Nashville

DJIA rose 391 points, Nasdaq up 277, and S&P 500 rose 68, with notable movements in lodging stocks, Hilton, and Marriott. PwC predicts economic challenges for hotels through 2024. CBRE reports mixed trends in the U.S. hotel industry, with RevPAR contraction, short-term rentals gaining market share, and outbound U.S. travelers surpassing inbound. Several hotel developments and expansions are underway, including in Banff, Nashville, and Park City. Hilton expands to Monaco, Marriott brings The Luxury Collection to Greece, and Minor Hotels debuts in Paris. Various hotel acquisitions, developments, and renovations are announced across the United States, reflecting a dynamic and evolving hospitality landscape.

Braemar Hotels (BRH) and Ashford Hospitality Trust (AHT) reported 3Q results, with BRH missing estimates due to its resort/leisure focus, experiencing a -7.1% decline in RevPAR growth. AHT's results exceeded expectations, especially in urban assets, with a 4% growth in RevPAR. Hersha Hospitality shareholders approved a $1.4 billion, all-cash deal for KSL Capital Partners to acquire the hotel REIT, taking them private. The deal, valued at $10 per share, is expected to close in the current quarter. The Global Hotel Investor Sentiment Survey by JLL revealed a surge in lodging demand, with global RevPAR up 10.2% relative to 2019. Key findings include 81% of investors planning to be net buyers, a preference for urban markets (84%), and a focus on luxury and select-service hotels. Investors anticipate a rise in hotel pricing per key and face challenges like the cost of capital, rising insurance costs due to climate risk, and deferred capital expenditures.  

Stock market rallied as treasury bond yields fell, with DJIA, Nasdaq, and S&P 500 gaining points, while lodging stocks like SOND, AHT, and others saw significant increases. Several hotel-related developments were announced, including renovations, new hotels, and property sales in various locations across the United States. Rosewood Hotels & Resorts will introduce Rosewood Blue Palace in Greece in 2025, while the British Colonial Hotel in Nassau, Bahamas, will reopen on December 12 after a $100 million renovation.

Top U.S. hotel construction markets in Q3 2023: Dallas, Atlanta, Nashville, Phoenix, and the Inland Empire lead in the number of projects and rooms. Hotel renovation and conversion pipeline activity remains strong with 1,912 hotels and 285,568 rooms currently undergoing renovations. Notable openings and developments include the Candlewood Extended Stay Suites in Kennesaw, Avenue Hotels & Residences in Coral Gables, Hotel Lucine in Galveston, and Radisson RED Helsinki.

The DJIA rose 205 points while Nasdaq was up 122, the S&P 500 rose 31 points and the 10 year treasury yield was flat at 4.84%. Lodging stocks were higher. We did see another new low…

IHG reported strong earnings, including a 10.5% increase in Group RevPAR, but disappointed shareholders by deferring capital returns. The US group business is rebounding well, with top markets nearly fully recovered to 2019 levels. Prominent cities like Austin, Nashville, and Denver exceeded 2019 figures. Various hotel developments and acquisitions are ongoing in different locations, reflecting the industry's resilience and growth prospects. Notably, TMGOC Ventures secured approval to introduce the first Ritz-Carlton in Savannah.

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.

Corporate travel data company TRIPBAM reports a 25% increase in booking volumes for US travel in mid-September compared to 2022, with expectations of a return to pre-Covid levels by the end of the quarter and surpassing them in 2024, albeit slower in tech-heavy San Francisco. The third edition of the Hospitality Industry Sentiment survey shows a shift in expectations, with group demand and major events on the rise, while labor costs and supply challenges remain top concerns for the hotel industry. Various hotels announce renovations and openings, including Le Meridien Tampa, Springhill Suites Truckee, Hotel Dena Pasadena, Omni Charlottesville Hotel, and a new hotel project in East Austin. Nashville International Airport opens a new international arrivals facility, and citizenM appoints Rani Gharbie to lead its Americas expansion. Ennismore aims to change the reputation of all-inclusive resorts, and LEGOLAND Windsor Resort announces a LEGO Woodland-themed holiday village. London & Regional is close to acquiring the Kempinski Hotel Bahia in Estepona, Spain.

DJIA and Nasdaq dropped significantly, 10-year yield surged, and lodging stocks declined. U.S. hotel industry saw lower occupancy but improved year-over-year comparisons. Peachtree Group announced multiple hotel acquisitions and new development projects, while other hotels are under renovation and expansion.

Crescent Real Estate acquired the Element Orlando Universal Boulevard hotel, and the Delta Hotel in Wichita Falls, Texas, opened. Various hotel acquisitions and rebranding activities occurred, including the purchase of Hilton-branded hotels in New York, rebranding of properties as Trademark Collection by Wyndham, and the addition of Arlo Williamsburg to the Arlo Hotels portfolio. A $1.5 billion development plan for the Tennessee Titan's domed stadium area was announced, including a 40-story hotel, apartments, and retail spaces, with construction set to begin in 2025.