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U.S. HOTEL REVENUES and profitability saw an increase in 2023 compared to 2022, with improvements in group business across the top 25 markets and upper-scale chains, according to STR's 2023 P&L data. Overall, 14 of the top 25 markets reported double-digit increases in GOPPAR. "Total industry revenues and profits were well beyond 2022 levels as pricing power continued to outweigh the impact of softer leisure demand," said Claudia Alvarado Cruz, senior analytics manager at STR. "A lift in corporate demand made improvements especially notable across the upper-upscale brands and major markets. New York City was the shining example with 47 percent growth in GOPPAR." In 2023, GOPPAR reached $75.83, marking an 8.2 percent increase from 2022. TRevPAR stood at $211.49, indicating a 9.6 percent rise, while EBITDA PAR amounted to $53.05, up 7.6 percent from the prior year. Labor costs notably increased, reaching $71.56, reflecting a 13.2 percent rise.

THE MAJOR CHALLENGES faced by U.S. hotels are labor, the return of corporate, group and conference travel, the impact of inflation on cost lines and the energy crisis, said Michael Grove, COO of HotStats, in a recent presentation. In the same session at the International Hospitality Investment Forum, panelists debated the best metric by which to measure industry performance. While speaking during a panel session at IHIF titled "Decoding the Data", Grove said that the most pressing issue is fixed costs are being replaced by oncoming growth in the variable areas which changes the dynamic of the cost base. "One of the key items around the average rate growth is what's going to happen when the full business mix returns," Grove said. "We still have a lot more of the lower-rated business to come back-the tours and groups and the other segments. We need to look at the impact on the cost lines themselves, the expense items around the P&L and what impact inflation is having on those, what impact the labor challenge is having.

U.S. HOTEL PERFORMANCE showed improvement in the second week of January compared to the previous week, with mixed year-over-year comparisons, according to CoStar. Key metrics, including occupancy, ADR, and RevPAR, saw moderate increases during the week compared to the New Year's commencement. The performance was influenced by the Consumer Electronics Show. Occupancy came in at 53.3 percent for the week ending Jan. 13, up from the previous week's 46.8 percent and reflecting a 2.8 percent year-over-year decrease. ADR rose to $153.84, compared to the prior week's $152.17, showing a 6.3 percent increase from the previous year. RevPAR increased to $81.96 from the prior week's $71.28, showing a 3.3 percent rise from the corresponding period in 2023. Among the top 25 markets, Las Vegas demonstrated the largest year-over-year increases in each of the three performance metrics. Occupancy increased by 29 percent to reach 79.8 percent, ADR rose by 77.3 percent to $283.74, and RevPAR increased by 128.8 percent to $226.34.

PEACHTREE GROUP, THE newly formed affiliate of Peachtree Hotel Group created last week to handle its real estate investments, is launching its first initiative, the 1031 Exchange Delaware Statutory Trust program. The company also selected Tim Witt as president over the new program. A DST is a single-purpose entity qualified for Section 1031 real estate exchanges, according to Peachtree. It allows investors to exchange replacement properties without incurring taxable gain on the sale of previously owned assets. Peachtree's 1031 Exchange DST program will invest in institutional-grade hotels in the U.S. through Peachtree Hospitality Management, another division of Peachtree, is expected to operate any properties acquired as part of the exchange. "As we expand our array of high-quality, diversified investment strategies, we wanted to create 1031 Exchange DSTs to provide tax deferral strategies in the hospitality sector," said Greg Friedman, Peachtree's CEO and managing principal. "We anticipate significant growth and appreciation in the hospitality sector, driving values above pre-pandemic levels. Also, real estate offers an excellent alternative investment channel for those seeking an inflation hedge. We strongly believe hospitality is the most investable asset in the market today, and we anticipate being able to achieve outsized returns."

