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THE BAIRD/STR HOTEL Stock Index jumped 16.4 percent in the first month of 2023, according to STR. A drop in recession fears and other factors gave investor confidence a boost, the research firms said. In January, the Baird/STR Index surpassed both the S&P 500, up 6.2 percent and the MSCI US REIT Index, increased 10.5 percent, STR said in a report. The index dropped 10 percent in December, and it was down 15 percent for 2022. According to STR, the Hotel Brand sub-index increased 16.2 percent from December to 10,342, while the Hotel REIT sub-index rose 17.1 percent to 1,216. "Hotel stocks rebounded sharply in January and were significant outperformers as the back-and-forth recessionary concerns once again subsided to start the year," said Michael Bellisario, senior hotel research analyst and director at Baird. "Industry-wide RevPAR trends finished the year on a strong note despite tougher calendar comparisons and weather-related travel disruptions in December. Several Hotel REITs provided fourth-quarter operational updates, and performance generally was in line with prior expectations. More broadly, investor sentiment has improved, which boosted stock prices across the board in January, but the macroeconomic indicators have remained mixed."

THE 12TH EDITION of Uniform System of Accounts for the Lodging Industry is now launched. Hospitality Financial and Technology Professionals published the revised edition, overseen by the Global Finance Committee and jointly sponsored by the American Hotel & Lodging Association and HFTP. The publication added financial and operating changes, a sustainability section, and a section specific to all-inclusive hotels, with an adoption date of Jan. 1, 2026. The GFC comprises global financial leaders from AHLA's financial management committee and HFTP members representing the most prominent global hotel brands, operators, owners, and other industry authorities, AHLA said in a statement. "The USALI has long been the compass guiding financial and operational reporting in hospitality," said Gina Tallarico, GFC co-chair and Hyatt's global head of acquisition integration. "This update signifies GFC's commitment to globalization, sustainability, and informed decision-making. With this 12th Revised Edition, we're excited to introduce a new all-inclusive reporting section - an initial step toward standardization and benchmarking capability in this rapidly -growing segment."

A U.S. SENATE committee recently passed a bipartisan bill aimed at achieving pricing transparency for hotels, short-term rentals, and online travel platforms. However, the Senate failed to advance the Tax Relief for American Families and Workers Act, drawing criticism from the American Hotel & Lodging Association. The Committee on Commerce, Science & Transportation's approval of the Hotel Fees Transparency Act 2023 comes amid criticism of several hotel chains for lacking transparency in displaying room charges. AHLA called it an important step toward a more transparent booking process and a level playing field across the lodging industry. The bill, introduced by Sens. Amy Klobuchar, D-Minnesota, and Jerry Moran, R-Kansas, on July 31, now awaits a full Senate vote.

OCCUPANCY FOR U.S. hotels is now expected to finish the year a little down from the previous forecast by STR and Tourism Economics. However, projections for ADR and RevPAR recovery remain on track in the data firms' final forecast of the year. RevPAR is still expected to fully recover this year on a nominal basis, but not until 2025 when adjusted for inflation, according to the new forecast. The updated forecast lowered occupancy by less than a percentage point for 2022, standing now at 62.7 percent compared to the previously forecasted 63 percent released in August. "As expected, group business travel has been much more aligned with pre-pandemic patterns, specifically in October when group demand hit a pandemic-era high," said Amanda Hite, STR president. "Leisure travel has maintained its strength since our previous forecast update, and we expect these strong demand trends in both group and leisure to continue through the fourth quarter. Bottom-line performance has also persisted, with our most recent data showing strong profit margins due to lower employment levels and reduced services. The challenges around labor continue to be a concern, as high levels of hospitality unemployment and more spending on contract labor are pushing labor costs on a per-available-room basis above 2019 levels. We continue to take inflation and the likely recession into consideration, but the hotel industry has continued to show resilience through these tougher times, thus the steadiness of our updated forecast."

AAHOA RELEASED ITS updated resource guide for member franchisees. The updates reflect the current business landscape and the long-term, mutually beneficial relationship between industry franchisors and franchisees. AAHOA's 12 Points of Fair Franchising is officially titled "An Educational Primer: A Best-Practice Approach to Designing, Developing, and Implementing Best-in-class, Mutually Beneficial Franchise Systems." The importance of franchise relations was highlighted last year when several hotel owners filed lawsuits against InterContinental Hotels Group regarding what they call the company's retaliatory actions against franchisees who complain. "Because of the changing business environment post-COVID-19 and the ever-evolving need to educate our members, it was time for AAHOA to revisit the 12 Points and review them carefully to ensure that they're relevant and reflective of industry changes and evolution," said Vinay Patel, AAHOA chairman. "AAHOA created the 12 Points of Fair Franchising Ad Hoc Committee, which was tasked with recommending revisions to the 12 Points of Fair Franchising. With the help, support, and input of the 12 Points of Fair Franchising Ad Hoc Committee and the AAHOA Board of Directors, we're releasing the updated 12 Points of Fair Franchising," he added.

