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U.S. HOTEL PERFORMANCE declined in the third week of December as anticipated ahead of the holidays, according to CoStar. Three key metrics-occupancy, ADR, and RevPAR-all dipped compared to the previous week. Occupancy fell to 43.9 percent for the week ending Dec. 23, down from the previous week's 54.7 percent, but demonstrated a year-over-year increase of 0.5 percent. ADR decreased to $131.97, compared to the prior week's $142.62, marking a 0.9 percent decline from the previous year. RevPAR also declined to $57.9, compared to the prior week's $77.99, indicating a 0.4 percent decrease from the corresponding period in 2022. Among the top 25 markets, Boston experienced the most significant year-over-year increases, with occupancy rising by 21.5 percent to 46.2 percent and RevPAR up by 23.1 percent to $65.68. Anaheim recorded the highest ADR increase, rising by 14.7 percent to $190.86.

APPROXIMATELY 51 PERCENT of hospitality industry professionals participating in STR's Hospitality Industry Sentiment survey expressed optimism about their business confidence over the next two years. Respondents rated their confidence at "8" or higher on a 10-point scale. Analyzing the results over the survey's first year reveals a gradual, consistent decline in confidence ratings for each time span. Meanwhile, global recession fears have diminished since the last survey, STR said. Among various industry challenges, "concerns regarding a potential recession" saw the most significant drop between the last two surveys, ranking third behind labor costs and supply issues. Energy and utility costs are slightly increasing, while supply chain challenges and group demand issues are gradually diminishing. Regarding hotel performance, outlined trends influence demand forecasting expectations, the survey said. The percentage of respondents anticipating "strong improvement" or "some improvement" is gradually declining across all three hotel demand segments. A majority of experts still foresee growth in both business transient and group demand.

THE UPWARD MOVEMENT of ADR for U.S. hotels lifted the forecast for the market by STR and Tourism Economics. The travel research firms released the new forecast during the opening sessions of the Americas Lodging Investment Summit in Los Angeles on Monday. The recovery timeline laid out in the new forecast remains mostly the same as the previous forecast released in November, with ADR will near full recovery this year. RevPAR is anticipated to exceed 2019 levels in 2023, but when adjusted for inflation ADR and RevPAR are not projected to reach full recovery until after 2025. Occupancy is projected to surpass 2019 levels in 2023. "The industry recaptured 83 percent of pre-pandemic RevPAR levels in 2021, and momentum is expected to pick up after a slow start to this year," said Carter Wilson, STR's senior vice president of consulting. "With so much of that RevPAR recovery being led by leisure-driven ADR, however, it is important to keep an eye on the real versus the nominal. Terms of recovery are not playing out evenly across the board, and many hoteliers have had to raise rates to minimize the bottom-line hit from labor and supply shortages. We are anticipating inflation to remain higher throughout the first half of the year with a gradual leveling off during the third and fourth quarters. If that happens, and we avoid major setbacks with the pandemic, this year will certainly be one to watch with demand and occupancy also shaping up to hit significant levels during the second half."

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."

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.

U.S. HOTEL PERFORMANCE increased in the second week of December, according to STR. ADR was up during the week when compared to same period in 2019. Occupancy was 57.4 percent for the week ending Dec. 11, up from 54.8 percent the week before and down by 4.8 percent for the same period in 2019. ADR for the week was $128.35, up from $127.92 the week before and increased 2.3 percent when compared to two years ago. RevPAR increased to $73.73 during the week from $70.08 for the week before but dropped 2.7 percent for the same period in 2019. Among the Top 25 Markets, Norfolk/Virginia Beach saw the only occupancy increase among STR's top 25 markets during the week, up 4.2 percent to 55.2 percent over 2019. New York City reported the highest weekly occupancy level of any STR-defined U.S. market at 81.5 percent. However, its occupancy level was 13 percent lower than two years ago. Miami registered the largest ADR increase during the period, up 30.1 percent to $229.34, when compared to 2019.

