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THE U.S. HOTEL industry is on track to full recovery from the COVID-19 pandemic, according to STR's latest industry forecast. Progress may be uneven, however, as some obstacles, such as labor costs, still remain. ADR will near full recovery in 2022, averaging $130 while occupancy for the year is predicted to reach 63.4 percent. RevPAR's average for the year is set to be $82,down 4 percent compared to 2019, but it is expected to be fully recovered in 2023, according to the forecast given at the 43rd Annual NYU International Hospitality Industry Investment Conference. STR and Tourism Economics said changes in the nation's economy warranted the new forecast. "We have essentially moved up the top-line recovery timeline by one year, with the caveat that improved RevPAR projections are largely due to ADR," said Amanda Hite, STR's president. "ADR has risen more rapidly than we expected-in some cases, that rise was due to strong demand confronting capacity constraints, which enabled solid revenue management, while in other cases, the rise was more influenced by inflation. When adjusted for inflation, RevPAR is further off the pace and will likely remain below 2019 levels until at least 2025. Other than the first quarter of 2021, demand has mostly adhered to the forecast with strong leisure travel, slowly improving group business and an expected progressive increase in international arrivals next year. Of course, these are all national projections of top-line performance. Recovery is not playing out the same across the marketplace, and as noted in our latest monthly P&L release, the cost of labor is adding pressure on the bottom line, which is a contributing factor to many hotels driving rate. Recovery is progressing at a solid rate no doubt, but there will still be plenty of ups and downs along the way."

NEARLY 500,000 HOTEL operations jobs lost during the pandemic will not returning to the industry before the end of the year, according to a report from the American Hotel & Lodging Association. In response, AHLA has launched the "Hotels are Hiring" ad campaign with the goal of filling more than 100,000 jobs in the industry. A surge in leisure travel has led to improved conditions for most U.S. hotels, but AHLA's economic analysis found the recovery is far from bringing the industry back to pre-pandemic levels. Urban markets in particular are lagging. Hotel occupancy is projected to drop 10 percentage points from 2019 levels, the report said, and room revenue is expected to drop $44 billion this year compared to 2019. State and local governments have lost more than $20 billion in unrealized tax revenues from hotels over the past two years. AHLA and AAHOA held the Virtual Action Summit on July 20 to 22 in which hoteliers from across the country met with members of Congress to ask for help.

HOTEL BRAND HIHOTELS by Hospitality International has partnered with Getaroom, a hotel distribution platform within OTA Priceline. The arrangement is expected to increase hihotels reservations capability through adding Getaroom's website and call center. The benefits for hihotels' five brands, Red Carpet Inn, Scottish Inns, Master Hosts Inns, Downtowner Inns and Passport Inn, include stronger distribution, access to more incremental guests and increased revenue, according to Hospitality International. "Hihotels is thrilled to announce this strategic alliance with Getaroom," said Gary Gobin, hihotels director of operations. "The opportunity to expand the distribution of our hotels is a top priority. This new relationship will help to bring more visibility to our hotels and offer budget-friendly accommodations to travelers."

ADR GROWTH FOR U.S. extended-stay hotels reached a record high in February, according to hotel investment advisors The Highland Group. Owing to this, the segment saw record high demand and monthly RevPAR up by more than 40 percent during the month compared to a year ago. During the month, occupancy growth was also significant with extended-stay hotel's occupancy premium compared to the overall hotel industry staying well above its long-term average. The 3.1 percent increase in extended-stay room supply in February is the fifth consecutive month of 4 percent or lower supply growth, according to "U.S. Extended-Stay Hotels Bulletin: February 2022" report by Highland Group. It suggested that mid-price and upscale supply increases should be well below pre-pandemic levels during the near term, the report added.

PEACHTREE HOTEL GROUP and its affiliates added five executives to its management teams. These new appointments aim to strengthen the company's ability to support strategic growth objectives to scale its investment platform and further diversify allocation strategies, the company said in a statement. The Atlanta-based company, led by Jatin Desai and Mitul Patel as managing principals, appointed Matthew Ram as senior vice president of acquisitions and Susan McClure as vice president leadership and executive development. Will Woodworth assumed the role of vice president for investments, Nicole Havens is vice president of revenue management and Kelly Mascari is vice president of operations at PHG's affiliate Peachtree Hospitality Management.

THE U.S. DEPARTMENT of Justice will appeal the recent court ruling that overturned a federal mask mandate on public transportation. In response, the U.S. Travel Association said that the mandate is simply out of step with the current public health landscape. Last week, U.S. District Judge Kathryn Kimball Mizelle in Tampa ruled that the CDC had overstepped its authority in issuing the mask mandate. The Centers for Disease Control and Prevention asked the DOJ to appeal the ruling. In a statement on April 20, the CDC said that an order requiring masking in the indoor transportation corridor remains necessary for the public health. CDC will continue to monitor public health conditions to determine whether such an order remains necessary, it added.

