Group items tagged

U.S. HOTEL PERFORMANCE dropped in the first week of September compared to the previous week, according to CoStar. Key metrics such as occupancy, RevPAR and ADR all declined both week-over-week and year-over-year. Occupancy fell to 57.8 percent for the week ending Sept. 7, down from 63.9 percent the previous week and 4.2 percent lower year-over-year. ADR was $149.67, down from $153.67 the prior week and 1 percent lower than the same week last year. RevPAR fell to $86.48 from $98.18, marking a 5.2 percent decrease compared to the same period in 2023. Among the top 25 markets, Houston saw the highest year-over-year increase in occupancy, rising 8 percent to 57.1 percent, while RevPAR increased 18.5 percent to $65.62. Houston and Detroit reported the largest ADR increases, rising 9.7 percent to $115.02 and 9.7 percent to $129.21, respectively. Las Vegas recorded the steepest RevPAR drop, falling 18.6 percent to $106.24, followed by Boston, with an 18.3 percent decline to $151.11.

U.S. EXTENDED-STAY hotels experienced their first quarterly decline in RevPAR since the first quarter of 2021, according to The Highland Group. In the first quarter, the segment saw a 1.6 percent drop in RevPAR, despite a 1.5 percent increase in revenues. Demand increased by 1.7 percent, contrasting with a 2.8 percent fall in total hotel demand when excluding upper upscale and luxury segments. STR/CoStar estimated that overall hotel RevPAR, excluding upper upscale and luxury segments, which have minimal extended-stay room supply, increased by 1.3 percent in the first quarter of 2024 compared to the same period in 2023. The Highland Group's 2024 First Quarter U.S. Extended-Stay Hotels report indicated that overall hotel RevPAR and room revenues declined by 1.1 percent and 0.9 percent year-to-date, respectively, excluding upper upscale and luxury segments.

U.S. HOTEL PERFORMANCE declined slightly in the fourth week of October, though year-over-year comparisons remained positive, according to CoStar. Key metrics, including occupancy, RevPAR, and ADR, saw slight decreases from the previous week. Occupancy fell to 69 percent for the week ending Oct. 26, down from 70.1 percent the prior week but up 4.5 percent year-over-year. ADR declined to $168.69 from $169.85, marking a 4.6 percent increase year-over-year. RevPAR dipped to $116.32 from $119.01, showing a 9.3 percent gain over the same period in 2023. Among the top 25 markets, Tampa recorded the highest occupancy increase, up 28.1 percent to 84.2 percent, driven by ongoing displacement demand from Hurricane Milton. New Orleans saw the highest increases in ADR, up 64.1 percent to $301.30, and in RevPAR, up 77.6 percent to $227.24, boosted by Taylor Swift's Eras Tour.

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.

DESPITE PROJECTIONS OF persistent inflation and a moderate economic recession, CBRE's November 2022 Hotel Horizons forecast calls for a 5.8 percent increase in RevPAR in 2023. This is up from CBRE's previous forecast of a 5.6 percent increase in RevPAR for 2023. Propelling CBRE's increased outlook for RevPAR is an expected 4.2 percent rise in ADR, driven in part by the continuation of above long-run average inflation. For 2023, CBRE is forecasting the Consumer Price Index in the U.S. to increase by 3.5 percent year over year. Inflation continues to have a mixed impact on the hotel industry, bolstering top-line growth while pressuring margins. Supply and Demand Inflation is also impacting development activity. The combination of rising construction material costs, a tight labor market, and high interest rates will serve to keep supply growth over the next five years 40 percent lower than historical trends. Instead of construction, we expect cash flows in the near term to be focused on debt reductions, renovations and remodels given the backlog of Capex that built up during the pandemic. Given its forecast for a 0.2 percent decline in 2023 gross domestic product, CBRE lowered its expectations for demand growth from 3.3 percent in their August 2022 forecasts to 2.9 percent in the November update. With the projected supply increase remaining at 1.2 percent for 2023, the net result is a reduction in CBRE's occupancy growth estimate for the year to 1.6 percent, down from the 2 percent increase previously forecast. The lowering of occupancy expectations will somewhat offset the enhanced outlook for ADR growth.

HOTELS IN THE Americas performed above 2019 levels, although RevPAR is stabilizing amidst decreasing consumer travel spending, according to real estate firm JLL. This has affected resort markets heavily dependent on leisure travel. In contrast, urban travel demand is on the rise, driven by group, corporate, and inbound international travel. According to JLL's Global Real Estate Perspective for February 2024, global hotel RevPAR surpassed 2019 levels by 11.7 percent in the first 11 months of 2023. The global urban market strengthened with increased international travel and the return of business and group demand. London, New York, and Tokyo are expected to lead global RevPAR performance in 2024 as urban travel rebounds. Stabilization has weighed heaviest in resort markets, particularly in the Americas and EMEA, while Asia-Pacific continues to accelerate as intraregional travel grows following border reopenings, the report added. Foreign capital, absent since the onset of COVID, is expected to become more active over the next 12 months. Middle Eastern and Asian investors are likely to lead, with urban markets in Europe and select U.S. cities as primary recipients of capital.

