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THE REVPAR RECOVERY of U.S. extended-stay hotels remain unchanged in August compared to July, according to consulting firm The Highland Group. However, ADR growth for mid-price and upscale segments decreased for the fifth consecutive month but remained higher than any other period before 2021. STR said that hotel occupancy gained 5.3 percent in August 2022 compared to same period last year, decreasing extended-stay hotel's occupancy premium to 12.6 percentage points compared to more than 14 points in August 2021. But the premium remains well within its long-term average range. Economy and mid-price extended-stay segments reported much faster ADR growth compared to corresponding segments during the month, according to the US Extended-Stay Hotels Bulletin: August 2022. The economy segment continued leading the RevPAR recovery compared to 2019, but demand declined 1.9 percent for the fifth consecutive month compared to August 2021 due to strong increases in ADR.

U.S. HOTEL PERFORMANCE increased in the fourth week of September compared to the week before, according to STR. Performance also improved when compared to 2019. Occupancy was 70 percent for the week ending Sept. 24, increased slightly from 69.6 percent the week before and decreased just 1.5 percent from 2019. ADR was $157.99 for the week, up from $155.58 the week before and increased 15.7 percent from three years ago. RevPAR reached $110.60 during the week, increased from $108.25 the week before and up 13.9 percent from 2019. Among STR's top 25 markets, Orlando reported the highest occupancy increase for September's fourth week, up 7.9 percent to 72.2 percent, over 2019.

THE U.S. HOTEL construction pipeline ticked up in September for the third consecutive month, according to STR. Also, year-over-year declines have been lessening each month since May. In STR's pipeline, 156,861 rooms were in construction during the month, down 8.9 percent from the same time last year. Another 173,932 rooms were in final planning, down 15.5 percent, and 282,225 rooms were planning, up 7 percent. New York City, Phoenix and Nashville are set to see the largest supply percentage increases from current construction, according to STR. Among the chain scales, the luxury and upscale segments led in that measurement.

THE BAIRD/STR Hotel Stock Index fell 9.1 percent in September, according to STR. Experts said that they have concerns regarding recession and its impact on the sector. The index witnessed a sharp drop of 20.6 percent year-to-date through the first nine months of 2022. In September, the Index surpassed both the S&P 500, down 9.3 percent, and the MSCI US REIT Index, which fell 12.8 percent. The hotel brand sub-index decreased 7.7 percent from August to 8,268, while the Hotel REIT sub-index dropped 13.5 percent to 989. "September was a risk-off month for the broader market, and hotel stocks were down sharply as well. However, the Hotel REITs were modest underperformers only, while the Global Hotel Brands were slight relative outperformers," said Michael Bellisario, senior hotel research analyst and director at Baird. "Broader macroeconomic concerns continue to dominate investor sentiment and positioning, but underlying hotel fundamentals held steady throughout the month, which relatively helped the hotel stocks during a volatile time for the capital markets. Investors continue to ask about recession scenarios and downside analyses for our coverage list, which suggests a lot of the bad news is being priced into the stocks, particularly the Hotel REITs, in our opinion."

U.S. HOTEL PERFORMANCE improved in the first week of October due to school breaks and extended holiday weekend, but the performance was mixed when compared to 2019, according to STR. Hotel performance during weekdays declined due to Yom Kippur as expected. Post-Hurricane Ian demand in Florida also boosted the performance. Occupancy was 68.2 percent for the week ending Oct. 8, up from 66.4 percent the week before and decreased 3.5 percent from 2019. ADR was $153.79 during the week, increased from $149.71 the week before and up 16.9 percent from three years ago. RevPAR reached $104.83 in the first week of October, up from $99.36 the week before and increased 12.8 percent from 2019. Orlando reported the highest occupancy increase among STR's top 25 markets, up 1.9 percent to 73.6 percent, over 2019.

U.S. HOTELS POSTED new weekly records in all performance metrics in the fourth week of June, according to STR. The RevPAR on a nominal basis scaled new weekly record during the week, occupancy was the highest since August 2019, while ADR on a nominal basis was the highest since the week ending 1 January 2022. Occupancy was 72.3 percent for the week ending June 25, up from 71.8 percent the week before and dropped 4.1 percent from 2019. ADR was $157.05 for the week, up from $155.02 the week before and increased 17.1 percent from three years ago. RevPAR reached $113.55 during the week up from $111.29 the week before and up 12.3 percent from 2019. Dallas saw the largest occupancy increase, up 5.8 percent to 74.1 percent, over 2019, among STR's top 25 markets.

