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A CONTINUING SENSE of optimism about the nation's recovery among investors sent the Baird/STR Hotel Stock Index up in October. Hotel brands led the increase as concerns about the COVID-19 Delta variant began to ease. The Baird/STR index rose 6.8 percent during the month, and it also was up 20.7 percent year to date through the first 10 months of 2021. The index rose 5.2 percent during September compared to August. Still, the index was behind both the S&P 500, which rose 6.9 percent in October, and the MSCI US REIT Index, which rose 7.6 percent. The hotel brand sub-index rose 9 percent from September while the hotel REIT sub-index increased 0.5 percent. "Hotel stocks increased for the second straight month, but performance was led by the hotel brands once again," said Michael Bellisario, senior hotel research analyst and director at Baird. "The hotel REITs were marginally higher in October, while the hotel brands were the absolute and relative winners. Delta variant concerns are in the rearview mirror now, and investors are looking forward to the recovery continuing in 2022, particularly in some of the harder hit segments, markets, and regions that are poised to rebound strongly."

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.

U.S. HOTEL PERFORMANCE dropped in the first week of January from the prior week, although year-over-year comparisons showed improvement, according to CoStar. Key metrics, including occupancy, ADR, and RevPAR, all declined at the start of the New Year compared to the previous week. Occupancy was 46.8 percent for the week ending Jan. 6, down from the previous week's 50.1 percent and reflecting a 0.7 percent year-over-year decrease. ADR fell to $152.17, compared to the prior week's $163.58, showing a 7.2 percent increase from the previous year. RevPAR decreased to $71.28 from the prior week's $82.1, but rose 6.4 percent from the corresponding period in 2023. Among the top 25 markets, New Orleans saw the largest year-over-year increases in each of the three performance metrics. Its occupancy was up 36.5 percent to 61.2 percent, ADR was up 43.5 percent to $211.90 and RevPAR rose 95.9 percent to $129.62. The market's performance was boosted by the Sugar Bowl, FAN EXPO New Orleans and multiple Mardi Gras parades.

U.S. HOTEL PERFORMANCE dipped in the final week of April, as anticipated leading up to the Easter holiday, according to CoStar. Key metrics including occupancy, ADR, and RevPAR declined compared to the previous week, with year-on-year figures also showing a decrease. Occupancy fell to 62.3 percent for the week ending March 30, down from the previous week's 65.3 percent, marking a 5.6 percent year-over-year decrease. ADR dropped to $157.14 from $162.28, reflecting a 0.7 percent decline compared to last year. RevPAR stood at $97.83, down from $106.01 the previous week, indicating a 6.3 percent dip compared to the same period in 2023. Among the top 25 markets, New York City saw significant year-over-year growth across all three key performance metrics: occupancy surged by 13.2 percent to 88.2 percent, ADR rose by 14.1 percent to $285.98, and RevPAR increased by 29.1 percent to $252.18.

U.S. HOTEL OCCUPANCY increased in the first week of December, according to STR. But, all performance metrics were lower during the week when compared to same period in 2019. Occupancy was 54.8 percent for the week ending Dec. 4, up from 53 percent the week before and down from 8.8 percent for the same period in 2019. ADR for the week was $127.92, down from $128.41 the week before and decreased 0.5 percent when compared to two years ago. RevPAR increased to $70.08during the week from $68 for the week before but dropped 9.2 percent for the same period in 2019. According to the report, none of STR's top 25 markets recorded an occupancy increase over 2019, Only Los Angeles matched its 2019 comparable at 70 percent. Miami, lifted by Art Basel, reported the largest ADR increase when compared with 2019, up 32.9 percent to $373.71.

EXTENDED-STAY HOTEL room supply in the 100 largest metropolitan statistical areas in the U.S. grew 2.5 percent in 2022 compared to 2021, its smallest increase in several years, according to a new report from The Highland Group. The survey, which researched supply, demand, revenues and new construction of extended-stay hotels, said the outcome in 2022 was about half the net supply gain reported in 2021. According to the report, the lengthening hotel development timeline, fewer construction starts, disenfranchising hotels that no longer meet brand standards, conversions to apartments and some municipalities acquiring extended-stay hotels for housing have resulted in the muted growth. While there was a sharp decline in reported extended-stay rooms under construction last year compared to 2021, construction starts increased 6 percent over the last 12 months. "However, they remain low compared to the pre-pandemic period, the report noted. RevPAR growth in 2022 strongly favored ADR as opposed to occupancy gains in 2021. "Consequently, more than 40 MSAs reported lower average occupancy in 2022 than during the previous year. However, only a dozen MSAs have not yet recovered RevPAR back to its nominal 2019 value compared to about half the MSAs last year," it showed.

