Hilton Hotels & Resorts

Asia-Pacific

Chengdu Covid Fears Spurs Lock Down

STR reported China hotel RevPAR was up 48.2% year over year against very easy comps. When compared with this week in 2019, RevPAR was down -20.4%. Absolute occupancy in China last week was 59.1% versus 43.1% in the same week last year. Chengdu reported 1,000 Covid cases and the Southwestern city in China has pretty much been sealed off. About 70% of the flights have been suspended to and from the city. Hong Kong is targeting an end to hotel quarantine in November , ahead of a summit of global bankers and an international rugby competition.
North America

Short-Term Rental Demand Is Up

The  DJIA  ended the day down 280 points while  Nasdaq  was down 67, the  S&P 500 fell 31 points and the 10 year treasury yield was up .02 to 3.13%. Lodging stocks were lower.  MCG  fell -8% today and hit a new all time low.  SOND  was up 5%. STR  said  U.S. hotel RevPAR  for the week ending August 27 th  was up 18.2%.  RevPAR versus the same week in 2019 was up 12.1%. Speaking during a session at the  Hotel Data Conference ,  AirDNA Director of Product Max Bernstein  said as of June 2022,  demand for short-term rentals  is up 21% indexed to 2019
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.