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CALIFORNIA'S HOTEL DEVELOPMENT hit a decade-low in 2024, with just 35 new hotels and 3,798 rooms added, according to Atlas Hospitality Group. This marks a 34 percent drop in hotel openings and a nearly 40 percent decline in new rooms compared to 2023. Atlas Hospitality Group's 2024 Year-End California Hotel Development Survey attributed the decline to rising costs, high interest rates and reduced lending for new projects. "We predict the hotel construction outlook will remain weak in the near term, as investors focus on acquiring existing hotels at discounts to replacement costs," said Alan Reay, Atlas Hospitality's president.

THE U.S. LEADS the global full-service hotel pipeline in the first quarter of 2024 with 2,272 projects and 341,854 rooms, accounting for 41 percent of all planned or under-construction hotels worldwide, according to Lodging Econometrics. Dallas and Los Angeles are among the top five cities globally in the pipeline. The global pipeline totals 15,366 projects and 2,382,195 rooms, marking a year-over-year increase of 6 percent in projects and 3 percent in rooms. LE's Q1 2024 Global Hotel Construction Pipeline Trend Report showed a record high in global room counts and a significant rise in full-service projects by the end of the first quarter. In the first quarter, there are 6,195 projects and 1,101,602 rooms under construction worldwide, the report said. Projects set to start within the next 12 months total 3,840 projects and 528,251 rooms, an 8 percent increase in projects and a 5 percent increase in rooms year-over-year. Early planning stage projects and rooms have reached all-time highs at 5,331 projects and 752,342 rooms, rising 12 percent and 9 percent year-over-year, respectively.

TATA GROUP-OWNED INDIAN Hotels Co. Ltd. added 85 hotel signings and opened 40 properties in 2024, growing its portfolio to 360 hotels with 123 more in the pipeline. The Taj brand added 19 new signings, expanding to 125 properties. IHCL expanded its market position by acquiring a majority stake in Tree of Life and securing a brand license for The Claridges, New Delhi, the company said in a statement. "This record growth performance is attributed to the continued expansion of the brandscape," said Suma Venkatesh, IHCL's executive vice president for real estate and development. "IHCL launched the reimagined Gateway, acquired a majority shareholding in Tree of Life, adding a boutique leisure offering, and entered into a brand license agreement for The Claridges, commencing with the management of the brand's landmark hotel in New Delhi, extending IHCL's luxury portfolio."

SREE HOTELS, A Charlotte, North Carolina-based hotel management company, sold the 107-room Holiday Inn Lumberton in Lumberton, North Carolina, for $7.7 million. Marcus & Millichap brokered the sale. SREE Hotels is led by Chairman Ravi Patel and Vice Chairman Chandra Patel. "We were able to identify a qualified buyer early in the marketing process given the property's consistent performance," said Chase Dewese, Marcus & Millichap's first vice president, investments. "The buyer will be able to create additional upside upon completion of the new ownership PIP." The Holiday Inn, built in 1990, occupies 5.74 acres off Interstate 95 and features an outdoor pool, meeting and banquet facilities and a fitness center. Founded in 1980, SREE Hotels provides hotel development and management services across the Southeast and Midwest, operating 25 franchised properties in North Carolina, South Carolina and Ohio.

MARK HOPLAMAZIAN, PRESIDENT and CEO of Hyatt Hotels Corp., will join Greg Friedman, managing principal and CEO of Peachtree Group, for a fireside chat at the Hunter Hotel Investment Conference on March 19. Hunter introduced this format last year with Anthony Capuano, CEO of Marriott International, as the featured guest. In "A Conversation with Mark Hoplamazian," he will share insights on his hospitality career, leadership approach, Hyatt's market position, company outlook and industry developments, Hunter said in a statement. U.S. extended-stay hotels finished 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the industry, while ADR and RevPAR remained positive but gained momentum later in the year, according to The Highland Group.​ "At Hyatt, business is personal-relationships, trust, and a deep understanding of our guests, customers, and owners are at the heart of everything we do," said Hoplamazian. "In today's competitive landscape, hotel performance is driven by the human connections that shape our industry. That's why we collaborate closely with owners and operators like Peachtree Group to create long-term value for their investments."

WYNDHAM HOTELS & RESORTS now has a mobile tipping solution for its U.S. and Canadian franchisees, the company said in a statement. Developed by Béné, the platform enables guests to tip hotel team members digitally via their preferred mobile device. According to consulting firm McKinsey, 82 percent of Americans are now using digital payments, Wyndham said in its statement. The trend was accelerated by the pandemic, said Scott Strickland, Wyndham's chief information officer, and he expects it will only continue in the coming years. "Having previously empowered our franchisees to accept digital, contactless payment for stays at their hotels, the next logical step was to find a solution that allows guests to recognize housekeepers, wait staff and other frontline team members in a similar fashion," Strickland said. "This platform does exactly that and at virtually no cost to franchisees."

