Hotel Companies and Governments Take Long View on Omicron Impact

take the change

The world may be on the brink as a wave of new cases originating from the Omicron variant erupts, but governments in general continue the path of keeping borders open. Hotel companies maintain their growth pattern with new deals and potentially massive sales.

Cameron Spirans

Here’s a sample of what the Daily Lodging report had for its readers last week. If you’re not a subscriber, you should be. do not wait. Subscribe now here.

Sunday 19 December

Wyndham Hotels & Resorts on agreement with Ceres development For three new Wyndham hotels, two in Indiana and one in Ohio. Newly renamed properties include: The 132-suite Wyndham Noblesville, Indiana. The hotel offers over 3,000 square feet of meeting space, a business center, fitness center, indoor heated pool, and an on-site restaurant and bar. Wyndham Westfield, Indiana features 152 rooms and suites and four event venues. This 113-suite Wyndham Avon hotel in Ohio features an indoor heated pool, hot tub, bar, and outdoor fire pits. WH said these newly renamed hotels continue the company’s consistent conversion growth as they saw 100% more local conversions in Q3 of 21 compared to Q3 of 2019. Baird described this Choice Hotels loss because these three hotels were previously affiliated with the brand. Cambria of CHH.

Skift Note: It’s a dog-eating world for the hotel industry when it comes to signing new franchise deals with existing hotel owners. Look for more deals like this while construction financing remains low – and for hotel companies to offer more incentives to lure owners under their brand umbrella.

Monday 20 December

We told you that all of these Countries reopening borders at the same time will not lead to success. Even before Omicron put it all back together, results were very choppy with no real success stories. Then you have this new horror story with the Daily Hunt reporting only foreign tourists in the first month of reopening, in October and still not a single international flight has landed directly on its shores since. Access Bali More difficult than other beach destinations in the region as travelers must apply for a visa that requires a local sponsor, international health insurance and a minimum 10-day quarantine. Thailand And Vietnam It has regions that have removed most quarantines for vaccinated travelers, something that may soon change with Omicron. Indonesia Less than 40% of their country is vaccinated. The good news is that bookings are increasing in Bali. The bad news is that the holiday season shows bookings -57% lower than the same period in 2019.

Skift’s note: It’s not always about reopening borders leading to an accelerated return of travelers. Countries that rely more on international tourism will likely have to wait for their latest changing fear to go away.

Approximately 210 rooms Standard Downtown Los Angeles It will close indefinitely on January 22, the latest blow to the brand in Southern California. Standard’s West Hollywood closed in January 2021 and this building and land were put up for sale in October by the property owners. With ownership up in the air, the future of the hotel is unclear. Public records indicate Ferrado LA LLC He owns Standard’s Downtown LA.

Owner of the Standard High Line Hotel in New York City, JAW Capital Partners, resists its lenders to prevent foreclosures on property. Wells Fargo & CoHe sued on behalf of lenders in November to foreclose on the hotel, claiming the owners had defaulted on a $170 million mortgage. Gaw Capital’s counter-suit accuses the lenders of an “illegal scheme” to extract $50 million from its coffers by merely introducing “disgraceful new loan terms.” Zhao Capital also wants Apollo Global, and denied Wells Fargo and other lenders interest on overdue debt.

Skift’s note: Standard International is touting itself as a company in a significant growth position, but these two punches are some stinging punches in what would normally be some of the company’s most valuable points in a portfolio of brands.

Tuesday December 21

Mahindra Holidays & Resorts India Ltd. They said they were not afraid of Omicron, in fact they downplayed the possibilities that the alternative would cause major disruption to India’s tourism industry or the company’s expansion plans. With occupancy returning to pre-pandemic levels, they expect it to rise to 80% this quarter. Their optimism is that India does not see as many cases of omicron as anywhere else. This is also though some Indian states have already reintroduced light restrictions as Delhi and Mumbai recorded a small but growing number of Covid infections in recent days after Omicron was discovered within India’s borders. India is reporting just 5,300 cases a day, the lowest level since May 2020, so it’s easy to get complacent. Indian health officials seem to differ from health officials around the world, saying they do not expect Omicron to be a problem due to high levels of previous exposure to Covid and increased vaccination rates. So far Omicron has been immunized and infected as if it were nothing, at least in the United States and South Africa. Mahindra is pressing ahead with plans to invest $150 million to $200 million to boost the number of vacation destinations.

Skift Note: Blind optimism in the event of a pandemic is not smart, and Omicron will inevitably affect the tourism sector. But that plays a role in feeling bloated, as the new alternative will be a quick whirlwind in the travel recovery momentum.

Wednesday December 22

Thailand has temporarily canceled a waiver of Covid-19 quarantine for foreign visitors, and restore the condition of quarantine Due to the presence of a variable Omicron. In November, they began a “test and go” programme, known as the Thailand Pass, in which visitors were required to isolate for a night until they came back with a negative Covid-19 test, after which they could travel freely around the country. This scheme will now be suspended for at least two weeks to try to stop the spread of the variant. The decision will be reviewed on January 4th. The government also announced the suspension of “sandbox” programs that allow visitors to tour specific destinations during the quarantine service, with the exception of the resort island of Phuket. People over 200,000 who are already enrolled in the Thailand ticket program will still be allowed access, but the government will stop processing new applications under the entry scheme and any new visitor will need to quarantine at the hotel for at least 7 days at their own expense. The news came right after Thai health authorities identified the country’s first local transmission of the Omicron variant. Thailand also found 63 domestic travelers to be infected with the variant. Meanwhile, daily cases in Thailand have fallen dramatically with only 2,476 cases and 32 deaths recorded yesterday. There were more than 20,000 cases each day in August.

The Secretary of Social Affairs and Culture in Macao said that quarantine-free travel with Hong Kong may resume within a week For vaccinated travelers on a first come first serve basis. Travelers will need at least 14 days to have a second vaccination and have a negative DNA test. Borders will reopen on a limited basis initially, with priority given to those with medical or personal reasons. There will likely be a maximum number of passengers, which may be around 3,000 initially.

Skift note: These may be two different things about travel restrictions, but even Thailand’s pause on quarantine waivers seems short. All signs point to Asia continuing its slow path of reopening to the world.

Thursday 23 December

Bloomberg mentioned Blackstone may consider selling Motel 6’s budget hotel brand holding company. Blackstone is said to be working with advisors and in the early stages of soliciting interest from potential suitors at G6 Hospitality LLC. It is said to be worth over $1 billion. Blackstone bought the Motel 6 and Studio 6 brands from Accor in 2012 for $1.9 billion in a deal that included 1,100 hotels. Blackstone sold the most properties with over 1,050 franchisee-owned hotels at the end of last year.

Skift Note: If true, the Motel 6 offers a massive growth opportunity for any hotel operator looking for a stronger footprint in the US, not matching the customer profile of Accor’s future expectations, but in keeping with the kind of specific brands a fast-growing hotel company acquired at the time. earlier this year. I’m just saying.

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