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GOPPAR FOR U.S. hotels improved in September compared to the month before and it exceeded the pre-pandemic levels, according to STR. Meanwhile, the cost of labor per available room came in higher than the pre-pandemic comparable for the first time. GOPPAR was $84.03 for the month, up from $64.26 reported in August. It was $78.30 for July and $91.23 in June. The performance index was $88.63 in May and stood at $90.96 in April. EBITDA PAR was $60.71 for September, TRevPAR was $222.97 and labor costs per room were $71.52. "Labor costs moved ahead the 2019 comparable due to continued high levels of hospitality unemployment and more spending on contract labor," said Raquel Ortiz, STR's director of financial performance. "Total labor costs were up 5 percent year to date, with all departments reporting higher expenses, except F&B, due to less group demand earlier this year. GOPPAR was the strongest since June 2022, and profit margins came in higher than September 2019. Profit margins have been strong for some time caused by lower employment levels and reduced services."

THE HOTEL INDUSTRY is poised for a fairly strong year in 2023 despite remaining concerns about a downturn, according to a pair of reports. Continuing demand is expected to overcome extra labor costs and economic vagaries to propel performance above pre-pandemic levels, according to the reports from the American Hotel & Lodging Association and STR. The state of the industry AHLA's 2023 State of the Hotel Industry Report projects that demand, nominal room revenue and state and local tax revenue all are well on the way to recovery. Operational challenges, such as staffing shortages and economic factors will replace COVID as hoteliers' top concerns, the report predicts. "Three years after the unprecedented hardships our industry faced due to the pandemic, hotels continue to make significant strides toward recovery," said Chip Rogers, AHLA president and CEO. "2022 saw one of the strongest summer travel seasons ever, and this year we expect hotels to reach new heights in terms of room revenue, room-night demand and state and local tax revenue. But when inflation is taken into account, our industry likely won't see full recovery for several more years. Nevertheless, hotel performance is trending in the right direction - great news for our industry and our employees, who are enjoying better pay, more career opportunities, upward mobility and flexibility than ever before."

NEARLY 80 PERCENT of travelers said that the latest COVID-19 variant, BA5, is unlikely to make them cancel or postpone international travel this year, according to a survey from travel risk assessment firm Global Rescue. At the same time, Global Rescue said relaxed COVID-19 recommendations from the Centers for Disease Control and Prevention could encourage travelers' confidence. The floodgates are opening The Summer 2022 Global Rescue Traveler Safety and Sentiment Survey found that 68 percent of respondents have already traveled internationally since the pandemic. Another 16 percent expects to travel abroad by the end of the year and 9 percent plan to do so in the first quarter of 2023. "Whether it's revenge travel or responsible travel following vaccination, or a combination of both, 7-out-of-10 travelers are much less concerned about travel compared to the beginning of the pandemic," said Dan Richards, CEO of Global Rescue and a member of the U.S. Travel and Tourism Advisory Board at the U.S. Department of Commerce. "They feel safe enough to plan trips and vacations because they're vaccinated, borders are open, and they have confidence they'll be able to get home if the worst happens." The U.S. ending its requirement for a negative COVID test to enter the country in June also went far in increasing confidence and encouraging visits from international travelers, Richards said. Nearly half of travelers, 49 percent, said that they are more likely to travel internationally in the next 12 months as COVID related restrictions are relaxed.

INTERNATIONAL INBOUND TRAVEL is expected to slow down in the fall after surging over the summer, according to the latest U.S. Travel Association forecast. USTA also expects it may take until 2025 for the travel segment to recover to pre-pandemic levels. Inbound travel recovery picked up in summer and reached a pre-pandemic high of 35 percent below 2019 levels in July 2022, said U.S. Travel Association. It improved from a 41 percent decrease in May and declines of more than 50 percent earlier in 2022. The latest report by Aaron Szyf, economist, USTA, said that inbound travel recovery continued from Europe and Latin America in the past few months, which was 22 percent below 2019 levels in July. Meanwhile, Asian markets declined 66 percent in July, largely due to stagnation from China and a very slow return from Japan.