HOTEL OWNERS MUST treat young associates better as labor is the hot-button issue in the hospitality industry, according to a blog post by HotStats. Increasing wages for entry-level work and promoting career advancement are also vital toward attracting young talent, it added. The blog post said that total payroll on a per-available-room basis is still around two times less in 2021 compared to 2019, according to HotStats data. Year-to-date October 2021, total payroll PAR in the U.S. is $43.46 compared to $85.86 two years ago. "Not only should a hotel care about customers, its number one target market is internal associates," said Leora Halpern Lanz, assistant dean, academic affairs and associate professor of the practice at Boston University's School of Hospitality Administration, in the blog. "If they're treated well, word gets out that it's a good place to work. The industry needs to evaluate why people are working 14-hour days because they're being worn down. There has to be an element of work/life balance." Kyle Allison, host of the Hospitality MD podcast, said that the hotel industry needs to tweak its legacy messaging.

HILTON'S EXTENDED-STAY Homewood Suites brand is getting a new look. The brand's new Prototype 10.0 includes a smaller footprint but with more rooms, as well as changes to guest suites and common spaces. The new prototype draws from design ideas implemented during a 2019 update implemented in open Homewood Suites hotels as part of the brand's 30-year anniversary. Prototype 10.0 features a site size reduction from 2.49 acres to 2.36 acres and building area reduction by more than 3,350 square feet while increasing the number of rooms from 121 to 131 suites. Another developer-oriented change is new F&B options aimed at increasing revenue. The suites have been modified so they can be booked individually or as connected groups. The fitness center has been reimagined and guest laundry rooms have been expanded. More common areas have been added inside and outside in the prototype. "We modernized the brand to appeal to the evolving needs of our guests, who are going to love the functionality and flexibility of the innovations, which are intended to make them feel both empowered and cared for, whether they're with us for an overnight trip or an extended stay," said Rick Colling, global head of Homewood Suites.

Jennifer Stilwell is the new vice president of marketing for auroHOTELS, led by D.J. Rama as president and CEO. Previously, she served as chief marketing officer for VisitGreenvilleSC, the destination marketing organization for Greenville, South Carolina, where auroHOTELS is based. Prior to VisitGreenvilleSC, Stilwell led tourism brand marketing for Leslie Advertising, handling accounts such as the South Carolina Department of Parks, Recreation & Tourism. She also worked for New York ad agency Warren/Kremer representing NYCVB, Four Seasons Hotels & Resorts, La Cabana in Aruba and Club Med. A native of New Jersey, Stilwell graduated from Rollins College. While at VisitGreenvilleSC, where she also served as executive vice president and chief strategic officer, she directed and launched the "yeahTHATgreenville" rebranding campaign for the city.

THE U.S. HOTEL construction pipeline dropped 8 percent by projects and 10 percent by rooms in 2021 when compared to 2020, according to Lodging Econometrics. However, the number of projects in the early planning stage is rising, it added. The total construction pipeline at the fourth quarter of last year stood at 4,814 projects containing 581,953 rooms, according to LE. There were 2,021 projects containing 239,816 rooms in the early planning stage, up 18 percent by projects and 11 percent by rooms, LE data shows. According to LE, 1,821 hotel projects containing 210,890 rooms are scheduled to start construction in the next 12 months. As many as 972 projects containing 131,247 rooms under construction finished the year. "New project announcements are down in the fourth quarter. However, developers are eager to accelerate projects long-delayed by the COVID-19 pandemic. Unfortunately, they face some development roadblocks, including escalating inflation and supply chain shortages, that are causing higher prices versus 'pre-pandemic' costs for labor and materials," LE said. "These factors continue to prolong hotel development timelines. We anticipate these challenges to abate throughout the year and see construction starts to moderately improve."

THE OMICRON COVID-19 variant could derail the hotel industry's fledgling recovery if countries like the U.S. move forward to tighten testing policies, according to HotStats. Future hotel bookings, meetings and other hotel-related activity will be impacted by the expectation of travel impediments, whether self-imposed, company-imposed or government-mandated, it added. In the U.S., major indices were still down double digits in October 2021 compared to same month two years ago, according to a blog post by HotStats. "Since a rapid uptick in occupancy from the beginning of the year through the summer, hitting an apex in July, occupancy in the U.S. has since more or less flatlined, a signal that the leisure boom could not be sustained at the same levels prior," said HotStats. "Though much maligned, there is propitious data surfacing in corporate travel. In October, corporate ADR was $7 higher than in October 2019 and $35 higher than in the previous month. Corporate volume mix, defined as the proportion of rooms sold at the corporate rate compared to total rooms sold, has grown 6 percentage points since July."

