With COVID-19 cases mounting, Virginia hotel revenues continue to decline when compared with last year, according to data from STR Inc., a CoStar Group division that provides weekly market data on the U.S. hospitality industry.
For the week of Nov. 22 through Nov. 28, hotel revenues in Virginia decreased by 34% and rooms sold declined by 24%, compared with the same week last year. The week prior saw a 48% decrease in revenue compared to 2019 and a 29% decline in rooms sold. Compared with last year, the average daily rate (ADR) paid for hotel rooms dropped 14% to $78.64, while revenue per available room (RevPAR) fell to $27.92, a 34% decline.
“As many of our hotels have had to cancel meetings and events as a result of the recent restrictions implemented in the governor’s new executive order, we are anticipating even more declines in the coming weeks,” says Eric Terry, president of the Virginia Restaurant, Lodging & Travel Association. On Nov. 13, Northam announced that the state would enforce new restrictions to prevent COVID-19 spread, including limiting gatherings to 25 people — down from a cap of 250 people.
Hotel revenues and rooms sold declined in most markets in Virginia last week, compared with the same time frame last year. Compared with the same week in 2019, revenues fell 46% in Northern Virginia, 42% in Charlottesville and 23% in Hampton Roads. During the week of Nov. 15 through Nov. 21, revenues fell 68% in Northern Virginia, 24% in Charlottesville and 30% in Hampton Roads. The number of rooms sold in Northern Virginia is down by 37%, Charlottesville is down by 22% and Hampton Roads is down by 12%.
Williamsburg continues to be the hardest-hit locality in Hampton Roads, though, seeing a 53% decline in revenue last week, followed by Newport News/Hampton with a 12% decline.
“Performance of the hotels in the commonwealth during this week was in general slightly better than last week,” Professor Vinod Agarwal of Old Dominion University’s Dragas Center for Economic Analysis and Policy said in a statement. “COVID-19 continues to have adverse impacts on this industry.”
Henrico County-based Fortune 1000 professional services company ASGN Inc. announced Tuesday it has acquired Tampa, Florida-based information technology firm Integrated Solutions Management Inc.
Financial terms of the transaction were not disclosed.
Founded in 1991, ISM specializes in internet of things (IoT) technology, IT service and operations management. It will become part of ECS, a Fairfax-based ASGN subsidiary tech and engineering company. ISM’s operations will fall under ECS’s Enterprise Business Solutions Group, which is focused on digital services for federal and civilian commercial customers.
“We are very pleased to welcome the ISM team to ASGN,” ASGN President and CEO Ted Hanson said in a statement. “Their talented professionals complement our rapidly growing ECS segment. ISM’s proprietary IP provides a competitive edge to ServiceNow customer engagements. I am confident that this acquisition will position us to successfully deliver on some of the most complex digital transformations today.”
“After many years as a standalone company, ISM is excited to drive growth under ECS,” ISM President and Chief Revenue Officer Marty Burke said in a statement. “Both companies share an unwavering dedication to service excellence, a drive to be first movers in new technologies and a commitment to employee education and training. These values will serve us well as we work together on behalf of our clients.”
Herndon-based online education provider K12 Inc. announced Tuesday that the company was the victim of a ransomware attack that may have compromised its corporate back office systems.
“We do believe that the attacker accessed certain parts of our corporate back office systems, including some student and employee information on those systems, but it will take further time to determine the scope of the information accessed,” according to a company statement.
The company has cyber insurance and has worked with its insurance provider to make a payment to the ransomware attacker to ensure information will not be released, according to a statement.
The attack did not directly impact the nearly 165,000 students in kindergarten through 12th grades enrolled in K12’s online programs, according to a company statement. Based on the company’s investigation, the attack also did not affect its learning management system and its client schools (charter and district online schools) are still open, operating and secure, according to K12.
“Stride considers the security and integrity of our systems and network among our top priorities, particularly considering the large shift this year to remote learning and work due to COVID-19,” according to a company statement. “While no company can ever eliminate the risk of a cyberattack, we are working extensively with an industry-leading third-party forensics firm to ensure that we are taking all appropriate steps to prevent any incident like this from happening again.”
The company has assembled an advisory team for the incident including:
Catherine Hanaway, former U.S. attorney for the Eastern District of Missouri
William Lockyer, former California state attorney general
John Byron “J.B.” Van Hollen, former Wisconsin state attorney general and former U.S. attorney for the Western District of Wisconsin
The team will help K12 with its response to the incident, including state and federal law compliance.