THE REVPAR OF U.S. hotels reached an all-time weekly high on a nominal and a pandemic-era high on an inflation-adjusted basis in the third week of June, according to STR. Boosted by the highest weekly demand of 28 million room nights sold since August 2019, occupancy was the highest of the pandemic-era during the week. Occupancy was 71.8 percent for the week ending June 18, up from 70.6 percent the week before and dropped 4.8 percent from 2019. ADR was $155.02 for the week, slightly down from $155.37 the week before and increased 14.9 percent from three years ago. RevPAR reached $111.29 during the week up from $109.76 the week before and up 9.4 percent from 2019. San Diego saw the only occupancy increase, up 0.5 percent to 86 percent, over 2019 among STR's top 25 markets. According to STR, New York City (86.6 percent), San Diego and Seattle (85 percent) led the major markets in absolute occupancy for the week.

ZERO-BASED BUDGETING is essential for hotels amid near- and long-term volatility, according to a blog from HotStats. The blog also suggested that hoteliers need to turn to other futureproofing or future-cushioning methods. In a recent blog post, Michael Grove, COO, HotStats said that zero-based budgeting, a method of budgeting in which all expenses must be justified for each new period starting from a zero base, is very necessary given the fluidity of the global economy and, ultimately, its impact on hotel operations. At the recent 2022 M3 Partners meeting, Grove first illustrated the pandemic's effect on worldwide profits and how it's changed the landscape. "It's worth reminding ourselves of the importance and magnitude of the U.S. hotel industry's share on the global scale, which has only grown during the pandemic," Grove said in the article. According to the blog post, almost half of global profits are produced in the U.S. and that share only rose as the pandemic slackened. "A massive 47 percent of hotel profits are achieved in the U.S., up 6.6 percentage points since 2019, the result of myriad variables, including a large domestic market and staycation trend," Grove said in the post. "Meanwhile, severe lockdowns and restrictions in Europe and Asia-Pacific sent their percentages down as the Middle East received a boost in the fourth quarter 2021 from Expo 2020 in Dubai."

ALL FORMS OF travel are experiencing a post-pandemic resurgence, including cruises, according to a survey from risk and crisis response provider Global Rescue. Some have concerns about their destination, but most are ready to hit the seven seas. According to the Global Rescue Traveler Sentiment and Safety Survey, 30 percent of respondents were experiencing some hesitancy about where to go, or when to get back to travel after two years of pandemic-related travel restrictions. Meanwhile, 70 percent of respondents are not experiencing any re-entry to travel anxiety in general or on cruise ships, according to the survey. "Nineteen percent of survey takers say they feel safer or much safer about taking a cruise compared to last year," said Dan Richards, CEO of Global Rescue and a member of the U.S. Travel and Tourism Advisory Board at the U.S. Department of Commerce.

THE COLLECTIVE RECOVERY indices of U.S. extended-stay hotels exceeded 100 percent in November for the first time in 2021, according to hotel investment advisors Highland Group. The strongest gains were reported by mid-price and upscale extended-stay hotels. Economy extended-stay hotels continue to lead the RevPAR recovery during the month with a 22 percent gain compared to two years ago, according to "U.S. Extended-stay Hotels Bulletin: November 2021" report from the Highland Group. According to the report, the 4 percent increase in extended-stay room supply in November tied with October as the lowest monthly gain in 2021. "The impact to supply growth from reopening hotels closed during the pandemic is effectively over. Early indications are that mid-price and upscale supply growth should be well below pre-pandemic levels during the near term," the report said. "The overall hotel industry lost far more revenue than extended-stay hotels in 2020, so it is now recovering revenue more quickly." STR reported that all hotel room revenue was up 110 percent in November compared to a year ago.

NEARLY HALF OF travelers, or 49 percent, have already taken an international trip, according to a survey by travel risk and crisis response provider Global Rescue. That indicates an 88 percent jump in travel abroad since summer of 2021. The Winter 2022 Global Rescue Travel Safety and Sentiment survey has also revealed that domestically, 85 percent of respondents have already traveled, signaling an 18 percent increase during the period. The survey of more than 1,400 respondents between Jan. 25 to 29 found that nine out of 10 travelers are "much less or less" concerned about travel since the pandemic, showing a 22 percent increase in travel confidence. "All signals are pointing to the beginning of the end of international travel restrictions due to the pandemic. Countries like New Zealand, Denmark, Norway, Sweden and others are opening their borders as severe COVID-19 illnesses and hospitalizations decline, vaccinations increase and testing is more convenient. Domestic travel continues to increase but the big news is that travel abroad is surging," said Dan Richards, CEO of Global Rescue. "When people feel safe, they travel and we are seeing tremendous, positive change in the traveler confidence about their well-being."

