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byline: Sydney Lake

Downtown Suffolk unveils new branding

The Economic Development Department on Wednesday unveiled new Downtown Suffolk .

Downtown District businesses will have access to the logo and other tools developed by advertising agency BrandFirst. There are also logos available with a “We’re Open” tagline.

The new branding and tagline are part of Suffolk’s Downtown Master Plan, which also includes other marketing and infrastructure projects. 

The new branding will be visible on websites, social media, decals and banners in the coming days, according to the Suffolk Economic Development Department.

Click to expand. New Downtown Suffolk branding courtesy Suffolk Economic Development Department
Click to expand. New Downtown Suffolk branding courtesy Suffolk Economic Development Department

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Va. ABC recognized as top alcohol enforcement agency

The () won the Law Enforcement Agency of the Year from the National Liquor Law Enforcement Association (NLLEA), the agency announced Wednesday.

This marks the third time that Virginia ABC has earned this recognition — also marking wins in 2002 and 2017. The NLLEA is a nonprofit association of U.S. and Canadian law enforcement personnel focusing on liquor laws and regulations. 

“While our Bureau of Law Enforcement emphasizes regulatory enforcement with an eye toward voluntary compliance, this year they went even further in supporting licensees affected by economic uncertainties brought on by the global by providing guidance and relief from regulatory challenges wherever possible,” ABC CEO Travis Hill said in a statement. “They accomplished this objective while maintaining a focus on public safety. Our agents, under Chief Tom Kirby’s leadership, have my gratitude and support in fulfilling their important mission.”

Virginia ABC was recognized for quickly processing requests for outside dining areas, takeout mixed drinks and providing on-premises beer and licenses to off-premises for curbside pickup and delivery amid the pandemic. 

“It’s an honor to receive national recognition from our peers,” Chief Law Enforcement Officer Tom Kirby said in a statement. “Throughout this extraordinary year, both sworn and nonsworn staff have worked around the clock to carry out our mission, adjusting and adapting whenever needed. It was truly a team effort.”

Virginia ABC works with approximately 19,000 licensed businesses across the commonwealth and reported a record $1.2 billion in fiscal year 2020 revenue.

 

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More than 70% of U.S. hotels may not survive pandemic

As cases continue to rise in the U.S. and travel restrictions are reinstated, the American & Association (AHLA) projects that 71% of hotels won’t survive another six months without federal assistance, according to recent survey results.

In Virginia alone, Virginia hotel revenues continued last week to stay well below pre- levels compared with last year, according to data from STR Inc., a CoStar Group division that provides weekly market data on the U.S. industry.

For the week of Nov. 8 through Nov. 14, hotel revenues in Virginia decreased by 47% and rooms sold declined by 29%, compared with the same week last year. The week prior saw a 53% decrease in revenue compared to 2019 and a 35% decline in rooms sold. Compared with last year, the average daily rate (ADR) paid for hotel rooms dropped 25% to $81.62, while revenue per available room (RevPAR) fell to $36.23, a 46% decline.

“With a significant drop in travel demand and seven in 10 Americans not expected to travel over the holidays, hotels will face a difficult winter,” AHLA President and CEO Chip Rogers said in a statement. “We need Congress to prioritize the industries and employees most affected by the crisis. A relief bill would be a critical lifeline for our industry to help us retain and rehire the people who power our industry, our communities and our .”

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 65% in , 40% in and 23% in . During the week of Nov. 1 through Nov. 7, revenues fell 71% in Northern Virginia, 45% in Charlottesville and 34% in Hampton Roads. The number of rooms sold in Northern Virginia is down by 47%, Charlottesville is down by 25% and Hampton Roads is down by 13%. 

“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.”

Despite continued drops in revenue and number of rooms sold, Hampton Roads continues to fare well compared to national rates. Since the week of Sept. 6 through Sept. 12, it has had the smallest declines in both occupancy and RevPAR among the top 25 markets in the U.S. continues to be the hardest-hit locality in Hampton Roads, however, seeing a 43% decline in revenue last week.

Although Virginia showed slight improvements, the industry continues to struggle. The AHLA reports that 59% of U.S. hotel owners say they are in danger of foreclosure by their commercial real estate debt lenders due to COVID-19 and 52% say their hotel will close without additional aid from Congress.

“Every hour Congress doesn’t act, hotels lose 400 jobs,” Rogers said in a statement. “As devastated industries like ours desperately wait for Congress to come together to pass another round of COVID-19 relief legislation, hotels continue to face record devastation. Without action from Congress, half of U.S. hotels could close with massive layoffs in the next six months.”

 

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Audi of America names SVP, chief marketing officer

-based premium auto manufacturer of America announced Wednesday it has promoted Tara Rush as senior vice president and chief officer, effective Dec. 1.