A STRONG PERFORMANCE by U.S. hotels during the first quarter of 2022, along with other factors, are leading CBRE Hotels Research to raise its forecast for the rest of the year. The research firm now expects a full recovery in ADR in 2022 and in demand and RevPAR in 2023. First quarter RevPAR reached $72.20, up 61 percent from year earlier, despite a surge from the COVID-19 omicron variant, according to CBRE. RevPAR growth was driven by a 39 percent increase in ADR and a 16 percent increase in occupancy. ADR was 5 percent ahead of 2019's levels, marking the third consecutive quarter in which levels exceed the same period in 2019. These rising rates demonstrate that travelers aren't price-sensitive in many peak-demand markets.

THE U.S. DEPARTMENT of Homeland Security will make available more than 64,000 additional H-2B temporary nonagricultural worker visas for fiscal year 2023. The extra visas will help the hotel and travel industries meet continuing labor shortages, according to the U.S. Travel Association. DHS also will issue its normal allotment of 66,000 H-2B visas as well as the 64,716 extra visas. The visas, which permit employers to temporarily hire noncitizens to perform certain labor in the U.S., became available at the beginning of October. Also, the agency created the new Worker Protection Taskforce to make sure the H-2B visa workers are not exploited. "The Department of Homeland Security is moving with unprecedented speed to meet the needs of American businesses," said Alejandro Mayorkas, secretary of Homeland Security. "At a time of record job growth, this full year allocation at the very outset of the fiscal year will ensure that businesses can plan for their peak season labor needs. We also will bolster worker protections to safeguard the integrity of the program from unscrupulous employers who would seek to exploit the workers by paying substandard wages and maintaining unsafe work conditions."

FOUR HOTELS RECENTLY joined Hospitality International's hihotels brand, including three Red Carpet Inns along the East Coast and a new-build Scottish Inns outside of Houston, Texas. The company expects more growth in the future. Hihotels includes five brands Scottish Inns, Red Carpet Inn, Master Hosts Inns, Downtowner Inns and Passport Inn. The new properties include. Red Carpet Inn in Elkton, Maryland, 55 rooms, former Days Inn Red Carpet Inn in North Brunswick, New Jersey, 50 rooms, former independent Red Carpet Inn in Edison, New Jersey, 42 rooms, former OYO Hotel Scottish Inns in Richmond, Texas, 35 rooms, new construction While three of the four are conversions, the property in Richmond is the latest new build to join the brand. Two other Scottish Inns construction projects are currently ongoing in Texas in Houston and Forest Hill. Another new build recently opened in Hitchcock, Texas.

THE AMERICAN HOTEL & Lodging Association recently announced three promotions among its leadership team. Kiersten Pearce was promoted to senior vice president for executive and strategic initiatives; Adrienne Weil was promoted to senior vice president for member engagement and services; and Kara Filer was promoted to senior vice president for strategic partnerships and business development. Pearce joined AHLA in 2018 and previously served as its vice president of member engagement and services, according to AHLA. In her new role she will develop industry initiatives that align with AHLA's strategic plan and organizational priorities. She'll also oversee the coordination of the AHLA board of directors, executive committee and associated committees, as well as operational functions, including legal. Weil previously served as AHLA's vice president of strategic partnerships and business development and led efforts to accelerate "non-dues" revenue growth from industry service providers and suppliers. In her new role, she will lead AHLA's membership team and spearhead efforts to optimize AHLA's committees and networks and ensure AHLA's differentiated value proposition remains relevant as member needs evolve.

THE U.S. HOTEL construction pipeline showed positive trends in the third quarter of 2022 as total projects stood at 5,317 containing 629,489 rooms, according to Lodging Econometrics. That's up 10 percent by projects and 6 percent by rooms year-over-year. There are 987 projects with 135,050 rooms under construction in the U.S. at the end of the third quarter, according to the U.S. Construction Pipeline Trend Report from LE. As many as 987 projects with 135,050 rooms are under construction during the period. According to LE, 2,074 projects containing 236,894 rooms will start construction in the next 12 months, up 14 percent by projects and 13 percent by rooms year-over-year, respectively. Projects in the early planning stage reached record in the third quarter, with 2,256 projects containing 257,545 rooms, a 14 percent increase by projects and 7 percent increase in rooms when compared to same period last year.

