ABC•CCRA Premier Magazine 2022 Issue 3

INDUSTRY NEWS FOR TRAVEL PROFESSIONALS 2022 | Issue 3

UPDATESHOTEL BRAND HOTELIERS REPORT

BUSINESS TRAVEL MOMENTUM
FOR FINAL MONTHS OF 2022

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SITUATION IMPROVES,
BUT CHALLENGES REMAIN

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2

HOTELIERS REPORT
BUSINESS TRAVEL MOMENTUM FOR FINAL MONTHS OF 2022

After a somewhat sluggish summer, IHG Hotels & Resorts said that in the pre-pandemic levels, and group RevPAR was
business travel demand is once again Americas, its business travel revenue reached just 7 percent below pre-pandemic peak levels
gaining momentum this fall, and pre-pandemic levels in the third quarter, and for the third quarter as well, he said.
travel industry executives are hopeful the trend revenue per available room in the Europe,
will continue despite worries of an economic Middle East and Africa region has returned Marriott International, meanwhile,
recession in 2023. to pre-pandemic levels as well, even though reported that transient business travel demand
occupancy is still lagging. in Canada and the United States hit 89 percent
Hotel executives in particular had of 2019 levels during the quarter, and small and
some positive news to report for the third Across Hyatt Hotels Corp.’s full-service medium-sized businesses continue to lead the
quarter. Wyndham Hotels & Resorts, for portfolio, business travel revenue was 20 recovery. Their demand has fully recovered
one, said its revenue per available room for percent below pre-pandemic levels in the and even surpassed pre-pandemic levels,
U.S. properties during the quarter reached third quarter, but that was an improvement which larger companies are still lagging,
its highest level ever during the quarter, as for the second quarter, when revenues were according to Marriott CEO Anthony Capuano.
global occupancy climbed to just 9 percent 38 percent below pre-pandemic levels. Hyatt
from pre-pandemic levels in 2019, according CEO Mark Hoplamazian said business travel Despite recent demand growth, Marriott
to the company. Business travel was a key demand has continued to improve moving executives said it is still difficult to predict
part of that recovery, as weekday occupancy into the fourth quarter, and group business at when full recovery will happen, and a
across the company also hit a record high in full-service properties is trending higher than recent business traveler survey by Tourism
September, CFO Michele Allen said in an the comparable 2019 booking period. Economics—done in collaboration with the
earnings call last month. U.S. Travel Association and J.D. Power Travel
He noted a “strong pent-up demand” & Hospitality Intelligence—showed that most
Similarly, Choice Hotels International for group business, and that growth should executives still expect less travel spending
president and CEO Patrick Pacious in an continue as well. than 2019 over the next six months. About
two-thirds said spending on internal meetings
“Even with the headwinds of a mild would remain behind 2019 levels over that
recession, we do not anticipate significant period, and 64 percent said the same about
customer and stakeholder meetings.
reductions in business travel.”
The report indicated a recession next
earnings call noted “historic” levels of At Hilton Hotels Corp., revenue per year also could temper business travel
business travel at Choice properties during available room for transient business travel recovery, though the impact will likely not
the quarter, with business travel accounting was higher than pre-pandemic levels in be severe, stating “Even with the headwinds
for about 30 percent of overall Choice stays. the third quarter, and president and CEO of a mild recession, we do not anticipate
The strongest occupancy growth during the Christopher Nassetta said demand from significant reductions in business travel.
quarter was on weekdays, and Pacious said large corporate accounts showed “notable This is largely because many companies
he expected continued growth from both acceleration” during the quarter. Business at are still in the process of resuming business
transient and meetings business travel. Hilton’s largest corporate accounts has neared travel and activity has not yet recovered to
pre-pandemic levels.”

Business travelers should also expect
to pay more for hotel stays in 2023. As
corporate hotel rate negotiations progress this
year, Marriott’s Capuano said increases are
trending toward “at least high single-digit
year-over-year rate growth,” following two
years of corporate rates remaining steady.

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HOTEL BRAND UPDATES

Hotel companies in recent months have launched new brand, announced
expansion plans and adapted to evolving traveler needs. Here are some of their
major recent announcements.

