HHM Hospitality

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.

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.

U.S. hotel RevPAR rose by 4.9% for the week, with rates up by 4%. Group RevPAR also increased by 13.3%. Truist adjusted ratings and target prices: lowered ratings for some companies (e.g., Bluegreen Vacations), raised target price for Bluegreen Vacations, and decreased target prices for Hilton Grand Vacation, TNL, and VAC. A significant decline in deals across travel and tourism sectors globally during January-October 2023 compared to the same period in 2022, affecting various regions and deal types.

Stock market performance: DJIA up 66 points, Nasdaq up 97, S&P 500 up 19 points, and 10-year treasury yield down to 4.60%. Lodging industry updates: US hotel RevPAR increased 5.2%, Group RevPAR was up 29.5%. Stifel lowered target price on Wyndham Hotels & Resorts, while Exane BNP Paribas downgraded IHG Hotels & Resorts. International travel data: International visitors spent $19.0 billion on US travel in August 2023, with a trade surplus of $1.8 billion. Travel and tourism accounted for 7.4% of US exports of goods and services in August 2023.

DJIA, Nasdaq down; S&P 500 fell; 10-year treasury yield up. Hotel Trends: Global RevPAR growth; Canada's record ADR and RevPAR; mixed occupancy rates. Developments: Hotel expansions, renovations; Hyatt Vacation Club launch; new CEOs, brand in Croatia.

Choice Hotels to integrate nearly 600 Radisson Americas hotels onto its reservation delivery engine and loyalty program. Dauntless Capital Partners purchases Hilton Garden Inn Bethesda Downtown for immediate renovation. Excel Hotel Group plans to build a 130-room SpringHill Suites Hotel in Grover Beach, California.

Stock market: DJIA fell 219 points, Nasdaq was down 138, and S&P 500 fell 34 points. Pebblebrook Hotel Trust warns of weaker weekend leisure travel and expects slightly lower 2Q revenue. Various hotel announcements: HHM Hotels launches Echelon Luxury & Lifestyle division, Driftwood Capital acquires Hilton Dallas/Plano Granite Park, LBA Hospitality opens Homewood Suites by Hilton in Greenville, Renaissance Cleveland undergoing renovations, and more.

Stock market: DJIA, Nasdaq, and S&P 500 showed gains, while lodging stocks were mixed. American travelers: High excitement for travel, but concerns about finances and travel costs have increased. Hotel developments: Renovations and new constructions announced in various locations, including Alabama, Oregon, Pennsylvania, Florida, and Massachusetts.

Jefferies gave their ALIS Conference preview saying they anticipate the lodging management teams will provide incremental color on the trajectory of lodging in a variety of economic scenarios. Marriott International, Inc. announced the company’s deal signings accelerated again in 2022 . The company signed a total of 726 management and franchise agreements. Wyndham Hotels & Resorts is setting its sights on a continued expansion in 2023 , following a banner year that saw the company cap multiple milestones and accomplishments across the globe.

MCG and INN both were up 6% while SVC and SLNA were up 5% each. SOND fell -5% on the day. Xenia Hotels & Resorts announced its board of directors authorized the repurchase of up to an additional $100 million of the company’s outstanding common shares. With the additional authorization U.S. lodging REIT management teams did express concerns about cracks in demand forming with technology customers soon after recent layoff announcements.