The best daily accommodation report for the week ending December 3

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Skift take

The Omicron variant has yet to impact the global hospitality industry when it comes to weekly performance data, but government regulations are already unfolding and portend a tough winter ahead.

Cameron Sperance

Skift’s Daily accommodation report is a subscription-only, email-only newsletter read by everyone in the investor, owner and hotel operator space, including CEOs of some of the industry’s biggest brands. With two distinct regional versions, it covers everything from North America to Asia-Pacific. The report itself, curated by founder Alan Woinski, sums up industry news into a quick and easy-to-read daily summary known to keep readers up to date effectively and efficiently.

Here is a sample of what the Daily Lodging Report provided to its readers last week. If you’re not a subscriber, you should be. Do not wait. Register now here.

Monday, November 29

Inspiring Integrated Resorts Co., and a subsidiary of Mohegan Gaming & Entertainment of the United States, said it has finalized the award of 1.8 trillion won ($ 1.6 billion) for its new luxury resort project in an international business district near the international airport of ‘Incheon, Korea. MGE said the Inspire Entertainment Resort has attracted 1,000 billion won through senior and subordinated loans from NH Investment & Securities Co., KB Investment & Securities Co. and Hana Financial Investment Co. as well as other anonymous subscribers. Hanwha Engineering and Construction Company made a 100 billion won investment by purchasing convertible subordinated bonds. They will be responsible for the construction of the complex. Hanwha Hotels & Resorts Co. will be in charge of hotel operations as a strategic partner. MGE, with $ 575 million in equity, will sign a deficit agreement to support up to $ 100 million in cash in the event of a project financial shortfall. They are also in the process of concluding another default agreement with the two Hanwha subsidiaries to support the interest on the loans. MGE has announced plans to open the resort in 2023 with 1.8 trillion won needed for the first phase which will include more than 1,100 five-star rooms, a concert and a 15,000-seat sports arena, a casino for foreigners only. with 150 table games and 700 electronic devices. games, 19,000 square meter conference rooms, 70,000 square meter theme park and other facilities including shopping mall and indoor swimming pool. The four-phase project will cost 6 trillion won, if ever fully constructed. The project started in 2016. MGE said the construction project was launched in May 2019 but was delayed by the pandemic.

Skift Note: Watch out for deals like this involving American game companies looking to expand into Asia. Macau is no longer the only game in the city, especially if regulators get too involved in China’s Special Administrative Region.

Tuesday, November 30

Japan quickly changed course and closed its borders to foreigners, blaming the Omicron variant. Japan’s measurements are among the strongest in the Asia-Pacific region to date, although Japan currently has no cases of Omicron diagnosed in the country. Just last week, they raised the limit on the number of inbound travelers to 5,000 from 3,500 following the easing of quarantine times. In Thailand the government said it would not move forward in relaxing the health tests carried out on arriving passengers Test and Go countries which include the United States, Australia, parts of the Middle East, the United Kingdom, and most of Europe. Given ModernThe comments they don’t believe their vaccine will be effective against the Omicron variant, at this point a simple tightening of the restrictions should be welcome as the sheer panic this has caused has warning signs of lockdown everywhere.

Skift note: Travel bans are not helping anyone at this point in the pandemic, even with the emergence of new variants.

JLL Hotels & Hospitality Group released its first annual report on global asset management providing guidance to hotel owners as they embark on the 2022 planning season. Key themes include: diversification of revenue streams, workforce strategies labor, man-less scope management techniques, and changing cost models. Where JLL sees the biggest change for 2022 is the focus on full RevPAR as opposed to RevPAR. This means that as hotels reinvent themselves, we should look at the total hotel revenue as a whole and the impact of every square meter of the hotel on bottom lines. Going beyond the stay in the room allows operators to analyze how the spa, on-site restaurants and fitness offerings complement the rooms and in some cases provide a healthy daily source of income despite do not capture a room stay.

Skift Note: The hotel business is quickly becoming an activity of making money beyond the walls of a bed and breakfast.

Wednesday December 1

Macau Bureau of Statistics and Census announced that Macau’s 116 hotels and inns registered 444,000 customers in October, a 1% annual growth. Mainland guests fell -5.6% to 340,000, but local guests increased 35.6% to 78,000. The number of available rooms increased 0.9% to 36,000. overnight visitors to Macau fell 63.9% month-on-month in October due to tightened cross-border control of Covid-19 and preventive measures between Macau and Zhuhai. This resulted in the occupancy rate falling from -4.9% month-over-month to 44.6% in October, while ADR was up 4.8 percentage points from a year over year.

Skift Note: Take all of this week’s data with a grain of salt, unfortunately because of Omicron. Given China’s harsh crackdown on any new cases, Macau’s still-weak improvement is likely to slip this winter.

Thursday 2 December

US President Joe Biden changed the rules for passengers traveling to the United States. They will now have to show a negative Covid-19 test carried out within one day of departure, entering into force the week of December 6. While this is not surprising, it will certainly slow down the momentum that was building for international holiday tours.

Skift Note: It’s no shock to see tighter border filtering following the emergence of the Omicron variant. The hotels in the big cities, which depend more on international travelers, cannot seem to provide a respite.

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