Blossoming Brands continue to operate the hotels under Meetings Innovations
long-term franchise agreements. The
Wyndham Hotels & Resorts in brand also will be known as Vienna Sonesta International Hotels Corp.
recent months boosted its European House by Wyndham. has developed a new multi-zone meeting
presence and added its 23rd brand to its space concept for its properties, aiming
portfolio with the acquisition of Vienna BWH Hotel Group is adding a new to merge the best qualities of office
House from Berlin-based hotel operator midscale extended stay brand, Home by coworking spaces and hotel amenities.
HR Group. BWH, to its expanding brand portfolio,
the company announced at its annual The Sonesta Work Suite concept was
The acquisition adds about 40 conference in Cleveland in late October. developed to accommodate groups as
hotels totaling more than 6,000 rooms, large as 50 people and can be shifted into
28 hotels of which are in Germany, to That brand portfolio already includes a variety of configurations to meet users’
Wyndham’s 9,000-hotel portfolio. Vienna two extended stay brands—Executive needs. They include a Work Zone with
House and Vienna House Easy hotels Residency and SureStay Studio—but the seating arrangements for brainstorming
target a wide range of both business and new brand will add another option for and individual work, a Social Zone with
leisure travelers in such key European developers to capitalize on the segment, more relaxed furnishing for collaborative
destinations as Berlin, Munich, Prague, which has been performing more strongly work and socializing and a Recharge Zone
Krakow and Bucharest. than the traditional hotel segment in with dedicated dining seating. The space
the post-pandemic world. Best Western includes user-friendly technology such as
Working with Wyndham “will provide has particularly designed the brand to high-resolution screens and fully integrated
the strength, scale and expertise needed be flexible for developers, giving them cameras and a stocked in-room pantry with
to grow the brand faster and ensure more leeway on certain amenities like a bar or a snacks and beverages.
guests experience what Vienna House swimming pool, letting them best adapt to
has to offer, while also tapping into the their home markets. The space currently is available at
renowned benefits of Wyndham Rewards,” the Sonesta Irvine in California, and
according to HR Group CEO Rusian Husry. Best Western has not yet revealed an Sonesta expects it will become a standard
exact development pipeline but has said offering across its portfolio in the coming
Wyndham paid $44 million for the the pipeline is “strong,” according to a years. Other properties on tap to add
portfolio, and HR Group—a longtime report from Skift. the space include Sonesta White Plains,
franchised partner of Wyndham—will

4

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Hotel Brand Updates
continued from page 4

Sonesta Miami Airport, Sonesta Select brand, Apartments by Marriott Bonvoy. a collaboration agreement with German

Foxborough, Sonesta Charlotte Executive The brand will build on the Marriott hospitality business Lindner Hotels.

Park, Sonesta San Jose, Sonesta Denver Executive Apartments brand, the With the agreement, more than 30

Downtown, Sonesta Nashville Airport, company’s serviced apartments brand hotels across seven European countries,

Sonesta Columbus Downtown, Sonesta in Asia, Europe, the Middle East, Africa will be joining the Hyatt portfolio and will

Atlanta Airport North and the soon-to-be- and Latin America. The Apartments soon be located into the World of Hyatt

opened Sonesta Capitol Hill. by Bonvoy brand will bring that same loyalty program. Most of the properties

Wyndham, meanwhile, in October concept to the United States and Canada will move into the JdV brand, under

also announced that it has expanded its while enhancing its portfolio growth which Lindner CEO Arno Schwalie said

new Meetings Collection to more than globally, according to Marriott. they will remain “a strong brand with its

160 hotels and resorts in the Americas, The apartments will sit in the upper- own identity and corporate independence,

Asia, Europe, the Middle East and Africa. upscale and luxury segments, designed now aided by the power of Hyatt’s global

Wyndham launched the collection in late as products that reflect their local brand awareness and first-class sales and

2021 as part of its Wyndham Business neighborhoods, according to Marriott. marketing capabilities.”

program, bringing together hotels across its They all will have separate living rooms In the U.S., Choice Hotels

brands that can serve meetings planners’ and bedrooms, full kitchens and in- International’s upscale Cambria brand

needs for in-demand meeting locations. room laundry facilities but will not have reports a “rapid expansion” across New

Meeting planners also get special perks traditional hotel offerings such as meeting England this year, with four properties

when booking in the collection, such as spaces, food and beverage service and either open or scheduled to open soon.

discounts for multiple meetings, more retail establishments. The latest addition was the six-

flexible contract terms, double Wyndham story, 130-room Cambria Hotel New

Rewards points and access to exclusive A New Identity Haven University Area, which opened in

experiences at destinations, such as golf September within walking distance of Yale

getaways, spa retreats and immersive London-based hotel owner-operator University. Choice also recently added

culinary experiences. Great London Hospitality (glh) unveiled the Cambria Hotel Boston Somerville to

a new brand identity this month as The its portfolio, and both the Cambria Hotel

Apartment-Style Clermont Hotel Group. Portland Downtown Old Port and Cambria

Accommodations With the new identity, Clermont Hotel Manchester South Windsor are
Group will be aligning more closely slated to open next.

