Summit Hotels

Fitch Ratings' 2025 hotel sector outlook is neutral, reflecting stability, moderate growth, and varying regional confidence, with steady revenues supported by limited supply and strong business travel momentum.

Transactions in the $10 to $20 million segment are expected to pick up pace as financing becomes more accessible via the commercial mortgage-backed securities market.

The U.S. lodging sector in 2025 is expected to see muted growth with a modest RevPAR increase of 1.5%, driven by higher ADR but constrained by stable occupancy and macroeconomic pressures.

Mandarin Oriental Hotel Group is expanding in Miami with a new Brickell Key project, adding projects in Mexico and Grand Cayman.

Ryman and Apple Hospitality both reported earnings beats, with Ryman raising its dividend and Apple buying back shares and tightening guidance, while Summit grew results despite hurricanes.

Analysts expect the Fed's interest rate cuts to boost hotel REIT earnings, with Ashford Hospitality Trust and Braemar Hotel Trust being the biggest beneficiaries.

OYO is acquiring G6 Hospitality from Blackstone for $525 million, adding 1,500 U.S. and Canadian locations while keeping Motel 6 and Studio 6 brands independent.

Hotel production in the San Francisco Bay Area has nearly stopped in 2024, with only two new openings and uncertain prospects for ongoing projects.

Host Hotels reported solid first-quarter earnings exceeding expectations, while Summit Hotels also outperformed with significant margin expansion.

At the close of 2023, analysts state that the total global construction pipeline stands at 15,196 projects and 2,367,727 rooms, a 7% increase in projects and a 3% increase in rooms year-over-year.