HIHOTELS BY HOSPITALITY International, a franchiser of conversion and new-build economy hotels, recently expanded its communication suite to enhance dialogue with its franchisees, supporting hotel owners through multi-channel engagement. The company maintains open channels at all levels, including direct access to the CEO, hihotels said in a statement. "At hihotels, the strength of our brands is rooted in the voices of our franchisees and the relationships we build," said Chris Guimbellot, hihotels' president and CEO. "We are small enough to listen, yet large enough to deliver-enabling us to focus on individual properties and provide unparalleled industry support." The expanded communication suite includes: Advisory council: Launched in 2023, this forum meets quarterly and includes franchisees, a vendor and the hihotels director, allowing franchisees to help shape hihotels' hihub: Introduced in December 2023, this digital platform facilitates continuous communication between franchisees and the hihotels team, offering educational resources to enhance hotel operations. WhatsApp group: Rolled out in the first quarter of 2024, the real-time messaging platform enables franchisees to contribute to system-wide improvements and build relationships with other franchisees and the hihotels corporate team. Newsletters: INNside Track, a quarterly newsletter, keeps franchisees informed on industry and marketing trends, company updates, events and networking opportunities. It is complemented by "An Update from Guimbellot," which highlights challenges, opportunities and new programs. Each communication includes Guimbellot's phone number and encourages franchisees to reach out with questions, concerns, ideas and feedback. Assurance & marketing program: This initiative has directors who help service properties and provide owners with ongoing sales, marketing and operations support. Regional conferences: Hihotels conducts smaller, regional conferences to nurture pe

PUNEET CHHATWAL, MANAGING director and CEO of Indian Hotels Company Limited, the owner of Taj Hotels, has been appointed as the new chairman of the Federation of Associations in Indian Tourism & Hospitality. He succeeds ITC executive director Nakul Anand, who retired this week, FAITH said in a statement. Several national tourism and hotel associations, including the National Associations of Tour Operators, travel agents, hotels, transport operators, conventions & exhibition operators, and restaurants and tourism attractions, are members of FAITH. "With the backing of all members, my commitment is to develop this into a focused policy advocacy organization addressing issues in the tourism and hospitality industry, continuing the legacy established by Anand," said Chhatwal.

FRANCHISEE RESILIENCE AND determination was the focus of Choice Hotels International's 66th annual convention in Las Vegas last week. In keeping with that theme, in a press conference at the convention, corporate leadership for Choice said they are working with AAHOA on ways to implement the association's recently updated 12 Points of Fair Franchising. More than 5,200 people attended the conference, including franchisees and their families. Other news from the event includes the announcement of a new program to promote women ownership of hotels and the hiring of two new franchise development directors. "GO" was the theme of the convention, in recognition of the struggles Choice's franchisees have faced over the past three years of pandemic and economic downturn. The company overcame those challenges, driving new business, advocating for government aid and reducing operating costs for franchisees, said Patrick Pacious, Choice's president and CEO. It also surpassed 2019 system-wide performance levels.

THE U.S. HOTEL industry reported higher performance in the second week of July compared to the previous week, but lower year-over-year results, according to CoStar. The first hurricane of the season impacted one top 25 market. Occupancy climbed to 69.2 percent for the week ending July 13, up from 61.3 percent the previous week, but down 3.7 percent year-over-year. ADR increased to $158.21 from $157.27, marking a 1.5 percent decline compared to last year. RevPAR increased to $109.51 from $96.35 the previous week, reflecting a 5.2 percent decrease from the same period in 2023. Among the top 25 markets, Houston recorded the highest year-over-year increases in key performance metrics: occupancy rose 13.4 percent to 72.2 percent, ADR increased 22.4 percent to $137.17, and RevPAR grew 38.8 percent to $98.97. The market's performance was impacted by Hurricane Beryl.

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.

OCCUPANCY PROJECTIONS ARE dropping while ADR projections are rising in a new forecast for U.S. hotels by STR and Tourism Economics. RevPAR is still expected to recover fully on a nominal basis this year, according to the forecast released Thursday at STR's 14th Annual Hotel Data Conference in Nashville. However, RevPAR is still expected to take until 2025 to recover when adjusted for inflation, according to the forecast. For 2022, RevPAR is now expected to average $93 compared to the projection of $92 released in June, when projected nominal RevPAR recovery was set in 2023. The occupancy projection for the year was lowered to 64.6 percent for the year and the ADR projection rose to $148. The updated forecast adds a little more than $2 to the ADR projection for both 2022 and 2023, and occupancy was lowered by less than a percentage point for each year.