THE TOP FIVE U.S. markets with the largest hotel construction pipelines are led by Dallas with 189 projects and a peak of 22,392 rooms in the second quarter of 2024, according to Lodging Econometrics. That is four projects shy of its end of fourth quarter 2023 record. Atlanta follows with a record 159 projects and 18,522 rooms. The Inland Empire ranks third with a record 124 projects and 12,569 rooms, while Nashville has 123 projects and 15,924 rooms and Phoenix boasts 120 projects and 15,627 rooms. LE's Q2 2024 U.S. Construction Pipeline Trend Report revealed that 10 states-Texas, California, Florida, Georgia, Tennessee, North Carolina, Arizona, New York, Alabama and Michigan-account for 60 percent of the rooms in the pipeline.

DALLAS LEADS THE nation's hotel construction pipeline with 204 projects totaling 23,669 rooms, according to Lodging Econometrics. Atlanta follows with 168 projects and 19,431 rooms. Nashville and Phoenix each report 130 projects with 17,029 and 16,824 rooms, respectively. The Inland Empire rounds out the top five with 122 projects and 12,234 rooms, according to LE's latest U.S. Construction Pipeline Trend Report. New York City leads the under-construction pipeline with 36 projects and 5,928 rooms, followed by Phoenix with 31 projects and 4,788 rooms. Dallas has 31 projects with 3,467 rooms, Atlanta 27 projects with 3,211 rooms, and the Inland Empire 19 projects with 1,962 rooms.

APPROXIMATELY 6,095 PROJECTS with 713,151 rooms are in the U.S. construction pipeline at the end of the second quarter, according to Lodging Econometrics. This all-time high marks a 9 percent year-over-year increase in projects and an 8 percent increase in rooms compared to the second quarter of 2023. LE's Q2 2024 U.S. Hotel Construction Pipeline Trend Report revealed 1,171 projects with 147,611 rooms under construction at the end of the second quarter, reflecting a 10 percent increase in projects and a 4 percent increase in rooms year-over-year. LE expects that as interest rates decline, projects scheduled to start in the next 12 months will quickly move to under construction. Extended-stay brands remain popular with developers, comprising 36 percent of projects under construction, 33 percent of those starting in the next 12 months and 34 percent of projects in early planning, the report said. Sixty-four percent of these projects are in the middle tier of brands.

CROWNE PLAZA HOTELS & Resorts, part of IHG Hotels & Resorts' portfolio, recently rolled out its "New Modern" design across U.S. properties with zones for productivity, restoration and collaboration. The design caters to the growing bleisure travel segment. The company expects 70 percent of Crowne Plaza's Americas estate to feature updated designs by late 2025, IHG said in a statement. "As the once firm lines between business and leisure travel blur further, Crowne Plaza remains a trusted leader at the forefront of serving the new blended traveler," said Ginger Taggart, IHG's vice president, brand management for global premium brands. "Our latest design approach introduces more inviting gathering spaces that inspire connection and enable guests to balance business and social interaction."

U.S. HOTEL CONSTRUCTION declined for the seventh consecutive month in June, according to STR. Rooms in construction in New York City and Nashville represent a significant percentage of existing supply in those markets. Though at a slower pace, planning activity increases across the U.S. and developers are showing interest in Miami, Nashville and Phoenix, the report said. According to STR, there are 146,198 rooms under construction in the U.S. in June, down 20.1 percent when compared to same period last year. As many as 178,809 rooms are at final planning during the month, decreased 11.3 percent from last year and 281,190 rooms are at planning phase, an increase of 6.1 percent from June 2021. "The U.S. hotel pipeline continues to decelerate as we enter the second half of the year," said Carter Wilson, senior vice president of consulting, STR. "The continued increases in debt costs combined with the ongoing supply chain disruptions will likely delay projects from breaking ground this year, which will lead to a further decline in rooms in construction. On a national basis, new supply will not be a significant headwind for the future." New York leads the major markets in rooms in construction at 13,568 rooms in June, up 10.8 percent compared to last year, followed by Nashville with 3,939 rooms, up 7 percent, Phoenix with 4,388 rooms, an increase of 6.3 percent over last year, Atlanta with 5,991 rooms, up 5.5 percent and Detroit with 2,382 rooms, an increase of 5.1 percent over June 2021.

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.

The September 2023 issue of Asian Hospitality magazine offers in-depth coverage of the latest trends and developments in the hospitality industry. This edition highlights crucial topics such as the surge in hotel development, innovative technologies transforming the guest experience, and key insights from industry leaders. Readers can explore detailed articles on sustainability, financial performance, and the evolving landscape of extended-stay hotels. Additionally, the issue delves into diversity initiatives and workforce challenges, providing a comprehensive view of the hospitality sector's future. Stay informed with expert analysis and forward-thinking strategies shaping the industry in 2023 and beyond.

