Skift Take

Today’s edition of Skift’s daily podcast looks at the near yet uneven recovery of the global accommodation market, Blackstone’s investment in hotels, and the labor opportunity with apprenticeships.

Rashaad Jorden

Good morning from Skift. It’s Tuesday, August 23 in New York City. Here’s what you need to know about the business of travel today.

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Episode Notes

Private-equity firm Blackstone Group recently bought a minority stake in Sunstone Hotel Investors, the owner of 15 U.S. hotels. The move might be a sign Blackstone views hotels a more resilient category than other real-estate assets, reports Senior Hospitality Editor Sean O’Neill.

According to financial documents filed last week, Blackstone purchased more than 8.5 million shares in Sunstone, making the firm one of Sunstone’s five largest shareholders. Blackstone has completed nearly $700 million of transactions this year, including its purchases of the Hilton San Diego Bayfront and Confidante Miami Beach.

O’Neill writes that Blackstone might emerge as an early contender to buy Sunstone, adding that the firm’s support could enable Sunstone to speed up acquiring hotels. One analyst believes Sunstone is in a good position to likely be a net buyer — buying more assets than it sells — in the near future.

Next, the accommodation sector is continuing to make progress in its recovery. Skift Research’s newly released Global Accommodation Sector Market Estimates reveals its revenue is expected to hit 95 percent of pre-Covid metrics this year, reports Senior Research Analyst Varsha Arora.

The report also found the Americas is the biggest contributor of accommodation sector revenue. It’s projected to contribute around 49 percent of the sector’s value, followed by Europe at 25 percent. Arora notes that the Americas is the biggest market for luxury hotels as well as being home to a population with immense spending power. The report also indicates a full global recovery in hotels would occur by next year.

Finally, apprenticeships are seeing a renaissance as employers worldwide rush to fill vacancies. They also could be the solution to the event industry’s staffing shortages, reports Contributor Paul Cook.

As the number of people aged 16 to 24 in the U.S. serving apprenticeships has more than doubled in the last 10 years, Cook writes there’s little doubt they can be beneficial. Apprenticeships, which include structured training focusing on specific skills required by the employer, usually lead to full-time employment, notes consultant MaryAnne P. Bobrow.

And as the areas of apprenticeship programs are being expanded, Cook adds that event executives view those programs as avenues to find qualified candidates.

Skift Take

Finally a glimmer of happy news coming from a British airport after a turbulent summer across Europe for airports and airlines.

Peden Doma Bhutia

Britain’s second biggest airport Gatwick returned to profit in the first six months of this year as Britons flocked to overseas holiday destinations, the company said on Tuesday as it lifted its 2022 forecast for passenger numbers.

The group also said it does not plan to extend existing limits on passenger numbers beyond the end of August as it has ramped up its security staffing.

The airport introduced limits on passenger numbers in June after staff shortages had caused overcrowding, huge queues and flight schedule disruptions.

It faced more problems on Tuesday as it cancelled 26 EasyJet flights in and out of the airport at short notice due to staff absences at its control tower.

Gatwick’s overall outlook is improving, though, after a tumultuous summer across Europe for airports and airlines, which struggled with staff shortages amid huge demand as holidaymakers rushed to book overseas holidays after the removal of Covid-19 curbs.

Its move to lift its cap on passenger numbers contrasted with larger rival Heathrow‘s statement last week that it would extend its cap on the airport’s capacity through to Oct. 29 to tackle widespread disruption.

Gatwick said it expects 32.8 million passengers this year, up from 6.3 million in 2021, but warned inflationary pressures on costs and demand during the winter season could hamper the forecast. Passenger numbers would still be down from 46.6 million in 2019, before the pandemic.

“We still have some considerable way to go, but strong demand has fast-tracked Gatwick’s recovery from the pandemic,” Chief Executive Officer Stewart Wingate said in a statement.

Gatwick’s passenger demand was at 74.3 percent of pre-pandemic levels for the second quarter after the removal of all UK travel restrictions.

The airport said it recruited 400 security staff during the first half of the year and provided workers, including airline baggage handlers, to support other airport operators.

The group reported a core profit of $174.50 million for the six months ended June 30, compared with a loss of $60 million last year.

British Airways said on Monday it would make further cancellations up to the end of October and tweak its winter schedule following Heathrow’s decision to cap capacity.

(Reporting by Muhammed Husain in Bengaluru; Editing by Krishna Chandra Eluri and Susan Fenton)

This article was written by Muhammed Husain from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].