QUOTE OF THE WEEK
“We believe we will see growth in all segments globally. Leisure will be very low but positive, business travel will be a little higher and meetings and events will be very, very strong.” – Chris Nassetta, Hilton Read story
“The resulting operational bloat includes mandatory 24/7 security coverage for any hotel with more than 100 rooms, which amounts to about $500,000 per year. That’s a death blow for many small hotels, many of which have annual revenues of $10 to $15 million.” – Vijay Dandapani, Hotel Association of New York City Read story
“What has happened in the last 12 months is that capital is available, but people thought that instead of investing in equity, they should borrow and that hasn’t worked out because there have been fewer transactions.” – Mehul Patel, NewcrestImage Read story
“Recent growth in larger transactions was driven in part by a surge in CMBS/SASB issuance, which grew 3.3x year-over-year. Expect this capital to flow into assets in markets with high barriers to entry that serve a diverse customer mix.” – Read JLL Hotels & Hospitality story
“In the short term, July has been extraordinarily strong in terms of overall bookings. The bookings we’re getting are not only filling rooms at compromise rates. We’re getting great ADRs… We’ve also had an increase in preliminary business that’s really remarkable.” – Mark Hoplamazian, Hyatt Hotels Corp. Read story
“We celebrated 126 hotel openings and signed a record 384 deals in the first half of the year, which equates to more than two per day. This included the first six openings and 118 deals from the Novum Hospitality deal, which doubles our presence in the important and attractive German market. Following +7% growth in the first quarter, a very busy second quarter saw +23% more deals year-on-year, or more than double when Novum is included, keeping us on track for net system size growth expectations.” – Elie Maalouf, IHG Hotels & Resorts Read story
“We are very pleased with the behavior of our customers… We believe that this quarter saw the discerning vacationers travel abroad… We believe this is a pivotal moment and the pendulum will swing back.” – Jim Risoleo, Host Hotels & Resorts Read story
“We just signed a new project in Fulton Market in Chicago, and that will be a renovation of a former Schwinn bicycle factory. The project will be completed in about two years. And then we’re actively looking again in the Southeast and the San Francisco area, near the wine country… We have two more projects in Southern California, but I can’t announce the locations yet. We’ll be completing those in the next two to four years.” – Philip Bates, TMC Hospitality Read story
