Executive Shuffle

A pair of major operators—Aimbridge Hospitality and Hospitality Ventures Management Group (HVMG)—bolstered their executive ranks earlier this week with senior-level appointments, one of which involves an industry veteran who will now have experience with both companies.

Dallas-based Aimbridge Hospitality has welcomed travel and tourism industry veteran Mark Tamis to the role of President, Global Operations. The addition of Tamis represents Aimbridge’s commitment to and investment in providing an elevated management experience to hotel owners and creating memorable experiences for guests, according to the company.

“Adding a seasoned leader with the breadth and depth of experience Mark brings to the team is an opportunity to continue to elevate our operational excellence,” said Michael Deitemeyer, President/CEO, Aimbridge. “As Aimbridge continues to evolve, Mark’s expertise and leadership will empower our global operations team to further define industry best practices, partner with brands, ultimately add greater value for our owners and set new standards in the hospitality industry.”

Tamis joins Aimbridge with more than 35 years of hospitality leadership experience, including a diverse background in hotel, resort and cruise operations. Most recently he served as Senior Vice President of Hotel Operations at Royal Caribbean International, overseeing every aspect of hotel services across the global cruise line’s fleet and its private destinations, including all onboard revenue operations and food, beverage and entertainment offerings.

Meanwhile, Atlanta-based HVMG has named former Aimbridge executive Peter Hoffman to the position of SVP, select brands. In his new role, Hoffman will oversee and be responsible for the performance of the company’s existing portfolio of select-service brands.

“Adding Peter to our team marks the culmination of an intensive and targeted effort that will augment the support provided to all of our key stakeholders, including our general managers, owners and brand partners,” said Robert Cole, President/CEO, HVMG. “Having added 15 select-service properties during the past 12 months, the speed with which we transition hotels and the need to quickly ramp up results after they transition is more important to owners and partners than it is has ever been. With an exceptional and extensive track record of delivering results and developing leaders over more than 20 years, Peter is the ideal candidate to drive performance, through instilling both efficiency and innovation in execution, while at the same leading and supporting general managers and strengthening owner relationships.”

Prior to joining HVMG, Hoffman most recently was EVP, select-service division at Aimbridge Hospitality. While there, he provided executive level leadership to support the merger of Aimbridge and Interstate Hotels & Resorts into one seamless operation and was responsible for 281 hotels.

Prior to the merger, he was SVP, operations for Interstate, where he led the operations of 80 select-service hotels, and senior vice-president, asset management for BRE Hotels & Resorts. Hoffman was responsible for BRE’s 175-hotel, select-service portfolio.

Finally, another hotel management company added to its executive team when Justin Jabara, president of Meyer Jabara Hotels, announced Heidi Nielsen as vp of investments & asset management. For the last 15 years, Nielsen has served as Managing Director for a global consulting firm. In this new role, she will oversee the MJH portfolio of hotels and identify new investment opportunities in top markets.

“Meyer Jabara Hotels continues to expand its development footprint,” Justin Jabara said. “The foundational principles of hotel development have not changed; great underwriting is key to success. Heidi’s experience and tenure in hospitality, hotel appraisal and consulting work and ability to network with developers on proposed hotel projects, will be instrumental to our continued growth and prosperity. From culture to expertise, she is a great fit and will add another layer of sophistication to our asset management service. As we continue to develop and acquire hotels, Heidi will be crucial to supporting our capital relationships and supporting our existing development partners. She specializes in advising both experienced hotel developers and first-time hotel developers who need special guidance. We are proud to have her on our team.”

In addition to completing hundreds of hotel assignments, Nielsen has written on the unique dynamics of lodging markets proximate to major U.S. military installations, as well as providing overall coverage of hotel markets in Atlanta, Birmingham, and Charleston.

Gaining Momentum

Earlier this week Choice Hotels International became the latest major brand company to report its 1Q results for 2022 and the Rockville, MD-based franchisor outpaced all of its competitors in terms of RevPAR performance with results exceeding 2019 by more than 10 percent.

