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AS THE FIRST half of 2022 ended, U.S. hotels overall were catching up with extended-stay hotels in terms of recovery, according to a report from The Highland Group. RevPAR recovery, for example, was almost the same for hotels overall and extended-stay. Also, the report found that new construction fell to an 8-year low over the first two quarters of the year, according to the report. For the first time in 18 months, the overall hotel industry's second quarter RevPAR recovery index surpassed 100 percent, matching the extended-stay hotel's 109 percent index. Economy and mid-price extended-stay hotels are still ahead of the overall recovery as well as upscale extended-stay hotels. The gap between the segments is expected to narrow over the near term.

THE DEMAND PREMIUM that extended-stay hotels have experienced over the past two years compared to other types of hotels is beginning to ebb, according to consulting firm The Highland Group. Also, ADR growth decelerated for the fourth consecutive month in July but remains higher than any other period before 2021. The overall hotel industry revenue recovery is now only one half a point greater than extended-stay hotels, according to the US Extended-Stay hotels Bulletin: July 2022 report by the Highland Group. According to STR, all hotel room revenue was up 12.1 percent in July this year compared to last year. "For the first time in more than two years all three extended-stay segments reported a monthly decline in demand compared to the previous year. Demand declines in economy and mid-price segments, which were less than corresponding falls for all hotels in the same rate categories, are mainly correlated to strong growth in ADR. The upscale segment's demand decline is correlated to both increasing ADR and the contraction in supply," the report said.

MORE THAN SEVEN in 10 Americans would be deterred from booking a hotel room in Los Angeles if hotels there are forced to house homeless people next to paying guests, according to a recent poll by American hotel & Lodging Association. The survey was released as the city of Los Angel considers a proposed ordinance that would require hotels to house homeless individuals alongside paying guests, a change opposed by AHLA and AAHOA. Los Angeles residents will vote in March 2024 on the ballot initiative proposed by Unite Here, a labor union representing L.A.-area hotel workers. The AHLA study highlighted the significant impact such a policy would have on tourism and hotel occupancy in the city. However, if Unite Here's ballot initiative passes, Los Angeles would be the first city in American history to require hotels to house homeless people alongside paying guests.

THE BAIRD/STR HOTEL Stock Index dropped 2 percent to 5,739 in September, influenced by higher interest rates impacting stock prices and investor sentiment, according to STR, although the HOTEL stocks outperformed their relative benchmark. That is the second month of decline in the index following a surge in July. "HOTEL stocks declined in September, yet they exceeded their relative benchmarks," said Michael Bellisario, senior HOTEL research analyst and director at Baird. "Both the S&P 500 and the RMZ recorded their poorest monthly performance this year due to elevated interest rates affecting stock prices and investor sentiment. HOTELs likely gained from sustained, albeit gradual, RevPAR growth throughout the month. Year-to-date, the HOTEL brand sub-index stands at 23 percent, whereas the HOTEL REIT sub-index lags at negative 1.5 percent."

APERTURE HOTELS AND Satori Collective have completed a multi-million-dollar renovation of Homewood Suites by Hilton Atlanta/Perimeter Centre in Atlanta. This revamped HOTEL will cater to extended-stay guests, the companies said in a statement. Aperture HOTELs focuses on HOTEL management, while Satori Collective is a commercial real estate investment firm. The renovation involved improvements to the HOTEL's public spaces, guest rooms, fitness center, meeting facilities, and exteriors, the statement added. "With the conclusion of this comprehensive, multi-million dollar renovation, the Homewood Suites by Hilton Atlanta/Perimeter Centre has achieved 'like-new' status, effectively becoming the newest extended-stay HOTEL in the Atlanta Perimeter submarket," said Charles Oswald, president and CEO of Aperture HOTELs. "This year continues to provide strong growth for Aperture. In addition to overseeing renovations, we have added six new properties to our portfolio of third-party managed HOTELs and have several more exciting properties in the immediate pipeline."

U.S. EXTENDED-STAY HOTELS continued their good performance in all measures of performance in April compared to 2019 and higher than in March, according to HOTEL investment advisors The Highland Group. Due to seasonal increases in leisure travel, the upscale extended-stay HOTELs benefited the most from the greatest lift in recovery indices except ADR. Meanwhile, mid-price extended-stay HOTELs achieved the strongest monthly gains in ADR and room revenues compared to April 2021, the U.S. Extended-Stay HOTELs Bulletin: April 2022 report said. Economy extended-stay HOTELs continued the lead the recovery compared to 2019, but, demand declined 1.4 percent in April this year compared to April 2021, mainly due to strong increases in ADR over several months. "The 1.8 percent increase in extended-stay room supply in April is the first month supply growth reported below 2 percent since 2013 and the seventh consecutive month of 4 percent or lower supply growth. It is likely that the supply increases should be well below pre-pandemic levels during the near term," the report said.