Eight new Hihotels by Hospitality International properties recently opened in five states: three in Texas, two in Pennsylvania, and one each in New York, Vancouver, and Ohio. The company provides franchising options across its five brands including Scottish Inns, Red Carpet Inn, Master Hosts Inns, Downtowner Inns, and Passport Inn. In Texas, the three properties include Scottish Inns - Eastex Freeway North in Houston, owned by 59 Little York, Inc. under Sandip Sindha's leadership; Scottish Inns in Decatur owned by Sunlight Partnership LLC led by Leena Patel; and Scottish Inns & Suites in Shenandoah/Woodland owned by Anjali Hospitality LLC under Mahesh Patel's guidance, Hihotels said. In Pennsylvania, two hotels have opened: Scottish Inns in Middletown, owned by Sky Hotels LLC led by Rajan Vesuwala; and Red Carpet Inn & Suites in Philadelphia, owned by Vrisha Lodging LLC led by Kiran Patel.

Joel Eisemann is now the senior advisor of real estate investment managing firm Noble Investment Group, the company said in a statement. Previously he was chief development officer for the Americas for IHG Hotels & Resorts. He will work with the Noble team to develop and scale the company's investment strategies as the firm continues the meaningful growth of its platform that serves institutional investors around the world, the statement added. Eisemann was with IHG for the past 11 years and retired last year. Under his leadership, IHG launched five new brands in the Americas and grew to approximately 5,000 hotels open and in the pipeline.

NOBLE INVESTMENT GROUP in Atlanta has acquired the Hilton Garden Inn Boise Downtown. The transaction caps more than $1 billion investment over the past year, according to a statement. The 132-room hotel is near the city's leisure and business centers, which includes the Idaho State Capitol, Boise State University, Jack's Urban Meeting Place, Idaho Central Arena, and the Boise Centre, according to Noble, which is led by Mit Shah as CEO. Hotel amenities include an indoor pool, 4,098 square feet of meeting space and it is pet friendly. "The Boise market demonstrates the key macro trends we are looking for in cities which we believe will outperform as we enter a new lodging cycle," said Dustin Fisher, Noble's senior vice president. "This acquisition aligns with our strategy to acquire high-quality, well-located assets in growth markets poised to benefit from the ongoing recovery in travel."

VIRAL "VICTOR" PATEL and Mahmood "Mike" Merchant are new members of Best Western Hotels & Resorts board of directors. Patel will represent several Midwest states and Ontario, Canada, and Merchant will represent California, Nevada and Hawaii. Patel has been a member of Best Western for more than 20 years, according to the company. He has served as a governor and as the chair of the Best Western Kentucky marketing co-op, liaising between the brand and hoteliers. He is currently the owner and operator of the Best Western Corbin Inn in Corbin, Kentucky, and will represent that state as well as Illinois, Indiana, Michigan, Iowa, Minnesota and Wisconsin. "I've witnessed tremendous growth within our brand over the years and am excited to join my fellow Board members as we move forward under Larry's leadership," said Patel. "Service is extremely important to me, and I feel grateful to have served my colleagues and community in a variety of roles over the years. I look forward to this new set of responsibilities and am fully committed to serving our hoteliers across the Midwest and parts of Canada and our hoteliers at large."

NATALIE ROBINSON IS now vice president of people and culture for Peachtree Group. Also, the Atlanta-based company, led by Jatin Desai and Mitul Patel as managing principals, also says it's on the way to a record year for new hotel construction. Good with people Previously, Robinson was the human resource director of title company OS National, according to Peachtree Group. She began her career developing accounting and billing policies and procedures, as well as human resources systems for two Atlanta law firms. She holds a bachelor's degree in sociology and criminal justice from the University of Georgia. "It's an exciting time at Peachtree as our organization expands and evolves," said Vivian Clarke, Peachtree's senior vice president of people and culture. "Natalie's strong leadership skills will advance our culture, drive our growth and talent strategy, and strengthen our reputation as an employer of choice. We are proud of Peachtree's high team member engagement, and the company culture built and recognize the opportunity to improve our people processes and discipline as we further scale the business." Peachtree made several changes to its structure and leadership in September.

