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THE U.S. HOTEL construction pipeline increased year-over-year in September for the seventh straight month, according to STR. Investor sentiment remains positive following the Federal Reserve's September interest rate cut, as shown by continued double-digit growth in the planning and final planning stages of the pipeline. In CoStar's pipeline, 157,253 rooms were under construction in September, a 7 percent increase from last year. An additional 268,190 rooms were in final planning, up 10.4 percent, while 336,205 rooms were in planning, up 38.4 percent. "Growth in rooms in construction has accelerated over the last seven months," said Isaac Collazo, STR's vice president of analytics. "Despite higher interest rates throughout 2024, developer appetite has remained strong. With the recent rate cut in September and more on the way, investor sentiment remains positive, as evidenced by continued double-digit growth across the planning and final planning stages of the pipeline. Upscale and upper midscale continue to account for about 50 percent of all rooms in the final phase, while luxury and midscale showed the highest growth in rooms in construction, up 48.5 percent and 34.5 percent, respectively."

THE U.S. HOTEL industry saw lower performance in the fourth week of July compared to the previous week, with mixed year-over-year results, according to CoStar. Key metrics such as occupancy, RevPAR, and ADR all declined from the prior week. Occupancy fell to 72 percent for the week ending July 27, down from 73.5 percent the previous week and showing a 0.4 percent year-over-year decrease. ADR stood at $164.45, compared to $165.91 the prior week, reflecting a 1.3 percent increase from last year. RevPAR was $118.37, down from $122.02 the previous week but up 0.9 percent compared to the same period in 2023. Among the top 25 markets, New Orleans saw the highest year-over-year occupancy increase, rising 16.9 percent to 66.7 percent. San Diego posted the largest ADR lift, up 12 percent to $294.80.

U.S. HOTEL WEEKLY performance showed mixed results in the fourth week of May compared to the previous week but posted positive year-over-year comparisons, according to CoStar. Despite a slight uptick in occupancy, both ADR and RevPAR decreased week-on-week across all key metrics. Occupancy rose to 67.7 percent for the week ending May 25, up from 67.4 percent the prior week, reflecting a 1.6 percent year-over-year increase. ADR decreased to $160.67 from $163.11, yet still representing a 2.3 percent surge compared to last year. RevPAR stood at $108.73, a decline from the previous week's $109.93, but marking a 3.9 percent increase compared to the same period in 2023. Among the top 25 markets, Houston experienced the most significant year-over-year boosts in occupancy, soaring 20.9 percent to reach 74.1 percent, while RevPAR surged by 29.2 percent to $89.15. Las Vegas recorded the sole double-digit increase in ADR, climbing by 10.9 percent to $217.53.

U.S. TRAVEL COMPANIES intensified their focus on loyalty programs during the post-COVID recovery to capitalize on industry momentum, despite frequent traveler dissatisfaction, according to a Morning Consult study. While increased personalization and expanded perks have been well-received, many travelers find the programs more complicated and less rewarding. Morning Consult's report, "What Travelers Actually Want from Loyalty Programs," found that U.S. travel loyalty program membership remained steady from 2021 to 2024. Millennials and high earners are the most frequent members, but no demographic group has shown significant growth. The study, conducted with 4,450 U.S. adults on Oct. 10 to 11, alongside monthly surveys from October 2021 to March 2024 with about 2,200 adults each, revealed one key finding: loyalty program members are more likely to stay at hotels or fly with airlines where they hold memberships, compared to choosing other providers.

THE U.S. DISTRICT Court for the Eastern District of Texas on Nov. 15 struck down the Department of Labor's rule raising salary thresholds for overtime exemption under the Fair Labor Standards Act. The ruling vacates increases from $35,568 to $43,888 on July 1, with a planned rise to $58,656 by Jan. 1, 2025. Hotel associations, including AAHOA and the American Hotel & Lodging Association, welcomed the decision. U.S. District Judge Sean Jordan in Sherman, Texas, ruled that the 2024 rule "effectively eliminates" the evaluation of an employee's duties in favor of a "salary-only test" and that automatic threshold updates every three years violate federal rulemaking requirements. Jordan, appointed by President Donald Trump, emphasized the rule's overreach.

U.S. HOSPITALITY BUSINESSES reported a 108.2 percent year-over-year health metric for the fourth quarter of 2024, the highest in four quarters, according to the Hospitality Group and Business Performance Index by Cendyn and Amadeus. Tampa, Houston, and Miami led the top 10 cities in rankings. The index combines event data from Cendyn's Sales Intelligence platform, formerly Knowland, with hotel booking data from Amadeus' Demand360, covering group, corporate negotiated, global distribution system, and events performance, the companies said in a joint statement. Top 10 cities by index: Tampa - 121.4 percent Houston - 120.6 percent Miami - 116.8 percent New York City - 112.0 percent Chicago - 111.6 percent Phoenix - 110.4 percent Detroit - 109.8 percent Louis - 109.6 percent San Diego - 109.6 percent New Orleans - 108.3 percent

