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North America
Business Travel Sentiment Still Lags
The positive start to the day deteriorated quickly with the DJIA ending the day down 308 points, while Nasdaq was down 135 and the S&P 500 fell 44 points. The 10-year Treasury yield ended the day flat at 3.11%. VCSA was the only major mover, down -9% on the day. STR’s consumer research in July 2022 produced telling insights into the state of business travel worldwide. Roughly 400 global business travelers were asked to thank about their likelihood to travel for business both now and when the pandemic is over, the results, remained in negative territory. A recently released Global Travel Association report cites global business travel coming back albeit against significant headwinds. -
North America
Wells Fargo Changes Lodging Coverage
The DJIA fell 184 points, Nasdaq was down 124, the S&P 500 was down 27 points and the 10-year treasury yield was up .08 to 3.11%. Wells Fargo made a few changes to their coverage of lodging names . They cut their ratings on Hersha Hospitality, DiamondRock Hospitality and Pebblebrook Hotel Trust to Equal Weight from the previous Overweight ratings Four Seasons Hotels and Resorts unveiled its new brand creative platform, Luxury Is Our Love Language , celebrating the brand’s unique and energetic perspective on the definition of luxury. -
North America
New U.S. Lodging Per Diems Disappoint
Fed Chief Jerome Powell once again roiled the financial markets with a speech. JP Morgan cut its view on IHG Hotels & Resorts to Neutral from Overweight. Hoteliers did not seem very pleased with the US General Services Administration’s increase in lodging per diems for 2023. -
North America
U.S. Group Bookings Increase While Biz Travel Lags
The DJIA rose 323 points while Nasdaq jumped 208, the S&P 500 rose 59 points, and the 10-year Treasury yield took a breather, down .08 to 3.03%. Inflation, energy prices, supply chain challenges, labor shortages, and regional developments are pushing the forecast for full recovery into 2026, instead of the previously forecasted 2024. According to the latest monthly data from STR and CoStar , the number of groups booking U.S. hotel rooms continued to increase in June, although individual business travel continued to lag. -
North America
Global Hotel Groups Are Sitting on Piles of Cash
The DJIA rose 61 points, Nasdaq was up 50, the S&P 500 was up 12 points and the 10-year Treasury yield is quickly rising to where it peaked in June, up another .05 to 3.11%. STR said US RevPAR for the week ended 8/20 was up 16.9% versus the same week last year. Global hotel groups are holding near-record amounts of cash. Seven of the best-known hotel groups were collectively sitting on about $7.3 billion in cash and short-term investments as of the end of June . -
Asia-Pacific
Vietnam Tourism on Track to Beat 2019 Revenue Numbers
Vietnam’s tourism sector is forecast to record US$11.1 billion in revenue in 2024, which would exceed the 2019 tourism revenue number of US$10.8 billion. Hotelivate said Tier-III cities with resort locations in India have seen the strongest recovery amid a rebound in leisure tourism. Accor is expanding its presence in the Philippines with the signing of two new properties in Clark City. -
North America
Business Travel Will Return to Pre-Pandemic Levels by Late 2023
The DJIA fell 154 points but Nasdaq was flat while the S&P 500 fell 9 points and the 10-year Treasury yield was up .02 to 3.05%. Citigroup upped its price target on Sunstone Hotels to $12 from $10.50. Morgan Stanley upped its price target on Airbnb to $125 from $100. -
Asia-Pacific
Macau Visitors Still Down YoY
Macau’s tally of visitors reached 81,798 for the seven days from August 12 to August 18 inclusive, a daily average of about 11,685. According to the latest Construction Pipeline Trend Report from Lodging Econometrics , the total China hotel construction pipeline is at 3,693 projects/701,974 rooms. Hilton signed six new luxury hotels in Asia Pacific which will open over the next four years. -
Asia-Pacific
China Covid Infections Hit 3-Month High
China reported 2,181 new Covid cases on Saturday , with infections surging to a three month high. Real Commercial said Sydney hotel occupancies are beginning to slip but hoteliers are still charging higher room rates. Tuan Sing Holdings is close to announcing plans to redevelop its 550 room Grand Hyatt Hotel in Melbourne’s Collins Street into a major mixed-use development. -
North America
Lodging Stocks End the Week on a Down Note
The Baird/STR Hotel Stock Index was up 14.3% in July. Year to date the first seven months of 2022, the stock index is still down by -10.4%. According to Bloomberg, the Abu Dhabi Investment Authority is exploring options, including a possible sale of the Miami Beach Edition hotel . AC Hotels by Marriott announced the opening of the new AC Hotel by Marriott Monterrey Valle , its first hotel in the city of Monterrey, Nuevo Leon