THE U.S. TRAVEL Association and Tourism Diversity Matters formed a new strategic partnership to focus on issues related to diversity, equity and inclusion (DEI), a statement from USTA said. The partnership will provide USTA more access to Tourism Diversity Matters' subject matter expertise, research and resources. Founded in 2021, Tourism Diversity Matters addresses blind spots in ethnic disparities within the tourism and events industries. It will provide these industry leaders with resources and tactics to develop more effective DEI strategies to engage, recruit and retain a diverse workforce. DEI is a core priority of USTA, the association said in a statement, and is committed to having a vital role in affecting lasting change and supporting the development of industry-wide DEI plans. The partnership will advance workforce development issues and federal policy initiatives that support travel's recovery, the statement added. "USTA has a clear vision: in working closely with Tourism Diversity Matters, we aim to help the travel sector achieve a truly diverse, equitable and inclusive industry for all," said Roger Dow, USTA's president and CEO and a board member of Tourism Diversity Matters. "Aligning with Tourism Diversity Matters is a great step toward this pursuit that will enrich USTA's membership for years to come."

WAYSIDE INVESTMENT GROUP of Houston, Texas, will manage the Holiday Inn Express & Suites in Katy, Texas, in collaboration with Southwest Hospitality Management. The hotel will undergo a complete Formula Blue multimillion-dollar renovation. Wayside, led by Miraj Patel as president, has added three hotels this year to its purchasing, development and management services. The 98-room Holiday Inn is near the Golf Club at Cinco Ranch, TopGolf Houston, Katy Mills Mall and CityCentre. "The addition of the Holiday Inn Express & Suites Katy demonstrates our focused growth in our local Houston-area market and provides us the opportunity to launch our collaboration with Southwest Hospitality Management, which will provide our companies the resources to grow our footprint," Patel said.

THE BUSINESS TRAVEL revenue of U.S. hotels is expected to drop $20 billion this year, down 23 percent when compared to 2019, according to the American Hotel & Lodging Association and Kalibri Labs. It is already reported that hotels lost an estimated $108 billion in business travel revenue during 2020 and 2021 combined. The report said that business travel revenue, the largest source of revenue in hotel industry, will take significantly longer to recover. However, leisure travel is expected to return to pre-pandemic levels this year, the report added. "While dwindling COVID-19 case counts and relaxed CDC guidelines are providing a sense of optimism for reigniting travel, this report underscores how tough it will be for many hotels and hotel employees to recover from years of lost revenue," said Chip Rogers, president and CEO of AHLA. "The good news is that after two years of virtual work arrangements, Americans recognize the unmatched value of face-to-face meetings and say they are ready to start getting back on the road for business travel."

NEWBOND HOLDINGS HAS acquired Aloft Tampa Downtown in Tampa, Florida, marking its third downtown riverfront hotel investment in the city in 24 months. This takes the company's total to more than 700 hotel rooms and more than 800 ft. of frontage along the Hillsborough River, Newbond said in a statement. Niel Luthra is the founding partner of New York-based Newbond Holdings. The 130-key hotel, located on the Riverwalk, provides both indoor and outdoor amenities, featuring a waterfront pool, gym, corporate meeting and event spaces, as well as a bar and lounge, the statement added. Newbond is planning a comprehensive hotel renovation to include all guestrooms, public areas and the pool deck. "Our third hotel investment in downtown Tampa since 2021 demonstrates our conviction in the long-term Tampa growth story," said Neil Luthra, founding partner of Newbond. "Tampa's robust job and population growth; flourishing convention and tourism business; and continued institutional investment have created one of the strongest real estate and hospitality markets in the country."