WYNDHAM HOTELS & RESORTS released fourth quarter and full year 2023 earnings that included record-high rooms growth. Geoff Ballotti, Wyndham's president and CEO, said the strong results reinforce the company's decision to refuse Choice Hotels International's ongoing efforts to buy Wyndham out. In its earning call, Wyndham reported that system-wide rooms grew organically by 3.5 percent year-over-year, a record high. The company opened a record 66,000 organic rooms, a 3 percent year-over-year increase. Its development pipeline grew 1 percent sequentially and by 10 percent year-over-year to 240,000 rooms, another record, including 98 new contract signings for its ECHO Suites brand, a 60 percent YoY growth in that part of the pipeline. Wyndham's shareholders, who will be key to determining the success or failure of Choice's efforts to acquire the company, saw several benefits from last year's performance. Fourth quarter diluted earnings per share was 60 cents with a net income of $50 million. The company returned $515 million to shareholders for the full-year through $397 million of share repurchases and quarterly cash dividends of $0.35 per share. Its board of directors also authorized a 9 percent increase in the quarterly cash dividend to $0.38 per share beginning with the dividend expected to be declared in first quarter of 2024.

The Best Western Plus Heritage Rail Inn & Suites is now open in York, Pennsylvania. The hotel, owned by Sagar Shah and his family, recently completed a $3 million renovation. It features 73 rooms and 55 suites, along with amenities such as retro games, a fitness center, a yoga and wellness room, a business center and a meeting room, Best Western said in a statement. "Following a top-to-bottom renovation, we are excited to welcome guests to our reimagined hotel," said Shah. "The redesigned property pays homage to the rich history of York, Pennsylvania, while also providing the modern comforts and conveniences for which the Best Western brand is known." The property is situated near the Colonial Courthouse, Appell Center for the Performing Arts, and York County Historical Center, the statement added, noting that a new lobby bar, The Heritage Rail Tavern, will open soon.

HYATT HOTELS CORP. reported strong early 2024 performance, with RevPAR and revenue growth, fueled by pipeline expansion driving its core hotel business and global franchise network. Systemwide RevPAR surged by 5.5 percent compared to 2023, while all-inclusive resorts net package RevPAR soared by 11 percent. Meanwhile, U.S. RevPAR increased by approximately 2 percent, excluding the Easter impact, indicating normalized growth. Net rooms grew by about 5.5 percent, with net income at $522 million and adjusted net income at $75 million, Hyatt said in a statement. Adjusted EBITDA stood at $252 million, dropping by 9 percent compared to Q1 2023, mainly due to the Super Bowl in Phoenix, increased real estate taxes, higher wages, and transaction costs from ongoing asset sales.

AS A RESULT of a larger impact from the Omicron variant, U.S. hotel occupancy worsened in the second week of January in comparison with pre-pandemic levels, according to STR. However, occupancy was higher than the previous week on an absolute basis. Occupancy was 48.8 percent for the week ending Jan. 15, up from 45.4 percent the week before and down 16.3 percent from the comparable week in 2019. ADR was $122.12 for the week, up from $119.92 the week before, but down 1.6 percent from two years ago. RevPAR reached $59.57, up from $54.47 the prior week and down 17.6 percent from the same period two years ago. According to STR, ADR and RevPAR were up week over week and when indexed to 2019.

MORE ASSOCIATIONS ARE joining the American Hotel & Lodging Association in protesting the National Labor Relations Board's recently issued final ruling on the definition of joint-employer status. The ruling essentially broadens the definition to any "entity that has an employment relationship with the employees," and AAHOA, AHLA and the other associations say it could damage the current franchise business model. NLRB's new standard, issued last week, defines a joint employer to be any company that shares or codetermines one or more essential terms and conditions of employment. Those include: Wages, benefits, and other compensation. Hours of work and scheduling. The assignment of duties to be performed. The supervision of the performance of duties. Work rules and directions governing the manner, means, and methods of the performance of duties and the grounds for discipline. The tenure of employment, including hiring and discharge. Working conditions related to the safety and health of employees.

PROFITS FOR U.S. hotels reached a 28-month high in March, according to STR. Spring break travel and higher rates are pushing performance up on all levels. GOPPAR was $83.81 for the month, the highest level for the metric since November 2019. It was less than $10 shy of reaching the pre-pandemic comparable from March 2019. In February GOPPAR stood at $58.88. EBITDA PAR was $62.68, TRevPAR was $204.84 and labor costs per room were $61.45. For the latter two it was their highest mark since March 2020.