Mary Beth Cutshall is the new chief growth officer at Vision Hospitality Group. In this role, she will oversee the expansion of the company's U.S. hotel portfolio. Chattanooga, Tennessee-based Vision Hospitality is led by founder and CEO Mitch Patel. "With 35 years of hospitality experience across sales, marketing, acquisitions, and business growth, Mary Beth is the perfect candidate to lead Vision's growth into new markets and segments with new partners," said Patel. "She has worked at all levels of the industry-from property-level sales to C-suite positions with major hotel management companies-providing her with invaluable industry insights and meaningful relationships with brands, owners, operators, and virtually every other hotel stakeholder. Mary Beth shares Vision's purpose-driven mentality, and we have no doubt she will help us achieve our expansion goals."

THE U.S. HOTEL construction pipeline increased year-over-year in September for the seventh straight month, according to STR. Investor sentiment remains positive following the Federal Reserve's September interest rate cut, as shown by continued double-digit growth in the planning and final planning stages of the pipeline. In CoStar's pipeline, 157,253 rooms were under construction in September, a 7 percent increase from last year. An additional 268,190 rooms were in final planning, up 10.4 percent, while 336,205 rooms were in planning, up 38.4 percent. "Growth in rooms in construction has accelerated over the last seven months," said Isaac Collazo, STR's vice president of analytics. "Despite higher interest rates throughout 2024, developer appetite has remained strong. With the recent rate cut in September and more on the way, investor sentiment remains positive, as evidenced by continued double-digit growth across the planning and final planning stages of the pipeline. Upscale and upper midscale continue to account for about 50 percent of all rooms in the final phase, while luxury and midscale showed the highest growth in rooms in construction, up 48.5 percent and 34.5 percent, respectively."

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."

THE HOSPITALITY SHOW 2024, produced by Questex and the American Hotel & Lodging Association, announced highlights recently, including keynote sessions by chef José Andrés on October 28 and franchise expert Scott Greenberg. The show will take place Oct. 28 to 30 at the Henry B. González Convention Center in San Antonio, Texas. Andrés will present "Changing the World Through the Power of Food," while Greenberg will discuss strategies to elevate franchise operations. Greenberg's keynote will be followed by a fireside chat with Geoff Ballotti, president and CEO of Wyndham Hotels & Resorts. On Oct. 30, NFL reporter Erin Andrews will moderate the session "Creative Collaboration: The Ultimate Immersive Guest Experience," joined by Jonathan Tisch, executive chairman of Loews Hotels & Co., and Mark Woodbury, chairman and CEO of Universal Destinations & Experiences. They will discuss how storytelling transforms concepts from books and films into immersive guest experiences. Following the keynote, Andrews will join AHLA Foundation president Anna Blue for a ForWard Segment to discuss her career in sports broadcasting and her entrepreneurial venture, WEAR.

MORE WEALTH AMONG 1.5 billion people in India is driving a surge in new travelers with increased disposable income, creating significant demand for hotel rooms across the subcontinent, according to HotStats. This demand spans all asset classes, making it both easier and more challenging for developers and operators to determine what to build and operate. HotStats' latest blog reveals that India's hospitality sector is poised for growth due to its expanding economy, population and market performance. "India mirrors China's growth from 20 years ago, but a key difference emerged when India recently surpassed China as the world's most populous nation," wrote Tareq Bagaeen, HotStats' senior consultant. "While China's population is set to drop below one billion in the coming decades, India will continue growing, reaching 1.7 billion in 30 years. With a growing economy and strong market performance, India's hospitality sector is primed for growth."

Ralph Posner is now AHLA's chief communications officer, while Khristyn Brimmeier has been named chief of staff. Posner will lead AHLA's external communications, including media relations, member communications, and campaign strategy. Brimmeier will serve as a strategic advisor to AHLA CEO Rosanna Maietta, supporting association priorities and key projects, AHLA said in a statement. "Ralph and Khristyn will be invaluable in growing and expanding AHLA's mission-to highlight the importance of the hospitality industry to the American economy in every community we serve," Maietta said. "As we continue doubling down on our efforts to unite and promote the hotel industry, I'm excited about the deep expertise and experience our new team members will bring to service, support, and advocacy." Additionally, Neal Daftary joined the association as vice president of market development for Green Key Global, a sustainability-focused joint venture of AHLA and the Hotel Association of Canada.

RESOLUTE ROAD HOSPITALITY and Choice Hotels International recently hosted an investment forum in Dallas titled "Exploring Extended Stay in Texas." Around 100 hospitality executives discussed best management practices, emerging market trends, and Choice's new extended-stay brand, Everhome Suites, at the forum. Gary Horton, Resolute Road Hospitality's president, and Daniel Pinheiro, chief business development officer, presented strategies for managing and operating in the extended-stay industry, the companies said in a joint statement. "The forum was highly productive, bringing together industry professionals eager to explore the rapidly expanding extended-stay sector," said Pinheiro. "The attendees exchanged invaluable insights and collaborated on best practices specific to hotels in the midscale extended-stay class."