Today’s news in brief – 7/11/23
Choice Hotels Group, operator of the Radisson Hotels brand, reported a 3% increase in Q3 revenues to $425.6m (£354.4m). Excluding reimbursable revenue from franchised and managed properties, total revenues rose by 9% to $219.6m (£178.7m). Q3 adjusted net incomes increased by 6% to $92.4m (£75.2m), driven by a 6% growth in the global rooms pipeline, totaling over 99,000 rooms. The company’s international pipeline nearly doubled in room count compared to the previous year, with 30 properties representing 6,000 rooms. Choice Hotels aims for continued growth and has proposed a merger with Wyndham to accelerate value creation.
A survey by Alvarez and Marsal (A&M) revealed that 31% of global travellers have taken combined business and leisure trips in the past year, highlighting the rise of the ‘bleisure’ trend. Motivations included flexible working schedules (41%), cost of living (37%), accommodation facilities (36%), and the availability of family or friends at the destination (31%). Approximately 45% extended business trips with leisure activities, indicating a desire to explore after work commitments. ‘Bleisure’ trips tend to be short in duration, with 4% of respondents opting for stays of five nights or more.
AGO Hotels, a UK-based hotel operator with 14 properties, called on the government to support the hospitality industry in the Autumn Budget. They requested an extension of the Energy Bill Discount Scheme, as energy bills now constitute 30% of their operating costs, up from 8-12% in previous years. Despite challenging economic conditions, AGO Hotels has ensured pay increases for its employees. Business rates are a central concern for SMEs, with the ending of rate relief potentially forcing businesses to close.
Red Carnation pushed back the opening of its new 100 Princes Street hotel in Edinburgh to Spring 2024. Originally planned for November 2023, the luxury 30-room hotel will feature guest rooms and suites with views of Edinburgh Castle. The property is designed by local artisans and will offer culturally inspired experiences, including an “Explorers’ Club” and a wine wall with over 200 fine wines and a collection of Scottish whiskies. Plans include a 2:1 staff ratio to showcase local Edinburgh talent.
