Worldwide briefing
Essential news from around the world…
Wyndham extends loan repayment period
US hotel chain Wyndham International has extended a number of its bank loans, giving it more time to pay back some of its estimated $2.8b (£1.7b) debts. In the past two months the chain lost leases on 27 hotels as it struggled in the tough hospitality climate in the USA. The company last month reported a $107.4m (£65.9m) first-quarter net loss.
US slump will continue until 2005
Consultancy PricewaterhouseCoopers (PWC) has predicted the US hotel industry will see little improvement before 2005. The average daily room rate was now $83.46 (£51.23) and even by 2005 annual revenue per available room will be no more than $19,619 (£12,042), less than in 2000, PWC forecast.
HK occupancies up to 20% Hotel occupancies in Hong Kong will average about 50% for the first half of this year, compared with 70% last year, hotel chain Shangri-La has warned. Chief executive Giovanni Angelini said occupancies were now about 20%, up from single figures at the height of the Sars outbreak, and would return to normal in the third or fourth quarter of the year.
Chicago hotel workers vote to strike
Workers at Chicago's Congress Plaza Hotel have voted 113 to one in favour of strike action because of cuts in wages and benefits. A deadline for negotiation before strike action is likely to be set for later this month.
New name for Burger King in Australia
Burger King is to change the name of its restaurants in Australia to the Hungry Jack's brand. Hungry Jack's founder Jack Cowin bought the Australian franchise of Burger King in 1971 and Burger King began operating under its own name in the country four years ago. Burger King currently has 81 restaurants in the country.
Bahamas expansion
Luxury hotel and resort company Kerzner International is to embark on a $600m (£367m) expansion to its Atlantis, Paradise Island resort in the Bahamas. The expansion will include 1,200 extra rooms, more attractions, four restaurants, and a new golf course.
German hotel industry in dire straits
The first three months of this year were "dire" for the German hotel industry, according to figures published at the German Hotel Association's annual conference. The Deloitte & Touche statistics showed revenue per available room fell by 5.3% in the quarter, with room rates falling by 4.5% to €85 (£61). Occupancy levels fell by 0.8%. Room rates have been falling for six months now and predictions were that April would see "double digit" decline, said Deloitte & Touche.
