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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."

BANYAN INVESTMENT GROUP recently acquired the Castle Hotel, part of the Autograph Collection by Marriott, in Orlando, Florida. The hotel recently underwent an $8.2 million renovation on its guestrooms, public spaces and exterior. The 213-room hotel is on Universal Boulevard near the city's key attractions, Disney's Magic Kingdom and Universal Studios, according to Atlanta-based Banyan, led by Rakesh Chauhan, managing partner and CEO. Also nearby is the site of Epic Universe, a 750-acre, $1 billion theme park expected to open in 2025, which will be the largest Universal Park in the U.S. and second largest globally. The Castle Hotel, which is designed to look like a medieval fortress, also is close to the 270-acre Lockheed Martin regional headquarters that employs 8,000 people. Also nearby are the Orlando International Airport, including the recently opened $2.8 billion, 15-gate international Terminal C, as well as the Orlando Convention Center. Brightline High Speed Rail plans to open two stations in the area.

AS MANY AS 47.9 million people will travel 50 miles or more from home over the Independence Day weekend from June 30 to July 4, an increase of 3.7 percent over 2021, according to AAA Travel. It added that car travel will set a new record, despite historically high gas prices, with 42 million people hitting the road mainly due to recent issues with air travel and ongoing concerns of cancelations and delays. Independence Day will be the second busiest since 2000, as travel volumes continue to trend upwards, AAA said in a statement. However, the share of air travel will be the lowest since 2011. According to AAA, 46.2 million people traveled during Independence Day last year and the number was 49 million in 2019, before the pandemic.

THE BAIRD/STR HOTEL Stock Index dropped in June for the second consecutive month. The index dropped for the first time, after rising continuously for five months, in May. Baird/STR recorded a sharp fall of 19.3 percent in June, according to STR. The index 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 index decreased 21.6 percent during the first six months of 2022. The Baird/STR Index fell behind both the S&P 500, dropped 8.4 percent from May and the MSCI US REIT Index, down 7.9 percent respectively during June. The hotel brand sub-index fell 19.3 percent from May, while the Hotel REIT sub-index dipped 19.5 percent during the month. "Hotel stocks continued on their downward trajectory in June and were significant relative under-performers as investors began to factor in an increasing likelihood of an impending recession," said Michael Bellisario, senior hotel research analyst and director at Baird. "While the upcoming summer travel months are expected to be strong, investors are looking beyond the near-term fundamental strength to a period when demand and ADR growth are likely to moderate, which is supported by the many macroeconomic indicators that are flashing signs of broader slowing."

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.

U.S. HOTELS REPORTED record-high monthly room rates on a nominal basis in July, according to STR. RevPAR on a nominal basis hit an all-time high during the month and occupancy was the second highest since August 2019. However, performance dipped some in the third week of August on a weekly basis, but performance improved during the week over 2019. Occupancy was 69.6 percent in July, down from 70.1 percent in June and down 5.4 percent from three years ago. ADR was $159.08 during the month, up from 155.04 in June and up 17.5 percent over 2019. RevPAR reached $110.73 in July, up from $108.64 the month before and increased 11.2 percent three years ago. At the same time, occupancy dropped to 67.3 percent for the week ending August 20, down from 68.5 percent the week before and dropped 3.9 percent from 2019. ADR was $150.96 for the week, decreased from $152.34 the week before and increased 16.7 percent from three years ago. RevPAR reached $101.59 during the week, fell from $104.30 the week before and increased 12.2 percent from 2019.

THE LABOR DAY calendar shift pulled U.S. hotel performance down in the second week of September, compared to the week before, as expected, according to STR. The weekly performance was also down when compared to 2019. Occupancy was 61.7 percent for the week ending Sept. 10, down from 62.8 percent the week before and decreased 11.2 percent from 2019. ADR was $146.80 for the week, down from $147.14 the week before and increased 10.6 percent from three years ago. RevPAR reached $90.50 during the week, dipped from $92.45 the week before and decreased 1.8 percent from 2019. Orlando reported the only occupancy increase, up 1.5 percent to 59.3 percent, among STR's top 25 markets, when compared to 2019.

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."

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.

Prithvi Raj Singh Oberoi, also known as 'Biki,' a stalwart of Indian hospitality and chairman emeritus of the Oberoi Group, passed away on Nov. 14 at the age of 94. Oberoi served as the executive chairman of EIH Limited, the flagship company of The Oberoi Group, and as the chairman of Oberoi Hotels Private Limited, the major shareholder of EIH Limited. "It is with profound grief and sorrow that we wish to inform you of the peaceful passing of our beloved leader, P.R.S. Oberoi, chairman emeritus earlier today," The Oberoi Group said in a statement. "His passing is a significant loss for The Oberoi Group and the hospitality industry in India and overseas." Oberoi is acknowledged as a key figure in the Indian hotel industry, contributing to the globalization of Oberoi hotels by establishing a presence in major cities. He received notable accolades, including the Padma Vibhushan, India's second-highest civilian honor, awarded in January 2008 for exceptional service to the country.