THE COVID-19 PANDEMIC did not slow Magnuson Hotels' growth as it added 80 franchise agreements for its Independent Collection in the U.S. and United Kingdom in 2021. The company said its business model and focus on local markets and dynamic pricing helped it weather the storm. Magnuson is expecting continued strong performance in 2022 for the Independent Collection, which is made up of independent hotels receiving support from Magnuson. Occupancy for the collection rose 31.3 percent and RevPAR rose 43.5 percent over 2019 levels during 2021, according to a statement from the company. At the same time, according to data from STR, U.S. total occupancy for 2021 dropped 12.6 percent, ADR dropped 4.8 percent and RevPAR went down 16.8 percent. "The pandemic has seen a shift in hotel source markets, with corporate travel and international travel as we've known it removed from hotels' options. Our teams have instead looked domestically and locally at those businesses which are key to success and solid, long-term business," said Thomas Magnuson, the company's CEO. "Local government, medical, public safety, energy, transportation, construction, government, long-term corporate. The business market is now driven by essential business travel-the must-take trips, those small and medium-sized enterprises which have been getting in their cars and hitting the road."

EXTENDED-STAY HOTELS continue to outperform other types of hotels on a regular basis, even during the pandemic. Now, large hotel companies are expanding their interests in the segment. Choice Hotels International is seeing strong performance and growth in its extended-stay brands, and Wyndham Hotels & Resorts recently announced plans to launch a new extended-stay brand this year, its first in the economy segment. Coming off a good year Occupancy, ADR and RevPAR all exceeded pre-pandemic levels for Choice's established extended-stay brands, the economy brands WoodSpring Suites and Suburban Extended Stay as well as midscale brand MainStay Suites, according to the company. The company's new midscale Everhome Suites, launched in early 2020, also saw strong interest by franchisees. The overall performance is similar to what the brands saw in 2020.

THE REVPAR OF U.S. hotels is expected to surpass 2019 levels this year, according to the upgraded forecast by STR and Tourism Economics. Still, full recovery may be a couple of years away. ADR and RevPAR for U.S. hotels are forecasted at $14 and $6 higher in 2022 respectively, when compared to 2019, the report presented at the 44th annual NYU International Hospitality Industry Investment Conference stated. However, occupancy in this year is projected to come in under the pre-pandemic comparable. Earlier, the forecast projected nominal RevPAR recovery in 2023. According to the forecast, the major factor in the revised timeline was a plus $11 adjustment in 2022 ADR. But, when adjusted for inflation, full recovery of ADR and RevPAR are not projected until 2024. The report added that central business districts and the top 25 markets are not expected to reach full RevPAR recovery until after 2024.

THE REVPAR OF U.S. hotels reached an all-time weekly high on a nominal basis in the second week of June as performance jumped, according to STR. The ADR and occupancy levels were the second and third highest of the pandemic-era, respectively, during the week. Occupancy was 70.6 percent for the week ending June 11, up from 63.2 percent the week before and dropped 4.1 percent from 2019. ADR was $155.37 for the week, up from $147.35 the week before and increased 15.4 percent from three years ago. RevPAR reached $109.76 during the week, up from $93.16 the week before and up 10.7 percent from 2019. According to STR, the top 25 markets posted their highest metrics since the beginning of the pandemic in aggregate during June's second week. Leading the major markets in absolute occupancy for the week were Seattle with 85.2 percent, San Francisco/San Mateo with 84.3 percent and New York with 85.1 percent.

