Business Travel Spending to Hit $1.5 Trillion This Year

The DJIA rose 37 points on Friday while Nasdaq was up 116, the S&P 500 rose 23 points and the 10-year treasury yield was down .02 to 4.07%. Lodging stocks were higher. New highs were scored by MAR, HLT, WH and CHH. On the other hand, SVC traded down to another new low, down another -8%. We did have some more good news, if you can call it that. Union workers reached a tentative agreement with two properties operated by Omni Hotels & Resorts. Unite Here stopped the picketing outside of Omni Boston Seaport and Omni Parker House.

Business travel is poised to exceed pre-pandemic levels this year, with spending projected to reach a record-breaking $1.5 trillion, according to a new report from the World Travel & Tourism Council. Its pace of recovery is proceeding faster than previously predicted, as corporate travel, which lagged behind the post-pandemic rebound in leisure travel, now shows surprising growth. As business leaders have recently regained an emphasis on in-person engagements, corporate travel is now seeing a swift turnaround. The WTTC's "2024 Economic Impact Trends Report" revealed that the United States and China, the two largest markets for business travel, are leading the charge. In the U.S. sector, spending is expected to reach $472 billion this year, an astonishing 13.4% increase compared to the country's pre-pandemic figures. (Note, however, that the U.S. inflation rate since 2019 has been about 18%.) Similarly, China is forecast to see a 13.1% increase in business travel spending compared with 2019, bringing the total to nearly $211 billion. Germany is also expected to surpass its 2019 levels with projected spending of $87.5 billion, a nearly 1% rise over its 2019 peak. Other major markets, such as the United Kingdom and France, are also anticipated to reach record highs, contributing a record-breaking $84.1 billion and $42.1 billion to their respective economies.

Premier Resorts & Management announced the opening of the 190-room Renaissance Daytona Beach Oceanfront Hotel. The property is owned by 640 North Atlantic Hospitality, LLC and managed by Premier Resorts & Management. The property features 12,353 square feet of versatile indoor and outdoor event space, an outdoor pool, a pool bar, a glass pool deck and a fitness center. Concentrics Restaurants have been tapped to oversee food and beverage at the Cast & Crew restaurant.

Loews Hotels & Co, co-owner and operator of the hotel portfolio at Universal Orlando Resort, announced the anticipated opening date of the company's third hotel coming to Universal Epic Universe next year. Universal Helios Grand Hotel, a Loews Hotel, will start taking reservations on October 22 for bookings beginning May 22, 2025. The majestic 500-room property will feature its very own dedicated entrance into Epic Universe for hotel guests. The addition of Universal Helios Grand Hotel also brings three re-imagined hotel categories to Universal Orlando Resort, including The Signature Collection; Prime Value Hotels; and Value Inns and Suites.

Sonesta International Hotels Corporation announced that they intend to enter into new long-term franchise agreements for the 114 hotels currently owned by Service Properties Trust, which SVC said they would sell next year. Sonesta said the current long-term management agreements are expected to be converted to long-term franchise agreements as the hotels are sold. Currently, Sonesta has a franchised hotel portfolio of 58,095 rooms and 862 properties across all of its brands. Sonesta said that after the sales and franchise conversions, Sonesta will continue to manage 44 full-service and 22 focused-service hotels throughout the US and Canada.

A proposal to open a boutique hotel in downtown Somerville, New Jersey, has been approved by the borough's Planning Board. The hotel, which will have 40 to 60 rooms, is proposed to be on the top two stories of a five-story building to be constructed in Edgewood Properties' Somerville Town Center. The first floor of the building will be a food court and the second and third floors will be a high-end spa. The rooftop will have a pool and cabanas for the residents of The Edge apartments in Somerville Town Center and a bar that may be open to the public.

Cobblestone Hotel is set to open later this month in the Lynden Commons plaza located in Lynden, Washington. The new hotel is set to be outfitted with 66 rooms and suites as well as a signature steakhouse, Wissota Chophouse, the first installment of the Wisconsin hospitality chain in the state.

Silver Dollar City announced plans to invest half a billion dollars over the next decade on the construction of new family adventures, including the development of 1,200 acres adjacent to the Ozark Mountain theme park. The strategic plan begins with the debut of the Silver Dollar City Resort, the first theme park resort in Missouri. Already under construction and set to open late 2026, the 262-room resort will be located just a stone's throw from the company's other family attractions, including White Water Waterpark, Showboat dinner cruises, Pink Jeep Adventure Tours and the Silver Dollar City Campground. Additional resort details regarding guest amenities, park privileges, room types, and group meeting spaces will be provided in the coming months.

The developers behind the remake of a historic downtown hotel in Salisbury, North Carolina, are holding a groundbreaking ceremony for the project. Developers Brett Krueger and Josh Barnhardt (who leads Iron Horse Development), are leading the $25 million redevelopment of the Empire Hotel building. Upon full buildout, the project will include 38 residences, a 35-room boutique hotel and space for a 'regional American steakhouse'. The first phase of the project will be named Empire Row, which includes two row homes and seven full-floor lofts. The project will be built in three phases.

Concrete and steel rise from a construction site in Ketchum, Idaho, where contractors are building Appellation Sun Valley, a 73-room hotel expected to be complete in the middle of 2026. Hotel developer Jack Bariteau said in a call about Idaho Mountain Express that contractors are building the hotel's underground parking levels and will next move on to a level containing banquet rooms, meeting spaces and some hotel rooms. Bariteau estimates the crews will continue pouring concrete through March to form the hotel structure, which will rise four stories above River Street.

