Hotels Expect a Leisure Travel-Driven Summer Recovery
Skift Take While all signs indicate that the hotel industry will continue to make progress…
While all signs indicate that the hotel industry will continue to make progress in its recovery this summer, the rebound may not be as large as expected as high gas prices could deter some travel.
Here’s a sampling of what the Daily Lodging Report provided to its readers this past week. If you’re not a subscriber, you should be. Don’t wait. Sign up now here.
Sunday, April 3
The CBRE Hotels Research State of the Union showcased a pictorial review of current hotel trends, leading and coincident indicators of hotel demand and an update on cost pressures and margin flow-through. According to the report, 2022 and 2023 GDP estimates have been negatively revised from 3.5% to 2.4% and 2.1% to 1.9% respectively. Spring break travel positively impacted March performance data compared to January and February which are less leisure-oriented. CBRE is optimistic about the upcoming leisure-driven summer months. Chain scale performance showed improvement in the upper-priced segments, and CBRE is seeing some softening in the performance of lower-priced hotels. Market volatility is climbing due to high inflation rates as well as uncertainty brought on by the conflict in the Ukraine. There is also concern that rising airfares and higher gas prices could affect future travel. February’s international travel data showed improvement for major gateway markets, however, west coast Asia-dependent markets continue to lag. Although higher inflation translates into higher ADR, inflation is likely to put pressure on hotel margins in the near term. Longer-term, higher construction input costs including increased construction wages should moderate supply growth supporting ADR growth. CMBS delinquency continues to fall as hotels begin to benefit from improvements in travel over February and March.
Skift Note: Although rising airfares and higher gas prices could put a dent in the expected summer recovery, hotel executives are still optimistic they’ll see a surge in visitor numbers.
Monday, April 4
Marriott International announced plans to expand its portfolio in Vietnam, expecting to add nearly 9,000 rooms within the company’s portfolio. The expansion will see the debut of key brands including Ritz-Carlton Residences, Marriott Hotels, Westin and Courtyard by Marriott. Marriott’s Sheraton Hotels & Resorts brand expects to make its debut in several new destinations across Vietnam, including on the island of Phu Quoc, the UNESCO World Heritage Site of Ho Long Bay, Dalat and the shores of Binh Chau. A new Renaissance Hotel is planned to open in the seafront city of Danang, while Le Meridien Hotels & Resorts plans to debut in Danang and Cam Ranh. The flagship Marriott Hotels brand is expected to debut in Hanoi and Hoi An while the Westin brand is expected to open in Hanoi and Cam Ranh. Marriott Executive Apartments is slated to start welcoming guests in Danang. The Ritz-Carlton Residences, Hanoi expects to make its debut in 2024. Marriott’s Fairfield by Marriott brand is slated to be introduced in locations such as Vinh Yen, Ha Long and Hanoi, while several Courtyard by Marriott hotels are expected to open across 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 across six key business and leisure destinations including Hanoi, Ho Chi Minh City, Danang, Nha Trang, Phu Quoc and Binh Duong.
Skift Note: Marriott’s expansion in Vietnam occurs two months after the country announced it was fully reopening to overseas visitors with no quarantine requirements.
Hyatt Hotels Corp. is launching Work from Hyatt: Offsite, a new corporate retreat concept that offers team-building opportunities focused on creating strong in-person connections along with group discounts. The offer will be introduced to over 30 participating properties in the U.S. through collaborations with local attractions, fitness studios and restaurants. The new offering will feature curated team-building experienced based on local offerings, dedicated on-site event planning and event experience managers and off-site discounting starting at 10% for meeting, work and social spaces, F&B and guestrooms.
Skift Note: The competition to be attract more corporate retreat bookings is becoming more fierce as Hyatt is launching a product similar to those of its rivals.
Tuesday, April 5
Wyndham celebrated four openings in Bangkok, adding to its Thailand portfolio of 17 hotels. In Vietnam, Wyndham further expanded its presence by introducing Wyndham Grand Flamingo Cat Ba. Australasia had four openings across several brands in Wellington, Auckland, Christchurch, and Hervey Bay. The Ramada by Wyndham Wellington marked Wyndham’s first hotel in the capital of New Zealand. As for the future, Wyndham said they are making great progress towards their goal of reaching 2,000 hotels in Asia Pacific by 2025. At the start of this year, the company debuted China’s first La Quinta by Wyndham in Weifang, Shandong province. They expect to open eight Wyndham Gardens this year in locations from China’s Chengdu and Lanzhou to Thailand’s Phuket. There are more than ten Microtel by Wyndham hotels in China’s opening pipeline for this year while ten Ramada by Wyndham hotels are scheduled to open. Seven anticipated new hotels openings in Thailand this year include the 190-room Wyndham Atlas Wongamat Pattaya, representing the first Wyndham hotel in Pattaya when it opens in June. The company is planning 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, specifically Microtel by Wyndham and TRYP by Wyndham. With 28 properties in Australia, Wyndham expects to expand its namesake brand further with its very first hotels in South Australia. The two new additions include Wyndham Wallaroo Shores Resorts and TRYP by Wyndham Pulteney Street Adelaide in Q4.
Skift Note: Thailand’s cautious reopening may result in Wyndham not getting the boost it expected from its Bangkok openings.
Wednesday, April 6
Travelodge announced they are evolving their core brand product to a new budge-luxe premium look and feel design, while maintaining their great value price proposition. This new design has been created on 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 insight, Travelodge interiors team have remodeled their core product with a new budget-luxe design that includes all the low cost efficiencies you expect from Travelodge but with the added benefit of thoughtful, stylish design and, homey touches throughout its interiors. The new Travelodge budget-luxe design features a new reception area; next generation multi-dimensional rooms; and on-site restaurant with a statement bar called the “Bar Café”.
Skift Note: Hotel companies are increasingly viewing luxury brands as an avenue for growth.
Thursday, April 7
Radisson Hotel Group announced they are launching 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 be in addition to over 140 properties Radisson Hotel Group currently has in operation or under development nationwide. Radisson Individuals Retreats is a collection of upper-upscale and luxury lifestyle retreats, that will deliver exclusive experiences. Each retreat property will be in unique leisure destinations including Goa, Kashmir, Coorg, and Kabini or offbeat locations such as the mountain ranges of Himachal Pradesh or Uttarakhand, the hills of Karnataka, or the historical lands of Rajasthan. Radisson Individuals Retreats is an extension of Radisson Individuals, the soft brand concept that made its debut in South Asia in 2021. Radisson Hotel Group operates 106 hotels and resorts in India, covering seven of its brands in all parts of the country. The new brand is tailored for the Indian market and will be a collection of upper-upscale luxury lifestyle retreats with 25-50 rooms. They expect to open a few in this calendar year as they are assessing around ten properties right now. Radisson is looking at 50 Radisson Individual Retreats in the next five years.
Skift Note: Radisson is clearly projecting India to be lucrative market. But it would help the company if Indian officials developed a new tourism policy to make appealing to prospective foreign visitors.