Newport Beach-based hospitality firm expands with 6 new hotels – Daily Bulletin

As leisure and business travel continues to recover from the COVID-19 pandemic and hotel rates rise to meet demand, a local hotel management company is preparing to expand its footprint with six new hotel openings this year.

Twenty-Four Seven Hotels was hit hard in the early days of the COVID-19 pandemic, when business and leisure travel virtually ground to a halt. However, according to CEO David Wani, the Newport-Beach-based company has improved tremendously since then.

“We have a handful of hotels that actually did better in 2021 than they did in 2019,” he said.

Year-to-date occupancy at Twenty Four Seven averages 68%, Wani said, and March is forecast to average 75%. The upscale hotels treat a mix of leisure and business travelers.

“Last spring, vaccinated people just wanted to get out and travel because they were trapped in their homes,” he said. “Also, we are beginning to see business travel coming back and inflationary factors have allowed us to increase rates as market demand increases.”

The company, which manages 25 western United States hotels in cities including Calabasas, El Segundo, Temecula, Anaheim and Santa Barbara, will assume hotel operations in the following new locations:

Hampton Inn & Suites in Rancho Cucamonga: Scheduled for May

Hampton Inn & Suites in Marina (north of Monterey): Planned for the summer

Hyatt house in Sacramento: Planned for the summer

Hyatt Place in Newark (north of San Jose): Planned for the summer

Holiday Inn Express in Chino Hills: Planned for the fall

Hampton Inn & Suites in Diamond Bar: Planned for late 2022 or early 2023

Twenty Four Seven Hotels also manages the Hilton Garden Inn in Temecula. (Photo courtesy of Twenty Four Seven Hotels)

Wani said these opening dates are subject to supply chain disruptions, which can be unpredictable.

“If a shipment of consumables is delayed, it can push back an opening date by 60 to 90 days,” he said. “A Garden Inn in Temecula has just opened, but it was originally scheduled to open last November.”

A leisure-driven recreation

Emmy Hise, CoStar group‘s senior director of hospitality analytics for the western US said the industry’s recovery will be largely driven by leisure travelers.

“They call it a voyage of revenge,” she said. “People want out, and sometimes they choose higher-end hotels because they’ve been locked in for so long.”

According to Hise, average daily hotel prices have already exceeded pre-pandemic levels in most markets. She attributes this partly to inflation, but also to the fact that hotels have had to hire more staff to keep up with the surge in business – costs that are being passed on to guests.

“Hotels in beach areas like San Diego, Dana Point and Santa Barbara are recovering the fastest because they have a lot of recreational activities,” she said. “People are looking for experiences like that.”

Twenty Four Seven takes care of all aspects of hotel management, from human resources and accounting to revenue management, digital marketing and day-to-day operations.

“The transaction market for hotels in 2021 has returned to the levels of 2018 and 2019,” Wani said. “We expect this to continue in 2022 and 2023 with new hotel development. We would like to expand our portfolio to about 50 hotels. When we do well, investors are motivated to say, “Hey, these guys are doing well – let’s invest in another hotel.”

Newport Beach-based hospitality firm expands with 6 new hotels – Daily Bulletin Source link Newport Beach-based hospitality firm expands with 6 new hotels – Daily Bulletin

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