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 saw an uptick in the third week of March compared to the previous week, although year-over-year figures continued to decline, according to CoStar. Key metrics such as occupancy, ADR and RevPAR continued their upward trajectory during this period compared to the preceding week. Occupancy increased to 66.5 percent for the week ending March 16, up from the previous week's 63.2 percent, reflecting a 1.4 percent year-over-year decline. ADR rose to $163.21 from $156.96 the previous week, marking a 2.1 percent decrease compared to last year. RevPAR reached $108.51, up from the previous week's $99.17, signifying a 3.5 percent decrease compared to the same period in 2023. Among the top 25 markets, Seattle reported significant year-over-year increases in occupancy, rising by 12.7 percent to 73 percent, and in RevPAR, which increased by 21.7 percent to $120.29.

U.S. HOTEL PERFORMANCE declined in the third week of June compared to the previous week, with mixed year-over-year results, according to CoStar. Key metrics such as occupancy, RevPAR, and ADR all decreased from the prior week. Occupancy declined to 69.5 percent for the week ending June 22, down from 70.3 percent the previous week, with a 2.5 percent year-over-year decrease. ADR fell to $159.88 from $161.70, despite a 0.1 percent rise compared to last year. RevPAR decreased to $111.17 from $113.62 the previous week, marking a 2.3 percent decrease compared to the same period in 2023. Among the top 25 markets, Seattle recorded the highest year-over-year increases, with occupancy rising by 11.1 percent to 84.9 percent and RevPAR growing 16.8 percent to $179.47. Meanwhile, Philadelphia saw the largest increase in ADR, rising 6.5 percent to $170.10.

U.S. HOTEL PERFORMANCE declined in the first week of October compared to the previous week due to Rosh Hashanah, according to CoStar. Year-over-year comparisons also decreased, with key metrics-occupancy, RevPAR, and ADR-all falling from the prior week. Occupancy fell to 65.6 percent for the week ending Oct. 5, down from 69.4 percent the previous week, reflecting a 3.4 percent year-over-year decrease. ADR decreased to $156.25 from $159.63 the prior week, indicating a 4.4 percent decline compared to last year. RevPAR dropped to $102.44, down from $110.84 the previous week, marking a 7.7 percent decrease compared to the same period in 2023. Among the top 25 markets, Tampa saw the highest year-over-year occupancy increase at 81.3 percent, up 24.1 percent, while RevPAR rose 22.1 percent to $125.39. As is common after natural disasters, the market's hotel performance was boosted by displacement demand from Hurricane Helene.

U.S. HOTEL PERFORMANCE decreased slightly in the first week of February from the previous week, while year-over-year comparisons remained mixed, according to CoStar. Key metrics, including occupancy, ADR, and RevPAR, all declined in the first week of February compared to the previous week. Occupancy dipped slightly to 55.2 percent for the week ending Feb. 3, from the previous week's 56.2 percent, reflecting a 0.1 percent decrease year-over-year. ADR decreased to $147.99 from the prior week's $149.76, marking a 1.9 percent increase compared to the previous year. RevPAR declined to $81.69 from the prior week's $84.13, reflecting a 1.7 percent increase compared to the corresponding period in 2023. Among the top 25 markets, Seattle saw the largest year-over-year increases, with occupancy rising 19.3 percent to 60.1 percent and RevPAR increasing by 27.5 percent to $89.11.

U.S. HOTEL PERFORMANCE rose in the second week of March compared to the previous week but declined year over year, according to CoStar. Key metrics, including occupancy, ADR, and RevPAR, all saw increases compared to the prior week. Occupancy climbed to 63.2 percent for the week ending March 9, up from the prior week's 62.5 percent, reflecting a 2.2 percent year-over-year decline. ADR rose to $156.96 from $155.29 the previous week, marking a 0.6 percent decrease compared to last year. RevPAR reached $99.17, up from the previous week's $97.12, signifying a 2.8 percent decrease compared to the same period in 2023. Among the top 25 markets, Minneapolis saw significant year-over-year growth across all three key performance metrics: occupancy surged by 25.1 percent to 63.7 percent, ADR rose by 15.9 percent to $143.12, and RevPAR increased by 45.1 percent to $91.11.

U.S. HOTEL PERFORMANCE continued to decline in the first week of August compared to the previous week, despite slightly positive year-over-year comparisons, according to CoStar. Key metrics, including occupancy, RevPAR and ADR, all fell from the prior week. Occupancy reached 69.4 percent for the week ending Aug. 3, down from 72 percent the previous week, yet showing a 0.8 percent year-over-year increase. ADR stood at $159.63, compared to $164.45 the prior week, reflecting a 0.6 percent increase from last year. RevPAR dropped to $110.84 from $118.37 the previous week but was 1.3 percent higher compared to the same period in 2023. Among the top 25 markets, Houston experienced the highest year-over-year increase in occupancy, up 28.1 percent to 75.8 percent, and RevPAR rose 45.7 percent to $93.88.

