Growth of revenue per available room in the US has been sluggish, despite an improving economy and positive consumer sentiment. Marriott CEO Arne Sorenson and Hilton CEO Christopher Nassetta cited caution among the corporate travel segment.
Los Angeles-based Nimes Real Estate has purchased two hotels in downtown Austin, Texas, from Journeyman Group of Austin for an undisclosed sum. The Hotel Indigo Austin Downtown -- University and the Holiday Inn Express Austin Downtown -- University both opened in 2016.
Revenue per available room is up 4% for the first half of the year in the EU, and hotel investors are looking to put money to work in the region as the broader economy recovers. "The more conviction investors and developers have in economic growth, the less risk on industry fundamentals they underwrite into hotel deals, that allows them to be more aggressive on pricing," said Ryan Meliker of Canaccord Genuity.
Last year, more than half of hotel bookings came via online travel agencies, showing OTAs will continue to be a factor, even as hotels step up efforts to win direct bookings. The notion that OTAs offer the best deals appeals to millennials.
The Hewing Hotel in Minneapolis is opening its celebrated rooftop bar and restaurant to the general public one day a week. Originally reserved for hotel guests and social club members only, the spot known for distinctive cocktails will serve all comers on Tuesdays.
Houston's Marriott Marquis continues to employ people from a pool that the city's hotels turned to for help during February's Super Bowl festivities: the once-homeless. "They come to work motivated; not only are they motivating, but being around them motivates the rest of our team," general manager Scot Cotton said.