Rapidly growing accommodation with its anchor brand, the Clermont, and Cambria currently reports more than
provider Sonder has introduced a new reorganizing many of its assets under 130 properties either open or in its pipeline
dedicated chain code for global distribution that brand and two other key brands: across the United States.
systems in an effort to make it easier for Thistle and Hard Rock Hotel London.
agents to search for and book its properties. The group already has invested £90 Marriott International recently
million over the past four years and announced plans to add 30 select-service
Agents can now find Sonder’s hotel still plans to invest more, including hotels in Great China by the end of 2023.
and apartment-style properties, which refurbishment of its Clermont properties The expansion will include the brand debut
cover more than 40 cities worldwide in Charing Cross and Victoria. of AC Hotels by Marriott in Suzhou at
including major business destination, in the end of this year; new Moxy hotels in
the Sabre and Amadeus GDSs under the The new brand “marks the beginning Suzhou, Xi’an, Chongqing and Ningbo;
“SS” chain code. The availability comes of a new era,” according to CEO Jon 10 Fairfield hotels in eastern China in
at a time “when demand for corporate Scott. “Clermont Hotel Group offers a rich 2023; Aloft hotels in Beijing and Yantai;
travel is rebounding, and business and diverse portfolio for a range of guest Courtyard by Marriott properties in
travelers are seeking new accommodation needs, and our new strategy and vision Chongli and Jiuzhaigou; and an Element
options which break the mold of a bring them under one roof with more Hotel in Guangzhou Baiyun.
traditional hotel,” according to Chinmai clarity than ever before.”
Sharma, president of the Americas for Last month, Marriott also announced
RateGain, which partnered with Sonder to Global Growth that it had signed an agreement with
create the code. Yuexiu Property to open a Ritz-Carlton
Hyatt Hotels Corp. is expanding hotel in downtown Wuhan at the end of
At the same time, Marriott its JdV by Hyatt brand—a collection of 2024. The hotel, which will be in the upper
International is broadening its reach independent hotels built from its acquisition levels of the Yuexiu Global Financial
into the market for apartment-style of the Joie de Vivre brand in 2018—via Center skyscraper, will be the first opening
accommodations with the launch of a new for the brand in Central China.

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HOTEL STAFFING
SITUATION IMPROVES,
BUT CHALLENGES REMAIN

Most U.S. hotels remain short- event remains a challenge in hotel hiring, hotel employees, and AHLA and the
staffed this fall, though the longtime Best Western executive Dorothy AHLA Foundation are working tirelessly
situation is improving, according Dowling said at the recent Phocuswright to spread the word,” Rogers said in a

to a member survey conducted by the Conference 2022 in Phoenix. statement. “With hotel wages, benefits,

American Hotel & Lodging Association. “It created trust issues through flexibility and upward mobility at historic

The survey, which fielded responses Covid with the dramatic layoffs; you levels, there has never been a better time

from about 200 hoteliers from Sept. can’t underestimate that,” Dowling to work at a hotel than the present.”

12 through Sept. 19, showed that 87 said. “You also have to think about

percent were experiencing a staffing compensation, closing the gap, and

shortage, and 36 percent of respondents demonstrate that hospitality has career

characterized that shortage as “severe.” growth opportunities.”

While high, the percentages are better Hoteliers in the survey said they are “With hotel
than AHLA’s previous survey in May, sweetening their offers for prospective wages, benefits,
when 97 percent reported a staffing shortage employees. More than 80 percent said
with about half saying it was severe. they have increased wages, 64 percent flexibility and
said they are offering more flexible upward mobility
On average, hoteliers said they are working hours and about a third said they at historic levels,
trying to fill about 10 vacancies per have expanded benefits for employees. there has never
property, down from 12 per property Overall, hotel wages this year through
in the May survey. Housekeeping has June averaged $22 per hour, the highest
been the toughest position to fill, with 42 wage on record, according to AHLA.
percent in the recent survey saying it was

the biggest challenge. The organization also has been been a better time
As of August, hotel employment doing its part through a multi-channel to work at a hotel
advertising campaign to attract more than the present”
remained down about 400,000 jobs people to the industry, according to
compared with February 2020, and about AHLA president and CEO Chip Rogers.
115,000 hotel jobs were sitting unfilled,

according to the U.S. Bureau of Labor “Today’s tight labor market

Statistics. Even as travel rebounds from is creating unprecedented career

the Covid-19 pandemic, the trauma of the opportunities for current and prospective

10

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