U.S. HOTEL PERFORMANCE increased in the fourth week of February from the week before, according to STR. Occupancy, ADR and RevPAR also showed significant improvement when compared to same period in 2019. Occupancy was 62.2 percent for the week ending Feb. 26, up from 59.1 percent the week before and down 4.7 percent for the same period in 2019. ADR was $143.83 for the week, increased from $140.11 the week before and up 13.1 percent from two years ago. RevPAR was $89.45 for the week, up from $82.87 the week before and increased 7.7 percent from the same period two years ago. Among STR's top 25 markets, Orlando recorded the largest occupancy increase, up 6.7 percent to 85.9 percent, over 2019.

EXTENDED-STAY HOTELS DISPLAYED varied performance in December compared to the overall hotel industry, with supply, demand, and room revenues showing relative gains, according to The Highland Group. Occupancy experienced a milder decline than the broader hotel sector while low ADR growth and an unexpected decline in economy extended-stay RevPAR resulted in a total extended-stay hotel RevPAR decrease versus a slight RevPAR increase in the overall hotel industry. The 2.4 percent net increase in extended-stay room supply in December represents a modest rise compared to the average over the past 18 months and a slight gain over the most recent three months, the report said. Supply shifts overview December marked nine consecutive quarters with 4 percent or less supply growth, significantly below the long-term average, according to The Highland report. The 13 percent surge in economy extended-stay supply and the reduction in mid-price segment rooms are primarily attributed to conversions, with new construction in the economy segment accounting for approximately 3 percent of rooms compared to a year ago.

U.S. HOTEL PERFORMANCE stayed below the levels of the previous week as anticipated, according to CoStar. Occupancy, ADR, and RevPAR all saw declines compared to the preceding week. However, year-over-year comparisons remained positive. Occupancy dropped to 54.7 percent for the week ending Dec. 16, down from the previous week's 58.7 percent, but reflected a year-over-year increase of 1.1 percent. ADR decreased to $142.62, compared to the previous week's $153.36, showing a 4.7 percent uptick from the prior year. RevPAR also declined to $77.99, compared to the prior week's $89.98, indicating a 5.8 percent increase from the corresponding period in 2022. Among the top 25 markets, San Francisco saw the largest year-over-year increases in all three key performance metrics: occupancy surged by 32.0 percent to 70.2 percent, ADR soared 21.5 percent to $223.78, and RevPAR increased by 60.3 percent to $157.14.

U.S. HOTEL PERFORMANCE exhibited mostly positive year-over-year trends in the first week of March, compared to the previous week, according to CoStar. Despite a slight increase in occupancy, RevPAR declined, while RevPAR remained static. Occupancy rose to 62.5 percent for the week ending March 2, up from the previous week's 62 percent, marking a 0.3 percent year-over-year decline. ADR decreased to $155.29 from $156.62 the prior week, reflecting a 2.7 percent increase compared to the previous year. RevPAR remained unchanged at $97.12 from the prior week's $97.12, indicating a 2.4 percent increase compared to the same period in 2023. Among the top 25 markets, Seattle reported the largest year-over-year occupancy increase, rising 12.1 percent to reach 66.5 percent.

U.S. HOTEL PERFORMANCE has increased from the previous week, aligning with the extended holiday weekend, while year-over-year comparisons also continue to show positive trends, according to CoStar. The percentage changes showed positivity on weekdays due to comparisons with the Yom Kippur period from the previous year, but year-over-year occupancy rates still experienced a decline. Occupancy stood at 67.8 percent for the week ending on Oct. 7, a slight rise from the preceding week's 66.7 percent, with a marginal year-over-year decline of 0.2 percent, according to CoStar. ADR was $163.19, showing an increase from the previous week's $157.89 and a notable 5.4 percent surge compared to the previous year. RevPAR also saw an uptick to $110.68, surpassing the previous week's $105.31, and reflecting a 5.2 percent rise from 2022.

U.S. hotel performance has declined in the fourth week of October compared to the previous week, according to CoStar. However, year-over-year comparisons revealed positive results. Occupancy came in at 66 percent for the week ending Oct. 28, slightly lower than the previous week's 69 percent, but with year-over-year growth of 0.7 percent. ADR dropped to $160.89, down from the previous week's $165.32, yet showing a notable 3.9 percent increase from the previous year. Similarly, RevPAR saw a decrease, reaching $106.16 compared to the previous week's $114.04, but reflecting a solid 4.6 percent rise from 2022. Among the top 25 markets, Minneapolis saw the largest year-over-year increase in occupancy, rising by 12.7 percent to reach 64.5 percent.