August Hotel News: Record Earnings, New Openings, and Strike Threat
August brought significant news to the hotel industry, including record-breaking earnings, new hotel announcements, and the possibility of a major strike that could affect travelers in September.
Potential Major Hotel Worker Strike
One of the most pressing issues in the hotel industry this month is the potential nationwide strike by hotel workers. UNITE HERE, a national hotel labor union, announced that over 10,000 hotel employees across major U.S. cities could strike if their contracts expire by the end of August. The union’s members are demanding better wages, improved benefits, and an end to staffing cuts related to COVID-19. A strike could disrupt operations at major hotel chains like Marriott, Hilton, Omni, and Hyatt, potentially impacting travelers’ plans.
Exciting New Hotels and Resorts
Several new and upcoming hotel projects have made headlines. IHG Hotels & Resorts unveiled plans for a new Intercontinental Hotels & Resorts property in Orlando, scheduled to open in 2028. This upscale hotel will feature 700 rooms, five dining venues, and extensive business facilities.
Club Med announced renovations for its Cancun and Punta Cana resorts, with the Club Med Musandam Oman set to open in 2028. Additionally, the Universal Helios Grand Hotel, opening in 2025 and operated by Loews & Co., will offer 500 rooms, a zero-entry pool, a game room, and a rooftop lounge, situated in the heart of Universal Orlando’s future park, Epic Universe.
Record Earnings and Development Milestones
August saw hotel giants reporting impressive second-quarter earnings. Hyatt achieved its highest hotel fee revenue ever, totaling $275 million, and reached record numbers with 48 million World of Hyatt members and a development pipeline of 670 hotels and resorts.
Hilton, buoyed by a strong second quarter, increased its 2024 profit forecast to around $1.5 billion. This growth is supported by several acquisitions and partnerships, as well as a record-breaking development pipeline of 508,000 rooms.
Marriott celebrated its 9,000th hotel opening with the St. Regis Longboat Key and reported 230 signed contracts for future properties across 57 countries.
New Sales, Acquisitions, and Partnerships
August also saw major developments in hotel partnerships and acquisitions. Marriott entered a long-term licensing agreement with Sonder, adding approximately 9,000 rooms to its “Sonder by Marriott Bonvoy” portfolio.
Hyatt confirmed its intention to acquire Standard International, which owns The Standard and Bunkhouse Hotels, though details are still being finalized.
Leela Palaces, Hotels and Resorts announced a new partnership with the World Travel & Tourism Council to advance sustainability and responsible growth in travel and tourism.
In a positive move, IHG Hotels & Resorts partnered with global NGO Action Against Hunger in a multi-year agreement aimed at combating food insecurity worldwide.