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IN RECENT WEEKS, CBRE Hotels Research has revised its forecast for the hospitality industry upward in light of several factors, such as rising occupancy levels, improvement in domestic travel and some opening in international travel. Recent developments, however, including the rise of the Omicron variant of the virus that causes COVID-19, elevates the uncertainty level of those forecasts, but still the industry is expected to return to 2019 levels by the second half of 2023 rather than 2024. Hotel occupancy in the third quarter rose 35.1 percent over the previous year, according to CBRE's December 2021 edition of Hotel Horizons. ADR also saw gains, reaching 2019 nominal levels in the third quarter. "CBRE expects ADR will continue to exceed 2019 levels, followed by a demand recovery in early 2023," CBRE said in a statement. "Pent-up demand for leisure destinations, an increase in household personal savings and fewer constraints on availability compared with earlier in the pandemic contributed to the brisk pace of ADR recovery. The resumption of inbound international travel will help gateway markets regain occupancy in the coming year."

STONEHILL PACE, THE Property Assessed Clean Energy financing division of Stonehill, has provided $16.3 million in its first commercial property assessed clean energy (C-PACE) financing in Washington, a statement said. The loan is for the Cornus House, a new 199-unit multifamily project with 1,233 square feet of retail development in Tacoma, Washington. The C-PACE financing is over a 30-year term and will fund lighting, covered process, seismic and qualifying soft costs, according to Stonehill PACE. The project development is expected to start before the year end and is scheduled to be finished by Nov. 1, 2024. "For eligible projects, C-PACE financing remains one of the more attractive venues to get a project over the finish line," said Jared Schlosser, Stonehill's senior vice president and head of Stonehill PACE. "The Cornus House is a great project in a strong market led by a savvy ownership group with 30-plus years of commercial real estate experience and a portfolio of more than 800 apartments. This C-PACE financing is the final piece to complete the financing puzzle."

MORE THAN SEVEN in 10 Americans would be deterred from booking a hotel room in Los Angeles if hotels there are forced to house homeless people next to paying guests, according to a recent poll by American Hotel & Lodging Association. The survey was released as the city of Los Angel considers a proposed ordinance that would require hotels to house homeless individuals alongside paying guests, a change opposed by AHLA and AAHOA. Los Angeles residents will vote in March 2024 on the ballot initiative proposed by Unite Here, a labor union representing L.A.-area hotel workers. The AHLA study highlighted the significant impact such a policy would have on tourism and hotel occupancy in the city. However, if Unite Here's ballot initiative passes, Los Angeles would be the first city in American history to require hotels to house homeless people alongside paying guests.

HYATT HOTELS CORPORATION has signed franchise agreements with 3H Group and Presidio Hotel Development to open Hyatt Studios in two states. Led by founder Hiren Desai, 3H Group will introduce the studios in Mobile, Alabama, while Guneet Bajwa heads the effort for Presidio Hotel Development in Marysville, California, and both are expected to open by late 2024 to 2025. Following its April launch, Hyatt has garnered letters of interest for more than 100 Hyatt Studios, marking its inaugural upper-midscale extended-stay brand in the Americas, the company said in a statement. "Hyatt's expansion into these new markets through Hyatt Studios hotels underscores our dedication to developers, guests, and World of Hyatt members," said Dan Hansen, global head of Hyatt Studios. "We've learned that when Hyatt guests stay with a competing brand, they appear to do so for one of two reasons: the absence of a Hyatt hotel within five miles or the choice to stay at a lower chain scale. By offering Hyatt options in these fresh markets, we foster brand loyalty without internal competition and present developers with untapped opportunities."

FORMER AAHOA CHAIRWOMAN Jagruti Panwala testified recently before Congress on the Department of Labor's proposal to raise the overtime salary exemption threshold for executive, administrative, and professional employees under the Fair Labor Standards Act. Panwala, now a board member for American Hotel & Lodging Association, argued that the proposed change would actually limit hotel employees' opportunities and does not take into account economic differences between regions of the country. In August, DOL proposed raising the threshold from $35,568 to an estimated $60,209 in 2024 according to AHLA based on the department's projections. That equals a nearly 70 percent increase, and AHLA said that means all employees making under that amount must be paid overtime for any hours worked over 40 in one week. The DOL proposal also would automatically increase the threshold every three years thereafter based on the 35th percentile of earnings for full-time salaried workers in the lowest-wage census region, currently the South.

