Oberoi to Build 7-Star Hotels in India

25.08.2023 - 14:13 / skift.com / New Yorkers / Sean Oneill / Star

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Deutsche Bank said they were a bit surprised at the ALIS conference as they realized their views on 2023 RevPAR and margins were more measured than what they sensed from the companies. Most management teams did not seem all that moved by the spate of corporate layoff announcements. DB said they still are more skeptical that corporate travel budgets won’t be reduced in conjunction with layoffs, even if it takes a while to show up in the weekly and monthly numbers. While management teams have a different view than DB, so does their peer sell side group as consensus is baking in about 75bps of margin expansion and DB said that feels aggressive to them.

New York City’s latest plans to crack down on illegal short-term rentals, possibly removing as many as 10,0000 Airbnb listings later this year, is sparking furious debates about housing, hotels, the tourist market and residents’ rights. The new rules will hit those New Yorkers who make extra income by hosting, renting out apartments on Airbnb and similar platforms but flout city laws, reported the Guardian.

Skift Note: Short-term rentals and vacation homes grew in popularity during the pandemic, but data from AirDNA shows that interest is losing momentum. “Data from AirDNA show revenue per available room for U.S. short-term rentals is forecast to decline this year from a year earlier after many years of growth,” reported the Wall Street Journal.

Skift Note: We didn’t have a newsletter on this day.

Despite projections of persistent inflation and a moderate economic recession, CBRE’s November 2022 Hotel Horizons forecast calls for a 5.8% increase in revenue per available room, or RevPAR in 2023, up from CBRE’s previous forecast of a 5.6% increase. Inflation is helping. Luxury and upper-upscale properties have lagged due to their dependence on individual corporate and group demand. Many may not see a RevPAR recovery until the end of 2023 across 65 of the largest U.S. markets. At the end of the spectrum, the leisure-centric destinations of Savannah, Miami, St. Petersburg and the Coachella Valley in California are forecast to exceed their 2019 RevPAR levels by more than 20% in 2023.

The Oberoi Group of Hotels entered a Memorandum of Understanding with the Andhra Pradesh Tourism Department to construct a 7-star hotel in Tirupati in India, New India Express reported. The tourism department formally handed over 20 acres of land parcel on Zoo Park road near Alipri to the Oberoi Group on a lease-cum-rent basis. The Oberoi Group also discussed interest in constructing 7-star