International Visitors to the U.S. Bring in New Highs

The DJIA rose 334 points, Nasdaq was up 52, the S&P 500 rose 21 points and the 10 year treasury yield was down .09 to 4.13%. Lodging stocks were modestly higher. SLNA was higher for a second day, up another 11%, while VCSA was up 5%.

Apple Hospitality reported a modest beat with RevPAR up 7.5% versus 3Q19. In September and October APLE bought back a modest amount of stock just above $14 a share. YTD they have bought back $2.7 million worth of stock but recall they upped their monthly dividend on their stock twice in the past few months.

Sunstone Hotel Investors reported a slight 3Q beat. SHO continues to be a buyer of their own stock under $10, with $20 million purchased at an average of $9.73 a share in 3Q and through last week in 4Q.

Barclays called Chatham Lodging Trust’s 3Q results one of the strong prints within the lodging subsector. CLDT has not been giving guidance and they reported EBITDA more than 10% above consensus and adjusted FFO per share of $0.50 versus consensus of $0.41. While CLDT commented that midweek business travel demand is recovering, they once again declined to give guidance, citing an uncertain business climate.

Recently released data by the National Travel and Tourism Office showed that in September 2022, international visitors spent nearly $14.7 billion on travel to, and tourism-related activities within, the United States, an increase of more than 110% compared to September 2021. Americans spent $15.5 billion traveling abroad, yielding a balance of trade deficit of $802 million for the month. Year to date, international visitors have spent more than $112.1 billion on U.S. travel and tourism-related goods and services, up more than 106% when compared to the same period last year, injecting, on average nearly $411 million a day into the U.S. economy. Purchases of travel and tourism-related goods and services by international visitors traveling in the U.S. totaled $7.8 billion in September 2022, an increase of 249% when compared to the previous year. For a pre-pandemic perspective, travel receipts totaled $11.4 billion in September 2019. Travel receipts accounted for 53% of total U.S. travel and tourism exports in September 2022. Fares received by U.S. carriers from international visitors totaled $2.6 billion in September 2022, an increase of 144% when compared to the previous year. For a pre-pandemic perspective, the United States exported nearly $3.3 billion in passenger air transportation services in September 2019. Passenger fare receipts accounted for 18% of total U.S. travel and tourism exports in September 2022. Expenditures for educational and health-related tourism, along with all expenditures by border, seasonal, and other short-term workers in the United States totaled $4.2 billion in August 2022, an increase of 17% when compared to the previous year. For a pre-pandemic perspective, this spending totaled $4.8 billion in August 2019. Medical tourism, education and short-term worker expenditures accounted for 31% of total U.S. travel and tourism exports in August 2022.

According to a new national Hotel Booking Index Survey commissioned by the American Hotel & Lodging Association and conducted by Morning Consult, the share of holiday travelers who plan to stay in hotels is up this year, and hotels are the top lodging choice among those certain to travel for leisure in the next three months. AHLA’s Hotel Booking Index is a new composite score gauging the short-term outlook for the hotel industry. The 1-through-10 score is based on a weighted average of survey respondents’ travel likelihood in the next three months (50%), household financial security (30%), and a preference to stay in hotels for travel (20%). Based on the results of the survey, the AHLA Hotel Booking Index for the next three months is 7.1, or very good. Moving forward, AHLA plans to release Hotel Booking Index results three times a year: In January; Ahead of the summer travel season; and Ahead of the holiday travel season. The survey found that the share of those who plan to stay in hotels during their holiday travels is rising. 31% of Thanksgiving travelers plan to stay in a hotel during their trip, compared to 22% who planned to do so last year. 28% of Christmas travelers plan to stay in a hotel during their trip, compared to 23% who planned to do so last year. Overall holiday travel levels will likely remain flat, however, with 28% of Americans reporting they are likely to travel for Thanksgiving and 31% likely to travel for Christmas this year, compared to 29% and 33%, respectively, in 2021. Other key findings include the following: 59% of adults whose jobs involve travel said the are likely to travel for business in the next three months, with 49% among them planning to stay in a hotel during their trip. 64% of Americans would be concerned about delays or cancellations if they traveled by plan right now, with 66% of these respondents reporting a lower chance of flying this holiday seasons as a result. 61% of Americans say they are likely to take more leisure/vacation trips in 2023 than they did this year. 58% of Americans are likely to attend more indoor gatherings, events, or meetings in 2023 than they did last year. 66% of Thanksgiving travelers and 60% of Christmas travelers plan to drive to their destinations, compared to 24% and 30%, respectively, who plan to fly.

Dellisart LLC reported robust growth for 2022. The company added 28 hotels to the Hotel Sales Max program since its launch in February, 33 hotels to Hotel Rev Max, their revenue management services since its launch in 2020 and added 11 management contracts to their portfolio in 2022. Hotels Sales Max and Hotel Rev Max are both subsidiaries of Dellisart LLC. Hotels Sales Max focuses on bringing in a dedicated sales team to assist individual properties in enhancing their sales reach remotely. Hotel Rev Max focuses on advanced, high tech research and revenue management strategies to increase gross room revenue. 

