Global Travel Investment Still 22.5% Below 2019 Levels
Skift Take
- Pebblebrook Hotel Trust warns of 3Q impact from Tropical Storm Hillary. CoStar's July 2023 report shows mixed U.S. hotel performance. Global travel deal activity down -35.7%.
- Travel & Tourism investment grows 11.1% in 2022, below 2019 levels. WTTC forecasts 11.5% growth in 2023, warns of challenges from interest rate hikes.
- Ashford converts hotel, St. Joe builds new property. Personnel changes across industry, Alberto Pirozzini joins Pellicano Hotels as COO.
The DJIA was down 175 points, Nasdaq was up 8 while the S&P 500 fell 12 points, and the 10-year treasury yield was down .01 to 4.33%. Lodging stocks were mixed. BHR, AHT, and VCSA set new lows.
Pebblebrook Hotel Trust became the first to warn that Tropical Storm Hillary could hurt 3Q results. PEB said the storm did not cause any damage to PEB properties in San Diego or Los Angeles but said they saw an acceleration of cancellations and early checkouts in the lead-up to the storm. PEB said demand is also hurting due to travel disruptions and media coverage of southern California.
According to CoStar’s July 2023 results, the U.S. hotel industry reported mixed performance results month over month. July 2023 (percentage change from July 2022): Occupancy: 69.1% (-0.5%); ADR: $160.31 (+1.3%); RevPAR: $110.80 (+0.8%). Among the Top 25 Markets, San Diego experienced the highest occupancy level (86.5%). Markets with the lowest occupancy for the month included New Orleans (54.3%) and Phoenix (58.9%).
Many global industries have grappled with subdued deal activity during January-July 2023. The travel and tourism industry saw deal activity decline YoY by -35.7%. The latest industry analysis revealed that 438 deals were announced in the sector globally during January-July 2023 compared to 681 during the same time in 2022. Volatile economic conditions continued to impact the deal-making sentiments in the industry, with most of the top markets experiencing a double-digit decline in deal volume. In fact, the top two markets by deals volume, the U.S. and the U.K., saw respective deal volume reduced to a
