U.S. Hotels See Best Rates and Occupancy Since 2019
The DJIA ended Friday with a gain of 395 points, while NASDAQ was up 255, the S&P 500 rose 59 points and the 10-year treasury yield ticked up a little to 4.15%. Lodging stocks were mostly higher but the biggest mover of the day was AINC, plunging -11% to a new low while sister companies AHT and BHR were up 7% and 6% respectively. PEB rose 5% following a positive operations update showing 4Q preliminary results came in above expectations.
The U.S. hotel industry posted its highest ADR and RevPAR since 2019, according to 2023 data from CoStar. 2023 (percentage change from 2022): Occupancy: 63.0% (+0.6%), ADR: $155.62 (+4.3%) and RevPAR: $97.97 (4.9%). Among the Top 25 Markets, New York City experienced the highest levels in each of the three key performance metrics: Occupancy: (+8.8% to 81.6%), ADR (+8.5% to $301.22) and RevPAR (+18.1% to $245.77). New Orleans (-6.7% to $100.40) and Miami (-6.7% to $159.22) reported the only RevPAR decreases in 2023. The Top 25 Markets showed higher occupancy and ADR than all other markets.
According to CoStar’s December 2023 data, activity in the planning phases of the U.S. hotel pipeline remains up, while rooms in construction decreased after two months on gains. December 2023 (percentage change from December 2022) In Construction: 152,113 rooms (-4.5%), Final Planning: 255,039 rooms (+19.7%) and Planning: 318,597 (+32.7%). Upper-midscale and upscale projects continue to dominate the pipeline, accounting for more than half of the in-construction room county. Chain Scale Segments (% of existing supply, in-construction room count): Luxury (4.7%, 6,631 rooms) Upper Upscale (2.7%, 19,112 rooms) Upscale(3.9%, 34,457 rooms) Upper Midscale (3.5%, 42,467 rooms) Midscale (2.5%, 12,455 rooms) Economy (1.2%, 7,837 rooms).
According to an article by CoStar, despite positive momentum in 2023, international inbound travel and domestic business travel in the U.S. are projected to remain below pre-pandemic levels in 2024. The United States Travel Association’s biannual U.S. travel forecast, which was prepared by Tourism Economics, states that international arrivals to the U.S. are projected to surpass 2019 levels in 2025, while business travel volume is expected to fully recover by 2026. International inbound travel volume is expected to reach 98% of 2019 levels in 2024, up from 84% recovered in 2023, according to the forecast. Full recovery is projected to occur in 2025 in terms of volume, but it will take until 2026 to recover international spending levels when adjusted for inflation. Business travel will continue its upward recovery trend in 2024 but at a slower rate than last year. It’s expected to hit $413.3 million, which would be 95% of 2019 levels, up from 89% in 2023 and 79% in 2022.
Hyatt Hotels Corporation highlighted its expected growth trajectory for 2024 and beyond, underscored by a record year of deal signings in 2023. Hyatt reported a record pipeline of 127,000 rooms worldwide as of year-end 2023, representing nearly 40% of existing rooms in the Hyatt portfolio. By the end of 2025, Hyatt plans to add more than 35 hotels globally within its diverse collection of luxury brands in key markets between 2024 and 2026. The Park Hyatt brand is set to enter key global markets such as the United Kingdom, South Africa, China, Malaysia and expand its presence in Mexico. The Inclusive Collection is also set to expand brand presence in Greece and Portugal. The Thompson Hotels brand is also gaining significant momentum in Europe, with upcoming brand debuts in Italy, Austria, Spain, and China. The brand continues to grow across the Americas in Houston, Palm Springs, South Beach and Mexico. Upcoming areas for Hyatt Studios properties include Alabama; California; Colorado; Illinois; Indiana; Kentucky; Maine; Mississippi; Ontario, Canada; Tennessee; and Texas. Global expansion with Hyatt’s Independent Collection include areas such as Jakarta and Frankfurt, Germany. The JdV by Hyatt brand will expand further in Germany and new markets such as Southampton, NY. The Destination by Hyatt brand is expected to debut in Canada this summer as well as in Saint Lucia. The Timeless Collection expansion is expected in the Hyatt Regency brand with its first hotel in Panama. The Grand Hyatt brand is entering new destinations such as Park City, Utah and Mexico. The Hyatt Place and Hyatt House brands continue to be key organic drivers for Hyatt across the globe. In Asia Pacific, the brand is marking its entry into Malaysia, Vietnam, Indonesia, Japan, the United Kingdom and the U.S. leisure markets. New properties in the Boundless Collection include: the Hyatt Centric brand expanding in Canada and debuting in new Asia Pacific markets in China and Malaysia. In Latin America, the brand will also debut in Costa Rica and the Dominican Republic. Hyatt will also add a hotel in a new market in Mexico. The Caption by Hyatt brand plans its debut in Asia Pacific in China and Japan while continuing to grow in Tennessee. Through the integration of Dream Hotel Group, 2024 is expected to bring its first property in Mexico. Hyatt’s Inclusive Collection resorts’ expansion includes the Dominican Republic and Cancun, Mexico. Dreams Resorts & Spas is expected to add two new resorts in Mexico. Hyatt Vivid Grand Island, which will be the first property under the adults-only Hyatt Vivid brand is expected to open in 2024 adjacent to Dreams Grand Island.
