Mention should also be made of the fact that the company re-inaugurated the Gran Meliá Fénix in the first half 2002 after an 18 million Euro renovation. The hotel is expected to become the company's flagship property in Madrid and one of the finest hotels in Spain. Sol Meliá
Hotels & Resorts is the leading hotel group in Spain in both the city and
resort hotel markets, the leading chain in Latin America and the Caribbean,
the third largest hotel group in Europe and the tenth largest worldwide. The
company is also the world's largest resort hotel chain. Sol Meliá Hotels
& Resorts has a portfolio of more than 350 city and resort hotels in 30
countries under the brand names of Meliá Hotels, Sol Hotels, TRYP Hotels and
Paradisus Resorts. Its properties
in Asia include Gran Meliá Jakarta, Meliá Bali Villas & Spa Resort,
Meliá Benoa All-Inclusive Resort (Bali), Sol Lovina (Bali), Meliá Purosani (Yogyakarta),
Meliá Panorama (Batam), and Sol Elite Marbella (Anyer) in Indonesia; Meliá
Hanoi in Vietnam; Meliá Kuala Lumpur in Malaysia; and Sol Twin Towers
(Bangkok) in Thailand. Source: ASIA Travel Tips.com Written By: Harry
Madhoo HVS International The Napa hotel market derives a large portion of its guestroom
demand from throughout the greater San Francisco Bay Area. While the economic
vitality of all nine counties in the San Francisco Bay Area has the most
direct impact, Napa is also a regional, national, and international
destination, attracting visitors from across the nation and other countries.
Unlike the San Francisco hotel market, which slumped since the second half of
2000, throughout 2001, and is still slow in recovery, the hotel market in Napa
has proven to be somewhat more resilient. Year-to-date data through April 2002
for a sample of selected hotels reveal an improvement in demand of roundly13%
over the same period last year. Located in Northern California, Napa is approximately 60 miles
north of San Francisco. After the gold and local silver mines in the
surrounding mountains became depleted in the late 1860s, farmers planted the
first wine grapes. In the mid-1960s, the commercial and tourism opportunities
associated with wine making and the culinary arts were further exploited; this
spawned an industry that has since transformed the valley into a world-class
wine-growing region and a popular tourist destination. Today, Napa Valley is
often referred to as the “Food and Wine Capital” of the nation. Aside from
the urbanized areas of downtown Napa, St. Helena, and other smaller
communities, the Napa Valley region is dominated by its renowned vineyards and
wineries. In addition, famous food establishments such as Auberge, Bistro Don
Giovanni, Bistro Jeanty, Bistro Ralph, Brannon’s Grill, Brix, Bouchon, Brava
Terrace, Celadon, Cole’s Chop House, Domaine Chandon, French Laundry,
Julia’s Kitchen, Meadowood Restaurant, Mustards Grill, Pairs, Pinot Blanc,
Terra, Tra Vigne, Trilogy, and Wappo Bistro, complement Napa's rich
wine-growing tradition. With the robust growth of the Bay Area economy in the late
1990s, primarily driven by the high-tech, Internet and tourism industries,
most hotel markets in the Bay Area, including Napa Valley, experienced
unprecedented growth. While the economic downturn that started in 2000 has
impacted many cities in the nation, San Francisco has been one of the hardest
hit due to area’s economic dependence on the high-tech and Internet
industries. Several companies have laid off employees, unemployment level
increased, and office vacancy rates reached all-time highs. The leisure, group
and commercial segments of the lodging industry have all suffered. Napa is
primarily a leisure destination and secondarily a group market. The decline in
demand for hotel rooms in the San Francisco Bay Area has had ripple effects
throughout the Napa region, primarily in the group market segment and to some
extent the leisure segment. For a selected sample of hotels examined, hostelry
demand in Napa dropped by an estimated 15% in 2001, after annual growth rates
of roundly 5% in 1999 and 2000. Since 1996, annual occupancy levels ranged
from 75% to 78% and attaining a peak of 81% in 2000. In 2001, occupancy
dropped to roundly 66%. Some hotels in the city of Napa have had to discount
rates in 2001; however, most hotels in the upper Napa Valley were able to
maintain or increase their average rates by 3% to 5% in 2001. For the sample
of hotels we analyzed, average rate in 2001 dropped by 1%, to $146, after very
impressive growth rates since 1996 (except in 1998 and 1999.)
It is important to note that Napa hotel market is made up of
three submarkets, which can be geographically defined as the city of Napa, the
mid Napa Valley submarket (Yountville), and the upper Napa Valley, which
includes the communities of Oakville, Rutherford, and St. Helena. In 2001,
average rates for the submarkets ranged from $105 to $205 for the city of
Napa; from $210 to $260 for the mid Napa Valley hotels; and from $290 to $650
for the upper Napa Valley hotels. The market as a whole is generally seasonal.
