The DJIA rose 186 points while Nasdaq was up 107, the S&P 500 rose 27 points and the 10-year treasury yield was up .10 to 3.62%. Lodging stocks were higher. MCG was the big winner, up 11% while AHT rose another 8%. SLNA fell -6% on the day.
JP Morgan gave their 2023 lodging outlook presentation, saying they see the REITs as relative underperformers versus the C-Corps. They see Wyndham Hotels and Hyatt Hotels as relative out performers within lodging, overall. JPM said they see little to no impact from a slowing macro on demand trends, pricing elasticity or meaningful impacts to development pipeline/new room signings. That being said, they are forecasting RevPAR growth deceleration in 2023 and said these stocks tend to underperform when this happens. They said they could see a rotation of out lodging stocks later in 1Q23 as lodging had been looked at as a good place for investors to hide in.
Barclays said December lodging RevPAR ended on a strong note, very notable after Pebblebrook Hotel Trust’s guidance cut during the month. Barclays said that now looks like it was driven by San Francisco softness and idiosyncratic PEB issues rather than an industry slowdown. Barclays expects lodging REITs to be cautiously optimistic on 2023 RevPAR growth when they report 4Q results as leisure pricing is holding in strong, convention demand is expected to increase in 2023 and business transient rates are expected to grow in the mid-to high single digits and more businesses return to more normal business travel patterns.
According to a new national Hotel Booking index survey research commissioned by the American Hotel & Lodging Association and conducted by Morning Consult, 60% of Americans report being more likely to stay in hotels this year than in 2022, and hotels are the top lodging choice among those planning to travel for business and leisure in the next three months. 51% of business travelers say the share of employees expected or encourage to travel for work is now the same as before the pandemic, while another 20% say its more than before. 53% of business travelers say the average length of business trips is now the same as before the pandemic, while another 20% say its more than before. 52% of business travelers say the amount of business trips is expected or supported by their employer is now the same as before the pandemic, while another 20% say it’s more than before; and 52% of business travelers say the amount of spending their employer will cover on business trips is now the same as before the pandemic, while another 18% say it’s more than before. Other key findings of the two Hotel Booking Index surveys include: Hotels are the top lodging choice for those planning to travel overnight for the upcoming holidays: Martin Luther King Jr. Day (47%), Valentine’s Day (54%), and President’s Day (42%). 48% of business travelers have extended a business trip in the last year for leisure purposes, and 84% of business travelers are interested in bleisure. 60% of adults are likely to take more vacation/leisure trips in 2023 vs. 2022; and 45% of business travelers are likely to take more business trips in 2023 vs. 2022.
The U.S. hotel industry sold more rooms at higher rates in the week between the Christmas and New Year’s Day holidays than ever before, according to the latest weekly data from CoStar hospitality analytics firm STR, capping a solid third year of recovery from the COVID-19 pandemic. For the week ending December 31, U.S. hotels sold 21 million rooms nights – beating the record set a year ago for this period of 20.7 million room nights. U.S. hotel occupancy for the week was 54.2%, down slightly from the 54.3% mark set last year and the record 54.9% set in 2016. Nominal average daily rate for the week was $167, surpassing the record set a year ago by 4.4%. Nominal RevPAR was up 4.2% year over year to $91. U.S. hotel occupancy on New Year’s Eve was 63.6%. U.S. daily nominal ADR on New Year’s Eve was $199. By chain scale, luxury hotel reported the strongest weekly occupancy at 59% while midscale hotels had the weakest at 47.6%. Upper-midscale hotels, however, set a record for this particular week with 55.9% occupancy. Luxury hotel occupancy trailed the 62.1% set in 2019. For New Year’s Eve, luxury hotels also reported the highest occupancy at 76.1%. Forty markets, including Atlanta, Boston and Chicago, recorded their highest occupancy ever for the last week of 2022. Gatlinburg/Pigeon Forge had the nations highest occupancy at 87.6%, followed by the Florida Keys at 86.8% and New York City at 84.3%. Of the 166 STR-defined markets, 46% had occupancy above 50% for the week. More than a quarter of all U.S. markets reported occupancy above 60%. Occupancy during the seven-day holiday period surpassed 80% in 24 submarkets, led by Key West at 90.7%, but also including larger submarkets such as Lake Buena Vista (86.4%), New York Midtown East (85.8%), New York Midtown West/Times Square (85.7%) and Disneyland (82.1%).
Washington Marriott Capitol Hill debuts January 11, 2023, located within walking distance of the U.S. Capitol. The 235-room hotel features two food and drink concepts, a fitness center, Society Commons, M Club, and 18,000 square feet of pre-function and event space. The hotel, developed by The Buccini/Pollin Group and Perseus TDC and managed by PM Hotel Group, is the first franchised Marriott property inside Washington’s Capital Beltway.
HEI Hotels & Resorts was selected to manage the 110-room Springhill Suites by Marriott Pittsburgh Bakery Square. Located within the Bakery Square mixed-use development, the hotel features a spacious meeting room, indoor pool, a lobby bar and outdoor terrace.
In Kansas City, Missouri, the Overland Park City Council approved a proposal to turn a former church building into a boutique hotel. The hotel is expected to have 30 rooms and use self-check in. No word on when construction will begin.
