News Top: January
Steady Cap Rates Support Strong Hotel Value Gains
HVS | January 30, 2015
By Suzanne Mellen, CRE, MAI, ISHC, FRICS Hotel values reached new peak levels in 2014, fueled by stellar hotel performance, and the availability and low cost of capital. Capitalization rates held steady as competition for quality assets remained strong. This article discusses these forces and presents data illustrating these trends. The strong performance of hotel assets continues to attract capital to our industry. Hotel values reached new peak levels and capitalization rates remained steady in 2014, fueled by hearty net income increases and a plethora of low cost, yet still disciplined, capital. This article, which is published bienni...
The Liquidation Sale of The Hilton Indianapolis North Hotel Opens Thursday, January 8th at 10:00 a.m
NCL/ National Content Liquidators, Inc. | January 5, 2015
Sale Conducted by NCL/ National Content Liquidators, Inc. Everything Must Go! (Indianapolis, Indiana, January, 2015) - Community Health Network has contracted with NCL/National Content Liquidators, Inc., the leading expert in hotel liquidation management, to clear the Hilton Indianapolis North of its current contents as a prelude to the property's redevelopment. The property's owner has decided to explore options better suited to meet the needs of the Community Hospital North, which sits next to the 9 acre piece of land the Hilton is sitting on. The liquidation is being held on-site at The Hilton Indianapolis North, located at 8...
The End of an Era: IHG Acquires Kimpton
Vikram Singh | January 5, 2015
by Vikram Singh How much is that boutique hotel in the window? Well, it's around $430 million. Yes, that's the price InterContinental Hotels Group (one of the biggest hotel companies in the world) paid to acquire Kimpton Hotels, the original boutique hotel group, which includes 62 hotels and 71 hotel-based restaurants and bars. The number might sound big, but in reality it's a drop in the IHG ocean of hotel brands and assets. Having lived in San Francisco, I saw the best and most vibrant years for the local Kimpton hotels. Now it's come to this: the latest and, I think, fatal blow to Kimpton as a boutique brand, and the Boutique Era its...
Marriott’s War on Wi-Fi: Hotels Need to Stop Fighting the Future
Vikram Singh | January 12, 2015
by Vikram Singh Big hotel brands have seen unprecedented growth over the past decade. Even when the global financial engines slowed down, they grew exponentially in global markets (ie, Asia, Middle East, Latin America). But unfortunately, they have forgotten what every Stan Lee fan already knows: with great power comes great responsibility. One of the leaders of the pack – Marriott – has decided to appropriate one of the most important aspects of modern human existence: Wi-Fi. Let's start with why Wi-Fi is such an integral part of guest experience in a hotel. Now, here are your Captain Obvious facts for the day: Wi-Fi's im...
2015 Hotel Industry Trends – from Mobile to Niche Markets
Bob Diener | January 13, 2015
Bob Diener – Co-Founder of Getaroom.com Hotel operators can expect 2015 to be a significant year, with the country jumping out of the recession, which in turn encourages people to travel more often. Rates and occupancy levels will be higher, especially for the upscale properties that will see continued demand from affluent consumers. What does the future hold for the industry in 2015? Here are four trends that will shape the New Year: Mobile technology transforms the hotel experience. Smartphones and tablets have fundamentally changed how consumers process information and conduct transactions and altered how businesses operate. The ho...
Accor Opens New North America, Central America and Caribbean (NCAC) Headquarters in Miami, Florida
Accor | January 5, 2015
January 5, 2015 - Accor, global hospitality leader, announced the opening of its North America, Central America and Caribbean (NCAC) headquarters at One Square Park at Doral in Miami. Driven by the company's revitalized strategy and business model, the new location consolidates previously independent business units in Dallas and New York City into one office, strengthening its footprint in the region by providing a cohesive foundation for operational efficiency and sustainable, long-term growth. "We are very excited to call Miami our home. Uniting our regional operations, sales and support business leaders together will enable greater c...
