5 things to know: 14 May 2020
5 things to know: 14 May 2020
14 MAY 2020 9:40 AM

From the desks of the Hotel News Now editorial staff:

  • Europe hopes to reopen this summer
  • Hostmark Hospitality Group acquires RAR Hospitality
  • Hotel firms tap outside partners in devising cleaning guidelines
  • Hard Rock International buys back Las Vegas hotel’s rights
  • US, Canada weekly hotel performance

Europe hopes to reopen this summer: The European Union on Wednesday announced an action plan to safely reopen its international borders and hospitality sector as well as revive rail, road, air and sea connections by this summer, CNN Travel reports.

The EU has recommended to all its member nations that they ban all non-essential visitors from outside. However, as infection rates drop, it is likely that restriction could change, the article states. There is also a possibility of permitting “green corridors or travel bubbles” enabling certain countries with low infection rates to open back up before borders are fully reopened.

German Chancellor Angela Merkel said that several internal EU borders would be open 15 June.

"We all need a break, especially after this confinement," said Thierry Breton, the EU's internal market commissioner. "We want to enjoy summer holidays, we would like to see our families and friends even if they live in another region, in another country.

"But we want to be able to so while staying healthy and safe because we know the virus will stay for us for some time."

Hostmark Hospitality Group acquires RAR Hospitality: Chicago-based Hostmark Hospitality Group announced on Thursday it has purchased San Diego-based management group RAR Hospitality, according to a news release.

Through the acquisition and integration of RAR’s properties, the combined company will now be owners and operators of a portfolio of 40 hotels comprising more than 5,000 rooms as well as restaurants. The portfolio consists of limited-service and full-service branded and independent hotels, the release states. Operations of RAR’s portfolio will resume under the Hostmark brand in their San Diego office.

“During a time of uncertainty for the entire hospitality industry, Hostmark plans to continue serving its clients to the highest level, focus on creative ways to grow revenue and growing its portfolio of managed properties,” Hostmark President and CEO Jerome Cataldo said in the release.

Check back later with Hotel News Now for a full story on the deal.

Hotel firms tap outside partners in devising cleaning guidelines: When hotels reopen after the COVID-19 pandemic, guests will search for reassurance that where they stay will have additional verified health checks and standards in place. Several hotel firms across the globe have enlisted outside experts to set these cleaning protocols, report HNN’s Terence Baker and Dana Miller.

Among these partnerships include the “Hilton CleanStay with Lysol protection” program. Hilton tapped RB, whose disinfectant brands include Lysol and Dettol, as well as Mayo Clinic.

“We started to think about what kind of partners could we bring in to help us not only with their insight but what kind of partners might have a strong customer awareness benefit that customers could more easily relate to than (a lesser-known) chemical,” said Phil Cordell, global head of new brand developments. “We developed a list of partners to think through and spoke with quite a few.”

Hard Rock International buys back Las Vegas hotel’s rights: Hard Rock International announced on Wednesday it has acquired all rights to the Hard Rock brand as well as any related trademarking in Las Vegas from Juniper Capital, a Houston-based private equity firm that bought the Hard Rock Hotel Casino Las Vegas in 2018, according to a news release.

With this transaction, “Hark Rock International and its affiliates will no longer be restricted from developing, owning, licensing, managing or operating any Hard Rock-branded casino and integrated resort within Clark County, Nevada” the release states.

U.S., Canada weekly hotel performance: According to data from STR, parent company of HNN, U.S. hotels showed modest gains in occupancy in comparison with the previous week. However, the industry saw a similar level of year-over-year declines across the three key performance metrics.

Occupancy for the week ending 9 May declined 55.9% to 30.1%, average daily rate dropped 42.1% to $76.35 and revenue per available room fell 74.4% to $22.95.

During the same week, the Canadian hotel industry recorded steep year-over-year declines. Occupancy decreased 73.9% to 17.5%, ADR declined 37.7% to 101.47 Canadian dollars ($71.91) and RevPAR fell 83.7% to CA$17.75 ($12.58).

Compiled by Dana Miller.

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