Reston-based systems integration provider iGov announced last week it has hired Deborah Sutton as vice president of human resources. She replaces Kim Schmitt, who has retired.
With more than 25 years of experience, Sutton was most recently an independent executive human resources consultant. In her new role, she will advise senior management and lead the human resources team efforts in administering company benefits, hiring and ensuring company policies and practices are met.
Sutton earned her bachelor’s degree from the University of Maryland and her master’s degree in human resource management and industrial and organizational development from Marymount University.
Founded in 1996, iGov performs research and development, systems and softwareengineering, integration and logistics services for customers including NASA and the USMC Combat Operation Centers.
McLean-based communications satellite services provider Intelsat Corp. announced Tuesday it has completed the acquisition of in-flight broadband connectivity provider Gogo Inc.’s commercial aviation business for $400 million in cash.
The acquisition was first announced in early September. Intelsat plans to pair its satellite and ground network to Gogo’s customer base of more than 3,000 commercial aircraft.
“Combining Intelsat’s next-generation global telecommunications network with Gogo Commercial Aviation’s leading capabilities and airline relationships will create unprecedented innovation in inflight digital connectivity, unlocking exciting new growth and brand loyalty opportunities across the airline industry,” Intelsat CEO Stephen Spengler said in a statement. “With our powerful, integrated offering, airlines will no longer need to trade off speed, reliability or availability for coverage, even when flying at full capacity in and out of the busiest airport hubs.”
As part of the transaction, John Wade will remain president of Gogo Commercial Aviation, now an Intelsat division. Intelsat’s former senior vice president of strategy and planning, Bruno Fromont, has been named as Intelsat’s chief technology officer, and Jon Cobin has been named as chief strategy officer. Cobin joins Intelsat from Gogo, where he was also chief strategy officer.
“Demand for in-flight broadband is expected to grow at a double-digit rate over the next decade, and we remain committed to long-term success in broadband mobility services,” Spengler said in a statement. “With Gogo Commercial Aviation, we will bring our complementary and collective expertise to help solve our customers’ toughest inflight connectivity and entertainment challenges.”
In May, Intelsat announced it had filed for Chapter 11 bankruptcy protection to spend money on a program that would allow it to build 5G infrastructure under the Federal Communications Commission order. The clearing project will cost Intelstat $1 billion to meet FCC deadlines and will make the company eligible to receive $4.87 billion in accelerated relocation payments. The company’s day-to-day operations will continue as usual, according to Intelsat.
Organic meat snack brand Grayson Natural Farms LLC will expand its Grayson County operation by 35,000 square feet through a $1.5 million investment, creating 40 jobs, Gov. Ralph Northam announced Tuesday.
Grayson Natural Farms produces Landcrafted Food, which are grass-fed, organic meat snacks. Its smokehouse and production operation is currently located at 226 Industrial Lane. The company first opened its facility in 2017.
“The success of existing businesses is paramount to Virginia’s economic recovery, and we remain committed to helping them thrive amid these trying times,” Northam said in a statement. “Our commonwealth has built a strong reputation as a leader in the food and beverage sector, and the continued growth of Grayson Natural Farms in Southwest Virginia is a testament to the many competitive advantages that make this region appealing for expanding companies like Grayson Natural Farms.”
The Virginia Economic Development Partnership worked with Grayson County, Virginia’s Industrial Advancement Alliance and the Port of Virginia to secure the project for Virginia. Northam approved a $50,000 Commonwealth’s Opportunity Fund grant to help Grayson County with the project.
Grayson Natural Farms is also eligible for Port of Virginia Economic and Infrastructure Development Zone Grant Program benefits, as well as the Virginia Enterprise Zone Program, administered by the Department of Housing and Community Development. The Virginia Jobs Investment Program will provide funding and employee training.
“Grayson Natural Farms has become a strong asset to the agricultural economy in Southwest Virginia, and we congratulate the company on its expansion in Grayson County,” Secretary of Commerce and Trade Brian Ball said in a statement. “The company’s continued investment in Virginia and commitment to economic sustainability for family farms is much appreciated, especially in these challenging times.”
Richmond-based Mutual Assurance Society of Virginia announced Tuesday that it has named Mark Crutcher as its inaugural vice president of innovation and marketing.
Crutcher most recently was a senior product manager with Safe Auto and had previously served as Lititz Mutual’s vice president of marketing, underwriting and product development.
“Mutual Assurance’s goal is to embrace new technologies and customer’s demands while not upending its unique business model,” Crutcher said in a statement. “I’m here to ensure that we continue to deliver our unique value proposition in a changing marketplace.”
