This year -- 1999 -- may not be a rosy year for the U.S. hotel
industry, according to a forecast by PKF Consulting, a San
Francisco consulting firm.
PKF went so far as to put the headline "The Blair Witch Hotel
Market" on top of their forecast, and claimed that, in 1999, the
industry "lost its map for success and finds itself circling like a
pack of frightened students missing in the woods."
The relevant data: A survey of 44 U.S. cities showed decreases
in occupancies in two-thirds of the markets in the first six months
of the year, and overall, occupancies will decline to 70.6% in
1999, down from 71.8% in 1998.
Room rate growth also has been slow: rates climbed 2.2% in the
first half of the year, equal to the increase in the Consumer Price
Index. All told, operating profits are projected to decrease by
1.6% in 1999, although the firm projects that stabilizing forces
will increase industry profitability by nearly 4% in 2000.
Other hotel news:
Foresthills Hotels & Resorts, a luxury hotel management
company that was formed in October 1998, announced agreements to
operate five hotels worldwide.The new members include: the Palazzo Arzaga, near Verona, Italy;
an as yet unnamed hotel in Monaco that is projected to open in fall
2001; the Tamarind Club, a resort in Barbados slated to open in
fall 2003; the Warwick Hotel & Towers in Philadelphia, and the
Inn at McDonogh, in Maryland.
Foresthills is headed by chief executive Atef Mankarios, who
formerly was president and chief executive of Rosewood Hotels &
Resorts.
Speaking of Rosewood, the Dallas luxury management company is
planning a renovation of Badrutt's Palace, in St. Moritz,
Switzerland.Rosewood, which took over management of the 105-year- old hotel
in April, said it will update parts of the hotel while maintaining
a traditional look. Items on the agenda include renovations of all
230 or so guest rooms, the public areas and a restaurant.
Westin, a Starwood brand, opened its first hotel in Australia,
in Sydney, site of the 2000 Summer Olympics.The hotel, located in the city's business district, consists of
two buildings: a former post office built in 1887, and a more
modern building. Together, the two connected buildings include 417
rooms.
Omni Hotels removed its flag from two franchised hotels, in
Albany, N.Y., and West Palm Beach, Fla.
Omni said it could not reach agreement with the owners to adhere
to Omni standards. The change was effective Sept. 30.
Red Lion Hotels & Inns, a Promus brand, finished the
conversion of nine hotels: five in Washington, two in Oregon and
two in California. All previously were Doubletrees. The additions
bring the Red Lion portfolio to 29 locations in nine states, with a
focus on the Northwest.Marriott International added three properties to its
Renaissance brand.The Renaissance Worthington Hotel in Fort Worth, Texas, is an
18-year-old property that Marriott will manage.
Marriott also will put the Renaissance name on a hotel in
Tunisia that is slated to open early next year.
The Renaissance name is entering Mexico for the first time.
The Renaissance Mexico City Hotel, to be managed by Marriott, is
being renovated and is set to open in late 2000.