JLL

JLL’s Hotels & Hospitality Group’s  latest  Hotel Investor Sentiment Survey suggests hotel investment in  Asia Pacific  will continue to recover in the fourth quarter of 2022 and into 2023 with more investors looking to deploy the highest levels of capital since the pandemic started. Fortune Park Hotels , a unit of ITC Ltd ., said they are growing upwards of 20% in revenues over 2019-2020 numbers. Accor announced further expansion in India with the signing of Mercure Chandigarh Tribune Chowk , scheduled to open late 2023 and Novotel Mohali Airport Road, scheduled to open in 2026.

The DJIA  rose 30 points while Nasdaq was up 86, the S&P 500 rose 13 points and the 10-year treasury yield was down .01 to 3.41%. Truist reported on a call they held with the CEO of hotelAVE . The takeaways included that they saw leisure demand start to slow in May while group and corporate recovery is now benefiting from urban and convention hotels. JP Morgan reported on meetings held with Wyndham Hotels’ CEO and SVP, IR. JPM said the meetings were generally upbeat, reflective of strong demand and pricing trends as well as steady new development and conversion signings.

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.

China’s southern city of Shenzhen has three neighborhoods that are the latest to be locked down due to the spread of Covid. June data from the Australian Bureau of Stations reveals outbound travelers are growing at almost three times the rate of inbound as Australians continue to flock overseas . Macau’s hotel occupancy rate fell by -25.6 percentage points year on year on July to 38.1%. That was down a percentage point from June.

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.

According to July 2022 data from STR , the U.S. hotel industry reported record-high monthly room rates on a nominal basis. Raymond James believes the recovery in global travel still has plenty of room to run. They believe this is the earliest stage of what is set up to be a multi-year fundamental recovery in global travel. A 13-F filing from Sunstone Hotels showed Blackstone Group had taken a 4.1% stake in SHO.

B.Riley maintained its Neutral rating on Ashford Hospitality but lowered its price target from $12 to $9. The Heard on the Street Column from the Wall Street Journal today focused on  business travel , a positive article on how it is back with the potential to be better than ever. A company called CorpHousing Group Inc., which is engaged in the short-term rental of hotel units to guests across major metropolitan cities in the US, priced an IPO of 3,375,000 shares.

China reported 2,312 new Covid infections nationwide today , the first time in more than three months that cases topped 2,000 for three consecutive days. Singapore’s Changi Airport emerged as the busiest airport in Asia in the three months to June 30, 2022, recording more than double the number of passenger movements than its nearest rival. The newly built 229 keys midscale Mercure Kuala Lumpur Glenmarie managed by Accor has officially opened in Shah Alam, Selangor in Malaysia.