In his new role, he will focus on developing new products and pricing, developing a market strategy and introducing new technologies.
Founded in 1794, the Mutual Assurance Society of Virginia is a mutual asset property and casualty insurance company.
Although Hokie fans couldn’t fill Lane Stadium this year decked in maroon and orange, there’s a new tailgating trophy they can look forward to obtaining this coming spring — a licensed Virginia Tech beer, Fightin’ Hokies Lager.
Virginia Tech’s College of Agriculture and Life Sciences announced Tuesday it has partnered with Richmond-based Hardywood Park Craft Brewery to produce the Munich-style Helles lager. Virginia Tech researched developed the craft beer recipe that will be produced and marketed by Hardywood and be available in spring 2021, according to a release from Virginia Tech.
“We are excited that research developed on Virginia Tech soil will be brought to market with proceeds providing scholarships for our students, enabling the expansion of research programs in our highly regarded food science program and fueling Virginia’s local economy,” Dan Sui, Virginia Tech’s vice president for research and innovation, said in a statement.
Hardywood Brewmaster Patrick Murtaugh (left) and Brian Nelson, vice president of production and head brewer, brewing a pilot batch of Fightin’ Hokies Lager. Photo courtesy of Hardywood Park Craft Brewery.
Hardywood was attracted to the venture due to Virginia Tech’s reputation for food science and mechanical engineering, Hardywood President and co-founder Eric McKay said in a statement. The College of Agriculture and Life Sciences houses Virginia Tech’s brewhouse and malting system, a space for researchers and students to practice.
“Our department is big on hands-on learning,” said Brian Wiersema, the plant manager at the Human and Agricultural Biosciences Building 1, where the brewhouse is located. “We had the company pull out some of the automation, yet the system mimics a craft brewing system.”
Although the hops will be on the shelves before too long, the project was a labor of love starting earlier this year when Virginia Tech was searching for a partner brewery — but really began six years prior, following a trip three Virginia Tech faculty members took to Munich, Germany.
During the trip, the three became enthralled with the Helles blend, a “highly drinkable, clean and balanced beer,” according to Wiersema, and began their own research after they returned to the United States.
“The desire from the beginning was to partner with a premium brewing firm with solid ties within Virginia to produce proprietary recipes that could work hand-in-hand with our faculty to develop and produce the best beer possible,” Brandy Salmon, Virginia Tech associate vice president for innovation and partnerships, said in a statement.
The golden beer with 5% alcohol by volume (ABV) will be available at restaurants, grocery stores and convenience stores in Hardywood’s network of wholesalers across Virginia and Washington, D.C.
The U.S. Department of Homeland Security (DHS) awarded Tysons-based government and defense contractor LMI a $77.5 million contract to support and advise the department on efforts to prevent chemical, biological, radiological and nuclear attacks.
LMI will provide services to the DHS Countering Weapons of Mass Destruction (CWMD) Office. The company will offer expertise on chemical, biological, radiological and nuclear (CBRN) subject matter, as well providing other services, including program administration, interagency training exercises, medical operations and information coordination services.
“We are honored to support DHS in its CWMD mission, helping stakeholders from federal decision makers to first responders possess the capabilities to deter, detect, prevent, and respond to CBRN threats,” John Selman, LMI vice president of LMI’s national security programs, said in a statement. “The customer’s trust in our experts and approach amid the current pandemic is a tremendous responsibility. We take this obligation seriously and will bring our best to help DHS protect our citizens.”
LMI has been working with the Office of the Secretary of Defense, military services and defense agencies for six decades. Founded in 1961, LMI provides IT, analytics, logistics and management advisory services to federal clients. The company was originally formed to support the U.S. Department of Defense’s logistics management. Last year, the company reported $329 million in revenue.
“Reinforced by our growth, LMI has the technical capacity and versatility to help the CWMD Office innovate new solutions to complex, dangerous challenges,” Steve Hoffman, LMI’s director of national security science and technology said in a statement. “We are very proud of our support to the CWMD Office and look forward to strengthening our trusted partnership.”
Henrico County officials announced Tuesday plans for a $2.3 billion arena-anchored development, born out of the failed Navy Hill project proposal for downtown Richmond. But with private financing and no projected impact on county taxpayers, the GreenCity development may have a smoother path.
Proposed on the 204-acre former Best Products property owned by the county, GreenCity would be a mixed-use “ecodistrict” including a “green” 17,000-seat arena, 2.3 million square feet of office and retail space, 2,400 housing units and two hotels, with a sustainability focus.
