From the desks of the Hotel News Now editorial staff:
- What REITs have to offer India’s hotel industry
- Investors worry over US growth with rising tariffs
- May told to end talks with Labour Party
- A look at the US hotel pipeline
- Philly hotels serve up fancy food for dogs
What REITs have to offer to India’s hotel industry: Real estate investment trusts are moving into India’s hotel landscape and providing new funding options in the industry, HNN contributor Chitra Balasubramaniam writes.
REITs made their way into India in March through Embassy Office Parks, which is a joint venture between India’s Embassy Group and U.S.-based Blackstone Group.
REITs in India are structured similarly to how they are in other countries, distributing at least 90% of income through dividends and capital appreciation, “with investors being able to participate in tax-free income—bearing fixed tangible assets at a fraction of cost of the real estate asset,” Balasubramaniam writes.
“Among the key things that any investor looks for or evaluates is the possible exit at the end of the investment horizon,” said Arvind Nandan, executive director of research at business advisory Knight Frank (India). “What has happened in the last several years is that a large amount of institutional capital has come into rent-earning commercial assets. This capital has to seek an exit in the next few years, and a REIT is one such option.”
Investors worry over U.S. growth with rising tariffs: The growth of the U.S. economy remains solid, but investors are worried trade tensions with China could lead to a slowdown, The Wall Street Journal reports.
Beijing announced on 13 May that it would raise tariffs on $60 billion of U.S. goods after the U.S. increased tariffs on $200 billion of Chinese imports last week.
“Many now worry that those frictions will upend the recent calm, potentially marking a return to the sustained declines that rattled markets in November and December,” the news outlet reports in its article on investor concerns. Some investors are trimming stock investments and looking to cash and other assets, as well as “looking for cheap stocks that can hold up if economic growth slows in the coming months.”
May told to end talks with Labour Party: British Prime Minister Theresa May has been trying to find a Brexit compromise with the opposing Labour Party, but senior members of May’s party told her to end talks with the opposing party, Reuters reports.
The United Kingdom voted to leave the European Union three years ago, but British politicians are still working on how and when the divorce should happen. May’s deal was not approved by Parliament and she has turned to the Labour Party for help.
May’s party wrote a letter asking her not to agree to the Labour Party’s “demand for a post-Brexit customs union with the EU,” Reuters reports.
“You would have lost the loyal middle of the Conservative Party, split our party and with likely nothing to show for it,” the letter said, according to the news outlet. “We urge you to think again.”
While 2018 saw a stretch of year-over-year construction decreases, the industry has experienced seven consecutive months of growth, which started in October. “The 9.9% rise in April was the highest for any month since August 2017,” according to the release.
The upper midscale segment has 67,495 rooms in construction, a 4.5% year-over-year increase. There are 61,347 rooms in upscale in construction, a 4.9% increase, and upper upscale has 24,543 rooms in construction, a 12.2% increase.
Philly hotels serve up fancy food for dogs: Pet-friendly hotels in Philadelphia are taking their services up a notch by serving up gourmet roomservice meals for dogs, The Inquirer reports.
The Rittenhouse Hotel offers meal options made with fresh ingredients such as organic chicken and brown rice and turkey “Mutt loaf” for dogs. The hotel added the dog roomservice menu “to add a layer of complexity to an already challenging room-service program that operates around the clock,” according to the newspaper.
Roomservice makes up 17% of total food-and-beverage sales at the hotel, with 15% of guests ordering roomservice, according to the article. Eight percent of guests at the hotel bring their pets.
Compiled by Danielle Hess.