U.S. HOTEL PERFORMANCE remained mixed in the fourth week of September compared to the prior week, according to CoStar. However, the industry reported positive year-over-year comparisons. Key metrics showed a slight decline in occupancy, while RevPAR and ADR experienced week-over-week growth. Occupancy dipped slightly to 68.4 percent for the week ending Sept. 28, down from 68.9 percent the previous week, but up 2.6 percent year-over-year. ADR rose to $170.24, an increase from $168.80 the prior week, and 7.5 percent higher than the same week last year. RevPAR edged up to $116.50 from $116.22, reflecting a 10.2 percent increase compared to the same period in 2023. Among the top 25 markets, New York City recorded the highest year-over-year increases in all key performance metrics: occupancy rose by 11.4 percent to 93.2 percent, ADR increased by 52.8 percent to $523.69, and RevPAR grew by 70.1 percent to $488.32. The market's performance was bolstered by the United Nations General Assembly.

APPROXIMATELY 52 PERCENT of Americans plan to travel overnight for leisure during the upcoming holidays, according to a recent American Hotel & Lodging Association survey. Hotels remain the top choice for 45 percent of leisure and 59 percent of business travelers. However, inflation continues to pose a significant challenge for hoteliers and travel-related businesses. A Morning Consult poll of 2,201 U.S. adults from Sept. 30 to Oct. 2 found that of the 66 percent of Americans planning to travel in the next four months, 25 percent are more likely, and 41 percent are equally likely to stay in a hotel this fall or winter compared to last year. The survey found 32 percent of Americans plan to travel overnight for Thanksgiving, and 34 percent for Christmas, matching last year's figures.

THE NUMBER OF U.S. hotel rooms under construction in June reached its highest level in 16 months, according to CoStar. The construction volume increased year-over-year for four consecutive months, with upscale and upper midscale segments dominating pipeline activity. "The number of rooms in construction has grown year-over-year for four consecutive months," said Isaac Collazo, STR's vice president, analytics. "While upscale and upper midscale continue to dominate, accounting for about 50 percent of all rooms in the final phase of the pipeline, the pace of activity in these segments has slowed compared to last year. Midscale and economy have shown the most growth, up 42 percent and 34 percent, respectively, with newer brands and extended-stay accounting for most of the new construction across the midscale segment." Approximately 157,713 rooms were under construction in June, up 5.5 percent from the same month last year. Additionally, 266,619 rooms were in the final planning phase, a 9.8 percent increase from June 2023. The planning stage saw 333,827 rooms, a rise of 38.7 percent compared to the previous year.

CROWNE PLAZA HOTELS & Resorts, part of IHG Hotels & Resorts' portfolio, recently rolled out its "New Modern" design across U.S. properties with zones for productivity, restoration and collaboration. The design caters to the growing bleisure travel segment. The company expects 70 percent of Crowne Plaza's Americas estate to feature updated designs by late 2025, IHG said in a statement. "As the once firm lines between business and leisure travel blur further, Crowne Plaza remains a trusted leader at the forefront of serving the new blended traveler," said Ginger Taggart, IHG's vice president, brand management for global premium brands. "Our latest design approach introduces more inviting gathering spaces that inspire connection and enable guests to balance business and social interaction."

U.S. HOTEL PERFORMANCE improved in the third week of May compared to the previous week, with positive year-over-year comparisons, according to CoStar. Key metrics, including occupancy, RevPAR, and ADR, all saw week-over-week increases. Occupancy increased to 67.4 percent for the week ending May 18, up from 66.1 percent the previous week, marking a 0.2 percent year-over-year rise. ADR rose to $163.11 from $162.14, reflecting a 2.6 percent jump compared to last year. RevPAR reached $109.93, up from $107.24 the prior week, showing a 2.8 percent increase compared to the same period in 2023. Among the top 25 markets, Houston experienced the only double-digit occupancy increase, rising 10.5 percent to 67.9 percent. Atlanta reported the highest year-over-year increases in ADR, rising by 10 percent to $137.30, while RevPAR increased by 18 percent to $98.86.

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.

THE SHIFT IN the Thanksgiving calendar led to lower year-over-year performance for the U.S. hotel industry in the fourth week of November, according to CoStar. Occupancy, RevPAR and ADR all declined compared to the prior week. Tampa and Oahu saw the strongest performance improvements among the top 25 markets. Occupancy dropped to 50 percent for the week ending Nov. 30, down from 59.7 percent the previous week and 7.7 percent lower year-over-year. ADR fell to $141.09, down from $150.49 the prior week and 3 percent lower than the same week last year. RevPAR decreased to $70.59 from $89.80, reflecting a 10.5 percent drop compared to the same period in 2023.

MARRIOTT INTERNATIONAL REPORTED record growth in 2024, opening 123,000 gross rooms and achieving 6.8 percent net room growth. The company ended the year with more than 577,000 rooms in its development pipeline and signed more than 1,200 deals-an average of three per day-totaling nearly 162,000 rooms globally. The company signed a record 608 deals in the U.S. and Canada last year, Marriott said in a statement. "2024 was a year of growth for Marriott, with regional milestones, segment entries, brand expansions, and market debuts," said Anthony Capuano, Marriott's president and CEO. "We remain focused on connecting people through travel, and I'm excited about the work our global teams are doing to drive growth, innovation, and deliver strong results for our owners and franchisees."

