Magnuson Hotels executes 80 agreements in ’21

Magnuson Hotels signed 80 Independent Collection hotel agreements in 2021, in the U.S. and U.K., with a strong year forecast for 2022.

The company reported a 31.3% increase on occupancy and a 43.5% increase from 2019 in RevPAR for its Independent Collection for year-end 2021.

These performance figures come in a recovery year in which global hotel benchmark agency STR reports a U.S. negative occupancy (-12.6%), a negative ADR (-4.8%) and therefore a RevPAR deficit of -16.8%

“The pandemic has seen a shift in hotel source markets, with corporate travel and international travel as we’ve known it removed from hotels’ options,” said Thomas Magnuson, CEO, Magnuson Hotels. “Our teams have instead looked domestically and locally at those businesses which are key to success and solid, long-term business—local government, medical, public safety, energy, transportation, construction, government and long-term corporate. The business market is now driven by essential business travel—the must-take trips, those small- and medium-sized enterprises which have been getting in their cars and hitting the road.”

He continued, “With hotels drained of their cash reserves after two years of COVID and government support waning, we see a strong growth pipeline in 2022. Hotels are already responding to pressures of rising supply from Airbnb, and also need a solution for the required renovations by publicly traded franchise brands that mean $20K per room expense.”