NETHERLANDS-BASED CITIZENM HAS inaugurated its first hotel at Meta's Menlo Park campus in California, marking its second U.S. opening this year after the launch of citizenM Miami Center. CitizenM currently operates 14 hotels in the U.S. and has plans for additional openings in 2024, including locations in Austin, Boston, and another in South Beach, Miami. The global hospitality company was founded by Rattan Chadha in 2015. The five-story hotel, spanning 79,400 square feet, features 240 modular rooms, citizenM said. The brand's modular design has not only reduced construction waste by up to 60 percent but has also shortened the development timeline by three to four months compared to traditional construction methods. The hotel at Meta's Frank Gehry-designed headquarters campus has been designed by citizenM's architectural partner, Baskervill. "We're excited to open in Menlo Park, a burgeoning tech hub," said Robin Chadha, chief brand officer at citizenM. " CitizenM, designed to seamlessly connect remote and in-person work with private nooks and versatile workspaces in our Living Rooms, along with societyM meeting rooms. This dynamic property will provide a unique experience for Meta employees and mobile citizens in the area."

EVENT VOLUME CLIMBED 21.7 percent year over year in September compared to the previous year, according to hospitality analytics firm Knowland. Nashville saw the highest percent growth at 30.7 percent. Los Angeles came in second at 22.3 percent over 2022. Among the top five performing markets, national associations spearheaded growth, with healthcare, education, and weddings as primary industry drivers. Nashville's growth was stimulated by the healthcare and technology sectors, accounting for 34 percent of the corporate events in the market, Knowland said in a statement. Nashville meetings averaged 101 attendees, utilizing over 2,692 square feet of meeting space. Despite ongoing talks between Los Angeles hoteliers and striking workers, the market continued to grow compared to 2022, the statement added.

THE DEPARTMENT OF Homeland Security will issue more than 64,000 additional H-2B visas for fiscal year 2024, surpassing a congressionally authorized discretionary cap for the second consecutive year. The American Hotel & Lodging Association, AAHOA and others have been lobbying for the increase as a step to relieving the labor shortage challenge in the hotel industry. A forthcoming interim final rule, which was announced on Friday, will additionally approve temporary work visas, bringing the total to over 130,000 including those issued under the regular annual cap of 66,000. Chip Rogers, AHLA president and CEO, commended the federal government's action. "The H-2B Workforce Coalition, which AHLA co-chairs, worked hard to convince the Biden administration to offer this considerable expansion, which nearly doubles the yearly allocation of H-2B visas," said Rogers. "These extra visas will be crucial to helping hotels and resorts in remote vacation destinations fill seasonal roles, and we thank Homeland Security Secretary Mayorkas for making them available. But we still need help from Congress to get hoteliers across the country all the employees they need. That includes establishing an H-2B returning worker exemption, passing the Asylum Seeker Work Authorization Act, and passing the H-2 Improvements to Relieve Employers (HIRE) Act."

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.

NewcrestImage has opened a Hyatt Place in Amarillo, Texas, the company's fourth hotel in the city. The 91-room, four-floor hotel is the second property of a three-hotel, 300-room 'hotel campus' located at the I-40 Frontage Road and South Soncy Road intersection. The first property of the hotel complex, a 90-room Tru by Hilton, was opened in August 2018 and a 90-room Aloft by Marriott is scheduled to begin construction by mid-year of 2020. "We offer travelers three distinctive hotel experiences and styles at a single, high-visibility, high-traffic location," said Mehul Patel, Chairman, and CEO of NewcrestImage. The company owns and operates two other properties in Amarillo's downtown area, a 107-room Courtyard by Marriott in the historic Fisk Building and a 226-room Embassy Suites directly across from the Amarillo Civic Center complex.

MARCH IS WOMEN'S History Month, a time to focus attention on women's role in business and society. It also is the second month for Wyndham Hotels & Resorts' new "Women Own the Room" program that aims to open the door for more women to achieve hotel ownership. Two of the first participants in the program are Trusha Patel, founder and CEO of Platinum Holdings in Austin, Texas, and Neha Jadhav of Chantilly, Virginia, founder of Luminous Hotel Management. Both women are opening dual-brand La Quinta and Hawthorn Suites hotels with assistance from WOTR assistance. Correcting an imbalance Wyndham launched WOTR in January in an effort to overcome the common barriers women face in developing, opening and running their own hotel. The program provides assistance with financial solutions, personalized operational support and networking and educational opportunities. Programs such as WOTR are needed to counter hospitality industry data that shows women are significantly underrepresented in hotel ownership, real estate, and investment funding roles, Wyndham said in a press release. The company cited the most recent annual report from the Castell Project, a nonprofit focused on promoting women in the industry, that found that while there are more women in the hospitality industry they still lag behind in leadership roles.