HOTEL OWNERS NAVIGATING industry changes wrought by the pandemic face no dearth of challenges: the decline in business travel, competition from home rental apps and ongoing labor shortages are just a few. Too often, the people owning the hotels - many of them small business owners - are figuring out how to adapt to the new hospitality landscape with added complications from the hotel brands that should be their partners. While many hotel owners have struggled to maintain their livelihoods since the pandemic began three years ago, some big hotel chain franchisers sold hundreds of millions of dollars' worth of loyalty point value to credit card companies under a system that often fails to adequately reimburse the franchisees. That is the thanks these hardworking franchisees got as they worked hard to keep hotel doors open. It does not have to be this way. Generations of franchise owners have successfully embraced entrepreneurship through the franchising model. Franchising allows budding entrepreneurs to adopt a known brand name and comprehensive business strategies in exchange for a portion of the revenue. This partnership has nurtured our industry: Hotels owned by our members employ 1.1 million Americans and contribute $368 billion to the economy. But the franchising relationship needs to be a two-way street to be truly successful. That is why we must ensure that the franchise industry engages in sustainable practices that recognize and safeguard the contributions of small business owners.

APPROXIMATELY 43.8 MILLION Americans will travel 50 miles or more from home, surpassing pre-pandemic figures, according to a forecast by AAA. This represents a 4 percent increase from last year and approaches the 2005 record of 44 million Memorial Day weekend travelers. A record 38.4 million are expected to drive, marking the highest number since AAA began tracking in 2000. "We haven't seen Memorial Day weekend travel numbers like these in almost 20 years," said Paula Twidale, AAA Travel's senior vice president. "We're projecting an additional one million travelers this holiday weekend compared to 2019, which not only means we're exceeding pre-pandemic levels but also signals a very busy summer travel season ahead." The number of drivers this year is up 4 percent compared to last year and 1.9 percent higher than in 2019, the auto club said. Traveling by car is appealing for many people because of the convenience and flexibility it provides.

U.S. HOTEL LEISURE travel revenue is projected to rise 14 percent this year over pre-pandemic levels and business travel revenue is expected to be within 1 percent of 2019 range, according to a report by the American Hotel & Lodging Association and Kalibri Labs. However, these projections are not adjusted for inflation, and real hotel revenue recovery may take many years, a statement said. Among the top 50 U.S. markets, 80 percent are projected to see hotel leisure travel revenue exceed 2019 levels, but just 40 percent are expected reach that milestone for business travel revenue. Many urban markets are yet to recover due to their dependence on business from events and group meetings, the report said. All markets in the top 10 are likely to report increase in leisure travel revenue except New York, Washington and San Francisco. Whereas, in business travel revenue only Orlando, Las Vegas and San Diego will end up this year in green among the top 10.

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."

THE OMICRON VARIANT of COVID-19 has come and, for now, gone, and U.S. hotels are recovering quickly according to STR. The recovery does come after a slight dip in GOPPAR. That dip was a $20 decline in January, but GOPPAR rose to $58.88 in February, the highest since October, according to STR's P&L report for the month. TRevPAR for the month was $169.77, EBITDA PAR was $39.29 and labor costs were $56.63. All also were increases over January. In 2021, U.S. hotel profits reached 52 percent of pre-pandemic levels, according to STR. "Following trends in top-line performance, U.S. profitability levels are recovering more quickly from Omicron than with previous variants," said Raquel Ortiz, STR's director of financial performance. "February GOPPAR was roughly 77 percent of the 2019 comparable, but independents (108 percent), luxury (94 percent) and midscale (88 percent) chains were far above the national average. The upper upscale (67 percent) and upscale (70 percent) segments are where the largest deficits persisted.

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.

The My Place Hotel-Green Bay is now open in Green Bay, Wisconsin. It is owned by Asharam, LLC led by Principal Atul Patel. The 64-room extended-stay hotel is the 61st My Place hotel in the U.S. and the second in Wisconsin. It is part of My Place's Trend Hotels & Suites brand launched earlier this year. It is near Lambeau Field, home of the Green Bay Packers. "My Place is the perfect fit for this area. With a seamless building and opening process, we are excited to continue bringing family like hospitality to our guests," said Patel. Terry Kline, My Place executive vice president for franchise sales, said the My Place Hotel-Green Bay is suited to the current COVID-19 pandemic crisis. "As we continue to make sense of the new normal that continues to change around us, we look forward to the bright future ahead of us as we inspire future guests with our spirit of hospitality in Green Bay," said Kline.