PEACHTREE HOTEL GROUP added seven HOTELs to its portfolio this week for $135 million. Three of the HOTELs also are part of Peachtree's third investment partnerships with San Mateo, California-based Verakin Capital led by partners Rupesh and Bimal Patel and Hiten Suraj. The new acquisitions include 829 rooms and are in five different states, according to Peachtree and its management division Peachtree Hospitality Management, which will operate all seven HOTELs. The new HOTELs are: The dual-brand Hilton Garden Inn Phoenix Tempe, University Research Park, 120 rooms, and Home2 Suites by Hilton Phoenix Tempe, University Research Park, 108 rooms, in Tempe, Arizona, which were built in 2017. Aloft Hillsboro-Beaverton in Hillsboro, Oregon, 137 rooms, built in 2017. Hilton Garden Inn Casper, 121 rooms in Casper, Wyoming, built in 2008. Home2 Suites by Hilton Eugene Downtown University Area, in Eugene, Oregon, 120 rooms, built in 2016. Home2 Suites by Hilton Pittsburgh/McCandless in Pittsburgh, Pennsylvania, 119 rooms, built in 2013. Hilton Garden Inn West Lafayette Wabash Landing in West Lafayette, Indiana, 104 rooms, built in 2003.

THE AMERICAN HOTEL & Lodging Association has announced the dates, cities, and registration information for its "On the Road" State HOTEL Conferences for 17 states in 2023. The conferences will provide HOTELiers, suppliers, and service providers opportunities to connect with their peers as well as hospitality and policy leaders to learn about the latest news and information affecting the HOTEL and lodging industry, AHLA said in a statement. Anyone who works in the HOTEL industry can attend these half-day, free events, it added. "AHLA's 'On The Road' State HOTEL Conferences are designed to help local HOTELiers connect with their peers, gain insights on national and local market business performance trends and learn from top hospitality leaders, service providers and policy experts," said Chip Rogers, AHLA president and CEO. "The events are also a vital tool to help AHLA build coalitions, grow our grassroots network and rally HOTELiers around the industry's goals and initiatives. We are excited to bring AHLA's successful On The Road State HOTEL Conference series to a record number of cities in 2023." AHLA will host these conferences in partnership with its state or city lodging association partners. Since starting with four events in 2021, AHLA's On The Road State HOTEL Conferences have brought together thousands of HOTELiers in cities across the nation. Last year, 11 events were held.

MAYA HOTELS RECENTLY celebrated the 25th anniversary of its first ground-up HOTEL, Holiday Inn Express & Suites Belmont in Belmont, North Carolina. The event marked the HOTEL's evolution from a 65-room establishment in 1999 to a modern 92-key HOTEL, while showcasing original site plans, franchise approval letters, snapshots from the 1999 grand opening and earned awards over the years. IHG HOTELs & Resorts representative Jason Miller, local government officials, along with associates, community members, vendors and investors attended the event. "We came to the United States with nothing, but we knew one thing - this is the land of opportunity," said Baldev Thakor, Maya HOTELs' cofounder. "We knew we wanted to build a Holiday Inn Express in this community and we knew there were many guests not being served," J.D. Deva, Maya HOTELs cofounder, said. "Here we are, 25 years later, and it has been a remarkable journey."

U.S. HOTELS ADDED 700 jobs to their payrolls in June, according to the latest government data, but the nationwide workforce shortage continues to make it difficult for HOTELs to fill open positions, according to the American HOTEL and Lodging Association. Total HOTEL employment stands at about 1.92 million, according to the Bureau of Labor Statistics, which is more than 196,000 fewer workers than in February 2020, reflecting a scarcity of available employees. Bureau of Labor Statistics also revised down the total number of HOTEL jobs in the country, which eliminated job gains for the industry that were reported in prior months, AHLA said in a statement. "Halfway through 2024, the HOTEL industry is behind where it needs to be when it comes to hiring staff, despite near-record high wages and expanding workplace benefits and flexibility," said Kevin Carey, AHLA's interim president and CEO. "The reason is the nationwide workforce shortage, which is preventing HOTELiers from meeting their full potential as demand for travel remains strong. Both Congress and the administration can provide relief to our members, many of whom are small business owners, and AHLA will continue to call for action to expand the pool of available workers."