Rush currently serves as Audi of America’s chief communications officer. In her new role, she will oversee brand strategy and U.S. marketing efforts including advertising, retail marketing, consumer experience, brand partnerships and social media. Rush will continue to oversee marketing and communications until her successor is named. She will continue to report directly to Audi of America President Daniel Weissland.

“Tara is not only an experienced brand expert, she is an exceptional leader with a passion for driving meaningful change,” Weissland said in a statement. “Her mix of external experience and proven internal track record — coupled with her strategic and bold decision-making — are a great fit for this role.”

With 20 years of experience, she has also previously served as chief corporate affairs officer for Heineken USA, where she was a member of the executive management team.

“Today, more than ever, marketing needs to be at the intersection of what people want and need, what a brand stands for and how to be a thoughtful reflection of culture and society,” Rush said in a statement. “I’m thrilled to help lead Audi’s new era of mobility and our commitment to put people at the heart of everything we do.”

Rush earned her bachelor’s degree in consumer economics from Cornell University.

Audi of America Inc. is a subsidiary of Volkswagen Group of America, which also produces Bentley, Bugatti, Lamborghini and Volkswagen-branded cars. Audi of America designs, engineer and sells a full line of premium vehicles, selling more 224,000 cars in 2019 and launching its first fully electric vehicle. It employs nearly 400 people.

 

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Online education provider K12 Inc. rolls out new brand name

-based provider Inc. announced Wednesday plans to change its brand name to Stride Inc., effective Dec. 16.

“A great doesn’t stop at high school graduation,” Stride CEO and Chairman Nate Davis said in a statement. “The Stride brand recognizes that, as a company, we are no longer limited by the boundaries of the K-12 market, and that we are dedicated to supporting lifelong learning and providing personalized, high-quality education in important career pathways that launch good paying careers.”

The company currently has nearly 165,000 students in kindergarten through 12th grade enrolled in online programs — with approximately 30,000 taking part in Destinations Career Academies focused on college and career education in , medical assisting and business. Its portfolio companies include Galvanize, Tech Elevator, MedCerts, Tallo and Nepris.

Stride in mid-July announced plans to hire more than 1,300 educators for the 2020 through 2021 school year, in light of a massive push to move education online during the . The company projects it will hit $1.5 billion in revenue by the end of the year. It reported $1 billion in 2019 revenue, and its stock has been up by more than 100% this year.

 

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Hilton to sell $1.9B in debt in private offering

As industry revenues continue plummeting, -based Inc. announced this week it will sell $1.9 billion in debt in a private offering to institutional buyers. 

The hotelier will sell $800 million of senior notes (due in 2029) at a 3.75% interest rate and an additional $1.1 billion at a 4% rate. Those will be due in 2031. 

Hilton will use the proceeds from the offering to redeem all of its outstanding 4.25% senior notes due in 2024 and use the remaining proceeds to redeem its outstanding 4.625% senior notes due in 2025, according to a company statement.

Hilton, like other hotel companies, has struggled since the onset of the . In June, Hilton announced it was laying off 2,100 corporate employees — more than 20% of its corporate workforce. Due to the economic crisis, Hilton’s first-quarter revenues dropped by $284 million compared with 2019, with decreases continuing through the second quarter. The company reported slight improvements during the third quarter, but still saw a net loss of $81 million when compared with last year.

“While a full recovery will take time, we are well-positioned to capture rising demand and execute on growth opportunities,” Hilton President and CEO Christopher J. Nassetta, Virginia’s highest-earning CEO in 2019, said in a Nov. 4 statement. Nassetta brought home $21.37 million in total compensation, while Hilton’s 2019 median pay for employees was $43,695.

The senior note offerings are expected to close on Dec. 1, according to Hilton.

 

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Northrop Grumman completes design review for astronaut living quarters

-based Fortune 100 Corp. announced Wednesday it has completed the initial preliminary design review (PDR) for the Habitation and Logistics Outpost (HALO), which will serve as living quarters for astronauts at the Lunar Gateway mini station during lunar exploration missions.

The HALO design was inspired by Northrop Grumman’s Cygnus spacecraft, which delivers supplies, equipment and experiments to the International Space Station. It’s part of ‘s Artemis program. The company announced in June its Orbital Sciences Corp. business had won a $187 million NASA contract to design the Gateway living quarters.

A successor to the Apollo moon landing program of the 1960s and ’70s, Artemis will see NASA land the first woman and the next man on the moon by 2024. 

“By basing the HALO module on Cygnus, we are able to deliver an affordable and reliable flight-proven product on an accelerated timeline,” Steve Krein, Northrop Grumman vice president of civil and commercial satellites, said in a statement. “Maturing HALO through its preliminary design marks a major milestone in the module’s production.”

