Global Hospitality Report (January 26, 2015)

Steady Cap Rates Support Strong Hotel Value Gains in the USA 
By Suzanne Mellen, MAI, CRE, FRICS, ISHC

Hotel values reached new peak levels in 2014, fueled by stellar hotel performance, and the availability and low cost of capital. Capitalization rates held steady as competition for quality assets remained strong.

FHRAI Indian Hotel Industry Survey 2013-2014 
By Achin Khanna, Rishabh Thapar and Tulika Das

The survey, representing 1,295 hotels in various cities across different star categories in India, presents key statistics for the industry. It provides information about financial performance, marketing media usage patterns, guest segmentation, etc.

Snowfalls’s Impact on Ski Market Hotels 
By Brett Russell

Snowfall drives travelers to mountain resorts each ski season, but to what degree, at which resorts, and how far in advance isn’t as clear. What is the correlation between snowfall and hotel occupancy, and how does the economy factor in?

Vietnam Changes Strategy 

Whilst countries like Indonesia and Malaysia are working to introduce visa free policies for Chinese tourists, Vietnam has implemented a new law, which will see greater restrictions for the segment. Since 2004, Chinese tourists were allowed to enter Vietnam with entry and exit permits issued by the Chinese government, which would grant them a laissez-passer to travel within the country for 30 days. However, as of 1 January 2015, the 2004 regulation has been superseded by this new Immigration law that stipulates 20 different categories of visas. Chinese tourists will need to apply for a suitable type of visa in order to gain entry as well as pay a fee of US$45 to travel in Vietnam. This move is an attempt by the government to diversify tourism source markets. Following this, Vietnam has also rolled out a new marketing strategy that aims to boost domestic tourism within the country.

Deka Gains a Slice of Edinburgh's Royal Mile and Ability Picks Up a Park Inn by Radisson in Manchester  

Two UK hotels put on the market at the same time last year by administrators have now been sold. Frankfurt-based investment group Deka Immobilien has purchased the Radisson Blu Hotel, Edinburgh for an undisclosed sum on behalf of WestInvest's TargetSelect Hotel fund. The 238-room hotel, on Edinburgh's Royal Mile, with its 16th-century façade had a guide price of £59 million. The sale, which also included a youth hostel, a retail unit and a development site, is thought to be the biggest hotel transaction in Scotland since the sale of the Radisson SAS in Glasgow in 2007 (which sold for £68 million). UK-based Ability Group has acquired the Park Inn by Radisson Manchester City Centre for an undisclosed sum. The 252-room hotel, across the street from the Manchester Arena, was for sale with a guide price of £20 million. Both hotels are leased to Rezidor Hotel Group.


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