HOSPITALITY RESEARCH FIRM Knowland recently launched the Knowland Certification Program. The program offers three certification credentials aimed at enabling hotel sales professionals to enhance their skills, elevate their professional profiles and demonstrate proficiency in management, Knowland said in a statement. "Today's data-driven solutions require hoteliers and software companies to work together to ensure software investments are being used to their fullest potential," said Jessica Carey, VP customer operations, Knowland. "Knowland is a vital sales skill and a must-have expertise for today's sales teams; therefore, having a certification program advances our efforts to demonstrate that sales teams are comfortable and knowledgeable in all aspects of the platform and can prove that knowledge." Sales professionals who come to the table with verifiable experience can advance their careers by documenting their skills and efficiently communicating that value to current or potential employers, Knowland said. The program provides three credential levels: Certified Knowland Sales Leader Professional, Certified Knowland Power User Professional and Certified Knowland Revenue Leader Professional (launching in 2024).

NETHERLANDS-BASED CITIZENM HAS inaugurated its first hotel at Meta's Menlo Park campus in California, marking its second U.S. opening this year after the launch of citizenM Miami Center. CitizenM currently operates 14 hotels in the U.S. and has plans for additional openings in 2024, including locations in Austin, Boston, and another in South Beach, Miami. The global hospitality company was founded by Rattan Chadha in 2015. The five-story hotel, spanning 79,400 square feet, features 240 modular rooms, citizenM said. The brand's modular design has not only reduced construction waste by up to 60 percent but has also shortened the development timeline by three to four months compared to traditional construction methods. The hotel at Meta's Frank Gehry-designed headquarters campus has been designed by citizenM's architectural partner, Baskervill. "We're excited to open in Menlo Park, a burgeoning tech hub," said Robin Chadha, chief brand officer at citizenM. " CitizenM, designed to seamlessly connect remote and in-person work with private nooks and versatile workspaces in our Living Rooms, along with societyM meeting rooms. This dynamic property will provide a unique experience for Meta employees and mobile citizens in the area."

U.S. PRESIDENTIAL CANDIDATE Vivek Ramaswamy and AAHOA chairman Bharat Patel have delved into hospitality industry issues at the inaugural AAHOA 2024 Presidential Candidate Forum. The virtual forum allowed AAHOA members and viewers to hear directly from Ramaswamy about his policy priorities, his vision for the future of America and the role of Asian Americans in the hospitality industry, AAHOA said in a statement. "Ramaswamy's choice to directly engage with AAHOA Members highlights our industry's vital contribution to the nation's economy," said Bharat Patel, AAHOA chairman. "It was an honor to meet with him on behalf of AAHOA members. It's promising to witness a presidential candidate acknowledging the substantial influence that AAHOA members exert both as everyday citizens and as dynamic entrepreneurs and small business proprietors driving the hospitality industry of this great nation.'"

STR AND TOURISM ECONOMICS have increased year-over-year growth projections for ADR and RevPAR in the final revision of the U.S. hotel forecast for 2023. While some factors, such as higher interest rates and more restrictive lending, may impact the economy, their effect on the travel industry is not expected to be strong. In 2023, RevPAR saw a 0.3 percentage point increase, propelled by a 0.6ppt rise in ADR growth, according to STR and TE. Meanwhile, recent RevPAR trends affirm rate as the predominant performance driver. Occupancy was downgraded by 0.2ppts, STR and TE said in a statement. Growth projections for key performance metrics in 2024 remained flat from the previous forecast, reflecting the stabilization of long-term average trends.

BWH HOTELS HAS partnered with Tesla to introduce electric vehicle charging stations at its North American properties, with plans for international expansion. The installation of Tesla's Universal Wall Connectors at selected hotels will begin in 2024. The charging stations are designed to charge a variety of North American EV models, BWH Hotels said in a statement. "This collaboration with Tesla underscores BWH Hotels' unwavering commitment to sustainability and dedication to delivering exceptional guest experiences," said Michael Morton, vice president for brand management and member services, BWH Hotels. "As the hospitality industry evolves, we will continue to blend eco-conscious initiatives with the service, value and comfort that guests expect from BWH Hotels." EV charging stations are an attractive amenity for travelers with electric vehicles, the statement said. In line with its Earth, People, and Community initiative, BWH Hotels collaborates with hoteliers to broaden sustainability efforts by installing EV charging stations across the U.S., Mexico and Canada.

