho Chi Minh City, Danang, Nha Trang, Phu Quoc and Binh Duong.
Remark : Marriott’s expansion in Vietnam comes two months after the country announced its full reopening to foreign visitors with no quarantine requirements.
Hyatt Hotels Corp. starts Work at Hyatt: Offsite, a new corporate retreat concept that offers team building opportunities focused on building strong bonds in person as well as group discounts. The offer will be presented to more than 30 participating properties in the United States through collaborations with local attractions, fitness studios and restaurants. The new offering will feature a curated team building experience based on local offerings, dedicated event planning and onsite event experience managers, and offsite discounts starting at 10% for meeting spaces , work and social, catering and rooms.
Remark : Competition to attract more corporate retreat bookings is growing fiercer as Hyatt launches a product similar to those of its rivals.
Tuesday, April 5
Wyndham celebrated four openings in Bangkok, adding to its Thai portfolio of 17 hotels. In Vietnam, Wyndham expanded its presence by introducing Wyndham Grand Flamingo Cat Ba. Australasia had four openings across multiple brands in Wellington, Auckland, Christchurch and Hervey Bay. the Ramada by Wyndham Wellington marked Wyndham’s first hotel in New Zealand’s capital. As for the future, Wyndham said it is making great strides toward its goal of reaching 2,000 hotels in Asia-Pacific by 2025. Earlier this year, the company launched the first The Quinta by Wyndham in Weifang, Shandong province. They expect to open eight Wyndham Gardens this year in locations ranging from Chengdu and Lanzhou in China to Phuket in Thailand. There are more than ten Microtel by Wyndham hotels in the opening pipeline in China this year, while ten Ramada by Wyndham hotels are expected to open. Seven new hotel openings planned in Thailand this year include all 190 rooms Wyndham Atlas Wongamat Pattaya, depicting the first Wyndham hotel in Pattaya when it opened in June. The company plans to unveil five more new hotels in Pattaya this year. New Wyndham-branded properties in leisure destinations such as Phu Quoc and Hoi An in Vietnam will add to their existing portfolio and there will be new lifestyle hotel brands in New Zealand, particularly Microtel by Wyndham and TRYP by Wyndham. With 28 properties in Australia, Wyndham plans to further expand its eponymous brand with its first-ever hotels in South Australia. The two new announcementseditions include Wyndham Wallaroo Shores Resorts and TRYP by Wyndham Pulteney Street Adelaide at T4.
Skift Rating: Thailand’s cautious reopening could prevent Wyndham from getting the boost it expected from its Bangkok openings.
Wednesday 6 April
Travelodge announced that they were upgrading their main branded product to a new premium design, while maintaining their excellent price proposition. This new design was born from the success of the group’s budget chic hotel format, TravelodgePLUS with feedback from the company’s largest consumer study. In response to this consumer vision, Travelodge’s interiors team has revamped its core product with a new budget luxury design that includes all the low-cost savings you’ve come to expect from Travelodge, but with the added benefit of a thoughtful and elegant design and warm touches in all its interiors. . The new budget-luxury Travelodge design includes a new reception area; new generation multidimensional rooms; and an on-site restaurant with a bar called the “Bar Café”.
Remark : Hospitality companies increasingly see luxury brands as an opportunity for growth.
Thursday, April 7
Radisson Hotel Group announced the launch of their new lifestyle brand extension in India, Radisson Individual Retreats, as they prepare to double their portfolio in the country. The group recently unveiled plans to more than double its Indian footprint, with 148 hotels and resorts to be added by 2025. These will add to the more than 140 properties that Radisson Hotel Group currently has in operation or in development across the country. Radisson Individuals Retreats is a collection of upscale and luxury lifestyle retreats, which will offer exclusive experiences. Each retirement property will be in unique leisure destinations including Goa, Kashmir, Coorg and Kabini, or in offbeat locations such as the mountain ranges of Himachal Pradesh or Uttarakhand, the hills of Karnataka or the historic lands of Rajasthan. Radisson Individuals Retreats is an extension of Radisson Individuals, the soft brand concept that debuted in South Asia in 2021. Radisson Hotel Group operates 106 hotels and resorts in India, spanning seven of its brands across all regions of the country. The new brand is tailored to the Indian market and will be a collection of high-end luxury lifestyle retreats with 25 to 50 rooms. They expect to open a few this calendar year, as they are currently appraising about ten properties. Radisson is planning 50 individual Radisson retreats over the next five years.
Remark : Radisson clearly projects that India will be lucrative market. But it would help the company if Indian officials developed a new tourism policy to attract potential foreign visitors.