THE REVPAR OF U.S. hotels reached an all-time weekly high on a nominal and a pandemic-era high on an inflation-adjusted basis in the third week of June, according to STR. Boosted by the highest weekly demand of 28 million room nights sold since August 2019, occupancy was the highest of the pandemic-era during the week. Occupancy was 71.8 percent for the week ending June 18, up from 70.6 percent the week before and dropped 4.8 percent from 2019. ADR was $155.02 for the week, slightly down from $155.37 the week before and increased 14.9 percent from three years ago. RevPAR reached $111.29 during the week up from $109.76 the week before and up 9.4 percent from 2019. San Diego saw the only occupancy increase, up 0.5 percent to 86 percent, over 2019 among STR's top 25 markets. According to STR, New York City (86.6 percent), San Diego and Seattle (85 percent) led the major markets in absolute occupancy for the week.

ALL PERFORMANCE METRICS of U.S. hotels improved in the fourth week of July and RevPAR reached an all-time high on a nominal basis during the week, according to STR. Occupancy was the highest since early August 2019 in the week. Occupancy was 72.8 percent for the week ending July 23, up from 72 percent the week before and dropped 6 percent from 2019. ADR was $158.79 for the week, up from $157.23 the week before and increased 16.4 percent from three years ago. RevPAR reached $115.59 during the week, up from $113.28 the week before and increased 9.3 percent from 2019. Among STR's top 25 markets, Orlando reported the only occupancy increase, up 2.2 percent to 81.8 percent, over 2019. San Diego (87.1 percent) led the markets in absolute occupancy during the week, followed by Oahu Island (86.2 percent) and Seattle (85.7 percent). San Diego also posted the largest ADR gain, increased 40.5 percent to $286.50, over 2019.

U.S. HOTEL PERFORMANCE dropped in the second week of July, as expected due to a holiday calendar shift, according to STR. The performance was skewed downward due to a comparison with a non-holiday week in 2019. STR said that performance is expected to improve for the remaining weeks of July after two consecutive weeks of lower demand around the Independence Day holiday. Occupancy was 63.3 percent for the week ending July 9, down from 67.3 percent the week before and dropped 14.5 percent from 2019. ADR was $153.71 for the week, slightly up from $153.32 the week before and increased 15.7 percent from three years ago. RevPAR reached $97.37 during the week down from $103.24 the week before and down 1.1 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."

AIR TRAVEL HASSLES lead fliers to skip an average of two trips annually, which will result in 27 million avoided trips and a $71 billion loss for the U.S. economy in the coming year, according to a recent report by U.S. Travel Association and Ipsos. The impact of traveler frustrations also leads to a loss of $4.5 billion in tax revenue. The federal government must prioritize improvements throughout the air travel ecosystem to foster greater growth, the association has said. "When almost 60 percent of recent air travelers equate the experience to or find it worse than going to the DMV, it's a worrisome sign that requires action," said Geoff Freeman, USTA president and CEO. "With targeted efforts, the federal government can certainly enhance the entire travel system." Half of travelers said they would increase air travel in the next six months if the experience were less of a hassle, the poll revealed. Similarly, business travelers would take an average of two more trips annually if travel frictions improved, resulting in 18 million additional trips and $52 billion in economic impact.

THE BAIRD/STR HOTEL Stock Index dropped 2.4 percent to 5,600, influenced by increasing interest rates affecting both real estate stocks and investor sentiment, according to STR. Moreover, U.S. hotel demand saw a 1.3 percent decrease in October, linked in part to a calendar shift. This marks the third consecutive month of stock decline after a surge in July. "Hotel stocks declined for the third straight month in October, aligning with broader market trends," said Michael Bellisario, senior hotel research analyst and director at Baird. "Elevated interest rates continued to drive performance, with real estate stocks bearing the brunt. Hotel REITs stood out as relative outperformers. The global hotel brands experienced a roughly 2 percent decrease, closely mirroring the S&P 500's retreat in October." In October, the Baird/STR Index fell behind the S&P 500, down 2.2 percent, but surpassed the MSCI US REIT Index, down 4.5 percent.

U.S. HOSPITALITY SECTOR has consistently maintained the highest quit rates by workers among all industries, consistently exceeding 4.5 percent since July 2021, according to the U.S. Chamber of Commerce. However, the leisure and hospitality sector maintained the highest hiring rate among all industries, fluctuating between 6 percent and nearly 19 percent. These industries saw a loss of 837 thousand workers in September, yet 1.1 million individuals were hired into the industry during the same month. This hiring rate exceeds the national average, which was 3.7 percent in September 2023, the U.S. Chamber of Commerce said in its latest report titled Understanding America's Labor Shortage: The Most Impacted Industries. The latest jobs report from the Bureau of Labor Statistics reveals a positive influx of individuals into the workforce.

