PGIM Real Estate

The global hotel industry is seeing increased activity with notable transactions in Vietnam, Macau, Japan, Sri Lanka, the Philippines, Thailand, and India. Key deals include Marriott International's operation of seven hotels from Vinpearl in Vietnam, Accor's new Novotel in Nara, Japan, and DoubleDragon's launch of the largest hotel in Bonifacio Global City in the Philippines. Several hotel brands are expanding their footprints, with Wyndham Hotels & Resorts signing two agreements with Fulcrum Ventures Asia and Marriott International's Fairfield brand entering Agra, India.

The Baird/STR Hotel Stock Index was up 16.4% in January from December. The Hotel Brand sub-index was up 16.2% and the Hotel REIT sub-index rose 17.1%. Hilton, Easton’s Group of Hotels and the Gupta Group announced the opening of Canopy by Hilton Toronto Yorkville, marking the brand’s Canadian debut. The DJIA rose 130 points on Friday while Nasdaq was down 69, the S&P 500 was down 11 points and the 10 year treasury yield took a breather, down -0.4 to 3.83%. Lodging stocks were lower.