The long wait for a new hotel to rise on Harbor Island's waterfront will still be longer with the approval of the developer's request for a two-year extension. San Diego Port commissioners agreed with Sunroad Holding Corp. that now is not the right time to move forward with the construction of a 450-room hotel amid still-high costs and interest rates. A two-year extension will give the developer additional time to eventually secure financing on a project that three years ago was expected to cost $162 million. The price has since surged to $200 million. Sunroad's plans call for what is essentially two hotels in one, a 198-room extended-stay hotel and a 252-room limited-service property with a walk-up restaurant and bar area, a pool, Jacuzzi spa, fitness center, retail space, conference space, and a 15-foot wide waterside public promenade.

Baha Mar announced expansion plans to add a 4th luxury resort as the next phase of its continued development. The new resort and residences will be a stunning addition to Baha Mar's 'luxury of choice" collection, with a projected opening in 2029. Today, Baha Mar and the government of The Bahamas have signed their Heads of Agreement, signaling the approval to move the project forward to construction. The resort will be situated on 12 beachfront acres and feature approximately 350 rooms and 50 luxury branded residences. The resort will also include a world-class spa and fitness center; luxury retailers; expansive pools; an outdoor bar; entertainment lounges and additional family amenities. Additionally, the new hotel will feature 25,000 square feet of dedicated indoor and outdoor event space, including a 10,000 square foot ballroom; 6,000 square foot junior ballroom; pre-function space; breakout rooms; boardroom and outdoor space. The new resort will be built on the site of the recently demolished Melia Nassau Beach, which closed in 2021.

Hermitage Bay, nestled on the rolling hillside of Antigua's west coast, is set to open on November 1, 2024, following a multi-million dollar renovation project. Now under the ownership of Daniel Shamoon of Luxury Hotels Partners, the resort offers 30 redesigned guest villa suites, an increased number of private pools, refreshed spa, new culinary experience and newly landscaped gardens.

Nikki Beach Hospitality Group in collaboration with Ayre Group, announced the upcoming launch of Nikki Beach Resort & Spa Antigua, a major development that will transform Jolly Beach into a luxury destination. The $400 million project will include a 5-star resort but also the much-anticipated Nikki Beach Antigua Beach Club and branded Nikki Beach Residences. Once completed, the property will boast 82 luxury hotel rooms and suites and 181 branded residences. The signature Nikki Beach Antigua Beach Club will be the heart of the resort. The property will also offer five additional dining outlets, Nikki Spa, and the Tone Gym. The groundbreaking of this project is scheduled for later this month, with construction expected to take approximately 36 months, targeting a grand opening in 2028.

Personnel Moves

Maverick Hotels and Restaurants has promoted Vasileios Ioannoum to the position of Regional Director of Operations. Vasileios has extensive experience in all aspects of hotel operations for large national properties. His responsibilities have included ensuring compliance with regulatory agencies, budgeting and forecasting of sales and revenue, P&L accountability, monitoring payroll, food and beverage cost controls, analyzing performance trends, scheduling staff and hotel management meetings and coordinating all departments, including Sales, Front Office, Reservations, Housekeeping, Convention Services, Guest Relations, Food & Beverage, Banquets, Security and Senior Management.

Club Med announced the appointment of two seasoned executives to its North American leadership team: Armelle DE la Porte des Vaux has been named Vice President of Marketing, North America, and Ron Gulaskey has been appointed Vice President of U.S. Sales & Strategy. In her new role, Armelle will leverage her vast experience to drive the continued expansion of Club Med's L'Esprit Libre philosophy into the competitive North American market, further cementing the brand's leadership in the all-inclusive space. Armelle joined Club Med in 2019 as Marketing Director for Benelux. Ron most recently served as Associate Vice President of Global Sales at Celebrity Cruises. Ron's leadership in sales strategy will be pivotal as he oversees travel agency partnerships and MICE sales, further enhancing Club Med's footprint in the U.S. market.

Europe Highlights

Four Seasons and Blue Iris Investments S.A. announced plans for a brand new beachside resort that will welcome its first guests in summer 2025. Located along the coastline of Kalo Livadi Bay, Four Seasons Resort Mykonos, Greece will offer 94 rooms, villas and suites. The resort will offer a variety of restaurant and bar options, an infinity pool, a spa, fitness facilities and several indoor and outdoor venues for meetings, events and celebrations.

Radisson Hotel Group expands its Italian portfolio with five new signings and seven upcoming openings, marking a significant milestone in its growth strategy and reinforcing its commitment to introduce its brands in key travel markets. The 7 upcoming openings include Radisson Collection Hotel, San Gottardo Como; art'otel Rome Piazza Sallustio, marking the brand's debut in Italy; Radisson Blue Hotel, G.I. Rome; Radisson Blue Hotel, Bergamo; Radisson Blu Hotel, Florence; Radisson RED Naples; and Radisson Hotel Pisa.

CDL Hospitality Trusts is acquiring an upscale lifestyle boutique hotel in Exeter, England, as well as two retail units in the hotel, for about £19.4 million, according to its managers. Previously a House of Fraser department store, Hotel Indigo Exeteroffers 104 rooms, spa and gym facilities, three food and beverage outlets and two retail units. The hotel will continue to operate under the Hotel Indigo brand.