Valor Hospitality Partners is looking back at a strong year as an organization, opening six properties and adding 28 Hotelitarians to the global home office teams as part of the ongoing growth. Valor also celebrated 10 years of operating on the African continent and receiving over 20 nominations for property awards. With properties in America, Europe, Africa and the Middle East, Valor Hospitality continues to expand its global portfolio of nearly 100 hospitality projects. 2024 openings include Cloudland at McLemore Resort, Lookout Mountain in Rising Fawn, Georgia, USA and the five-star boutique hotels, Seaton House, in St. Andrews, Scotland and Dunluce Lodge in Portrush, Northern Ireland. In autumn 2023, Valor Africa announced its partnership with InnSight Advisory, becoming Valor Advisory. In addition, Valor U.K.announced a partnership with Zeal Hotels to manage a net zero carbon property development and Valor Middle East partnered with Petra Sea Resort to develop more than 50 acres of land into internationally branded resorts, leisure and wellness facilities and a wide variety of lifestyle food and beverage outlets in Batumi, Georgia.
Crescent Hotels & Resorts announced the addition of The Westin Dallas Park Central in North Dallas, Texas to its portfolio. The property offers 536 guestrooms and suites, an outdoor pool, a WestinWORKOUT Studio, onsite restaurant and 43,000 square feet of flexible event space.
Marriott International announced the expansion into important markets in Mexico with the signing of three agreements to bring the Aloft Hotels and Sheraton Hotels & Resorts brands to Guadalajara and Delta Hotels & Resorts to Puebla. Aloft Guadalajara Country Club will be the brand’s second property in Guadalajara. The hotel will feature 142 guestrooms, a restaurant-bar, event venues, meeting spaces and a fitness center. Guadalajara will also welcome the first hotel of the Sheraton Hotels & Resorts brand in the destination and the fourth in Mexico, with Sheraton Guadalajara Expo. The property will feature 216 guestrooms, MAYAHUEL Spa, several business centers, the Sheraton Club lounge, and several food and beverage centers. As part of the company’s expansion plans it will also welcome Delta Hotels & Resorts’ second property in the region with Delta Hotels Puebla Mexico. The 154-room hotel will feature a restaurant and bar and 500 square meters of event space.
Trilith Guesthouse opened at the Town at Trilith in Fayetteville, Georgia. The five-story, 193-room boutique hotel boasts more than 17,000 square feet of indoor and outdoor meeting and event space, two onsite restaurants, The Kitchen culinary studio, an outdoor heated pool and a fitness center. A partnership between Mainsail Lodging & Development, Trilith Development and Development Ventures Group, Inc., Trilith Guesthouse is a member of Marriott’s Tribute Portfolio.
Chartwell Hospitality and Rockbridge Capital are partnering to develop a nine-story, $95 million Hilton Hotel at the Nashville International Airport. The Hilton BNA Nashville Airport Terminal will offer 298 guestrooms, a restaurant, music lounge with a bar, coffee shop, and an expansive rooftop offering a pool, fire pit and a sky bar. The meeting and event spaces will total 16,500 square feet, including an 8,000 square foot ballroom and event space. The hotel is set to open on February 20th.
Hilton announced the opening of the Conrad Orlando, marking Conrad Hotels & Resorts brand’s debut in Orlando and second property in Florida. Located within Evermore Orlando Resorts’ 1,100-acre property, the 433-room Conrad Orlando features five distinct dining venues, the Conrad Spa Orlando and Water Garden, and Evermore Bay, an 8-acre lagoon and expansive pool complex. The hotel boasts 65,000 square feet of indoor and outdoor space consisting of two dedicated ballrooms, seven divisible meeting rooms, two expansive terraces, a Boardroom, and a multipurpose, turf 9,000 square foot lawn.