Hilton and Marriott International, meanwhile, both saw improvement over last year in terms of global results and are projecting a continued recovery and improved results going forward.

Patrick Pacious, President and CEO, Choice Hotels, commented on the results.

“Building on the record year we had in 2021, where we surpassed 2019 RevPAR and profitability levels, Choice Hotels’ proven business model once again delivered impressive quarterly results, and we expect this momentum to continue as we approach the summer leisure travel season,” he stated.

For Choice, domestic systemwide revenue per available room (RevPAR) growth increased by 10.4% for first quarter 2022, compared to the same period of 2019, and outperformed the total industry by 13 percentage points. RevPAR growth was driven by an increase in average daily rate (ADR) of 9.3% and a 60-basis-point increase in occupancy levels versus first quarter 2019.

In addition, domestic systemwide RevPAR growth has surpassed 2019 levels for 10 consecutive months through March 31, 2022, a trend that has continued in the second quarter of 2022 with April RevPAR increasing approximately 16%, compared to April of 2019. RevPAR for full-year 2022 is expected to increase between 10% and 13%, compared to full-year 2019.

Applications received for new domestic franchise agreements increased by 46% in first quarter 2022, compared to the same period of 2021.

For the three months ended March 31, 2022, Hilton’s system-wide comparable RevPAR increased 80.5 percent compared to the same period in 2021, due to increases in both occupancy and ADR, and fee revenues increased 79 percent compared to the same period in 2021.

For comparison to pre-pandemic results, system-wide comparable RevPAR for the three months ended March 31, 2022 was down 17.0 percent compared to the three months ended March 31, 2019. For the three months ended March 31, 2022, diluted EPS was $0.75 and diluted EPS, adjusted for special items, was $0.71 compared to $(0.39) and $0.02, respectively, for the three months ended March 31, 2021.

Net income (loss) and Adjusted EBITDA were $211 million and $448 million, respectively, for the three months ended March 31, 2022, compared to $(109) million and $198 million, respectively, for the three months ended March 31, 2021.

Christopher J. Nassetta, President & Chief Executive Officer of Hilton, stated, “We are happy to report solid first-quarter results, with all segments driving better than expected top line performance in March. Our results in the quarter, coupled with our confidence in continued recovery throughout the year, enabled us to begin returning capital to shareholders earlier than we had anticipated.”

Marriott International, meanwhile, reported that 1Q 2022 comparable systemwide constant dollar RevPAR increased 96.5 percent worldwide, 99.1 percent in the U.S. & Canada, and 88.5 percent in international markets, compared to the 2021 first quarter. In addition, first quarter 2022 comparable systemwide constant dollar RevPAR declined 19.4 percent worldwide, 14.5 percent in the U.S. & Canada, and 31.7 percent in international markets, compared to the 2019 first quarter;

Anthony Capuano, CEO, Marriott International, stated, “During the first quarter, we saw the largest surge in global demand since the pandemic began in 2020.  Worldwide occupancy rose dramatically from 45 percent in January, impacted by the Omicron variant, to 64 percent in March, less than 10 percentage points below pre‐pandemic levels.  Rates further strengthened, with worldwide Average Daily Rate for March exceeding the same month in 2019 by 5 percent.

“In the U.S. & Canada, RevPAR improved significantly in February and March, particularly across our urban markets, driven by occupancy and rate gains across all customer segments. Internationally, RevPAR gains were notable during the quarter in every region except for Greater China given the stringent travel restrictions resulting from the country’s dynamic zero‐ COVID policy.  The Middle East and Africa region was again the furthest recovered, with first quarter RevPAR up 12 percent compared to 2019.”

 

 

 

John Pedlow Appointed COO At Pacifica Hotels

ALISO VIEJO, CA–Pacifica Hotels, the largest owner and operator of independent, design-inspired hotels on the Pacific Coast, announces the appointment of John Pedlow as Chief Operating Officer. 

