Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
OCCUPANCY WAS UP slightly for U.S. hotels in the first week of May compared to the previous week while still remaining much lower than the same time last year, according to STR. In 13 STR-defined submarkets occupancy increased over the weekend, led by Florida and Texas, as some states eased social distancing restrictions put in place for the COVID-19 pandemic.
Occupancy for the week of April 26 to May 2 stood at 28.6 percent, up from 26 percent the week before but down 58.5 percent compared to the week of April 28 to May 4, 2019. It was at 23.4 percent for the week of April 12 to 18 and 21 percent for the week of April 5 to 11.
ADR dropped 44 percent to $74.72 for the week ending May 2 while RevPAR dropped 76.8 percent to $21.39.
“Week-to-week comparisons showed a third consecutive increase in room demand, which provides further hope that early-April was the performance bottom,” said Jan Freitag, STR’s senior vice president of lodging insights. “TSA checkpoint numbers, up for the second week in a row, aligned with this rise in hotel guest activity, which still remains incredibly low in the big picture. Overall, these last few weeks can be filed under the ‘less bad’ category.”
Freitag also said leisure demand was up for the first time in a while because of the occupancy increase in weekend stays in states that were easing restrictions.
“The first ‘real weekend’ with eased COVID-19 restrictions showed an obvious jump in hotel demand, especially in popular, warm-weather leisure spots,” he said. “Whether or not this becomes a trend remains to be seen, but the fact that there were people instantly willing to head out for leisure activity and stay in hotels is a positive sign for the industry. We have maintained throughout this pandemic that the leisure segment would be the first to return, it is just a matter of when.
“Hotel companies, together with the AHLA, are showing commitment to cleanliness and providing guests with a safe environment within their properties. At the same time, health experts have expressed concerns that increased leisure activity in public spaces could contribute to a potential second wave of COVID-19, which would obviously present added risk for the industry.”
The top 10 submarkets showing weekend over weekday occupancy increases are:
Galveston and Texas City, Texas, with a difference of 30.9 percent
Mobile, Alabama, with a difference of 27.7 percent
Daytona Beach, Florida, with a difference of 24.1 percent
Corpus Christi, Texas, with a difference of 23.6 percent
Panama City, Florida, with a difference of 20.1 percent
Myrtle Beach/North, South Carolina, with a difference of 19.1 percent
Fort Walton Beach, Florida, with a difference of 18.4 percent
Cedar City and St George, Utah, with a difference of 16.9 percent
Pensacola, Florida, with a difference of 14.7 percent
Savannah Historic District, Georgia, with a difference of 14.3 percent
STR also released its first profit and loss report on April 30 that showed GOPPAR for March was down 101.7 percent to -$2.10 compared to the same time last year.
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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