THIS SUMMER IN HOSPITALITY: THE BIGGEST NEWS OF THE LAST FEW MONTHS
With just a few weeks to hang on to, summer is pretty much over. This time of year is always a busy season for hospitality and 2015 was no exception. If you were too busy accommodating guests to pay attention to industry news this summer, get caught up with these big stories from the lastfew months:
The U.S. Hit 5 Million Hotel Rooms
The number of hotel rooms in the United States hit a milestone figure this summer breaking the 5 million room barrier according to an industry survey conducted by STR. In 2008 room growth was stalled at around 4.5 million, but since that point growth has been steady at about 5,600 new rooms per month. Additionally, revenue per available room has increased for 64 consecutive months year-over-year.
Past milestones for hotel room quantity include 3 million rooms in 1987 and 4 million in 1999. Though the number 5 million by itself doesn’t mean much, the growth involved in reaching it shows the industry is in great shape.
A Hospitality Industry Veteran was Appointed CEO of Trump Hotel Collection
For the first time in its history the luxury hotel section of the Trump Organization has a non-family member in charge. Hospitality industry veteran, Eric Danziger was appointed CEO of the Trump Hotel Collection this summer.
Danziger is a well-respected and award-winning executive with 45 years of experience. He’s also had a career that sounds like a perfect model of the American dream. Danziger started out in hospitality working as a bellman at a luxury property when he was a teenager. From there he worked his way up the corporate ladder until reaching his current status.
Danziger’s resume includes roles as CEO of Wyndham Hotel Group and most recently CEO of Hampshire Hotels Management.
We Said Goodbye to Hotel Chatter
The hotel news website, Hotel Chatter was discontinued this summer. Though it’s not going to affect the industry, we thought this story was noteworthy because hotel nerds like us are pretty upset to see such a great source of information go. There is some consolation for industry news hounds however. Though Hotel Chatter will no longer be available in its current form, the site’s content is being integrated into parent company Condé Nast’s Traveler website. You can still visit HotelChatter.com to view older articles.
Sheraton Unveiled “Sheraton 2020” Brand Plan
It’s no secret that Starwood Hotels and Resorts has been struggling recently compared to other hospitality mega-companies. After the resignation of CEO Frits van Paasschen in February and speculation about a potential sale of the company, a revamp of their largest brand comes as no surprise.
Sheraton 2020 is a 10 point plan to turn the Sheraton brand around. Some of the most interesting concepts include: new brand positioning, a launch of “Sheraton Grand” and opening 150 new properties in the next 5 years.
But before any of those major strategic initiative could take effect Sheraton took a small step towards progress with the unveiling of a new website in June.
Airbnb was Valued at 25.5 Billion After Latest Round of Funding
Airbnb, the disruptive company that makes it easy for people to rent out their homes on a short term basis, improved their position as a legitimate threat to the hotel industry after their most recent capital influx. After acquiring about $1.5 billion the companies valuation is up to 25.5 billion.
To give that context, Hilton, Marriot and Starwood, the major players in hospitality, are currently valued at 27.6 billion, 20.9 billion and 14 billion respectively. It looks like everyone can stop wondering if this Airbnb thing is just a trend.
What was your favorite hospitality related news story of the summer? Let us know in the comments section below?
