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North America
Choice Hotels Makes Hostile Bid for Wyndham
Choice Hotels made an offer to acquire Wyndham Hotels and Resorts, which was rejected. The situation may lead to a proxy fight. Marriott and MGM’s partnership launch delayed to early 2024 due to a cyber attack on MGM and the complexity of the integration, which includes the creation of the MGM Collection with Marriott Bonvoy. Hyatt introduces the Wellbeing Collective, offering tailored wellbeing experiences at 30+ hotels globally, with plans to expand in 2024. -
North America
Kempinski Debuts in North America
Morgan Stanley adjusted price targets for several hotel companies, maintaining Overweight ratings for Hyatt, Hilton, Marriott, and Wyndham, but lowered the price target for Park Hotels. They also raised the price target for Choice Hotels and maintained an Underweight rating on Pebblebrook Hotel Trust. Marcus Hotels & Resorts’ new Chief Investment Officer, Tiffany Leadbetter Donato, aims to expand the company’s hotel portfolio beyond the Midwest for greater geographic and customer diversity. Hotel del Coronado, part of Curio Collection by Hilton, is investing over $160 million to restore and revitalize its historic Victorian building in Coronado, California, with a target completion date in Spring 2025. -
North America
Baird Expects Growth in Hotel Revenue Per Available Room
Baird provides insights into investor sentiment and expectations for 2024 RevPAR growth among hotel brands. Several hotel renovation and construction projects are announced, including a new Westin Resort in Cocoa Beach, Florida, and a Ritz Carlton Residences in Lake Woodlands, Texas. Multiple hotel acquisitions and developments are highlighted, such as the Kastrati Group’s acquisition of SLS Brickell in Miami and IHG Hotels & Resorts introducing the Kimpton brand in Portugal with Kimpton Algarve Sao Rafael Atlantico. -
North America
Apple Hospitality REIT Adds Key Marriott and Hyatt Properties to Portfolio
DJIA fell 174 points, Nasdaq down 85, S&P 500 down 27, and 10-year treasury yield surged to 4.71%. Financial analysis by JP Morgan on Marriott Vacations Worldwide, noting risk factors and a Neutral rating. Acquisitions by Apple Hospitality REIT, renovations of Marriott properties, and promotions at Noble House Hotels & Resorts, KSL Resorts, JLL’s Value and Risk Advisory platform, and Auberge Resorts Collection. -
North America
Hotel Rates Expected to Continue Rising Globally in 2024
CBRE U.S. Hotels State of the Union (October 2023) shows August RevPAR declined by -0.7%, with a -1.7% occupancy drop. Total revenue growth outpaced RevPAR growth in July by 2.5%. U.S. loan origination decreased, and hotel job openings continue to decline. Hotel rates are expected to rise globally in 2024, with potential increases of up to 17.5% in some cities, according to American Express Global Business Travel’s Hotel Monitor 2024. The Baird/STR Hotel Stock Index was down -2% in September. Year-to-date, the Hotel Brand sub-index increased by 23%, while the Hotel REIT sub-index decreased by -1.5%. -
North America
U.S. Hotels Enjoy Second-Highest Room Demand Ever for Month of September
Stock market indices showed gains on Friday, with DJIA up by 288 points, Nasdaq up by 212 points, and S&P 500 up by 50 points, while the 10-year treasury yield increased to 4.78%. San Francisco saw a significant increase in weekday occupancy, and STR reported a 66.3% occupancy rate for US hotels in September 2023. Several new hotels and renovations were announced, including Aloft Hotel near Fort Lauderdale, Residence Inn in Vail, and the Union Station Nashville Yards. -
North America
Accor and Hyatt Continue European Expansion
Jefferies downgraded Marriott Vacations to “Hold” from “Buy” and reduced their target price, expressing concerns over the macroeconomic outlook, particularly in consumer credit and interest rates. The 2023 survey from the Hospitality Asset Managers Association indicates optimism about RevPAR’s return to 2019 levels, while various hotels announce new completions, renovations, and sales across the U.S. Key personnel appointments are announced in major hotel groups, and international brands like Wyndham, Accor, and Hyatt unveil expansion plans and new properties in locations such as Barbados, France, and Spain. -
Asia-Pacific
Singapore and Thailand Lead the Hotel Recovery in APAC
Global hotel businesses are rebounding to pre-pandemic levels except in Asia-Pacific. Vietnam lags in recovery with reduced Chinese tourism and increased flight costs, despite aggressive hotel development since 2016. Macau’s August hotel occupancy averaged 88.7%, with significant visitor growth during the Golden Week, particularly from mainland China, showing signs of a robust recovery to near 2019 levels. Wyndham Hotels unveils its first Auckland hotel, Espire Hospitality launches the ZANA Forest Resort in India, and Ascott Limited partners with Vimut Hospital in Thailand to offer combined lodging and healthcare benefits. -
Asia-Pacific
Conrad Seoul Back on the Market for $750 Million
The 434-room Conrad Seoul, a Hilton-branded hotel in South Korea, is back on the market for $750 million. Hyatt Hotels Corporation has inaugurated the Hyatt Place Kuala Lumpur, Bukit Jalil, Malaysia’s first Hyatt Place and the first international hotel in the Bukit Jalil area. Iconic Penang Sdn Bhd is developing the Iconic Marjorie Hotel, a 298-room five-star Marriott property in Penang, Malaysia. -
Asia-Pacific
Asia Pacific to Regain 92% of Its 2019 Business Travel This Year
The GBTA Business Travel Outlook shows Asia Pacific is forecast for significant growth, with travel spending gaining 41% to US$567 billion this year. Trip.com said outbound travel order for the upcoming Golden Week increased nearly 20 times, and domestic travel increased more than four times over the Golden Week period last year. Accor announced their Novotel brand’s fiftieth hotel opening in Greater China with its newest destination, Novotel Xi’an Aden.