ABOUT 78 PERCENT of global travelers place high quality service above all else when booking a hotel, according to a global survey by IHG hotels & Resorts' voco hotels. Cleanliness and other basic needs also rank highly, but the way hotel staff approach guests during their stay is very important, and travelers want to feel comfortable, both physically and in themselves. "Just like travel has changed, consumers expectations have too," said Will Yell, VP luxury and upscale conversion and affiliate brands at IHG. "With nearly half of travelers stating they want to be valued as an individual, a one-size-fits-all approach to hotel service no longer resonates with travelers." Travelers also are ready to reconnect post-pandemic, with six out of 10 craving connection, interaction and/or conversation more during their travels, compared to pre-pandemic, the survey said. That leads them to want more connection with hotel staff. "As many as 65 percent of travelers think hotel staff should act in a friendly manner towards guests and half said they want to be able to talk to staff and vice versa in a friendly, conversational manner, rather than overly formal or personal. Nearly half (48 percent) of travelers agree that a friendly, approachable, and personalized experience is more important than ever following the pandemic," the survey said.

THE BAIRD/STR Hotel Stock Index rose in March, continuing a trend from the previous month. Still, continued growth remains at risk by factors such as inflation and political unrest. The index increased 2.2 percent in March after rising 4.1 percent in February. It rose 2.4 percent year to date through the first three months of 2022. However, Baird/STR fell behind both the S&P 500, up 3.6 percent in March, and the MSCI US REIT Index, which rose 5.9 percent. The Hotel brand sub-index rose 1.4 percent from February, while the Hotel REIT sub-index jumped 5.1 percent. "Hotel stocks increased in March but underperformed their benchmarks as stock market volatility eased and geopolitical concerns did not worsen," said Michael Bellisario, senior Hotel research analyst and director at Baird. "Underlying Hotel fundamentals continued to improve in March, and the outlook appears more favorable today than just one month ago despite all of the background noise in the stock market and with interest rates on the rise. Higher gas prices and heightened concerns about a slower growth backdrop have been topical with investors lately, but broader travel momentum and pent-up demand should keep the lodging recovery going over the near term, in our opinion."

Home2 Suites by Hilton Cookeville in Cookeville, Tennessee, is now open. It is owned by NHK Hotels LLC and operated by Image Hotel Management, both led by Neil Patel as CEO. "On Aug. 14, 1986, Neil Patel, CEO and founder of Image Hotel Management, opened his first Hotel, Executive Inn, in Cookeville," said Karen Patel, managing partner of Image Hotel Management. "Thirty-seven years later, we are delighted to open our Home2 Suites here and continue our partnership with Hilton Hotels." The 102-room Hotel is near Tennessee Tech University, Cookeville Regional Medical Center, Cummins Falls, Burgess Falls, and Fall Creek Falls state parks, Image said in a statement. Hotel amenities include full kitchens, an indoor saline pool and a fitness center. The property includes a "backyard" with outdoor seating, a seasonal fire pit, pet pit stop, putting green, and yard games. The Cumberland Room offers 1,500 square feet of conference space with a spacious pre-function area and catering kitchen.

HOTELS ARE THE top lodging choice for holiday travelers who are certain to take trips in the next three months, according to a survey commissioned by the American HOTEL & Lodging Association. AHLA also announced a new system for indexing bookings. The new national HOTEL Booking Index Survey, conducted by Morning Consult for AHLA, revealed that 31 percent of Thanksgiving travelers plan to stay in a HOTEL during their trip, compared to 22 percent who planned to do so last year. The survey of 4,000 adults, conducted between Oct. 14 to 16, said that 28 percent of Christmas travelers plan to stay in a HOTEL during their trip, compared to 23 percent in 2021. As many as 54 percent of those who are certain to travel for leisure in the next three months plan to stay in a HOTEL.

ANNUAL CHANGES IN U.S. hotel utility costs and in the Consumer Price Index, or inflation, have historically proven to be strongly correlated. As of August 2022, CBRE is forecasting CPI growth to be 7.7 percent in 2022, followed by another 3.6 percent in 2023. Since inflation has averaged just 2.2 percent since 2000, these inflation projections have hoteliers concerned about operating costs. Given that rising energy costs are a significant driver of the current rise in CPI, hotel managers are especially worried about utility department expenses. Over the past 50 years, utility department expenses have averaged between 3 and 4 percent of total revenue, indicating that hotel managers have been successfully controlling energy costs in the face of fluctuating business volumes. This is particularly commendable given the highly fixed nature of utility expenses. To provide some context to the current challenging environment, we studied recent trends in hotel utility department expenses. The data come from a sample of more than 2,800 U.S. hotels that reported utility department expenses each year from 2015 through 2021 for CBRE's annual "Trends in the hotel Industry" survey. In 2021 the properties in the sample averaged 209 rooms in size, with an annual occupancy rate of 54.2 percent and an average daily rate of $152.70.

