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North America

Global Travel Prices to Increase Through 2023

Alan Woinski and Kim Woinski
August 10th, 2022 at 4:46 PM EDT

Skift Take

  • The DJIA surged 515 points, Nasdaq was up 361, the S&P 500 was up 88 and suddenly the 10 year treasury yield is calm and the indexes are nuts again.
  • STR said US Lodging RevPAR was up 12.2% year over year for the week ended 8/6.
  • Global travel prices are predicted to continue to increase in the remaining months of 2022 and throughout 2023, according to the 2023 Global Business Travel Forecast.

The DJIA surged 515 points, Nasdaq was up 361, the S&P 500 was up 88 and suddenly the 10 year treasury yield is calm and the indexes are nuts again, down .01 to 2.79%. Lodging stocks were higher. The biggest mover was SOND, up 15%.

STR said US Lodging RevPAR was up 12.2% year over year for the week ended 8/6.  RevPAR was up 9.3% versus the same week in 2019.

Global travel prices are predicted to continue to increase in the remaining months of 2022 and throughout 2023, according to the 2023 Global Business Travel Forecast, published by CWT and the Global Business Travel Association. Rising fuel prices, labor shortages, and inflationary pressures in raw material costs are the primary drivers of the expected price growth. Prices have increased in all regions across most categories of spend, fueled by pent-up demand, a desire to build company culture and an uncertain economic outlook. The cost-per-attendee for meetings and events in 2022 is expected to be around 25% higher than in 2019, and it’s forecast to rise a further 7% in 2023. Business travel airfares fell over 12% in 2020 from 2019 followed by an additional 26% decline in 2021. Prices are expected to rise 48.5% in 2022 and an additional 8.4% rise in 2023. Hotel prices fell 13.3% in 2020 from 2019 and a further 9.5% in 2021, however the report expects them to rise 18.5% in 2022 followed by an 8.2% lift in 2023. Hotel prices have already eclipsed 2019 levels in some areas such as Europe, the Middle East & Africa and North America and are expected to do so globally by 2023. 

150-guest room Tempo by Hilton hotel is planned for the Clay Terrace shopping center in Carmel, IN. Expected to open in spring 2024 the hotel will be developed by Equicor Hotel Group LLC and managed by Dora Hospitality Group. The five-story hotel will be the first Tempo by Hilton in Indiana. Clay Terrace is owned by Washington Prime Group and plans call for a hotel, apartments and office space.

Extended Stay America announced the opening of the Extended Stay Premier Suites Augusta located in Augusta, GA. The property was developed by the owner, Greenway Hospitality. The four-story, 124-room hotel features a STAY Fit fitness room, STAY Clean laundry room, and Extended Stay America’s signature STAY Play lobby with additional vending options. 

Thompson Central Park New York is accepting reservations, for stays beginning early September 2022, for the Upper Stories, a collection of 174 guest rooms and suites on floors 26 through 33 of the hotel. A first for the Thompson Hotels lifestyle brand, Thompson Central Park New York will debut the Upper Stories Lounge. Along with access to the Lounge, those who reserve Upper Stories accommodations will receive priority seating and reservations for live music and dining at Parker’s, Thompson Central Park New York’s lobby lounge, and are welcome to utilize the Residents Only Fitness Studio. 

Davidson Hospitality Group has been selected by Fairwood Capital to manage Royal Park Hotel in Rochester, MI under its lifestyle operating vertical, Pivot. The 143-room Royal Park Hotel offers a variety of activities including bicycle rentals, fly-fishing, firepit, and a signature restaurant. 

Clarion Pointe celebrated the milestone opening of the brand’s fiftieth hotel this summer. The latest development milestone comes on the heels of several recent openings, including in the markets of Abingdon, VA; Greensboro, NC; and Indianapolis, IN. In addition, interest in the brand remains strong; in the first have of this year, Clarion Pointe awarded contracts are up nearly 20% over last year. Soon, Clarion Pointe will build on its ongoing expansion with additional franchise openings in markets such as Baltimore, MD; Durham, NC; and Tampa, FL.

The Omni Homestead in Hot Springs, VA is getting a $140 million facelift and upgrade. The exterior renovations are nearly 30% complete and the contractors are taking their work inside. The big focus of the project is all new guest rooms.

Hotel Ella, in Austin, TX, is undergoing renovations. Rex Teams hopes to start as soon as possible. Plans for the renovation include adding a cigar and wine bar, expanding the fine dining restaurant and adding 166 rooms to the boutique hotel.

In St. Petersburg, FLa new boutique hotel planned for the Edge District will be developed at the Baum Avenue Market space. Eastman Equity, which owns the property, told the Tampa Bay Times the hotel concept will include several food and beverage outlets.

Aimbridge Hospitality announced growth in its LatAm Division with the addition of three new hotels in Mexico and a Guadalajara-based, world-class restaurant.The properties include the AC Hotel Monterrey Valley, opening this month with 166 rooms; Aloft Guadalajara Sur, opening in fall 2022 with 175 rooms; and the 167-room Aloft Playa del Carmen is anticipated to open this winter. Aimbridge LatAm also announced that Zibu Guadalajara at JW Marriott Hotel Guadalajara opened this summer.