A TOTAL OF 8,000 attendees gathered at the Los Angeles Convention Center for the 2023 AAHOA Convention & Trade Show saw more than 20 education sessions, 500 exhibiting companies, keynote speakers and four networking events, including the Welcome Reception at the world-famous LA Coliseum. The conference broke various records from AAHOA's 34-year history, AAHOA said in a statement. AAHOACON23 culminated in a gala event in the form of AAHOA Awards, celebrating excellence in the field of hospitality. However, several large hotel companies boycotted AAHOACON23 over AAHOA's support for franchising reform. "With a record level of booth sales for the trade show, it was the largest trade show in AAHOA's 34-year history, and a 22 percent increase over 2022," AAHOA said. "There were nearly 520 total exhibiting companies, the second largest exhibitor total in AAHOACON history," it said. Now past AAHOA Chairman Neal Patel officially turned over the reins to his successor, Florida hotelier Bharat Patel. According to AAHOA, the AAHOACON23 Trade Show was sold out, and a wait list was created - the first time ever in AAHOA history. The event also generated a very strong number of first-time exhibitors, 167, which is the second-largest number of first-time exhibitors in AAHOA history, AAHOA said. "The exhibit sales team achieved a new record in exhibit booth sales for AAHOACON24. A total of 170 exhibitors have rebooked and will return for AAHOACON24 in Orlando next year. This number represents more than 40 percent of the show floor space and 100 percent of all exhibiting hotel brands rebooked for AAHOACON24," the statement added. "The adjectives and praise to describe AAHOACON23 and our remarkable AAHOA Team keep pouring in," said Laura Lee Blake, AAHOA president and CEO. "I could not be prouder of how AAHOACON23 turned out, and we are so thankful for all the sponsors, exhibitors, speakers, and attendees who helped make this convention and trad

NOBLE INVESTMENT GROUP has announced leadership promotions across its investment, capital markets, finance, and asset management teams - reflecting the firm's continued commitment to the professional development and advancement of its talented and long-tenured team. According to a company statement, Dan Konzelmann is promoted to vice president and will be responsible for executing strategies across Noble's investment platforms. Emily Feeney has been promoted to senior director and will look after financing new asset acquisitions, managing capital market relationships and asset sales. Jeff Pennington is elevated as senior director and will be in charge for internal and external reporting, fund modeling, and valuations. Bo Zhang has been promoted to senior associate, and will be responsible for information, data, and analytics for our asset management team and investment management strategies, the statement added. "We are extremely proud of these Noble leaders and their well-deserved promotions," said Mit Shah, Noble CEO. "We look forward to their continued growth and contributions to the success of our organization as we expand and execute the depth and breadth of our investment strategies."

HILTON RECENTLY DONATED nearly $500,000 to support local relief efforts in response to the wildfires that consumed more than 2,500 acres of land and took the lives of over 100 residents in Maui, Hawaii. The new donation supplements the $325,000 previously pledged by Hilton, the Hilton Global Foundation and members of the broader Hilton community since early August, the company said in a statement. At a recent gathering in Las Vegas, more than 9,000 Hilton hotel sales and operational leaders from Focused Service and All Suites brands across the Americas raised nearly $175,000 for Maui relief efforts, Hilton said. The donations will benefit the Hawaii Community Foundation's Maui Strong Fund and United Way Maui. The company has been operational in Hawaii for more than 60 years, the statement added. "Hilton stands in solidarity with the people of Maui and the Hawaiian community," said Katherine Lugar, executive vice president of corporate affairs at Hilton. "Lahaina holds a special place in our hearts, and we're dedicated to aiding our team members and relief efforts in every possible manner. The collective efforts of our team members, hotel owners, community partners, and guests have been truly inspiring. Our thoughts remain with those in Maui."

THE G20 NEW Delhi Leaders' Declaration underscores tourism's role in promoting sustainable social and economic development, the World Tourism Organization of the United Nations said in a statement. The G20 economies' meeting on Sept. 9 to 10 acknowledged the potential for constructing a future through development models that implement sustainable, inclusive, and equitable transitions globally, ensuring no one is left behind. The high-level discussions concluded with the launch of the Leaders' Declaration, a set of agreed-upon aims for advancing development and prosperity, the statement added. The statement recognizes tourism for its "pivotal" role in driving the achievement of the sustainable development goals and the wider 2030 Agenda for Sustainable Development.

U.S. HOTEL CONSTRUCTION increased slightly in December after 25 consecutive months of decline, according to STR. Projects in the later stages of development saw a reversal in their decline and luxury projects were up. There are 159,344 rooms in construction during the month, up 0.3 percent, over Dec. 2021. As many as 213,066 rooms are in the final planning state, an increase of 15 percent over last year. STR pipeline data added that 240,092 rooms are under planning, a decline of 15.6 percent. New York City, Phoenix and Dallas are set to see the largest supply percentage increases from current construction. The luxury and upscale segments would see the most supply. "While the overall pipeline continued to contract year over year, December showed strength in the later phases of development," said Alison Hoyt, STR's senior director of consulting. "Over the past year, we've seen late-stage pipeline rooms consistently decline from 2021 levels, while rooms in the planning phase often showed double-digit growth. We started to see a change in this pattern in November, when final planning rooms significantly jumped year over year and planning rooms came down pretty firmly. The same occurred in December, with the only difference being construction increasing slightly over 2021. When looking strictly at volume, the in-construction phase has been fairly stable throughout the year, remaining under 160,000 rooms and showing month-over-month increases from July through October and again in December."