AS MANY AS 60 percent of Americans are likely to stay in hotels this year, more than last year, according to two surveys commissioned by the American hotel & Lodging Association. The survey findings apply to business and leisure travelers, with most saying they are travelling as much as or more than they did pre-pandemic. hotels are the top lodging choice among travelers for business and leisure in the next three months, the new national hotel Booking Index survey research commissioned by AHLA and conducted by Morning Consult has revealed. According to the surveys, conducted on Dec. 16 to 19 and Dec. 28 to Jan. 2, 52 percent of adults would choose to stay in hotels in the next three months, while 76 percent of potential business travelers would be most likely to stay in a hotel during the same period. Besides, business travelers indicate that nearly 70 percent of their employers have either returned to the pre-pandemic normal or increased amounts of business travel. The survey said that 51 percent of business travelers said that share of employees expected or encouraged to travel for work is now the same as before the pandemic, while another 20 percent said it's more than before. About 53 percent of business travelers said that the average length of business trips is now the same as before the pandemic, while another 20 percent said it's more than before.

THE BAIRD/STR HOTEL Stock Index jumped in July, ending a downward trend for two consecutive months. The index decreased 10.4 percent year-to-date for the first seven months of 2022. Baird/STR Index recorded a sharp increase of 14.3 percent in July, according to STR. The index fell 19.3 percent in June and dropped 5.8 percent in May. It went up 0.7 percent during April. It increased 2.2 percent in March after rising 4.1 percent in February. The Baird/STR Index surpassed both the S&P 500, up 9.1 percent from June, and the MSCI US REIT Index, increased 8.7 percent, respectively during July. The HOTEL brand sub-index rose 14.2 percent from June, while the HOTEL REIT sub-index increased 14.6 percent during the month. "HOTEL stocks rebounded sharply and outperformed their respective benchmarks in July; relative outperformance has continued in August," said Michael Bellisario, senior HOTEL research analyst and director at Baird. "Despite the big gains in July, HOTEL stocks did not fully recapture June's losses. Positively, second quarter earnings exceeded analysts' and investors' expectations, and broader recession fears have begun to subside, which has boosted sentiment and stock prices. All eyes are on the post-Labor Day outlook that should reflect a more normalized travel environment."

NEWCRESTIMAGE RECENTLY FINALIZED its purchase of the LaQuinta Inn & Suites Los Angeles International Airport in Los Angeles, the final part of the company's acquisition of four LaQuinta-branded hotels in a joint venture between Highgate and Cerberus. The company closed on the other three hotels in the deal in August. The 281-room, 10-floor hotel, which will be managed by Highgate hotels, along with the other hotels in the deal, will add 696 rooms to NewcrestImage's portfolio. The other hotels are the LaQuinta Inn & Suites Irving DFW North in Irving, Texas; LaQuinta Inn & Suites Anaheim in Anaheim, California; and LaQuinta Inn Phoenix North in Phoenix. "These four hotels symbolize our company's strategy of investing in properties and in markets that are well-positioned for long-term growth and prosperity," said Mehul Patel, managing partner and CEO of NewcrestImage.

BOSTON IS THE most expensive city for hotel accommodations in the U.S., according to a recent survey by Cheaphotels.org. Portland was the cheapest city, the survey has found. The survey compared hotel rates across 50 U.S. destinations in October, which is typically the month with the highest hotel prices in most American cities. It specifically focused on hotels with a 3-star rating or higher, located in central areas, Cheaphotels said in a statement. Boston took the lead as the priciest city, with an average rate of $303 for the most affordable double room, the survey said. Following closely were New York City and Austin, with rates of $288 and $257, respectively. Cleveland claimed the fourth spot, with an average rate of $234 for the least expensive room. Notably, hotel rates in Ohio's second-largest city have surged by 25 percent compared to 2022.

AS ARTIFICIAL INTELLIGENCE continues to permeate society on every level, there is a place for it in the hotel industry, AAHOA said. AI technology can improve operational efficiency and cut costs, the association said, but it must be developed and used ethically. AAHOA referenced two recent research studies, one conducted by the Conrad N. Hilton College of Global Hospitality Leadership at the University of Houston, and another by Morgan Stanley, to endorse the integration of artificial intelligence into hotels for enhanced guests' experience. The University of Houston's study explored AI's transformative impact on the industry and its acceptance among hotel guests. Meanwhile, Morgan Stanley's research report released on August 18, titled "AI for hotels: Will the hotel of the Future Fit in the Palm of Your Hand?" documented the benefits of hoteliers, online travel agencies and hotel brands adopting AI technology early.