The HALO module will serve as a crew habitat and docking hub for vehicles traveling between Earth and the moon. It can accommodate up to four astronauts for up to 30 days, according to Northrop Grumman.

Northrop Grumman is also partnering on the Blue Origin-led team to develop the human landing system (HLS) for the . It will provide the transfer element vehicle that lowers the landing system into low lunar orbit. Northrop Grumman will also deliver boosters for the Space Launch System rocket and the Orion Ascent Abort System.

Northrop Grumman employs more than 90,000 people and reported $33.8 billion in 2019 revenue.

 

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McLean health IT provider forms board of advisers

-based health provider CNSI announced Wednesday it has formed a of advisers.

“Their deep policy, technology, clinical, Medicaid, Medicare and commercial health knowledge and experience will be invaluable to CNSI’s future strategic growth,” CNSI CEO Todd Stottlemyer said in a statement. “They will also advise us on better ways to support our clients through innovative solutions that provide access to high quality care, empower individuals with actionable information to improve overall health outcomes and utilize technology to drive down costs.”

The board of advisers includes:

  • Ryan Howells — principal at Leavitt Partners, program manager of the CARIN Alliance. Howells will chair the board.
  • Dr. Ryan Bosch — founder and president, Socially Determined
  • Aneesh Chopra — president, CareJourney, and co-founder of the CARIN Alliance
  • Charlene Frizzera — president and CEO, CF Health Advisors
  • Dr. Maj. Gen. Elder Granger (ret.) — president and CEO of The 5Ps LLC
  • Bobbie Kilberg — president and CEO emeritus and strategic adviser for the Technology Council
  • Charles Milligan— chief operating officer, Health Management Associates; and vice chair, Medicaid and CHIP Payment and Access Commission
  • Penny Thompson — health care adviser and former chair, MACPAC Commission

“I’m looking forward to engaging in a robust dialogue with each of these thought leaders on the future of health care policy, access, coverage, technology, and whole-person care as we look to find ways to further advance value-based care,” Howells said in a statement. 

Founded in 1994, CNSI provides cloud-based systems aimed to better process medical claims, billing and health benefits.

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Va. home prices, sales up during October

Home prices in Virginia continued to surge during October due to high demand, low inventory and mortgage rates, according to a report released by Virginia on Tuesday.

, Central Virginia and saw median home prices rise by 15% when compared with the same time last year. The median statewide home sales price was $333,000 — with the Southwest region seeing median home prices up by 43% when compared to last year.

Although higher home prices benefit sellers, that is making affordability more challenging for buyers, according to Virginia Realtors. October’s median home price was nearly $70,000 higher than it was five years ago.

“All trends suggest that we will see double-digit price growth at least through the end of the year,” Virginia Realtors Chief Economist Lisa Sturtevant said in a statement.

More than 13,000 homes sold in October, a 28% increase from last year. The summer and fall markets led to the growth in residential sold, according to Virginia Realtors.

 

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Construction begins on $20M Norfolk apartment complex

Construction began late last week on a $20 million apartment complex at the site of the former American Cigar Co. in , according to

The 118-unit complex (including one-, two- and three-bedroom floor plans) will be located at 1140 and 1148 E. Princess Anne Road in Norfolk’s Bruce’s Park neighborhood. The Ashton Apartment Homes name is derived from a cigar brand.

“Our Bruce’s Park neighborhood has always been concerned with the future of this historical site of the Old Tobacco Factory built in 1903,” said Bruce’s Park Civic League President Barbara Dolgia in a statement. “Many of us have family connections with the African American women who worked in the factory in a role known as ‘stemmers’ — those that removed the stem from the tobacco leaves in order to manufacture cigars. We are so pleased that we were able to work with the developers to build new quality that would be constructed in a way to honor this special history.”

The complex was designed by Richmond-based Timmons Group, -based Details Interior Design, Virginia Beach-based TS3 Architects PC, Norfolk-based Siska Aurand Landscape Architects Inc. and Virginia Beach-based Speight, Marshall, Francis. Morgan Keller Construction is serving as the general contractor. 

“The need for additional quality housing in this market continues to be in high demand, and we are pleased to be part of the solution here,” Aaron Wyatt, S.L. Nusbaum senior vice president and co-director of multifamily housing, said in a statement. “We take pride in being able to maintain the historical integrity of this land with a new community that our future residents will be proud to call their home.” 

Leasing is set to begin in late summer 2021 and construction is expected to be completed by the fourth quarter of 2021. S.L. Nusbaum worked with TowneBank and the Virginia Housing Development Authority to secure financing for the development.

 

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