MONTH IN REVIEW
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TRUMP
Donald Trump’s
hotel prices
slump by 64%
The average price of a room at Trump
hotels across the world have dropped
by as much as 64% in some locations.
Some 300 days after Donald Trump
became the USA’s 45th president,
analysis from Travel money provider,
FairFX, has revealed that the cheapest
rooms dropped in price by an average
of 26% and the most expensive rooms
decreased by 20%, equivalent to
around £1,400.
Out of 13 Trump hotels and resorts
researched around the world, the
cheapest room can be found at Trump
Las Vegas, where a mini break this
weekend (24 November) would cost
£232 for two nights.
This is over £400 cheaper for the
same room type than in January, a
64% reduction. The second least
expensive room is at the Trump
Panama, priced at £234, a 32%
decrease since January.
Weekend stays at the Trump
Vancouver, Canada, at Macleod House
and Lodge in Scotland, at Trump
Doonbeg in County Clare Ireland or at
the Trump Doral in Florida will fall just
short of £400.
The average cost for the best
available room this weekend is down
by £1,374 since January from £6,821 to
£5,447, a 20% decrease since Trump’s
inauguration.
The most expensive room is the
Trump Townhouse at £37,907, however
this is £10,000 less than inauguration
weekend.
At £11,007, the Trump Doral in
Miami is the second most expensive
destination this weekend, although
two nights in the Presidential Suite
are £2,849 cheaper than they were for
the same room in January, equivalent
to a 21% decrease. The Trump Waikiki
is over £1,000 cheaper, equivalent to
17% off.
TRUMP
US hotelier
removes Trump
name from hotel
as politics takes
toll on brand
A hotel owner whose property bore
Trump branding has decided to
remove the US president’s name from
the Trump SoHo hotel as the property
has struggled to attract guests since
his presidency.
The Trump Organization holds
a management contract with the
Manhattan hotel which allows it to use
the Trump name under licence.
The remainder of the contract
was bought out on Wednesday 22
November by investment company
CIM Group, which owns the building,
meaning by year-end it will no longer
be associated with the Trump brand.
The SoHo hotel, which opened in
2010, has had to drop its room rates
in a bid to keep them occupied and
in May, was set to lay off 12 of its 80
housekeeping staff due to a slow down
in business.
NEWS ANALYSIS
As the year draws to a close,
2018 will be entered with a
number of uncertainties for the
industry. Closing off a record
breaking period of tourism and
visitor spend, the prospect of
Brexit and the outcome of the
CMA investigation could lead
to huge changes for hotels.
With Europe claiming the title
of the most visited destination
in the world, it seems however,
that there is little need for
worry but instead an obligation
to anticipate the possibility of
restrategising.
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INVESTMENTS
European hotel
investment
surpasses £11
billion
Total European hotel investment
volumes increased by 33% year-on-
year, for the third quarter (Q3) of 2017.
This contributed to a 16% year-
on-year increase on the year-to-
date, with hotel transaction volumes
exceeding €14bn (£11bn), according to
the latest data from global real estate
advisor, CBRE.
The UK and Germany proved to be
the largest markets in the first three
quarters of 2017, accounting for 55% of
the transaction volume. Deal volumes
in both the UK and Spain – the third
largest hotel investment market – are
already ahead of their respective full-
year 2016 volumes.
The UK recorded the highest
investment transaction levels, which
saw volumes reach €2.6bn (£2.3bn)
in Q3 2017, up by 195% on the same
period last year.
The growth was largely driven by
various high-profile hotel portfolio
sale in London and the regions,
including the sale of the 1,059-room
Hilton London Metropole and the
long-leasehold interest of the 790-
room Hilton Birmingham Metropole, to
Henderson Park for £500m.
Paul Collins, head of hotel investment
properties, UK & Ireland, at CBRE, said:
“The UK hotel market has seen strong
growth which has been supported
by favourable exchange rates. Buyers
have comprised of UK and international
parties, which have included existing
players and new entrants to the market.”
END: THAT’S ALL. YOU ARE NOW UP TO DATE
December 2017
www.hotelowner.co.uk
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