From the desks of the Hotel News Now editorial staff:
- World’s biggest hotel companies focus on food waste
- Lawmakers increase scrutiny on opportunity zones
- Host focuses capital on renovation projects
- US hotel results for week ending 2 November
- Bank of England holds interest rates steady
World’s biggest hotel companies focus on food waste: The World Wildlife Federation has found the hotel industry is among the top three sources of food waste in the United States, falling behind restaurants and grocery stores, Conde Nast Traveler reports. That’s why many of the world’s biggest hotel companies are pledging to reduce the amount of food they waste.
Hilton has set a goal of halving its food waste sent to landfills by 2030, meeting a deadline set by the United Nations’ 2030 Sustainable Development Agenda, the article states. Hyatt Hotels Corporation is focusing its efforts on responsible food sourcing and choosing local providers, which requires less transportation. Wynn and Encore Resorts are separating food waste from general and recyclable waste and sending the food waste to be turned into pig feed.
Lawmakers increase scrutiny on opportunity zones: Members of the U.S. House of Representatives and Senate are working on legislation that would change how the opportunity zones tax incentive works, The New York Times reports. The lawmakers voiced criticism following the newspaper’s reporting on “how wealthy investors and real estate developers, including those with ties to the Trump administration, are poised to profit on the initiative.
One bill would eliminate about 200 opportunity zones which are adjacent to low-income census tracts but not low-income themselves, the article states. Projects in the works before the program started would face more hurdles in receiving the incentive. Another introduced bill would require opportunity zone funds to file annual reports (which would become public) detailing the development projects and any new businesses.
Host focuses capital on renovation projects: Host Hotels & Resorts President and CEO Jim Risoleo said during the company’s third-quarter earnings call that the REIT is focusing its capital on continuing the renovation program for its Marriott International-branded properties, but would not rule out an acquisition that fits a need, reports HNN’s Sean McCracken.
“The timing of the Marriott transformation program is highly beneficial to shareholders,” Risoleo said. “In a low-growth environment, it lowers the impacts (of renovation disruptions) and positions us well for significant index gains.”
U.S. hotel results for week ending 2 November: U.S. hotels reported almost flat year-over-year results for the week ending 2 November, according to data from STR, parent company of HNN. Occupancy dipped by 0.3% to 62.7% while average daily rate grew by 0.6% to $126.04, resulting in revenue per available room growth of 0.3% to $79.05.
In the top 25 markets, San Francisco/San Mateo, California, reported the largest increase in each of the three key performance metrics. Occupancy grew by 9.9% to 81.7%, and ADR grew by 16.9% to $237.10, which combined for RevPAR growth of 28.5% to $193.78.
Minneapolis/St. Paul, Minnesota-Wisconsin reported the largest decline in RevPAR, falling 11.2% to $63.18 mostly due to the only double-digit drop in occupancy, which fell 10% to 55.8%.
Bank of England holds interest rates steady: The members of the Bank of England voted 7 to 2 to hold interest rates at 0.75%, which led the pound sterling to fall 0.3%, CNBC reports. The vote comes amid uncertainty in the United Kingdom, which faces a snap election in 35 days.
Economists (and even some bank members) believe the Bank will cut rates sometime next year as the economy slows and Brexit uncertainty continues, the article states.
Compiled by Bryan Wroten.