U.S. Hotels See RevPAR Surge
Skift Take
- Stock market indices experienced a decline, with DJIA falling 102 points, Nasdaq down 165 points, and S&P 500 falling 23 points.
- The American Hotel & Lodging Association successfully lobbied for new PPP eligibility guidelines, allowing hotel owners who used third-party management companies to qualify for loan forgiveness.
- The U.S. hotel industry reported improved performance in May 2023 compared to the previous year, with increased occupancy, ADR, and RevPAR, particularly in the top 25 markets.
The DJIA fell 102 points, Nasdaq was down 165, the S&P 500 fell 23 points and the 10 year treasury yield was down .01 to 3.72%. Lodging stocks were mixed. SHCO was up 6%, SLNA was up 5% but AHT fell -5% and VCSA was also down -5% but it traded down to another all time low.
The American Hotel & Lodging Association announced they were successful at lobbying Congress and the Small Business Administration in issuing new PPP eligibility guidelines. The update clarifies that hotel owners who utilized third-party management companies and participated in PPP are eligible for loan forgiveness for payroll expenses they paid via a management company. Hotels facing improper loan forgiveness denials will now have their cases properly adjudicated and will protect those whose loans have already been forgiven.
According to May 2023 data from STR, the U.S. hotel industry reported higher performance from the month prior. May 2023 (percentage change from May 2022): Occupancy: 64.8% (-0.2%); ADR: $156.25 (+3.8%); and RevPAR: $101.31 (+3.7%). Among the Top 25 Markets, New York City experienced the highest occupancy level (84.0%), up 3.6% year over year. Markets with the lowest occupancy for the month included Minneapolis (59.1) and Houston (60.2%). Reflecting continued improvement in business travel and groups, the Top 25 Markets showed higher occupancy and ADR than all other markets.
STR reported US lodging data for the week ended 6/17. US hotel RevPAR rose 1.5% year over year led by Group RevPAR which was up 6.2%.
RevPAR Companies and Emerge Hospitality Group are planning a Residence Inn by Marriott in Nashville, Tennessee. The 11-story building will offer both a ground-level food and beverage component and a roof