WYNDHAM HOTELS & RESORTS franchisees now have access to a package of new guest engagement platforms at no cost, the company announced at its 2023 Global Conference in Anaheim, California. Wyndham executives also discussed the company's continued growth, including international developments and investments in India. Wyndham Community, the company's new owner engagement platform, was developed with feedback from the company's franchise advisory and brand councils. The software packages cover guest messaging, mobile check-in and check-out and upselling, all rolling out over the next few weeks. "Our focus is really, first and foremost, creating programs that franchisees aren't mandated to participate in, but have the opportunity to opt into," said Geoff Ballotti Wyndham's president and CEO. "Opting into a program like our most opted into program, Signature Reservation Service, allows them to not just drive $22,000 on average of incremental revenue at $1,000 cost, which is why 4,500 of our 6,000 us franchisees have opted into that. They haven't been mandated to sign up for the service, but they know it just makes a whole lot of sense."

DALLAS-BASED INVESTMENT firm NewcrestImage became the second largest shareholder in TiffinLabs, a Singapore-based food tech company which operates food delivery-focused virtual restaurant brands, a statement said. Founded in 2020, TiffinLabs introduced numerous virtual brands across Singapore and Malaysia. It started U.S. expansion in Dallas in 2021 and now operates in Chicago, Detroit, Knoxville, and Charlotte. By 2023, it expects to have 1,000 digital storefronts globally and to be operating in 30 U.S. cities. "TiffinLabs offers hotels and restaurants a low cost, turn-key source of incremental revenue for post-pandemic recovery, while for us as investors, TiffinLabs represents a strategic opportunity for long-term growth," said Mital Patel, managing partner of NewcrestImage. Because of the company's shareholder position, Patel now becomes a board member of TiffinLabs.

Kimberly Midkiff is now director of franchise development and the assurance and marketing program for hihotels by Hospitality International. Prior to that, she was the vice president of development for Sonesta and Red Lion Hotels Corp. Previously, Midkiff was director of sales and operations for JDH Developers, a hospitality real estate firm, according to company. Based in Lakemont, Georgia, she will be responsible for the growth of hihotels' Scottish Inns, Red Carpet Inn, Master Hosts Inns, Downtowner Inns and Passport Inn brands in the Southeast. According to the company, she will provide sales and marketing support and training to franchisees in the area as part of the Assurance & Marketing Program.

Sameer Nair is the new senior vice president of equity asset management at Peachtree Group. In this role, he will manage and implement asset oversight for Peachtree's real estate portfolio and preferred equity investments. Previously, Nair held the position of senior vice president of acquisitions and development at Hospitality Ventures Management Group, focusing on sourcing equity, debt, and third-party management opportunities, Peachtree said in a statement. Nair is an experienced asset manager with development and transactional expertise, Peachtree said. "Over the past decade, Sameer has been instrumental in the growth of some of the most respected companies in the hospitality industry," said Brian Waldman, Peachtree Group's CIO. "He has led multiple acquisition, development and investment efforts throughout the country, which gives him a deeper perspective of the industry and market."

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RISHI SUNAK MADE his first speech as Britain's prime minister on Tuesday (25), acknowledging the mistakes of his predecessor Liz Truss while vowing to fix the economy, lead with integrity and fulfil the promises of the Conservative Party's 2019 manifesto. Below are the highlights from Sunak's speech: ON THE ECONOMY "Our country is facing a profound economic crisis. The aftermath of Covid still lingers. Putin's war in Ukraine has destabilised energy markets and supply chains the world over." "I will place economic stability and confidence at the heart of this government's agenda. This will mean difficult decisions to come." MISTAKES WERE MADE "I want to pay tribute to my predecessor Liz Truss. She was not wrong to want to improve growth in this country. It is a noble aim. And I admired her restlessness to create change. "But some mistakes were made - not born of ill will, or bad intentions. Quite the opposite, in fact. But mistakes, nonetheless. And I have been elected as leader of my party and your prime minister, in part to fix them."