In the past, the Napa market had a six-month peak period. However, over more
recent years, the market has evolved into a nine-month market, with the months
of December, January, and February posting the lowest occupancy levels. In
summer, from July to October, hotels run at their highest occupancies and
highest rates, especially more so during the harvest season (September to
October); except for the Christmas period, the winter season is generally
slow. Historically, during the months of July through October, monthly
occupancies are usually above 80% and peaking over the 90% range in the months
of August through October. Throughout the year, Fridays, Saturdays, and
holiday weekends are the busiest days and command higher rates, with some
hotels imposing minimum two-day stays. According to Smith Travel Research, the Napa hotel market has
30 hotels totaling 1,933 rooms, with an average of 64 rooms. Of the 30 hotels,
three properties have over 200 rooms each (the Marriott, the Embassy Suites,
and the Silverado Resort), one hotel has a room count of 115, and the
remaining 26 hotels are all under 100 rooms (averaging 41 rooms.) Further,
there are only six branded properties in Napa: the Marriott, the Embassy
Suites, two Best Western, one Travelodge, and one Hawthorne Inn & Suites,
all located within the city limits. The remaining hotels, located in the mid
and Upper Napa Valley are independently operated. While Napa appears an
attractive market to operate in, especially in the mid and upper valley areas,
development is generally constrained by very long approval processes and high
cost of land. The mid and upper valley areas are primarily agricultural with
high barriers to entry; commercial developments are generally rigorously
opposed in these areas. With the exception of a 21-room property in 1995,
there has been no addition to guestrooms in the mid and upper Napa Valley
since 1985. Within, the city limits, an 80-room Hilton Garden Inn is scheduled
to open in August 2002 next to the Marriott, which was itself recently
renovated for $19 million with the addition of an additional 85-room wing, a
spa, and more meeting space. The latest addition to the city of Napa is the
65-room Napa River Inn, a project that involved the restoration of the
historic Hatt Mill. Additionally, an estimated additional 1,000 rooms are in
various stages of the planning process within the city of Napa, including a
possible expansion of the Embassy Suites. The area south of Napa, generally
considered a less desirable location than upper Napa Valley, is the subject of
development plans for approximately 1,500 rooms, which are in various
stages of the development process. Major infrastructure and roadway improvement projects are
currently underway within Napa Valley to improve the flow of traffic and
mitigate the flood danger, which has historically disturbed commerce in
downtown Napa during periods of heavy rainfall. Also, the American Center for
Wine, Food & the Arts (COPIA), located in downtown Napa opened in November
2001. Envisioned by Robert Mondavi, the $55-million, ±80,000-square-foot
facility is expected to enhance Napa as a tourism destination. In addition to being strong during good economic times, Napa Valley visitation proved to be very resilient during the recessionary years of the early 1990s. During that recession, people traveled less and took driving trips close to home. Napa Valley benefited from this trend and is currently experiencing a similar demand pattern, with weekends experiencing strong drive-in leisure demand. The Napa hotel market is already showing signs of recovery. Further recovery should be spurred by a turnaround in the Bay Area’s economy. While the national economy is reportedly already showing modest recovery signs, the San Francisco’s economic recovery is lagging that of major cities due to its current weak convention calendar and the downturn in the technology sector. Nevertheless, it must be remembered that the Bay Area, as the fifth largest metropolitan area (2000 ranking by population), is firmly established as a commercial, group meeting, and leisure destination, and will no doubt recover strongly in the future. Overall, the outlook for the Napa hotel market is optimistic. For
further information, please contact: (Reuters) -
Boykin Lodging Company (BOY)
on Tuesday said quarterly earnings fell despite revenue for the real estate
investment trust coming in at the high end of the expected range and margins
improving more than expected. Boykin, which
owns 33 hotels under brands such as Doubletree and Marriott, reported net
income of $2.9 million, or 17 cents a share, in the second quarter, compared
with income of $5.0 million, or 29 cents, a year earlier. Year-ago results
were adjusted as though acquisition of certain leases took place in January
2001 rather than January 2002. Revenue was
$68.6 million for the quarter, compared with an adjusted $72.4 million a year
earlier, Boykin said. Revenue per available room, a common measure in the
hotel industry, fell 10.6 percent to $59.79 in the quarter from a year
earlier. Boykin reported funds from operations of $10.8 million, or 54 cents a
share, compared with 69 cents a share a year earlier. Looking ahead,
Boykin said it expects funds from operations of $1.45 to $1.65 a share for the
full year, based on a revpar decline of 3 percent to 5 percent. Revpar is
expected to be flat to up 3 percent in the third quarter from a year earlier
and to increase 6 percent to 10 percent in the fourth quarter. The company
also expects to recommend that its board reinstate a regular quarterly
dividend at an initial rate of 18 cents a share starting with the third
quarter dividend.
Raffles'
Jennie Chua to chair new Hotel Management School in Singapore TravelWeeklyEast.com -
Singapore's new Hotel Management School International announced in
yesterday's TravelWeekly E-Daily has already identified a chief
executive officer and is in negotiations with a leading international academic
partner. Jennie Chua, president and chief operating officer of Raffles
International, who will chair HMS, said the CEO's name would be revealed in
two to three weeks time. She also said HMS was in the midst of finalising a
partnership with a top institution. "We are in negotiations with a string of partners to give
us a good start towards becoming THE hotel management institution in this part
of the world," she said. Asked if Cornell, the renowned American institution which she
personally graduated from, was one of the parties, she said, "They are
one of the three parties." She said a decision would be made "within two to three
months". Source: TravelWeeklyEast.com Kevin
Murphy heads PATA Mart Committee TravelWeeklyEast.com -
Kevin Murphy of Great Eagle Hotels has been named as Chairman of the
PATA Travel Mart Advisory Committee, which will help determine the future of
the regional event. PATA's chief communications officer Lyn Hikida told
TravelWeekly that 11 potential members had been identified for the grouping.
It will meet for the first time at PATA's Board of Directors meeting in
Manila, September 20-22. PATA is considering a fixed rotation of the regional event
after next year's mart in Singapore (TravelWeekly, July 16). Hikida said bid specifications for 2004 and beyond were still
being reviewed by management, and the committee would discuss these in
September. Source: TravelWeeklyEast.com
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