The arena would be in operation in 2025, and the former Best headquarters would be adapted to commercial office space for multiple tenants, according to the proposed timeline for GreenCity. The buildout would be complete in 2033.
The project is being developed by Capital City Partners LLC, a partnership between Michael Hallmark of Los Angeles-based Future Cities LLC and Susan Eastridge of Fairfax-based Concord Eastridge Inc., who teamed up on the $1.5 billion Navy Hill proposal, which was rejected by Richmond City Council in February 2020.
Unlike the Navy Hill project, GreenCity would be privately funded with four sequences of development over 12 years, according to documents from the developers. The arena would be financed through Community Development Authority (CDA) bonds, “which direct incremental taxes from the Best Products site’s new development, along with revenues generated by the new arena to pay off the cost of the arena.”
Developers expect the bonds to close in 2023 with enough funds to build the arena, including $1.4 billion in arena revenues, $650 million in total gross debt service over a bond term of 30 years, and $750 million returning to Henrico County over the term. Once all bonds are repaid, all tax revenue would go to the county.
The first step of the process would take place in January, when the Henrico County Board of Supervisors must approve the site transfer to the county’s Economic Development Authority (EDA) for the project to go forward.
Navy Hill’s corporate backers are not involved in GreenCity, the developers said in their statement. Dominion Energy Executive Chair Thomas F. Farrell II was chairman of the nonprofit NH Foundation board formed in 2017 with NH District Corp., which was the only entity that responded to the city of Richmond’s request for downtown revitalization proposals later that year. Other board members included Martin J. Barrington, former chairman and CEO of Altria Group, and William H. Goodwin Jr., the retired chairman and president of Riverside Group who owns the Jefferson Hotel.
A council-appointed commission issued a report in January that the arena was not “a sound and reasonable public investment in the redevelopment of downtown,” and a consultant hired by City Council, while largely complimentary of the project, cited several weaknesses, including the lack of an appraisal of the property.
One of Richmonders’ chief objections to Navy Hill was the proposed Tax Increment Finance (TIF) area downtown that would have used tax revenue to pay for the arena; originally an 85-block area, the TIF district shrank to 11 blocks amid continuing controversy. Residents and city councilors still were concerned that the project could take money away from schools and other infrastructure, leading to a split City Council decision to kill the deal in February.
GreenCity, however, is “completely different,” according to developers, “as this development plan is based on green space versus infill,” and the CDA would encompass only the development area. They project that once the arena bonds are paid off, “GreenCity will become the largest single generator of tax revenue in the county.”
“We are thrilled to endorse this bold, visionary opportunity, as it is in sync with everything that Henrico County stands for and has been working hard to achieve — inclusion, resiliency, mobility, innovation and job growth,” Henrico County Manager John A. Vithoulkas said in a statement.
GreenCity will be designed with environmental sustainability, civic engagement and inclusion in mind, according to the county, and will include parks, trails and open spaces.
“We’re talking about a new kind of community that is intricately planned, inclusive for all and thoughtfully designed to be not only livable but also to set new standards for environmental sustainability,” Vithoulkas said in a statement. “GreenCity will be a community that preserves, embraces and showcases open space, and it will drive economic development and tourism in new and exciting ways while remaining respectful to county taxpayers.
The arena will include flexible seating configurations for concerts, shows and sports teams, including ECHL Hockey and G-League Basketball, according to Henrico County.
“The arena will put this region back on the entertainment map,” Vithoulkas said in a statement. “It also will provide tremendous benefits to our county while creating no financial risk to our taxpayers.”
If the project receives approval from the Henrico County Board of Supervisors, the EDA anticipates it will enter into an agreement to convey the land to the developers pending rezoning approval. Developers anticipate a formal plan and rezoning application will be submitted to the county in early 2021. Officials will conduct a financial projection review as part of the proposal.
The Navy Hill project, which was championed by Richmond Mayor Levar Stoney, would have included a partly publicly funded $235 million, 17,500-seat arena — the state’s largest entertainment venue — and 260,000 square feet of retail and restaurant space; a 541-room luxury hotel within walking distance of the Greater Richmond Convention Center; 1 million square feet of commercial and office space; more than 2,500 apartments; a $10 million renovation of the Blues Armory; and a GRTC Transit System bus transfer station. VCU’s Center for Urban and Regional Analysis estimated that the project, which would have taken four to five years to complete, would have created 9,300 permanent jobs and 12,500 construction jobs.
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