CHOICE HOTELS INTERNATIONAL has entered into a definitive agreement to acquire the franchise business, operations and intellectual property of Radisson Hotel Group Americas for approximately $675 million. The addition of Radisson's nine brands to Choice will bring with it 624 hotels with more than 68,000 rooms. As part of the transaction, which covers properties in Canada, Latin America and the Caribbean as well as the U.S., Choice will independently own and control the brands in the Americas and will work with Radisson to drive the growth, continuity and success of the brands, according to a joint press release from the companies. It will be funded by cash on hand and revolver borrowings and includes 10 Radisson Blu hotels, 130 Radisson hotels, 9 Radisson Individuals, 1 Park Plaza hotel, 4 Radisson RED hotels, 453 Country Inn & Suites by Radisson and 17 Park Inn by Radisson hotels, as well as the recently launched Radisson Inn & Suites and Radisson Collection brands. Choice's board of directors unanimously approved the transaction and is expected to close in the second half of 2022, pending regulatory approvals and customary closing requirements. The transaction is not anticipated to change Choice's current capital allocation strategy related to dividend payment policy and planned share repurchases.

STONEBRIDGE COS. HAS acquired the Le Méridien New Orleans hotel for $84 million from Park Hotels & Resorts Inc. It is the second acquisition in the city in 12 months for the Denver-based company, started by CEO Navin Dimond. The 410-room, full-service upscale hotel on Poydras Street is near the city's French Quarter, Bourbon Street and Warehouse Arts District. Also nearby are the New Orleans Ernest N. Morial Convention Center, Mercedes-Benz Superdome, Smoothie King Center and the Port of New Orleans Cruise Ship Terminal. Amenities include a rooftop pool, onsite restaurants and more than 13,000 square feet of event space. With the new purchase, Stonebridge's portfolio stands at 63 hotels and more than 10,000 guest rooms, including select-service, extended-stay, mid-scale and full-service hotels in several states. It is the first Le Méridien hotel for the company, Dimond said. "Last year we purchased the Embassy Suites by Hilton New Orleans," Dimond said. "New Orleans is truly a great American city, and the Le Méridien is ideally located for both leisure and business travelers alike visiting downtown New Orleans."

U.S. EXTENDED-STAY HOTELS set new records for demand, ADR, RevPAR and room revenues in the fourth quarter of 2022, according to a report from hotel investment advisors The Highland Group. Also, the report showed rate resistance is apparent at lower price points due to recession and the economy extended-stay segment reported nine consecutive months of declining demand and three successive quarterly falls in occupancy. According to the Highland Group's "U.S. Extended-Stay Hotels: Fourth Quarter 2022" report, mid-price extended-stay hotels reported their second consecutive quarterly decline in occupancy in fourth quarter. Similar occupancy declines occurred for about two years starting in mid-2015 before ADR growth moderated and occupancy recovered. Extended-stay hotel supply growth was the lowest since 2013 during the quarter, below its long-term historical average for 20 consecutive quarters. The last time extended-stay supply growth was consistently near its current level was from 2010 fourth quarter through third quarter of 2014. "Extended-stay hotel RevPAR was more than 12 percent higher than in fourth quarter of 2019. There were 567,770 extended-stay hotel rooms open at the end of the quarter. Excluding 2020, the 6,481 net gain in rooms open over the last year was the lowest annual increase since 2012. Room nights available increased 1.2 percent over the last year which was the smallest annual gain in supply for nine years," the report said. "Fractional net economy and upscale segment supply gains compared to 2021 are largely due to re-branding moving rooms between segments in our database, de-flagging of hotels which no longer meet brand standards, as well as the sales of some hotels to multi-family apartment companies and municipalities."

THIRD-PARTY HOSPITALITY management company, Twenty Four Seven Hotels, has opened the 128-room Hyatt House Sacramento/Midtown, a statement said. Twenty Four Seven is led by David Wani as CEO. The adaptive reuse project, owned and developed by Hume Development, Inc., repurposed the former Eastern Star Hall located at Sacramento's art, music and cultural scene. According to the statement, the Romanesque Revival-style building first opened in 1928 as a Masonic women's meeting place and is listed on the National Register of Historic Places. The renovation included the redevelopment of five floors within the original structure, keeping the major architectural features of the historic building intact. "The Hyatt House Sacramento/Midtown is the perfect marriage of the classic and the contemporary, providing the latest amenities and services in a setting that draws heavily from its nearly century-old history to provide a uniquely Sacramento experience," said Amanda Hawkins-Vogel, chief operating officer at Twenty Four Seven Hotels. "This hotel is an extension of our presence in Northern California and marks our first opening this year with two more to come in 2023. As the newest hospitality offering in the city, we expect the Hyatt House Sacramento to quickly take its rightful place as the segment and market leader for business and leisure travelers."