Jessica Brady is now the vice president of federal affairs for tax policy at the American Hotel & Lodging Association. Prior to joining AHLA, Brady served as the senior director of federal government relations at the Distilled Spirits Council of the U.S., focusing on tax, trade, and other key issues. Before DISCUS, Brady led budget and appropriations advocacy as the associate director of global development policy and advocacy at Save the Children, AHLA said. She also handled congressional affairs and engaged in multilateral diplomacy at the State Department as part of the President's Emergency Plan for AIDS Relief program. "Jessica's extensive tax expertise and profound understanding of the federal policymaking process will prove invaluable for our members as we navigate a myriad of crucial tax issues in 2024 and beyond," said Chip Rogers, AHLA president and CEO. "This addition reinforces AHLA's commitment to securing policy victories for hoteliers."

THE U.S. STATE Department has indefinitely extended a program allowing consular offices to waive in-person interviews for low-risk non-immigrant visa applicants who apply within 48 months of their most recent visa's expiration. Initially scheduled to conclude on Dec. 31, the program will now persist without a specified end date, undergoing regular reviews. This policy applies to consular offices globally. Under the updated program rules, the State Department anticipates the pool of applicants eligible for an interview waiver will at least double, the U.S. Department of State said in a statement. From October 2022 to September 2023, the State Department issued a near-record 10.4 million non-immigrant visas worldwide, partly attributed to interview waiver authority. "Interview waiver authorities have significantly reduced visa appointment wait times at embassies and consulates," the State Department said. "In Fiscal Year 2022, almost half of the nearly seven million non-immigrant visas issued by the Department were processed without an in-person interview. This success in reducing global visa wait times, particularly post-pandemic closures, is ongoing, with continued efforts to swiftly minimize wait times, including for first-time tourist visa applicants."

ANOTHER ASIAN AMERICAN developer has signed on to build two properties under Choice Hotels International's upscale Cambria brand. VRL Hotels, led by Victor Patel as president, has signed on to build a Cambria in Gatlinburg and another in Pigeon Forge, Tennessee. The 140-room Cambria Hotel Gatlinburg hotel is expected to open in 2022. It will feature a rooftop bar and restaurant overlooking the tourist town in Great Smoky Mountains National Park. Local attractions include Ober Gatlinburg ski resort, the Gatlinburg SkyLift, which carries passengers 1,800 feet up to the top of Crockett Mountain, and the Gatlinburg Space Needle. Also nearby are Ripley's Aquarium of the Smokies and Haunted Adventure, the Rocky Top Sports complex, several bourbon distilleries, breweries and wineries and the Gatlinburg Convention Center. The 140-room Cambria Hotel Pigeon Forge is expected to open in 2024. Nearby attractions include Dollywood amusement park, the Southern Gospel Music Association Hall of Fame and Museum, the LeConte Center at Pigeon Forge, Titanic Museum Attraction, NASCAR SpeedPark Smoky Mountains and seasonal outdoor events throughout the year, such as Winterfest. Both hotels will have multi-function meeting and event spaces and fitness centers among other amenities.

NEXGEN HOTELS RECENTLY acquired the 137-room Hotel Versey in Chicago, Illinois. The boutique property will be managed by Genuine Hospitality Group of St. Louis. The acquisition marks the first for NexGen in 2024, under the leadership of Chris Patel as president. In November and December, the company acquired around three hotels within a few weeks. "The Hotel Versey has been on our radar for a long time as it is steeped in rich hospitality tradition that dates back to the 1920s," said Patel. "We hope to continue on with this tradition with this completely one-of-a-kind hotel." The hotel is located near 1920s Diversey Arms building, a Northside Chicago landmark that once served as the home of jazz musician Bix Beiderbecke. Additionally, it is close to Wrigley Field, Lake Michigan, Lincoln Park Zoo, DePaul University, and the Peggy Notebaert Nature Museum.

U.S. HOTEL PERFORMANCE exhibited mixed results in the first week of May compared to the prior week, according to CoStar. Among key metrics, occupancy declined, whereas both RevPAR and ADR saw an uptick. Occupancy dropped to 64.4 percent for the week ending May 4, down from the previous week's 65.7 percent, marking a 0.8 percent year-over-year decrease. ADR rose to $159.97 from $154.44, reflecting a 1.3 percent increase compared to last year. RevPAR climbed to $103.09, up from $101.42 the prior week, indicating a 0.5 percent increase compared to the same period in 2023. Among the top 25 markets, Seattle reported the highest year-over-year increase in occupancy, rising by 8.1 percent to 69.4 percent. Dallas recorded the largest increase in ADR, up 5.8 percent to $134.33.

