The U.S. Election Day’s Impact on Hotel Revenue

The DJIA rose 47 points while Nasdaq was down 51, the S&P 500 was up a point, and the 10-year treasury yield was up .02 to 4.45%. Lodging stocks were mixed. We saw new highs from MAR, HLT, and TNL and BHR was up 9%, but SOHO fell another -9%, AHT was down -8%, and SOND fell -7%.

Global hotel RevPAR increased by 12.8%, relative to pre-pandemic 2019 levels, through the first eight months of 2024, according to JLL’s Global Real Estate Perspective November 2024. Though performance continues to be robust, demand decelerated for a second consecutive quarter, driven by softening leisure travel stemming from declines in consumer savings, particularly in the United States. Europe remains a bright spot, with RevPAR growth increasing 6.3 percentage points over the last three months, fueled primarily by the Paris Olympics. In Asia Pacific, the reopening of all borders in late 2023 has yet to spur as much travel as expected, with year-to-date RevPAR still sitting 10.7% below 2019. Global hotel performance is likely to normalize in 2025, with annualized growth expected to return to sub-4% levels. Leisure travel, the primary driver of demand in the post-Covid era, will moderate while group, corporate, and international travel return to pre-Covid levels. Limited supply growth underpinned by high development costs will help operators keep rates elevated, mitigating some erosion in profitability driven by rising costs. This dynamic, combined with declines in interest rates, should spur a meaningful uptick in asset transactions as well as brand-funded M&A. Luxury assets will be the largest recipients of capital, with brands likely to target accretive portfolios to fuel net unit growth, a key driver of shareholder value. Global hotel supply is expected to grow by an average of only 2.4% per annum over the next five years, which is 180bps less than its long-term average, as the number of rooms under construction has declined by nearly 8.5% from its 2019 peak. Hotels in urban cores and other high barrier-to-entry markets will likely see the largest benefit. Outsize supply growth is expected across the Middle East and India, both of which will garner increased global investor interest over the coming years.

STR reported U.S. hotel data for the week ended November 9. U.S. hotel RevPAR fell -3.5%, with occupancy down -3.5%. This was Election Week, which probably had an impact as group was down -14.5%.

AWH Partners has acquired a 212-key, dual-branded Residence Inn/Fairfield Inn & Suites hotel property in Broomfield, Colorado. The hotel will now be managed by Spire Hospitality, a subsidiary of AWH Partners. The dual-destination property offers a hotel bar, buffet, and to-go dining, and complete conference and corporate event facilities.

Affinity Hospitality announced The Courtyard by Marriott Midtown Anchorage is anticipated to open in Spring 2025. The property will feature an innovative lobby space as well as the brand’s latest contemporary room design, the newly designed Bistro, an indoor pool and whirlpool spa, a large fitness center, guest laundry, and 1,430 square feet of flexible meeting space. Funded by its financing partners Northrim Bank and Nuveen Green Capital, this also marks the first new construction project financed through Commercial Property Assessed Clean Energy and Resilience (C-PACER) in the state of Alaska.

Excel Group has acquired the Embassy Suites by Hilton Syracuse Destiny USA. The 209-guestroom hotel is located in Syracuse, New York.

Tharaldson Hospitality Management announced the grand opening of the 88th hotel, the Hampton Inn & Suites by Hilton Porter Ranch Los Angeles. Located in the growing area of Porter Ranch, California, the new hotel features 100 modern guestrooms, a fitness center, and an outdoor pool.

Keystone Hotel Group purchased the Hampton Inn & Suites, in West Chester Township, Ohio, for $9.5 million through West Chester Lodging LLC. The company is planning a full renovation of the interior and exterior of the four-story, 100-room hotel. Keystone Hotel Group now owns three adjacent hotels, totaling 445 rooms, on Schulze Drive, including the Homewood Suites and the Home2 Suites, where construction wrapped earlier this year.

West Ave Partners LLC plans to develop a new Tempo by Hilton Hotel in Patchogue, New York. According to hotelprojectleads.com, the hotel would be five stories and include 96 guestrooms.

IHG Hotels & Resorts celebrated the opening of a new Holiday Inn Express & Suites in Benson, North Carolina. The hotel offers 95 rooms, 1,000 square feet of meeting space, an indoor pool, fitness center, and EV chargers. Holiday Inn Express & Suites Benson is owned and managed by Benson Hotel Group II, LLC.

The Crowne Plaza Fort Myers Gulf Coast hotel has unveiled a $7 million renovation that allowed it to rebrand from its previous Holiday Inn flag. The project in Fort Myers, Florida, included updating meeting and conference space, adding a new marketplace, redesigning the 169 guestrooms, expanding the Oasis Restaurant & Bar, and renovating the front desk, lobby, business center, and fitness center.

According to WINK News, Boykin Management Company wants to expand the Pink Shell Beach Resort in Fort Myers Beach. New renderings depict a 40-unit boutique hotel building that would be separate from the established resort on the island. The proposal, if approved, would expand Pink Shell to 241 units over 6 acres on Fort Myers Beach, Florida.

Despite its 2025 opening date, you can now book a reservation at the newly remodeled Belle of Baton Rouge Hotel, located in Baton Rouge, Louisiana. The hotel partnered with a hospitality technology company to provide guests with customizable experiences, including digital check-in and mobile key entry. Additional amenities include a spacious lobby designed to accommodate remote work, an onsite fitness center, and valet parking. The 242-room property is part of the Belle of Baton Rouge’s ongoing transformation into a vibrant land-based entertainment complex. Slated to open in the fall of 2025, the complex will feature over 25,000 square feet of Vegas-style gaming, a large sports lounge, and multiple dining options.

CH Projects announced its second hotel, Baby Grand, opening in early 2025 in Coronado, California. The $17 million project will feature 31 keys and three new restaurant concepts.

Piatt Cos has gained approval from the city planning commission to build a $740 million hotel mixed-use development along the Ohio River in Pittsburgh, Pennsylvania. The project called Esplanade will include 1.7 million square feet, 900 residential units, a marina, a hotel, restaurants, and retail, along with offices, an aquarium, and Cineplex, which will be built in phases over the next 5 years, according to hotelprojectleads.com.

Personnel Moves

Arlo Hotels appointed Jimmy Suh as the company president, effective immediately. Suh brings a wealth of knowledge and a visionary approach to leading Arlo Hotelsinto its next chapter of growth and success. Previously, Suh was Arlo Hotels’ chief commercial officer.

Rentyl Resorts is elevating its strategic relationships with hospitality and residential development brands under the leadership of Michael Trampas, the company’s new Executive Vice President of Business Development and Marketing. Trampas was previously executive vice president of Sobel Westex.

IHG Hotels & Resorts announced the appointment of Himank Goswami as the senior director of design and capital planning for all brands across the SWA-MEAr egion. In his new role, Goswami will drive net rooms’ growth through new builds and rebranding projects for IHG’s diverse brand portfolio, spanning premium, essentials, and suites segments. His responsibilities also include spearheading capital planning to ensure brand health and refurbishment support, enhancing the appearance and functionality of properties from essentials to luxury. Goswami has served as senior manager of design and technical services at Emaar Hospitality Group.