Global Hospitality Report (May 16, 2016)

HVS Releases Q1 Manhattan Lodging Overview  
By Roland deMilleret, MAI and Erin Bagley

The New York City borough of Manhattan is among the strongest, most diverse, and most dynamic hotel markets in the world. Manhattan’s resiliency has been borne out over the course of recovery from three national recessions in the past 25 years. Presently, Manhattan’s lodging market is in the midst of a significantly prolonged recovery, compared with that from past recessions. This extended recovery is expected to be aided by massive new neighborhood developments, a strong national economy, and, by extension, the wide array of leisure, commercial, and meeting and group demand generators in the borough. The chief hindrance to an accelerated recovery is the current supply pipeline, extending through 2018, and its negative effect on average rate in the market. The 2016 HVS Q1 Manhattan Lodging Overview provides detailed insight and data-rich graphs, charts, and tables in order to track the trajectories of hotel supply, demand, and performance. CLICK HERE TO REQUEST REPORT.

Canadian Lodging Outlook Quarterly 2016-Q1 
By Monique Rosszell

The lower Canadian dollar and strong economic fundamentals in many Canadian provinces, are outweighing the fallout from soft resource markets leading to positive growth across the country.

Holiday Inn Express’ New Franchise Model in China 

InterContinental Hotels Group (IHG) announced the launch of a new franchise model for its Holiday Inn Express brand in China. The new model, Franchise Plus, is designed to cater to the dynamics of the Chinese hotel market. Under the new model, owners have the choice of operating franchised hotels while enjoying added features from IHG’s managed model. The rise of the middle class in China has led to significant increase in demand for midscale hotels all across the country and not just in first tier cities. By introducing the new model, IHG hopes to boost the speed of expansion of the midscale Holiday Inn Express brand across China. IHG has signed the first Franchise Plus agreement with Shanghai Yaqi Business Hotel Co. Ltd. for a 260-room Holiday Inn Express hotel in the Hongqiao area of Shanghai.

SBE to Acquire Morgans Hotel Group  

American hospitality, real estate and entertainment group SBE has entered into a definitive agreement to acquire Morgans Hotel Group. Morgans’ portfolio comprises 13 owned, operated or licensed hotel properties in London, UK; Los Angeles, New York, Miami, San Francisco and Las Vegas, USA; and Istanbul, Turkey. The transaction, which is expected to close later this year, in the third or fourth quarter, will see SBE acquire all of the outstanding shares of Morgans common stock for US$2.25 per share in cash, which, together with the exchange of Morgans Series A preferred securities, the assumption of debt and transfer of capitalised leases, represents a total enterprise value of approximately US$794 million. Following the deal, SBE’s hotel arm will grow to 20 properties.


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