2015 Las Vegas Trends that are or Should be Universal
January 9, 2015
Experts Weigh in on 2015 Trends in Hospitality, Technology, Luxury, Entertainment, Food & Beverage and Spa LAS VEGAS - January 9, 2015 - Hospitality, technology, luxury, entertainment, food and beverage, fashion and spa experts are weighing in on what we can expect from Las Vegas in 2015. Contributors include industry insiders from Bellagio, ARIA, MGM Grand, Mandalay Bay, Delano Las Vegas, The Mirage, Monte Carlo, Vdara Hotel & Spa, The Shops at Crystals and internationally renowned chef Rick Moonen. From the rise of music festivals and new takes on alcohol-infused foods to how the destination is pursuing the millennial generati...
AAA Adds 14 Hotels and Restaurants to Exclusive Five Diamond List for 2015
AAA Inspections | January 16, 2015
ORLANDO, Fla., Jan. 16, 2015 -- AAA has unveiled 121 hotels and 63 restaurants that have earned the AAA/CAA Five Diamond Rating in the past 12 months, qualifying them for the 2015 Five Diamond Award lists. This exclusive group represents just 0.3 percent of the more than 58,000 AAA/CAA Approved and Diamond Rated hotels and restaurants. AAA inspectors collectively visit approximately 1,200 hotels and restaurants each week, allowing them to identify emerging trends in the industry. "At the ultra-luxury level we're seeing an increasing number of hotels offering guests the choice of high-end service by white glove or touch screen — in per...
Hotel Innvestor Raising Capital For 2 Hotels
Hotel Innvestor, LLC | January 19, 2015
Hotel-Investment-Banking Platform Raising Capital For 2 Hotels Projects Are Located In Santa Barbara And Los Angeles Markets Newport Beach, Calif. – Hotel Innvestor has been retained to raise capital for two separate offerings for hotel projects in Goleta, Calif. and Glendale, Calif. President Tim L. Edgar announced today that the first project is raising funds for a construction loan for a Hilton Garden Inn to be built in close proximity to the University of California at Santa Barbara in Goleta. The second offering is to raise funds to refinance the loan on an existing Vagabond Inn hotel in Glendale. "Hotel Innvestor is pleased to b...
The $3.5 Billion Baha Mar is Set to Open in March 2015 in The Bahamas
Baha Mar | January 9, 2015
NASSAU, The Bahamas, Jan. 9, 2015 -- Baha Mar, the new $3.5 billion resort, will introduce a new era of luxury, glamour, gaming and excitement to The Bahamas when it begins hosting paid guests on March 27, 2015, at Baha Mar Casino & Hotel, Rosewood at Baha Mar and SLS LUX at Baha Mar. Grand Hyatt at Baha Mar will open shortly after. "Baha Mar will bring a new level of sophistication and resort experience to one of the most sought-after travel destinations in the Caribbean with its March 27 opening. We are thrilled to welcome our first guests to 'The New Riviera' in time for the peak spring travel weeks," said Paul V. Pusateri, chief...
Joel Bunde Named General Manager for Hyatt Regency Aruba
Hyatt Regency Aruba Resort Spa & Casino | January 27, 2015
PALM BEACH, ARUBA (January 27, 2015) - Hyatt Regency Aruba Resort Spa & Casino today announced the appointment of Joel Bunde as the new General Manager of Aruba's premier beachfront property. A more than 20-year veteran of the Hyatt hospitality family, Bunde brings a wealth of experience, expertise and passion for the hotel brand to Hyatt Regency Aruba. In his new role as General Manager, Bunde will oversee all aspects of the resort's operations, including food and beverage, staff management, recruitment and development, amongst other daily operational tasks. With over 20 years of management experience, Bunde will guide Hyatt Regenc...
Guest Photos Go Viral for The Shores Resort with Flip.to Photo Advocacy
Flip.to | January 29, 2015
ORLANDO, FL - JANUARY 2015 - The Shores Resort and Spa has recently switched on an entirely new marketing channel as guests compete to fill the resort's amazing library of authentic photos. After The Shores Resort launched Photo Advocacy, guests have shared photos of their favorite vacation moments with hundreds of thousands of friends and family. Flip.to Photo Advocacy encourages hotel guests to enter into photo contests that The Shores uses to turn memorable moments into amazing brand connections around the world. Guests share their photos of The Shores Resort to their social networks as they compete for votes in the contest. Cont...