Pedlow brings over 25 years of operations and revenue experience to the Pacifica Hotels team, with his most recent role as SVP of Operations for Pacifica. Prior to that, he served as Vice President of Revenue, responsible for development and execution of commercial strategy, including the oversight of all revenue, marketing, and sales efforts.  Today, he oversees all day-to-day operations and works closely with corporate regional team members to support the growing and diverse Pacifica Hotels portfolio.

“John’s new role provides us with a new leadership perspective and unique talents that will continue to evolve Pacifica Hotels,” said Matt Marquis, CEO at Pacifica Hotels. “The next few years we will see robust growth within our portfolio, and I am more confident than ever in the evolution of our team and our company with John at the helm.”

Pedlow has been instrumental in shaping the vision of Pacifica Hotels, a company that aims to be the preferred partner in hospitality, creating tailored experiences through passion and commitment.

CoralTree Hospitality To Manage Four Additional Tavistock Hotels In Lake Nona, Orlando, FL

DENVER–Tom Luersen, president of CoralTree Hospitality, today announced that the company is expanding its portfolio with Tavistock Development Company after the successful launch of the Lake Nona Wave Hotel, which opened in December 2021. CoralTree now also manages four of the development company’s Marriott branded properties in Lake Nona including a Courtyard, Residence Inn, SpringHill Suites and a new Aloft Hotel, which is scheduled to open in the fall of 2023.

“It’s a great compliment when owners choose to expand their partnership with us,” said Luersen. “We’ve had a great relationship with Tavistock throughout the opening of the Lake Nona Wave Hotel and look forward to supporting the development company’s four Marriott hotels in Lake Nona as well. It’s an exciting time with Tavistock as we continue to build our partnership in the Orlando area.”

CoralTree started working with Tavistock in late 2020 when the management company was entrusted with opening the 234-room Lake Nona Wave Hotel, the centerpiece to the Lake Nona community urban core. The four additional branded hotels represent 562 more rooms under CoralTree’s management. Each of the Lake Nona hotels under CoralTree management ranks at the top of their brand throughout the United States with the Courtyard by Marriott Orlando Lake Nona ranked No. 4, the Residence Inn by Marriott Orlando Lake Nona is No. 12 in the Americas and the SpringHill Suites by Marriott Orlando Lake Nona is rated No. 13.

Located minutes from Orlando International Airport, Lake Nona is a convenient destination for the more than 40 million passengers traveling though Florida’s busiest airport each year. Created by Tavistock, Lake Nona is built on partnerships and one-of-a-kind experiences that bridge the connection between live, work, stay and play. An idealized city of the future, Lake Nona is an environment designed for people, institutions and businesses to thrive.

“We’ve enjoyed a wonderful working relationship with the team at CoralTree and we are looking forward to extending that across all of our hotels in Lake Nona to create a seamless and exceptional guest experience,” said Nick Beucher, president of Tavistock Development Company.

Back To Basics On Sustainability

Sustainability continues to take on an increasingly important role within the lodging industry as more companies and associations recognize the need to address the issue in a meaningful way.

Key tourism agencies, in particular, have recently emphasized the importance of sustainability. As an example, Roger Dow, president and CEO, U.S. Travel Association, drive home the point during last month’s Hunter Hotel Investment Conference.

“We’ve got to be on board with sustainability. If we’re not at the table here we’re going to be on the menu, it’s as simple as that. There’s a whole group that’s coming after us saying we’re the bad folks. We’re doing so much and we’ve got to talk about that,” he said.

To highlight the changing consumer mindset, Dow further referenced a USA Today study from over a decade ago where some 5 percent of consumers said they would change travel plans based on a particular brand’s commitment to sustainability. He pointed out that number is now approaching 20 percent.

