Marcus & Millichap

Stock Market Performance: DJIA fell by 291 points, Nasdaq decreased by 158 points, and S&P 500 dropped by 34 points. The 10-year treasury yield increased to 4.31%. Lodging Industry Trends: Lodging stocks, including SLNA and BHR, traded lower. Truist held a conference call on US lodging supply growth, with Marriott having the largest pipeline, and Hyatt showing the largest year-over-year increase. Hotel Performance Forecasts: CBRE Hotels revised down its 2023 RevPAR forecast due to weak summer demand, expecting a 4.6% YoY growth in RevPAR. Hotel supply growth is projected to be 1%, below the industry's historical average of 1.6% over the next five years.

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.

STR reported US RevPAR for the week ended May 13 was down -1.3% year over year, possibly impacted by Mother’s Day timing. CBRE is again raising its forecast for hotel performance this year . The company has revised its forecast for 2023 RevPAR to $97.89, up 6.0% YOY and an increase of $0.43 from its previous forecast. Hilton announced the opening of Canopy by Hilton San Francisco SoMA .

Soho House reported mostly in-line estimates. Adjusted EBITDA was in line despite revenue being slightly lower than expectations. Morgan Stanley upped their target price on Hyatt to $142 from $139 while maintaining their Overweight rating. Marriott International announced a 30% increase in their quarterly dividend, to $0.52 a share.

Deutsche Bank said they were a bit surprised at ALIS as they realized their views on 2023 RevPAR and margins were more measured than what they sensed from the companies. New York City’s latest plans to crack down on illegal short-term rentals , possibly removing as many as 10,0000 Airbnb listings later this year, is sparking furious debates about housing, hotels, the tourist market and residents’ rights. Buccini/Pollin Group is bringing the W Hotel brand to Orlando with plans for a 22-story hotel tower next door to Epic Universe.

After 25 consecutive months of year-over-year declines, U.S. hotel construction increased slightly in December. Wells Fargo cut their price target on Airbnb to $130 from $165. They maintained their Overweight rating. STR said US hotel RevPAR the week ended 1/14 was up 33.1%. RevPAR was up 9.4% versus the same week in 2019.