Launching Virgin Group’s New Brand, the 250-room Virgin Hotels Chicago Opens
Virgin Hotels | January 15, 2015
Plans for Nashville Opening in 2016 and NYC in 2017 NEW YORK, Jan. 15, 2015 -- Today marks a milestone in the history of the Virgin brand with Virgin Hotels opening the doors to its first property, Virgin Hotels Chicago. The new hotel brand will join a stellar portfolio of hospitality companies led by Virgin Group and its founder Sir Richard Branson, and offer the same excitement, heartfelt service and smart innovation that Virgin is known for. "It's been a long held dream to start beautiful, comfortable, fun hotels for guests and give them what they want and need while being gentle on their wallets," said Richard Branson, Virgin Group ...
The Three Pillars of Hotel Customer Service
Larry Mogelonsky | January 14, 2015
By Larry Mogelonsky, MBA, P. Eng. (www.lma.ca) Every good salesperson or individual working in guest service knows about guest expectations: you must first meet, and then exceed. This presupposes that you are actually able to meet a customer's expectations, because if you cannot, then it goes without saying that you will disappoint. However, meeting is just okay - mediocre at best. Being okay is not enough. Too many other hotels are already capable of this, so you aren't differentiating yourself from the herd. By exceeding expectations, you will surprise and delight your guests, both positive sentiments to have for your hotel. I want yo...
In Memoriam, a Tribute to James Simkins, 1952-2015
January 30, 2015
The Woodlands (Houston), Texas, January 2015 ... James Simkins, who was until recently Benchmark's Chief Operating Officer for Personal Luxury Resorts & Hotels and instrumental in the successful launch of the Personal Luxury brand, passed away peacefully on January 16th. He had been engaged in a heroic struggle with cancer. James was a legend and a giant within the hospitality industry, and a person for whom every day held a unique adventure. A consummate world-class hotelier, he mused at the completion of his career on how fortunate he had been to be mentored by many of the world's finest hoteliers, and to have had the opportunity ...
Real Hospitality Group Launches 2015 with Expansion and New Openings
Real Hospitality Group | January 22, 2015
Expansion includes New West Coast Los Angeles Office and 9 New Hotel Openings in the First Quarter of 2015 Ocean City, MD, January 22, 2015 - Executives at Real Hospitality Group (RHG) today announced several landmark growth points for the company. In effort to expand the company's domestic US presence and the increasing demand for urban hotel projects, the new Los Angeles Regional Office opened this month, expanding the Executive team with the hire of Randy Hulce as the company's West Coast Vice President. Additionally, 9 hotels are slated for grand openings in the first quarter of this year; with the first of nine now open in Newark/W...
Someone Please Tell Me What Revenue Management is all About – Let’s Start with the Basics
Ahmed Mahmoud | January 6, 2015
By Ahmed Mahmoud Since the revenue management inception started in the early 80's, thousands of hotels and just about every airline have implemented revenue management successfully. Many times revenue management has become a somewhat controversial buzzword in the hospitality industry. As with many common terms, revenue management seems to have various definitions depending upon whom one asks. While there is general revenue management principles easily applied across different industries, each industry also has specific characteristics that determine the practical aspects of revenue management application in companies that work in it, i...
Nine New Hotels Opening in California’s Anaheim Resort District Adding Over 1,500 Guest Rooms
the Anaheim/Orange County Visitor & Convention Bureau | January 9, 2015
Area Investments in Hotel Development and Renovations Nearly $200 Million ANAHEIM, CA. (Jan. 9, 2015) - Anaheim Resort District hotel development is moving at a vigorous pace with nine brand new hotels being added in 2014 -2015. The new additions will offer Anaheim area convention and leisure travelers more options, such as the return of the Hyatt brand to Anaheim and a portfolio of new and engaging family-friendly hotels. Collectively, these properties will bring more than 1,500 guest rooms and suites to the Anaheim Resort area. "Nearly $200 million dollars is currently being invested by major hotel brands into Anaheim Resort District ...
Strategic Hotels & Resorts, Inc. Acquires the 250-room Montage Laguna Beach for $360 million
Strategic Hotels & Resorts | January 30, 2015
CHICAGO, Jan. 29, 2015 -- Strategic Hotels & Resorts, Inc. (NYSE: BEE), today announced that it has acquired the 250-room Montage Laguna Beach from an affiliate of Ohana Real Estate Investors LLC for $360.0 million, plus customary working capital adjustments. The Company funded the acquisition, in part, through the issuance of 7,347,539 shares of common stock to an affiliated designee of the seller, priced at $13.61 per share, or an implied valuation of $100.0 million. In addition, the Company assumed a $150 million mortgage loan encumbering the property, priced at a fixed interest rate of 3.90%, which matures in August 2021. The re...