Sonesta International Hotels Corporation announced that The Royal Sonesta brand is now available for franchising in the U.S. The Royal Sonesta is a collection of unique hotels in some of the world’s most exciting travel destinations, providing franchisees an Upper Upscale option perfect for city and leisure destinations.

Hyatt Hotels announced the opening of Grayson Hotel, introducing The Unbound Collection by Hyatt brand to New York. Located in Midtown Manhattan, the Grayson Hotel offers 296 guestrooms and a fitness center. Hospitality company Apicii will open multiple dining experiences at Grayson Hotel beginning this fall.

In San Francisco, CA, Hyatt Regency San Francisco announced the completion of a $50 million guestroom renovation. San Francisco’s premier waterfront hotel in the city’s Embarcadero is home to 72,000 square feet of customizable space for any and every event. 

Lowe and BL Harbert International celebrated the topping out of The Cooper, an anticipated new full-service waterfront hotel located in Charleston, South Carolina. In addition to 12,000 square feet of ground-floor retail space, The Cooper will also include a spa and fitness center, nearly 20,000 square feet of indoor-outdoor event space and an outdoor infinity-edge resort pool. The Cooper will also feature extensive food and beverage offerings. 

Highgate Capital Management sold two La Quinta-branded hotels in Broward County for a combined $26.6 million, its fifth and six sales of South Florida hotels this year. The buyer: Two liability companies managed by Shmuel Bonnardel of Rore Investment Group. In the bigger deal, Cavalier Florida LP, an affiliate of Highgate Capital Management, sold the 131-room hotel in Plantation for $14.88 million to 238 Investment LLC. Ocean Bank provided a $10.53 million mortgage to the buyer. Cavalier Florida LP sold the 115-room hotel in Coral Springs for $11.68 million to 4019 Investment LLC. Ocean Bank awarded a $7.71 million loan for this deal. 

South Florida’s iconic resort and private club, The Boca Raton, celebrated the opening of Tower, its fully re-imagined fifth hotel. Following a $65 million transformation, the 27-story Tower has a refreshed exterior, 244 re-imagined guest rooms and suites and a second floor Tower Lounge. MSD Partners, L.P. and Northview Hotel Group acquired The Boca Raton in 2019.

In Connecticut, a Windsor property owner is seeking permits to build a 91-room economy hotel near the Day Hill Dome indoor sports complex. Mark Greenberg Real Estate is proposing a four-story hotel at 675 Day Hill road. If local planning officials give their approval, the project would become Microtel’s third Connecticut property. According to plans submitted by Greenberg’s engineering consultant, the new Microtel Inn & Suites would have an indoor pool, fitness center and breakfast area. 

Springboard Hospitality announced it will manage The Hills Hotel, a full-service, boutique property located in Laguna Hills, California. The Hills Hotel offers 148 guestrooms, an onsite restaurant plus a lounge, a heated outdoor pool, hot tub and fitness center. The hotel boasts 11,000 square feet of meeting space.

LuxUrban Hotels Inc. announced a strategic partnership with Rebel Hotel Company. Under the terms of the agreement, Rebel Hotel Company will assume a variety of operational responsibilities associated with the Company’s current and future New York City portfolio of hotel units marketed under the Company’s LuxUrban brand. LuxUrban Hotels expects to benefit from Rebel Hotel Company’s expertise in managing day-to-day hotel operations, scale-driven operating efficiencies, project and cost management, access to an experienced industry talent pool, B2B sales initiatives, custom branding at the property level, preferred pricing on third party OTAs, supplies, and other meaningful cost reductions across the organization.

Arlo Wynwood has arrived in the heart of Miami’s arts district, conveniently in time for Miami Art Week. The boutique hotel has 217 rooms, a rooftop bar and café with a pool and private cabanas plus and indoor-outdoor third floor bar.

Developer Punit Shah will once again present plans for a $40 million AC Hotel by Marriott to Tampa City Council, six months after council members voted to deny the project. After filing a lawsuit against the city ad going through mediation, Shah’s new proposal calls for a 10-story, 145-room hotel, a reduction from the 12-story, 150-room hotel that the city council rejected in May. Parking spaces have also been reduced by 60%. Shah said he’d be ready for an early 2023 groundbreaking. 

Blackstone Hotel goes back up for sale in Chicago. The owners of the landmark Michigan Avenue property are hunting for a buyer again after a failed attempt last year, hoping the recent rebound in leisure travel will help their cause. 

HREC Investment Advisors announced it has arranged the sale of the 118-suite Staybridge Suites Milwaukee Airport South located in Franklin, Wisconsin. An Illinois LLC has acquired the property. HREC Investment Advisors exclusively represented Franklin Hotel, LLC on this transaction. 

Blue Diamond Resorts announced that Hideaway at Royalton Blue Waters Montego Bay will open in late 2023. The property offers a unique adults-only, all-inclusive experience on the shores of Trelawny, Jamaica. Hideaway at Royalton Blue Waters features 352 modern rooms and suites, a world-class spa, fitness center, eight bars and eleven culinary options. Guest will also have access to the facilities of the neighboring Royalton Blue Waters Montego Bay, An Autograph Collection All-Inclusive Resort.