Thursday, January 1, 2009

Houston and St. Louis Only Hotel Bright Spots in Dark December Week

HENDERSONVILLE, TN—Houston and St. Louis were the only gainers among the top 25 hotel markets in the Dec. 21-27 week, according to the most recent analysis by Smith Travel Research of Hendersonville, TN and STR Global of London.

Houston’s occupancy rose 1.2 percent to 35.9 percent, its ADR increased 10.2 percent to US $78.86 and its RevPAR jumped 11.6 percent to US $28.34.
(Cosmopolitan Resort & Casino, Las Vegas, top right photo)

“Houston’s performance is largely attributed to the influx of first responders, insurance agents and construction workers following Hurricane Ike’s landfall in September,” points out Jeff Higley, (middle right photo) director of communications and editorial director in STR’s Digital Media department.
(Sheraton Safari Lake Buena Vista, FL,
middle left photo)

St. Louis saw year-over-year ADR growth for the week (+0.1 percent).

“The week’s results likely were skewed somewhat by the day on which Christmas fell,” notes Higley.

This year, Christmas fell on a Thursday, while in 2007 it fell on a Tuesday.

The U.S. hotel industry experienced steep declines in three key performance measurements during the week of Dec. 21-27.

In year-over-year measurements, the industry’s occupancy fell 16.4 percent to end the week at 35.8 percent (42.8 percent during the comparable week in 2007).

Average daily rate dropped 9.5 percent to finish the week at US$92.49 (US$102.22 in 2007). Revenue per available room for the week decreased 24.3 percent to finish at US$33.13 (US$43.78 in 2007).

Performances within the seven chain-scale segments were off across the board:

• Luxury segment: Occupancy -24.4 percent to 40.5 percent; ADR -14.5 percent to US$310.83; and RevPAR -35.4 percent to US$125.98.

• Upper Upscale segment: Occupancy -19.6 percent to 34.6 percent; ADR -11.6 percent to US$128.53; and RevPAR -28.9 percent to US$44.47.

• Upscale segment: Occupancy -15.0 percent to 34.9 percent; ADR -8.0 percent to US$95.46; and RevPAR -21.7 percent to US$33.27.

• Midscale with Food-and-Beverage segment: Occupancy -17.7 percent to 31.5 percent; ADR -4.1 percent to US $77.64; and RevPAR -21.1 percent to US $24.42.

• Midscale without Food-and-Beverage segment: Occupancy -16.0 percent to 34.6 percent; ADR -3.7 percent to US $78.07; and RevPAR -19.1 percent to US $27.00.
(New Orleans Marriott Hotel, bottom left photo)

• Economy segment: Occupancy -11.2 percent to 36.8 percent; ADR -3.3 percent to US $50.72; and RevPAR -14.1 percent to US $18.65.

• Independents segment: Occupancy -17.2 percent to 38.0 percent; ADR -10.0 percent to US $95.60; and RevPAR -25.5 percent to US $36.31.

“Many of the top 25 markets experienced difficult weeks,” says Higley:

• Three of the markets experienced occupancy rate drops of more than 20 percent: Phoenix, Arizona, -27.5 percent; San Diego, California, -24.4 percent; and Chicago, Illinois, -20.3 percent.

• Five of the markets watched ADR drops of more than 15 percent: Oahu Island, Hawaii, -17.3 percent; Miami-Hialeah, Florida, -17.0 percent; Phoenix, -16.0 percent; New York, New York, -15.3 percent; and Orlando, Florida, -15.2 percent.

• Three of the Top 25 Markets watched as RevPAR declined more than 30 percent for the week: Phoenix, -39.1 percent; San Diego, -33.5 percent; and Miami-Hialeah, -31.7 percent.

Media contact: Jeff Higley, Director of Communications/Editorial Director, Digital Media,, +1 (615) 824-8664 ext. 3318

T. Reed Hudson Named Director of Marcus & Millichap Retail Group in Fort Worth, TX

FORT WORTH, TX– Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has named T. Reed Hudson (top right photo) a director of the firm’s National Retail Group in Fort Worth, according to Bernard Haddigan, managing director of the firm’s National Retail Group.