Meanwhile, at this year’s Global Summit held in Manila, the World Travel & Tourism Council (WTTC) has launched Hotel Sustainability Basics, a globally recognized and coordinated set of minimum indicators that all hotels should implement to drive responsible travel and tourism and to help every hotel address and improve their environmental impact.

A number of global brands have supported this initiative, including Radisson Hotel Group, Accor, Barceló Hotel Group, Huazhu, including its affiliate Deutsche Hospitality, Indian Hotels Company Limited, Jin Jiang International (Holdings) Co., Ltd. including its affiliates Jin Jiang Hotels, Louvre Hotels Group, Meliá Hotels International, and Minor Hotels including NH Hotel Group.

The WTTC, together with the above-mentioned group of initial supporters, is calling upon hotel operators, owners, associations, and investors around the world to endorse the initiative officially and implement its criteria.

Developed by the industry for the industry, the Hotel Sustainability Basics establishes a globally recognized set of minimum indicators that all hotels should implement and sets a common definition of hotel sustainability to drive responsible travel and tourism, which will help raise the base level of sustainability across the entire hospitality industry by providing every hotel a starting point on their sustainability journey.

The Basics’ 12 criteria focus on actions which are fundamental to hotel sustainability and address tourism’s impact on the planet across a spectrum of critical issues such as water usage, waste production, and resource procurement. These criteria include actions to measure and reduce energy use, measure and reduce water use, identify and reduce waste, and measure and reduce carbon emissions. The criteria also include a linen reuse program, use of green cleaning products, the elimination of plastic straws, stirrers, and single-use plastic water bottles, the implementation of bulk amenity dispensers, as well as measures to benefit local communities.

The Hotel Sustainability Basics features different stages to support hotels that are just getting started as well as those who are more advanced in their sustainability performance. For example, eight of the 12 criteria are mandatory, whilst others can be committed to and implemented within the first three years.

Julia Simpson, WTTC President & CEO, said in a statement: “We are launching the Hotel Sustainability Basics to ensure no hotel, however small, is left behind in the drive to introduce a basis sustainability measures within a minimum level the next three years. Sustainability is non-negotiable but not every small hotel has access to the science on how to make a difference. This gives everyone access to a global standard and provides consumers to travel with conference. WTTC wants the hospitality industry to lead by example so that sustainability becomes the basic requirement used to drive change forward for this generation and the next.”

Hospitality Asset Managers Association (HAMA) Release “Spring 2022 Industry Outlook Survey” Results

BOSTONThe Hospitality Asset Managers Association (“HAMA”) today released the results of its Spring 2022 Industry Outlook Survey.  The semi-annual report collected the opinions, experiences and predictions of nearly 100 hotel asset managers concerning the hospitality industry since the beginning of the pandemic through today.  The survey also addressed respondent’s thoughts on the future outlook of the industry.

Presented live in Hollywood, Fla., the survey was conducted in advance of HAMA’s 2022 Annual Spring Meeting.  In total, 84 asset managers, comprising approximately half of membership, participated in the survey.

“Overall, it would appear the hotel industry is entering a more optimistic phase than it found itself in as recently as last year,” said Matthew Arrants, The Arrants Company, CHAM, HAMA president.  “The majority of respondents see the acquisition market heating up, and many believe the industry will begin to return to pre-pandemic levels within the next year or two.  Some markets already have surpassed 2019 numbers, and continued, pent-up travel demand has asset managers in a positive mood.”

Highlighted results include:

  • One-third of respondents currently forecast 51-75% of their hotels to exceed 2022 budgeted RevPAR.
  • Three-quarters of surveyed asset managers are more optimistic about the remainder of 2022 since the COVID-19 Omnicom variant has subsided.
  • The top three concerns of asset managers are labor availability (90.48%), wage increases (70.24%) and supply chain delays (61.9%).
  • 9% of participants believe RevPAR will return to 2019 levels for the entire U.S. by 2023.
  • Nearly 90 percent of those surveyed actively are seeking acquisition opportunities.