ROBERT MCDOWELL, CHIEF commercial officer of Choice Hotels International, will leave the company on Jan. 15, according to a Dec. 5 filing with the U.S. Securities and Exchange Commission. He assumed his current leadership role in 2016, overseeing digital commerce, revenue management, procurement and customer care functions, according to Choice's website. McDowell, who joined in May 2011 as senior vice president of global distribution, is departing to pursue other opportunities, Choice's filing said. During his tenure, he led customer acquisition through an integrated digital ad campaign, developed a top-tier revenue management platform, relaunched the Choice Privileges loyalty program, and enhanced the digital platform, Choice said.

MARRIOTT INTERNATIONAL REPORTED 4.9 percent year-over-year global RevPAR growth in the second quarter of 2024, with U.S. and Canada RevPAR rising 3.9 percent and international RevPAR increasing 7.4 percent. The company's net income grew to $772 million from $726 million a year ago, Marriott said in a statement. "Marriott reported strong second quarter results, with net rooms up 6 percent year-over-year and worldwide RevPAR growth of nearly 5 percent, as consumers continued to prioritize travel," said Anthony Capuano, Marriott International's president and CEO. "International RevPAR increased more than 7 percent, with Asia-Pacific excluding China leading the way, posting an impressive 13 percent RevPAR increase from the year-ago quarter." RevPAR for the U.S. and Canada grew nearly 4 percent during the quarter, Capuano said, and all customer segments grew versus the prior year quarter.

THE U.S. SUPREME Court overturned a lower court ruling that found Grants Pass, Oregon's ban on outdoor sleeping on public lands violated the constitution's prohibition of cruel and unusual punishment. AAHOA expressed concerns over the ruling in the case that could push the homeless population into hotels. Previously, the U.S. Ninth Circuit Court held that enforcing city ordinances banning outdoor sleeping did violate the Eighth Amendment's Cruel and Unusual Punishments Clause "whenever the number of homeless individuals in a jurisdiction exceeds the number of 'practically available' shelter beds," according to the Supreme Court ruling. This led to several lawsuits against cities filed by homeless advocates, including one against Grants Pass that led a district court to file an injunction prohibiting the city from enforcing the ordinance. The Supreme Court overturned the district court's holding, saying the city's punishments for violations, including fines in first offenses and imprisonment for multiple violations, did not meet the Eighth Amendment's definitions of cruel and unusual. That ruling has an immediate impact on cities and counties in Oregon and other Western states, according to Oregon media.

MARRIOTT INTERNATIONAL RECENTLY launched "Business Access by Marriott Bonvoy," an online travel booking program for small and medium business travelers. This program combines the benefits of the Marriott Bonvoy portfolio with travel tools for booking, managing, and expensing business travel. It is available to businesses in the U.S., Canada and other countries, Marriott said in a statement. "We recognize the significant value small businesses provide to the hotel industry," said Drew Pinto, Marriott International's executive vice president and chief revenue and technology officer. "Whether small to medium-sized businesses are looking for convenient online booking capabilities for their employees or better expense management solutions, the all-in-one platform, merged with our portfolio of hotel brands around the world, provides everything they need to manage their business travel needs."

PINAL PATEL WAS elected secretary of AAHOA in the culmination of 2024 AAHOA Convention & Trade Show held this week in Orlando. New members of the association's board of directors also were elected and new industry partners were announced. Pinal, of Goodlettsville, Tennessee, defeated H.K. "Hare Krishna" Patel for the secretary position. He was born in Bardoli, India, and his family moved to the U.S. in 1984 when he was 2, according to AAHOA. They lived in Nashville, Tennessee, Pinal said his parents did not speak any English when they brought him and his 1-year-old brother to America. Pinal's parents bought their first independent hotel in 1991, and he is a second-generation hotelier even after graduating flight school at Embry Riddle in Daytona Beach, Florida, before buying his first franchise property. Previously, he has served as an AAHOA ambassador and as AAHOA's director at large Eastern Division. "Hard work definitely pays off," Patel said. "I'm going to make sure we do what's right for the association and for the members. I promise to all my supporters, my family, and my fellow members that I will not let you down. I will do what's best for the association's interests."

PRESIDENT JOE BIDEN signed the "American Relief Act, HR 10545" into law Saturday morning, preventing a government shutdown just before Christmas and ensuring funding through March 14. The American Hotel & Lodging Association praised lawmakers for averting a disruption that could have affected holiday travel and left millions of federal employees furloughed or unpaid. However, AHLA said the year-end deal excluded the lodging fee transparency provisions for which hotel industry associations had advocated. "The bipartisan funding bill I just signed keeps the government open and delivers urgently needed disaster relief and funds to rebuild the Francis Scott Key Bridge," Biden said. "This agreement represents a compromise, meaning neither side got everything it wanted, but it rejects the accelerated tax cut for billionaires that Republicans sought and ensures the government can continue to operate at full capacity. That's good news for the American people, especially as families gather this holiday season."