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.

THE THANKSGIVING CALENDAR shift boosted year-over-year performance comparisons for the U.S. hotel industry during the third week of November, according to CoStar. However, occupancy, RevPAR and ADR all declined from the prior week. Seattle led performance gains among the top 25 markets. Occupancy declined to 59.7 percent for the week ending Nov. 23, down from 63.3 percent the previous week but up 20.7 percent year-over-year. ADR fell to $150.49 from $154.96, marking an 8.6 percent year-over-year increase. RevPAR reached $89.80, down from $98.11 the prior week but up 31.1 percent compared to the same period in 2023. Among the top 25 markets, Seattle posted the highest year-over-year occupancy gain, up 62.9 percent to 76.7 percent. Chicago saw the largest increases in ADR, up 43.8 percent to $181.36, and RevPAR, which jumped 113.7 percent to $127.91.

U.S. HOTEL PERFORMANCE declined in the third week of December compared to the previous week, according to CoStar. However, year-over-year comparisons were positive due to the Hanukkah calendar shift and a shortened business travel period between Thanksgiving and Christmas. Occupancy, RevPAR and ADR all saw week-over-week decreases. Occupancy fell to 48.9 percent for the week ending Dec. 21, down from 59.5 percent the previous week but up 11.4 percent year-over-year. ADR declined to $135.79 from $155.21, reflecting a 2.7 percent year-over-year increase. RevPAR dropped to $66.36 from $92.32 week-over-week but showed a 14.3 percent gain compared to the same period in 2023. Tampa, driven partly by hurricane recovery demand, led year-over-year growth among the top 25 markets, with occupancy up 37.9 percent to 71.5 percent and RevPAR up 63.8 percent to $110.51. New York City recorded the highest ADR increase, up 20.1 percent to $351.39.

TOTAL EXTENDED-STAY HOTELS achieved new fourth-quarter milestones in 2023, setting records in supply, demand, ADR, RevPAR, and room revenues, according to The Highland Group. Despite this, occupancy declined alongside the broader hotel industry trend, with slower growth in ADR and RevPAR throughout the year. Consequently, extended-stay hotel RevPAR experienced its smallest fourth quarter increase since 2019, excluding contractionary periods. Extended-stay hotel supply growth increased marginally in 2023 but remained very low, the report said. The last time supply growth consistently hovered around its current level was from the fourth quarter of 2010 through the third quarter of 2014. Throughout this period, supply increases stayed below their long-term historical average for 20 consecutive quarters, while the federal funds rate was about 10 times higher than its current level. With interest rates and construction costs expected to stay relatively high, the risk of extended stay hotel oversupply nationally is low in the near term, despite the launch of several new brands, The Highland Group said.

WYNDHAM HOTELS & RESORTS reported growth in net rooms and its development pipeline for the third quarter. Global systemwide rooms increased 4 percent year-over-year, with 1 percent growth in the U.S. and 8 percent internationally. Global RevPAR rose 1 percent in constant currency compared to 2023, with a 1 percent decline in the U.S. and 7 percent growth internationally. The company's adjusted net income for the third quarter was $110 million, a 1 percent decrease year-over-year but a 3 percent increase on a comparable basis, Wyndham said in a statement. "Our teams delivered exceptional results, executing our growth strategy and achieving 7 percent growth in comparable adjusted EBITDA, driven by system expansion, higher royalty rates, and increased ancillary revenues," said Geoff Ballotti, president/CEO. "We awarded 10 percent more franchise contracts domestically, driving 5 percent growth in our development pipeline. Stabilizing RevPAR trends and increasing infrastructure demand are expected to lead to improved results in the coming quarters. We remain focused on delivering value to our guests, franchisees, and shareholders, having returned nearly $380 million year-to-date through dividends and share repurchases."

U.S. HOTEL PERFORMANCE improved in the second week of September compared to the previous week, but year-over-year results remained negative, according to CoStar. Key metrics-occupancy, RevPAR and ADR-all saw week-over-week growth. Occupancy rose to 66.6 percent for the week ending Sept. 14, up from 57.8 percent the previous week but 1.7 percent lower year-over-year. ADR reached $162.05, an increase from $149.67 the prior week and 0.2 percent higher than the same week last year. RevPAR climbed to $107.86 from $86.48, though it marked a 1.4 percent decline compared to the same period in 2023. Among the top 25 markets, San Diego posted the highest year-over-year occupancy gain, up 10.5 percent to 79.9 percent. Chicago recorded the largest ADR increase, up 15.5 percent to $216.57