The historic Tampa hotel, known for its iconic Hotel Floridan sign, has now reopened as Hotel Flor Tampa Downtown, Tapestry Collection by Hilton, following a comprehensive $25 million renovation. The nineteen-story, 210-room property boasts over 14,000 square feet of meeting space, a restaurant and a fitness center. 1754 Properties is the property’s management company.
It's been two years since Hilton Hotels and Resorts announced they were partnering with EKN to purchase the Tahoe Biltmore Casino Hotel in Crystal Bay, Nevada. EKN announced the timeline for the project is now to have the main Biltmore building demolished before May and finish horizontal construction by this October or November. The plan in the interim is to make sure building permits are issued that would enable construction to start in May 2025 with a year, or slightly more, of construction to follow. The Waldorf Astoria Lake Tahoe is set to be built over the footprint of the existing Tahoe Biltmore Hotel & Casino.
Coast Hotels Limited announced the addition of two new franchise properties in historic downtown Dawson City, Yukon, Eldorado, a Coast Hotel and Midnight Sun, a Coast Hotel. Eldorado, A Coast Hotel offers an onsite restaurant and a lounge. The 19-room Midnight Sun, a Coast Hotel features the Midnight Sun Lounge. NVD co-owns the assets with the Tr’ondek Hwech’in investment trust.
The Origin Hotel is now open in Baton Rouge, Louisiana. Formerly the Baton Rouge Arts and Technology School, the 87-room hotel has multiple meeting rooms and a rooftop deck.
The Newport Beachside Hotel & Resort in Sunny Isles Beach will receive a $42 million transformation and be rebranded to The Sunny, according to Miami hotel’s owner, HB Capital Group. The 10-story hotel will reopen under its new name in late 2024 with full upgrades to the entire property including renovations to the 339 guestrooms, lobby, pier restaurant and eateries. According to current renovation plans, six food and beverage outlets will be built into The Sunny. The Sunny offers an oceanfront pool, integrated pool and beach club, fire pits, a private art collection, fitness center, a spa and salon, and 22,000 square feet of event space. Davidson Hospitality Group has been hired to assist with The Sunny’s operations.
The historic Murrieta Hot Springs Resort, in Murrieta, California, will reopen to the public for the first time in nearly 30 years. The property officially opens on February 1. The new owners have been refinishing the property to reopen as a wellness resort and hotel. The resort will offer spa services, several types of soaking and 174 guestrooms.
Arch Amenities Group announced the opening of its first Privai Spa & Fitness Center in a hotel: the 411-room Kimpton EPIC Hotel in Miami, Florida. The 13,000 square foot, newly renovated facility incorporates a fitness and wellness center and features a full range of innovative and restorative spa treatments.
Last year marked an impressive year for Remington Hospitality as it finalized a total of 23 hotel management agreements, 16 of which are open and operational, while the remaining seven are in the development phase. With the new additions, Remington entered seven new markets. Notable inclusions include Croc’s Resort & Casino in Jaco, Costa Rica; Autograph Collection Lake Oconee in Lake Oconee, Georgia, and Murrieta Hot Springs in Murrieta, California. Among the projects in the pipeline set to open this year are Le Meridien Fort Worth and Salt Ranch Nashville. Furthermore, Remington Hospitality plans to bolster its footprint in the Caribbean by entering into several additional agreements, encompassing two hotels in the Dominican Republic, an Autograph hotel in Sarchi, Costa Rica, and a luxury ecotourism project in Monte Verde, Costa Rica.
Personnel Moves
Remington Hospitality announced two leadership promotions, Jason Reader to Chief Operating Officer and Jale Hashimi to Senior Vice President of Operations. As COO, Reader will be responsible for overseeing all aspects of hotel operations, engineering, and food and beverage. Reader will succeed Stan Kennedy, who will transition into the role of Managing Director until his retirement on April 5 of this year. Hashimi will be responsible for elevating and ensuring operational success for Remington’s rapidly growing lifestyle portfolio. Remington also announced the retirement of Senior Vice President of Sales & Marketing, Loretta Macke. After serving 30 years at Remington, Macke will be retiring this April. Remington will begin the search for a replacement for Macke in the coming months.
Sandpiper Hospitality has hired two new senior executives. Amy Howland is now serving as Senior Vice President of Operations at Sandpiper Hospitalityand Tiffany Lewis is the Vice President of Sales & Marketing. Howland joins Sandpiper Hospitality from the Shaner Hotel Group where she served as a Regional Vice President of Operations. Lewis most recently served as the Corporate Director of Sales & Business Development for Magna Hospitality Group.
KSL Capital Partners, LLC announced Kevin Neher has joined the firm as a partner and Co-Head of Strategic Operations. Kevin joins KSL from McKinsey & Company where he served as a Senior Partner and founded the company’s Denver office.