San Francisco Area Hotel Production Dries Up
Skift Take
Hotel production in the San Francisco Bay Area has nearly stopped in 2024, with only two new openings and uncertain prospects for ongoing projects.
The DJIA rose 203 points, but the Nasdaq was down 223, the S&P 500 fell 27 points, and the 10-year treasury yield was down .04 to 4.14%. Lodging stocks were mixed. SHCO was down -5% on the day.
Summit Hotel Properties reported a 2Q24 earnings beat, but also gave a softer outlook for revenue. INN is offsetting this with cost containment, contract labor being the main driver. 2Q earnings were boosted by property tax appeals. INN lowered RevPAR growth for full year 2024 to 1% to 2.5% from 2% to 4%.
Tigress Financial upped their target price on Travel + Leisure to $58 from $54. They maintained their Buy rating.
As seen in the Q2 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics, at the end of the second quarter, there are 6,095 projects with 713,151 rooms in the pipeline. At the close of the second quarter, there are 1,171 projects comprising 1
