The latest news on developments, deals, data and more.
New York City Joint Employer Bill Postponed. The New York City Council postponed a public hearing scheduled for July 30 on a bill that AHLA said would severely harm the city’s approximately 700 hotels and approximately 265,000 employees. On July 18, a City Councilwoman proposed a bill that would impose staffing requirements on the city’s hotels and require all hotel owners to be treated as joint employers along with hotel operators. The bill would establish strict requirements for several hotel staffing functions. On July 28, a public hearing on the bill was postponed “to allow time for more feedback before moving to the next step in the legislative process.”
Is gambling coming to the UAE? The first step in a long-rumored plan to bring gambling to the United Arab Emirates may have been taken last week with the selection of The Game Co. by the General Commercial Gambling Regulatory Authority (GCGRA) to operate the emirate’s first national lottery. GCGRA Chairman Jim Mullen (former CEO of MGM Resorts) said the launch of the lottery is “a pivotal event that not only marks the establishment of a disciplined, world-class regulatory framework for lottery activity, but also underscores our commitment to fostering a safe and fulfilling commercial gambling environment in the UAE.” The Game Co. is the first company to receive a license from GCGRA, the UAE’s federal regulator, which was established last September. GCGRA describes The Game Co. as “a commercial gambling operator specializing in game development, lottery operations, and gambling-related content.” GCGRA is also working on licensing integrated resorts and launching a regulated iGaming market. Construction of Wynn’s Ras Al Khaimah resort is underway as a land-based facility, but it is unclear when the license will be obtained.
Demand for extended stays is improving. Extended stay hotel supply has been gradually increasing for much of 2024 and is likely outpacing changes in demand so far this year. However, demand has outpaced supply for the past three consecutive months. The Highland Group report reported modest RevPAR increases for both occupancy and average rates, reversing a four-month trend of declining RevPAR. “June was another strong month for extended stay hotels, with demand growth outpacing changes in supply for the third consecutive month,” said Mark Skinner, partner at Highland Group.
YourSpace Update: YourSpace Partners has begun construction on the first property for its mid-scale extended-stay hotel brand YourSpace. The flagship property will be four stories and feature 122 rooms in Chesapeake, Virginia. CEO and Managing Director Neil Desai said LTD Hospitality Group will manage the property with a target opening date of summer 2025. Virginia Beach, Virginia-based YourSpace Partners plans to open additional hotels in Suffolk, Virginia, and Elizabeth City, North Carolina, over the next year.
W Kuala Lumpur sold. Malaysia-based IOI Properties Group Berhad, through its 99.9%-owned indirect subsidiary, has agreed to acquire the 150-room W Kuala Lumpur hotel for MYR270 million (MYR1.8 million per room) from Malaysia-based Tropicana Residences Sdn. Bhd. IOI has also signed an agreement with Malaysia-based Pantai Kok Resort Development Sdn Bhd to acquire 3.99 hectares of freehold land at Pantai Kok, Teluk Burau, Langkawi for MYR90.1 million.
Hong Kong hotel deal. A company linked to Shih Wing-ching, founder of Hong Kong-based Central Real Estate Agency, has acquired the 63-room Popway Hotel in Hong Kong’s Tsim Sha Tsui district from Hong Kong hotelier Lau Ka Wai for HK$180 million, or HK$2.9 million per room. HVS reported that the hotel, close to the Hong Kong Polytechnic University and other educational institutions, is a prime candidate for conversion into student accommodation, a growing trend among investors in Hong Kong hospitality assets.
Pan Pacific Hotels Group is expanding into Kyoto for the first time in a strategic partnership with Tokyu Hotels after opening Bellstar Tokyo Pan Pacific Hotel and Hotel Groove Shinjuku PARKROYAL Hotel in Shinjuku, Tokyo last year. The 143-room Hotel Higashiyama Kyoto Tokyu (a Pan Pacific Hotel) will also be introduced into the Pan Pacific Discovery loyalty programme.
Whitbread deal, Manchester. Whitbread has appointed GMI Construction Group as main contractor for its latest development in Manchester city centre, UK. The site has planning permission for a 10-storey, 229-room Premier Inn hotel with an integrated restaurant, bar and check-in area on the ground floor. Whitbread acquired the site from Premcor in February 2024. This will be Whitbread’s seventh hotel in central Manchester and one of the largest in the city.