Skift reported on how property manager Sonder has eliminated cleaning fees for guests. Sonder rivals such as Vacas, Evolve, and Vtrips all typically charge separate cleaning fees. Sonder has quietly rolled out what it calls “zero cleaning fees” in November, although there was no formal announcement. According to Nathan Bacher, Sonder’s vice president, revenue management, the company rolled out zero cleaning fees across their portfolio to further simplify pricing for their guests, taking pricing transparency a step further. Until Sonder axed cleaning fees, around 75% of the properties Sonder manages, including apartments, condos and hotel rooms, everywhere from New York City to Dubai, were tacking on cleaning fees as a separate charge within the total price of the stay.
Hunter Hotel Advisors announced the sale of the Residence Inn Tampa Suncoast Parkway at NorthPointe Village. MIG Real Estate Group sold the 100-room property to an unnamed national hotel operator. Hunter’s Miami and Jacksonville offices arranged the sale on behalf of MIG.
JLL Capital Markets has closed the sale of Courtyard Boston South Boston, a 164-key hotel in Boston, Massachusetts. JLL represented the seller, Hersha Hospitality Trust. The six-story hotel includes a fitness center, business center, guest laundry, sundry and 625 square feet of meeting and event space. In addition, the hotel has an on-site restaurant and a 6,000 square foot retail space.
Ramsfield Hospitality Finance and funds managed by AB CarVal have teamed up to provide a $95.4 million mortgage loan secured by the Los Angeles Marriott Burbank Airport hotel in Burbank, California. The Marriott Burbank boasts 488 guestrooms and over 50,000 square feet of meeting and convention space.
Personnel Moves
As announced in July 2022, Accor’s new organization is now being implemented progressively throughout the fist quarter of the year depending on local legislations. The new structure will allow the Group to accelerate growth and better address market developments, deliver the highest possible levels of services for all its stakeholders, facilitating accurate and effective fulfillment of guest needs and expectations, and providing clarity and performance to its partners. As of January 2023, Accor’s operations are now relying on two dedicated divisions: a Premium, Midscale & Economy division and a Luxury & Lifestyle division, both supported by a Group Management Board and a Global Shared Platform delivering expertise and services to both divisions including Digital, Technology and Procurement.
Amanda Joiner has taken the helm as the Global Vice President and head of The Ritz-Carlton Leadership Center. Joiner transitions from her role most immediately as General Manager of The Ritz-Carlton, St. Louis and brings over three decades of luxury hospitality experience. Joiner and The Leadership center team leverage the systems and best practices of the Ritz-Carlton brand to deploy best-in-class organizational strategies at scale in order for clients to retain and attract top talent, outperform the competition, and gain market share.
Northview Hotel Group appointed Matt Trevenen as their new President and CEO. Matt has served in various leadership roles at Northview since joining the company in 2006 and has been a partner in the firm for the last 10 years. In his new role, Trevenen will assume day-to-day leadership of the firm, set its long-term vision, and spearhead its strategic plan.
Patriot Family Homes appointed Christian Hempell as President and Chief Operating Officer. Christian brings 30 years of hospitality experience, having held executive operating and commercial roles at Sonder and InterContinental Hotels Group. Christian will lead the team to deliver the company’s aggressive growth strategy. This appointment follows the successful completion of a Series B $60M investment from two family offices: TRT Holdings and Miramar Holdings. The funds will be used to acquire, renovate and operate single-family home rentals, as well as invest in infrastructure and management talent to accelerate growth in the fastest growing hospitality segment.
The American Hotel & Lodging Association announced two leadership additions to the association and its charitable giving affiliate. Anna Blue has been named President of the AHLA Foundation and Jacqueline Policastro has been appointed Executive Vice president of Marketing & Communications. In this senior role, Anna will oversee the philanthropic mission of the Foundation, which aims to support the hotel industry’s current workforce as well as aspiring hospitality professionals though the disbursements of scholarships, workforce development programs, and united efforts to eradicate human trafficking. As Executive Vice President of Marketing & Communications, Policastro will be responsible for driving the development and execution for all of the association’s internal and external communications and increasing visibility for the hotel industry in and outside the Beltway.
Europe Highlights
JW Marriott unveiled its second property in Germany with the opening of JW Marriott Hotel Berlin. Owned by Al Rayyan Tourism Investment Company, JW Marriott Hotel Berlin is converting from Hotel Berlin Central District, and this announcement marks the completion of the first stage in the property’s transformation to join the iconic JW Marriott brand. The 505-room hotel boasts 48 event spaces spanning over 6,290 square meters; two fitness centers; a rejuvenating spa; and eight dining destinations, all of which have undergone a full transformation. The ongoing development of the hotel will see the property’s full transformation finalized by 2025, with the complete renovation of all guestrooms.
Hyatt Hotels Corporation announced that a Hyatt affiliate entered into a franchise agreement with La Manga Club, S.L., an affiliate of Grupo Inversor Hesperia, for Grand Hyatt La Manga Club and Resort. Following significant renovation work, the 192-room resort property is set to debut the Grand Hyatt brand in Spain in mid-2023. Grand Hyatt La Manga Club and Resorts sits at the heart of the enclave of La Manga Club in Murcia, Spain. As part of an extensive renovation, set to be completed in spring 2023, the hotel’s 192 guestrooms will be redesigned, an array of renewed culinary offerings will be added, the hotel’s generous spa has two new adults-only pools, and the hotel’s outstanding facilities include three championship level 18-hole golf courses, expansive outdoor tennis facilities and the La Manga Club Football Center, currently the home of Cartagena FC. Grand Hyatt La Manga Club and Resort has up to 13,863 square feet of unforgettable event and meeting space. The property will be the first grand Hyatt branded hotel in Spain and will be joined by the previously announced Grand Hyatt Lanzarote, which is set to open in 2025.
