Hampton by Hilton

The  DJIA  fell 285 points,  Nasdaq  was down 174, the  S&P 500  fell 38 points, and the 10-year treasury yield was down nearly .10 to 3.91%. Let’s hope the first two trading days do not represent the rest of the year. STR’s  global “bubble chart” update through December 16, 2023 showed 75% of markets with growth in RevPAR compared to 2019. Could there be a hotel building moratorium in one of the most popular areas of Southern Florida?

Citigroup downgraded Sonder Holdings from Buy to Neutral, with a new price target set at $4.Choice Hotels criticized Wyndham Hotels & Resorts for misrepresenting the lodging industry's competitive landscape. This criticism came after Wyndham's recommendation for shareholders to reject CHH's exchange offer and their discontinuation of discussions regarding a potential transaction with CHH. Hyatt announced plans to open over 35 luxury hotels and resorts globally through 2025, including new Park Hyatt locations in the UK, Mexico, and Malaysia, and expanding the Thompson Hotel brand in Europe.

JP Morgan upgraded Choice Hotels to Neutral and shifted Host Hotels, Park Hotels, Ryman Hospitality, and Sunstone Hotels to Neutral, citing less downside in lodging REITs. CoStar forecasts U.S. hotel demand growth of 1.8% in 2024, with occupancy increasing by 1% and room rate growth aligning with inflation, leading to RevPAR growth of 4.8% this year and 4% in 2024. Barclays shifted to Equal Weight on Marriott Vacations, expressing uncertainty in company-specific execution and favoring Hilton Grand Vacations in the timeshare sector.

Major hospitality companies reported mixed trends at the Morgan Stanley Global Consumer & Retail Conference, with lodging demand remaining positive but margins affected by high wages. Several companies, including Crescent Hotels & Resorts and HHM Hotels, announced the addition of new properties to their portfolios. Evermore Orlando Resort is set to open a unique beach paradise, and other hotels are undergoing significant renovations and refurbishments, indicating a continued focus on luxury and expansion in the hospitality industry.

U.S. Hotel Industry Performance (Oct 2023): Shows mixed results with slight declines in occupancy (-1.8%) and EBIDTA PAR (-1.2%), but increases in ADR (+3.0%), RevPAR (+1.2%), TRevPAR (+4.0%), GOPPAR (+3.7%), and LPAR (+5.9%). Hyatt plans over 35 new luxury hotels by 2025 across its brand portfolio. Other notable openings include Auberge Resorts' Bowie House in Texas, Six Senses Xala in Mexico, Riu Palace Pacifico's refurbishment in Mexico, and new Universal Orlando resorts.

Morgan Stanley remains optimistic about the hotel industry's growth, forecasting a 2% RevPAR growth globally for next year, with potential for higher growth. Selina Hospitality faces stock value decline and plans for delisting from Nasdaq. The Leading Hotels of the World welcomed new members, including newly opened or renovated hotels in New York, California, China, France, Greece, Spain, Italy, and Venice.

Park Hotels & Resorts announced a quarterly cash dividend of $0.15 and a special top-off dividend of $0.78, totaling nearly $635 million returned to shareholders in 2023. R New and renovated Holiday Inn properties opened in Mansfield, Ohio, and Milwaukee, Wisconsin. LuxUrban Hotels signed agreements to operate two New York City hotels.

Hilton Worldwide Holdings Inc has entered into a partnership with Hallmark Channel to create Christmas-themed suites inspired by Hallmark’s “Countdown to Christmas” movies. The Waldorf Astoria Las Vegas has completed phase one of a multimillion-dollar property-wide transformation. This includes a redesign of all 389 guestrooms and suites and upgrades to meeting and event spaces. Margaritaville Resort Lake Tahoe, located in South Lake Tahoe, California, has announced its December 14th opening date. The transformation of the former Lake Tahoe Resort Hotel into a Margaritaville property cost over $70 million.

PEB reported better-than-expected 3Q results, but concerns arose from their commentary about a cooling US leisure demand and a weak 4Q guidance. Accor anticipates full-year RevPAR growth of over 20%, with strong 3Q RevPAR growth in the Middle East, Africa, and Asia Pacific segments. Various hotel developments were announced, including a Marriott conversion in New Orleans, renovations in Indian Wells, a hotel sale in Boston, and plans for a new luxury brand in San Miguel de Allende, among others.

The DJIA rose 205 points while Nasdaq was up 122, the S&P 500 rose 31 points and the 10 year treasury yield was flat at 4.84%. Lodging stocks were higher. We did see another new low…