MARKING 50 YEARS in the hotel business, Red Roof held its annual brand conference at the Broadmoor Resort in Colorado Springs, Colorado, Nov. 11 to 13. During the conference, the company announced a new partnership with software company HotelKey to install a multi-functional, cloud-based system in its more than 675 properties nationwide. Other news from the conference included details of the company's financial position, which George Limbert, Red Roof president, said is strong. Company officials also discussed Red Roof's new dual brand development prototype, other partnerships and the latest charity efforts of the company's Purpose With Heart. "Red Roof delivered record revenue which is a testament to our resilience and ability to anticipate market trends," Limbert said. "Our financial position is strong, travelers are back and our owners and operators are exceeding performance expectations."

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."

HILTON RECENTLY INTRODUCED a new North American prototype and refreshed global brand identity for its Hampton Inn and Hampton Inn & Suites brands. The prototype is scheduled for its inaugural hotel opening in early 2025, Hilton said in a statement. "With a legacy of leadership and performance spanning four decades, Hampton by Hilton continues to stand as a beacon of humanity, connecting people from around the globe and delivering a reliable and friendly stay in each one of our hotels," said Shruti Gandhi Buckley, Hampton by Hilton's senior vice president and brand leader. "As we unveil our new North American prototype and refreshed visual identity, we embark on an exciting new chapter for Hampton. This is a celebration of our core values and signifies a renewed commitment to our owners, guests and team members." The prototype is designed to adapt to various market conditions and site restrictions while improving the guest experience, the statement said. Informed by guest and owner insights, as well as design trends, these updates aim to enhance guest functionality and comfort while optimizing costs for owners in terms of building, operating, and renovating.

CBRE HOTELS RESEARCH has once again revised its forecast for the second half of 2022. The revision is mainly due to strong gains in the second quarter and expectations of positive growth next year. RevPAR for the second half of the year will rise to 14.7 percent year-over-year, up from the previous projection of 13.1 percent in May, according to CBRE. The reasons for the spike are a 3.5 percentage point increase in ADR and a 2.2 percentage point reduction in CBRE's demand forecast. Second quarter RevPAR reached $98.84, up 38 percent year over-year, and an all-time quarterly high at 106 percent of 2019's level. RevPAR growth was driven mainly by ADR, up 25.5 percent, followed by occupancy, up 9.9 percent.

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.

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.

Melissa Ross Smith is now chief operating officer for Peachtree Group. She will be responsible for the overall performance, strategy and organizational development of Peachtree and its operating businesses. Before joining Peachtree, Smith held several high-level positions at organizations. Most recently, Smith was managing director of OS National, where she managed more than 250 professionals and was responsible for evaluating performance management systems and devising improvements to strengthen controls and optimize results, Peachtree said in a statement. "As Peachtree continues to evolve, improving our foundational processes is imperative to the future growth of our business," said Greg Friedman, managing principal and CEO of Peachtree Group. "Melissa is an excellent complement to our team as she has an exceptional blend of leadership, vision and execution needed to be Peachtree's COO." Smith will report to Friedman, and will be a key executive team member, Peachtree's statement said. Peachtree Group is led by Jatin Desai and Mitul Patel as managing principals. "I am deeply impressed by Peachtree's success," Smith said. "Not only am I excited about the future opportunities, knowing that I can help execute and bring operational excellence across all segments, but I am also pleased to be joining an executive team representing some of the best people in commercial real estate."

FOLLOWING NEARLY TWO decades with Noble Investment Group and a 40-year career in real estate and hospitality, Jim Conley will retire and become a senior advisor to the firm. The company has appointed Katherine Seitz as its new compliance officer. Conley joined Noble in 2006 as chief financial officer before becoming the firm's first compliance officer. In this role, he led the oversight and administration of Noble's regulatory and compliance functions and helped oversee the impact of Noble's core ESG initiatives and its duties as a signatory to the United Nations Principles of Responsible Investment, the company said in a statement. "Jim is a trusted friend and respected colleague who has been an important part of our organization's longstanding success," said Mit Shah, Noble CEO. "We are deeply grateful for his profound commitment to our team and to upholding Noble's ethical standards of performance." Conley said Noble is his family and their journey together had been most fulfilling. "I take immense pride in our team's accomplishments and our distinguished record as an institutional fiduciary. I am equally enthusiastic about the firm's future and its next generation of leadership," Conley said. Seitz assumes responsibility for managing and directing Noble's regulatory, compliance and ESG programs. She joined Noble from Carter's Inc., where she was corporate counsel. She has practiced law and served as in-house counsel focusing on real estate and corporate services for nearly twenty years, the statement added.