Hudson joined Marcus & Millichap in 2004. During his career at Marcus & Millichap, Hudson has closed more than 50 transactions, which were valued at more than $150 million.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Marcus & Millichap Sells $54.4M Apartment Community in Vallejo, CA

VALLEJO, CA – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of Blue Rock Village, (top right photo) a 560-unit multi-family community in Vallejo.

The sales price of $54.4 million represented $97,143 per unit.

Stanford Jones, (bottom left photo) an executive vice president and senior director of Marcus & Millichap’s National Multi Housing Group (NMHG) in Palo Alto, and Phil Saglimbeni and Sal Saglimbeni, both senior directors of the firm’s NMHG in Palo Alto, represented the seller, a publicly traded REIT.

Marcus & Millichap also represented the buyer, a San Francisco-based private ownership group.

“While capital markets turmoil has rendered it very difficult for most institutional buyers to successfully acquire assets, well-capitalized private groups will continue to be well positioned given the current environment,” says Jones. “The broker’s ability to source uniquely motivated buyers is paramount to the success of any disposition effort.”

“Even in a challenging market, this transaction is evidence that properly marketed, quality assets will attract strong buyers,” adds Phil Saglimbeni.

Located at 1900-2000 Ascot Parkway, the 448,256-square foot apartment community is situated near the Blue Rock Springs Golf Course and National Park, Six Flags Marine World, historic Mare Island and Old Town Benicia, and world-famous Napa Valley, which is just 11 miles away.

Commuting options include the ferry or bus to San Francisco and easy access to Interstates 80, 780, 680 and California Highways 29 and 37.

Blue Rock Village features a mix of one- and two-bedroom units. Interior amenities include private balcony or patio, functional kitchen layouts, generous walk-in closets and covered parking.
Community amenities include swimming pools and spa, a well-equipped fitness center, picnic areas and gated community living.

Press Contact: Stacey Corso, Communications Department, (925) 953-1716

Starwood Opens 3 Le Meridien-Brand Hotels in China and Thailand

SINGAPORE---Continuing its multi-million-dollar Asia Pacific development surge, Starwood Hotels & Resorts has opened three Le Meridien-brand hotels, totaling 782 rooms, in China and Thailand.

They are the 275-room Le Meridien Shimei Bay Beach Resort & Spa (top right photo) in Wanning City on China’s Hainan Island; the 159-room Le Meridien Chiang Rai Resort (middle left photo) near the Chiang Rai International Airport in Thailand; and the 348-room Le Meridien Chiang Mai (bottom right photo) in the center of Downtown Chiang Mai, Thailand’s dynamic northern capital.

The opening of the three Le Méridien properties highlights the growing development of the brand in Asia Pacific. Le Méridien currently operates 23 hotels in the region, including Le Royal Méridien Shanghai and Le Méridien Cyberport, Hong Kong.

“Le Méridien is proud to broaden its reach in Asia Pacific with the addition of these three stunning properties, where guests can enjoy a unique experience that combines contemporary European refinement with distinct Asian influences curated by Le Meridien’s Cultural Curator and a range of established and emerging innovators, part of LM100,” says Eva Ziegler, (middle right photo) Global Brand Leader, Le Méridien Hotels & Resorts and W Hotels Worldwide.

“A favorite among progressive, curious, open minded and forward-thinking international travelers, Le Méridien facilitates guest discovery of a new perspective of the arts, architecture, design, and cuisine at each of its destinations around the world.

“Hainan Island in China and Chiang Mai and Chiang Rai in northern Thailand will certainly provide fertile ground for this voyage of discovery.”

Miguel Ko, (bottom left photo) President of Starwood Hotels & Resorts, Asia Pacific, says “Chiang Mai and Chiang Rai are both well known for their stunning landscape and rich cultural offerings while Shimei Bay is an unspoiled getaway for travelers to Hainan Island, with spectacular views of the South China Sea, and surrounded by lush forest and rustic Li minority village.

“These locations are a great fit with Le Méridien brand, which is committed to providing guests with an interactive and culturally enriching experience.”
Hwee-Peng Yeo
Director, Corporate Communications
Starwood Asia Pacific Hotels & Resorts Ltd
9 Temasek Boulevard, Suntec City Tower 2
#24-02, Singapore 038989

Tel : +65 6335 4837; Cell : +65 9768 6087; +65 9248 0424
Fax : +65 6335 4820;