Owner and proprietor, Amit Patel, stated The Hotel Chelsea is expected to open by the end of the year in Norwich, CT. The build out of the nearly 200-year-old building is in three phases, with the first being the 24 rooms and the lobby, the second being a banquet hall and a kitchenette, and a bar in the third phase. In the future, Patel may also rent a space for a ghost kitchen. The building has been in the possession of Patel’s family since May 2019, when it was bought by Ganesha Hospitality, LLC.

Pennbridge Lodging hopes to build a Marriott AC Hotels and an Element on a site it owns in Boise, ID. The project would rise 14 stories with a total of 271 rooms, 149 for the AC project and 122 for Element. It appears to be the first Boise-area, dual-branded hotel.  The building will offer 315 parking spaces, a pool, spa and fitness center, two roof decks, a banquet rooms, a boardroom, a bar and a breakfast area.

Hersha Hospitality Trust closed on the refinancing of a $500 million Senior Secured Credit Facility. The $500 million Credit Facility consists of a $400 million Term Loan and an undrawn $100 million revolving credit line. The facilities will bear interest at 2.50% over the applicable adjusted term SOFR. The $500 million Credit Facility matures in August 2024 and has one 12-month extension option, which would result in an extended maturity of August 2025. The Term Loan refinancing was arranged by Citibank, N.A, Wells Fargo Securities, LLC and Manufacturers and Traders Trust Company. The Company had previously announced the pending sale of the USS Portfolio. The Company closed on the sale of six of these USS Portfolio properties for gross proceeds of approximately $435.9 million. The closing of the 145-room Courtyard in Sunnyvale, CA is expected to close at a later date due to the timing of the CMBS loan assumption process for the asset. 

Marriott Hotels announced the opening of Barranquilla Marriott Hotel located in Barranquilla, Colombia. The property features 191 rooms and nine suites, two restaurants and a bar, over 19,000 square feet of meeting space, and an outdoor pool.

Recently opened in Kingston Jamaica is ROK Hotel Kingston, Tapestry Collection by Hilton. The 168-room property is owned by PanJam Investment Limited and managed by Highgate. ROK Hotel Kingston, Tapestry Collection by Hilton delivers an authentic and elevated Jamaican experience through its contemporary design, state-of-the-art facilities, expansive food and beverage offerings, and cultural expression. The property boasts six full-equipped meeting rooms, a sparkling pool, and a fitness center.

Europe Highlights

W Hotels announced the opening of W Costa Navarino in Greece. The new W Escape is set within a scenic 32-acre site along a sandy beach. W Costa Navarino is home to a number of culinary points; the WET Deck featuring an infinity pool; the AWAY Spa; and a FIT gym with a 25-meter, outdoor heated pool and the latest gym equipment.

Hyatt Hotels Corporation announced the opening of Magma Resort Santorini, the first property in the Unbound Collection by Hyatt brand in the Greek Islands. Managed by SWOT Hospitality, the Magma Resort Santorini offers 59 rooms, including 24 suites; an exclusive dining concept; Lava Spa and Wellness Center with an indoor pool and signature treatments; a professional fitness center; and Magma Hall, a 2,454 square foot event venue.

Personnel Moves

Mandarin Oriental Hotel Group announced three senior appointments to strengthen the Group’s global sales leadership. Raphael Lanfant has been appointed Global VP Channel Sales, a newly created role responsible for overseeing the global revenue growth and the effectiveness of the newly formed Global Channel Sales and Distribution organization. Raphael joins the Group from Alibaba, where he held the position of Global Head of International Hotel Partnerships. Geoffrey Webb has been appointed VP Global Sales Partners and will oversee the five regional sales hubs responsible for driving revenue from the global travel agencies and tour operators. Geoffrey joined Mandarin Oriental in 2019 as Director of Commercial Strategy for the Group’s Flagship property, Mandarin Oriental, Bangkok. Celine Du has been appointed VP Global Industry Partners and will be responsible for Mandarin Oriental’s global corporate and key account revenue. Celine joined the Group in 2015 as Vice President Sales & Marketing, Greater China before her promotion to VP Regional Sales, Asia Pacific. 

Alan Woinski and Kim Woinski
August 10th, 2022 at 4:46 PM EDT

Companies: AC Hotels by Marriott, Aimbridge Hospitality, Davidson Hospitality Group, Element, Extended Stay America, Extended Stay America Premier Suites, Hersha Hospitality Trust, Hilton Hotels & Resorts, Hyatt Hotels Corporation, Mandarin Oriental, Marriott International, Omni Hotels & Resorts, Pennbridge Lodging, Sonder Holdings Inc., Tempo by Hilton, Thompson Hotels

Locations: Atlanta, Austin, Connecticut, Florida, Greece, Guadalajara, Idaho, Indiana, Jamaica, Mexico, Michigan, New York City, Virginia

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