Less Caution, More Optimism: The State of the Hotel Industry
Skift Take
- The hospitality industry is experiencing optimism and cautiousness, with hotels considering divesting assets and anticipating a potential distressed sale boom.
- Hoteliers are optimistic about increasing demand, but face challenges such as high-interest rates, labor shortages, and decreased construction activity.
- The U.S. hotel forecast shows improvements in occupancy, ADR, and RevPAR, while hotels are offering incentives to combat staffing shortages. International visitor arrivals to the U.S. continue to rise, with Mexico and Canada leading the way.
The DJIA was up 10 points while Nasdaq rose 47, the S&P 500 was also up 10 points and the 10-year treasury yield was up .01 to 3.70%. Lodging stocks were higher. AHT rose 8% to lead the group while SVC was up 6%. SLNA gave back their big gains, down -12% to close below $1 again.
Truist described the tone of the NY Lodging Conference as Less Caution, More Optimism. The various segments along with side meetings and analyst conferences seemed more like optimism over business, a whole lot of caution on development due to financing. As Truist put it, the news on PK giving back two San Francisco hotels to lenders could influence other public hotel owners to consider divesting some of their assets. Besides lending concerns, the other chorus we have seen is the long-awaited distressed sale bonanza that has been predicted since the industry finally realized Covid was serious may finally be near.
The NYU Scho