U.S. HOTEL PERFORMANCE has increased in the second week of September compared to the previous week, according to CoStar. However, year-over-year comparisons remained mixed. Occupancy stood at 68.5 percent for the week ending on Oct. 14, a slight uptick from the previous week's 67.8 percent, and a marginal year-over-year decline of 2.3 percent. ADR increased to $164.25, up from the previous week's $163.19, marking a 3.2 percent surge compared to the previous year. RevPAR also showed improvement, reaching $112.51, surpassing the previous week's $110.68, and reflecting a 0.8 percent rise from 2022. Among the top 25 markets, Oahu Island experienced the highest year-over-year growth in occupancy, rising by 17.8 percent to reach 85.2 percent, while RevPAR increased by 29.7 percent to $243.22.

U.S. hotel performance has declined in the fourth week of October compared to the previous week, according to CoStar. However, year-over-year comparisons revealed positive results. Occupancy came in at 66 percent for the week ending Oct. 28, slightly lower than the previous week's 69 percent, but with year-over-year growth of 0.7 percent. ADR dropped to $160.89, down from the previous week's $165.32, yet showing a notable 3.9 percent increase from the previous year. Similarly, RevPAR saw a decrease, reaching $106.16 compared to the previous week's $114.04, but reflecting a solid 4.6 percent rise from 2022. Among the top 25 markets, Minneapolis saw the largest year-over-year increase in occupancy, rising by 12.7 percent to reach 64.5 percent.

TEXAS VOTERS APPROVED Proposition 4, a constitutional amendment reducing property taxes this year. AAHOA and the Texas Hotel & Lodging Association, which collaborated to support the amendment, said Proposition 4 ensures property tax relief for commercial hotel properties. The amendment allocates $12.6 billion in state funds for public education, lessening reliance on local property taxes, according to AAHOA. Moreover, it raises the Texas franchise tax exemption from $1.24 million to $2.47 million, providing businesses with tax relief, and caps appraisal values for commercial properties under $5 million. Proposition 4 was passed with over 83 percent of the vote, emphasizing to legislators the priority of reducing property taxes.

U.S. HOTEL REVENUE and profitability saw a rise in October, propelled by increased group demand across the top 25 markets, according to CoStar's October 2023 Profit & Loss data. Meanwhile, the U.S. hospitality industry also witnessed its largest year-over-year increases in GOPPAR and TRevPAR since March 2023. In October, GOPPAR reached $97.45, marking a 3.7 percent increase from the same month in 2022. TRevPAR stood at $240.74, indicating a 4 percent increase, whereas EBITDA PAR amounted to $69.60, down 1.2 percent from September 2022. Labor costs notably rose to $74.48, reflecting a 5.9 percent increase. "The top 25 markets have demonstrated an 11 percent year-to-date increase in GOPPAR, surpassing a 14 percent rise in labor costs," said Audrey Kallman, research analyst at STR. "This double-digit GOPPAR growth is over 10 times the level observed in all other markets. New York City, a prominent business-centric market, spearheaded growth in the metric across major markets both on a year-to-date and monthly basis."

U.S. HOTEL PERFORMANCE increased at the beginning of December as expected, compared to the last week of November, according to CoStar. Hotel occupancy, ADR, and RevPAR improved compared to the previous week. Occupancy increased to 54.2 percent for the week ending Dec. 2, up from the prior week's 49.4 percent, reflecting a year-over-year decrease of 1.6 percent. ADR rose to $144.88, compared to the previous week's $138.29, showing a 0.8percent uptick from the prior year. RevPAR also rose to $78.54, compared to the prior week's $68.32, marking a 0.8 percent decrease from the corresponding period in 2022. Among the top 25 markets, New York City saw the largest year-over-year increases in occupancy, rising by 6.8 percent to 83.5 percent, and RevPAR surged by 17.2 percent to $319.18. Las Vegas recorded the highest ADR increase, rising by 11.2 percent to $232.94.

U.S. HOTEL PERFORMANCE saw a significant increase in the first week of December compared to the previous week, with improvements in hotel occupancy, ADR and RevPAR, according to CoStar. Year-over-year results also reflected positive trends. Occupancy rose to 58.7 percent for the week ending Dec. 9, up from the previous week's 54.2 percent, reflecting a year-over-year decrease of 1.1 percent. ADR increased to $153.36, compared to the previous week's $144.88, showing a 4.5 percent uptick from the prior year. RevPAR also soared to $89.98, compared to the prior week's $78.54, indicating a 3.3 percent decrease from the corresponding period in 2022. Among the top 25 markets, Boston saw the largest year-over-year occupancy increase, surging by 4.1 percent to 72.7 percent. Helped by Miami Art Week and Art Basel, Miami reported significant increases in ADR, soaring 48.8 percent to $314.55, and RevPAR, jumping 67 percent to $262.16.