PRESIDENT BIDEN'S STATE of the Union address before Congress on March 7 touched on several issues hotel industry associations have been advocating for a while. AAHOA and the American Lodging and Hotel Association both issued responses to the speech and AAHOA held its 2024 Spring National Advocacy Conference during the week of March 14. The issues at hand include the extension of tax credits, handling of junk fees for greater disclosure and transparency and raising the federal minimum wage. During SNAC, more than 200 AAHOA leaders and members spent two days in Washington, D.C. The conference opened with a legislative learning session at the Ronald Reagan Building and International Trade Center, followed by an evening Congressional Reception at the Cannon House Office Building and then a full day of Congressional meetings. "Each year we continue to see the relationships grow between our AAHOA Members and their elected officials," said Laura Lee Blake, AAHOA president and CEO. "Our twice-yearly advocacy conferences are quickly becoming the foundation for shaping and driving national policy, and our members are making it happen."

IHG HOTELS & RESORTS recently introduced new prototype options for its three suites brands - Staybridge Suites, Candlewood Suites, and Atwell Suites - focusing on space and efficiency while maintaining key features from current designs. These prototypes are scheduled to be available by the second quarter of 2024, with the first properties featuring them expected to open as early as 2025, IHG said in a statement. Initially, the prototype designs will only be accessible to U.S. properties, with the possibility of future adoption in Canada, the Caribbean, and Latin America. "IHG continues to build on our nearly three decades of leadership in the extended-stay and suites space by evolving our prototype designs to increase owner value while offering the spaces and amenities short- and long-term travelers value most," said Kevin Schramm, IHG's senior vice president for development, mainstream brands, U.S. and Canada. "Our new concepts reflect guest and owner feedback, and enable new and existing owners to deliver our modern suite experiences-in various forms-to more markets without compromising consistency or quality."

IN RECOGNITION OF National Human Trafficking Prevention Month in January, G6 Hospitality, the parent company of Motel 6 and Studio 6, has intensified efforts to combat and raise awareness about human trafficking. This month, the company is introducing an updated mandatory training program, "The Room Next Door," to identify signs and response protocols for human trafficking within the lodging industry, G6 Hospitality said in a statement. "G6 Hospitality remains committed to combating human trafficking across the country and maintains a zero-tolerance policy against it," said Julie Arrowsmith, CEO of G6 Hospitality. "Our expanded anti-human trafficking program will ensure that our team members, franchisees, and hotel teams are educated advocates who can help the industry move toward eradicating human trafficking." The training is mandatory at every Motel 6 and Studio 6 locations, the statement said. The company is also renewing ongoing partnerships in 2024 with law enforcement agencies and survivor advocate organizations, including:

DALLAS LEADS THE top five U.S. markets in the largest construction pipeline as of the first quarter of 2024, according to Lodging Econometrics. The Dallas market has 185 projects with 21,882 rooms, slightly below the record highs at the close of the fourth quarter of 2023. Next came Atlanta, with 153 projects comprising 17,929 rooms, then Nashville with 127 projects and 16,199 rooms, as LE's U.S. Construction Pipeline Trend Report showed. Phoenix followed with 123 projects and 16,198 rooms, and the Inland Empire in Southern California set a new record high with 121 projects and 12,324 rooms. U.S. markets with the most projects already under construction by the end of the first quarter include New York with 47 projects and 7,655 rooms, Dallas with 25 projects and 3,059 rooms, and Nashville with 22 projects and 2,828 rooms. Atlanta had 21 projects and 2,588 rooms, and the Inland Empire currently has 20 projects and 2,181 rooms under construction.

Sonesta International Hotels Corp.'s Red Lion Inn & Suites in Elk Grove, Illinois. The 47-room mid-scale property is owned by Mahesh Chaudhari. "The opening of the Red Lion Inn & Suites Elk Grove is a testament to the brand's renewed growth nationwide," said Keith Pierce, Sonesta's executive vice president and president of franchise and Development. "This is the third Red Lion Inn & Suites location to open in 2024, underscoring how Sonesta continues to meet consumer demand for midscale properties with openings in secondary and tertiary markets." Sonesta said that guests at Red Lion Inn & Suites Illinois can earn or redeem points through the Sonesta Travel Pass loyalty program. Sonesta is the 8th largest hotel company, with approximately 1,100 properties totaling 100,000 guest rooms across 15 brands in eight countries, according to STR.