Euro Capital Properties Hires Jon Chocklett as VP, Sales & Business Development, The Watergate Hotel
Euro Capital Properties | January 21, 2015
Washington D.C. (January 21, 2015) - International New York-based real estate developer, Euro Capital Properties hires hospitality sales veteran Jon Chocklett as Vice President of Sales and Business Development. Jon comes to The Watergate Hotel from a storied career working with various luxury hotels, resorts and spas, most recently with the Mandarin Oriental and Four Seasons brands. "We believe Jon is a perfect fit for our team due to his creativity in the luxury market coupled with his masterful approach to sales with leading hotel brands," said Jacques Cohen, Principal, Euro Capital Properties. "Jon will help us reintroduce this icon...
Hyatt Sells Five Hyatt Place Hotels for $53 Million; Hotels to Retain Hyatt Place Branding
Hyatt Place | January 15, 2015
January 15, 2015 - CHICAGO - Hyatt Hotels Corporation (NYSE: H) today announced the sales of five select service hotels for a total gross sale price of approximately $53 million. The transactions closed in December 2014. As part of the sales, Hyatt entered into franchise agreements with the purchasers, with all hotels retaining their existing Hyatt Place branding. The purchasers intend to spend a total of approximately $6 million in additional capital expenditures at the hotels. These sales are consistent with the Hyatt's asset recycling strategy – selling selected hotels, maintaining brand presence by entering into new management or ...
Knoxville Hotel Owner, Jayesh Dahyabhai Patel, Sentenced to 3 1/2 years in Prison for Bank Fraud
January 17, 2015
Jan. 17--GREENEVILLE -- A Knoxville hotel owner will serve three-and-a half years in prison for bank fraud. Jayesh Dahyabhai Patel, 49, of Knoxville, was sentenced Friday to serve 42 months in federal prison by U.S. District Judge Leon Jordan. Patel was also ordered to pay restitution of $2,806,438.20 to First Community Bank and to serve five years of supervised release upon leaving prison. Patel was indicted in May 2014 and pleaded guilty in July 2014 to bank fraud. He admitted engaging in a scheme from January 2009 to August 2011 to defraud First Community Bank of East Tennessee in Kingsport providing false tax returns to induce the b...
How Silicon Valley Thinking Can Shake Up Traditional Hotel Management Practices
Mark C. Lynn | January 22, 2015
Asset managers should encourage management to take risks to innovate. by Mark C. Lynn Constant questioning and challenging of hotel amenities, services, programs and management practices is critical to discover new ways of elevating the guest experience. Creativity and innovation should be driven by the premise that employees be permitted - and in fact encouraged - to challenge conventional thinking and the traditional methods of doing things. Building experimentation into a hotel's business culture will boost customer satisfaction and loyalty, and by extension, increase revenues. The Asset Manager's Role in Encouraging Risk Taking The...
Caesars Bankruptcy: What Does it Mean for Company, Consumers and Employees? Expect More Drama
January 16, 2015
Jan. 16--When the largest operating division of casino giant Caesars Entertainment filed for bankruptcy protection on Thursday, it was just the most recent piece of what has already been an intense and controversial path toward financial restructuring. Expect more drama as the process moves forward. For years, Caesars has struggled with a massive debt load, most of which is concentrated in the cash-strapped operating division called Caesars Entertainment Operating Company, or CEOC. That division is now seeking to reduce its $18.4 billion debt load by nearly $10 billion. The bankruptcy plan voluntarily put forward by Caesars is complex o...
Ownership of TPI Hospitality Transitions to 100% Employee Owned
TPI Hospitality | January 6, 2015
January 6, 2015 - Willmar, MN - When Ray Torgerson opened his first clothing store in 1930 his vision was to build strong community relationships and to help those in need. Nearly 90 years later, the nature of the business has evolved from retail to hotels and restaurants, but the collective vision of TPI Hospitality is still aligned with the core values Ray demonstrated on a daily basis. With value, service, and quality as guiding principles, TPI Hospitality has grown from a small family business in west central Minnesota to the largest hospitality company in the state of Minnesota. TPI has grown significantly during its three generati...