THE UPWARD MOVEMENT of ADR for U.S. hotels lifted the forecast for the market by STR and Tourism Economics. The travel research firms released the new forecast during the opening sessions of the Americas Lodging Investment Summit in Los Angeles on Monday. The recovery timeline laid out in the new forecast remains mostly the same as the previous forecast released in November, with ADR will near full recovery this year. RevPAR is anticipated to exceed 2019 levels in 2023, but when adjusted for inflation ADR and RevPAR are not projected to reach full recovery until after 2025. Occupancy is projected to surpass 2019 levels in 2023. "The industry recaptured 83 percent of pre-pandemic RevPAR levels in 2021, and momentum is expected to pick up after a slow start to this year," said Carter Wilson, STR's senior vice president of consulting. "With so much of that RevPAR recovery being led by leisure-driven ADR, however, it is important to keep an eye on the real versus the nominal. Terms of recovery are not playing out evenly across the board, and many hoteliers have had to raise rates to minimize the bottom-line hit from labor and supply shortages. We are anticipating inflation to remain higher throughout the first half of the year with a gradual leveling off during the third and fourth quarters. If that happens, and we avoid major setbacks with the pandemic, this year will certainly be one to watch with demand and occupancy also shaping up to hit significant levels during the second half."

AS 2022 BEGINS, many of the issues U.S. hoteliers faced in 2021, primarily related to the COVID-19 pandemic, are likely to continue. The year past also saw other changes, such as new leadership at AAHOA and a new administration in Washington, D.C. Below are the top stories covered by Asian Hospitality during 2021. They also include ongoing economic relief as the hospitality industry continued its struggle to recover from the pandemic; the return to in-person conventions; and powerful natural disasters. The year began with some optimism that the end of the pandemic was near. Several kinds of vaccines were announced in December 2020, and the rollout continued into 2021. Hoteliers did what they could to promote vaccination, including AAHOA's "Pledge to Protect Our Guests, Employees, and Businesses" initiative. Hoteliers who sign the pledge will provide time, reduce barriers and consider incentives to encourage their employees to get vaccinated when they are available. They also will encourage COVID-19 safety precautions, including wearing masks and social distancing. "Thanks to AHLA's ongoing efforts, the CDC has updated its guidelines prioritizing hotel workers under Phase 1c of the COVID-19 vaccines distribution. This is a significant achievement that directly impacts the health and safety of hotel workers across the country. It also recognizes that hotel employees continue to be on the front lines of the pandemic," Chip Rogers, AHLA president and CEO said at the time.

STR IS LAUNCHING a new phase, STR Benchmarking, a market share product for the global hotel industry, according to STR's parent company, real estate marketplaces, information and analytics provider CoStar Group. The new software platform will offer property-level data and analytics for hotel owners and operators with functionality built on the STAR Report. Acquired by CoStar in 2019, STR draws its benchmarking data from a sample of 77,000 participating properties with 10 million rooms around the world. STR Benchmarking provides new functions, including user and competitive set self-management as well as high-frequency updates to data. Future product enhancements, which are expected to begin rolling out later this year, include portfolio-level benchmarking, monthly P&L, average-length-of-stay data, and forward-looking occupancy.

CHOICE HOTELS INTERNATIONAL has named its eight nominees for the board of directors for Wyndham Hotels & Resorts to be voted on in Wyndham's 2024 shareholder meeting. The nominees, including Jay Shah, executive chairman at Hersha Hospitality Trust, are expected to support Choice's bid to acquire Wyndham despite multiple rejections by the latter. In response, Wyndham said it will evaluate the nominees as part of its due diligence, but it also said the nominees were "hand-picked to push through their offer." Along with Shah, Choice's nominees are: Barbara Bennett, founder and principal executive of business consulting firm Bennett West LLC. Emanuel Pearlman, founder, chairman and CEO of investment management and financial consulting firm Liberation Investment Group. Fiona Dias, digital commerce consultant who served as the chief strategy officer of online shopping service ShopRunner from 2011 to 2014. James Nelson, CEO of real estate investment trust Global Net Lease, Inc. Nana Mensah, founder, chairman and CEO of food packaging and processing equipment exporter 'XPORTS Inc. Susan Schnabel, founder and co-managing partner of buyout fund advisor aPriori Capital Partners. William Grounds, principal of his advisory business Burraneer Capital Advisors LLC. "These nominees are proven leaders with wide-ranging expertise across relevant industries, including deep proficiency in the hospitality and franchising sectors," said Stewart Bainum, chairman of Choice's board of directors. "We are confident the nominees' industry, finance, governance and board experience will greatly benefit Wyndham shareholders. Most importantly, if elected, the nominees will exercise their independent judgment to serve Wyndham shareholders' best interests, which Choice believes is to move with urgency to maximize the value that could be created for them through a combination with Choice."

TWO ASIAN AMERICAN-owned companies are working together to develop a Canopy by Hilton in downtown New Orleans. Baywood Hotels and NewcrestImage are renovating the historic former Oil and Gas Building into a 176-room, 14-floor upscale hotel. Baywood, based in Columbia, Maryland, is led by President Al Patel and Mehul Patel is chairman and CEO of Dallas-based NewcrestImage. The joint venture will update the Oil and Gas Building that was built in 1959 and placed on the National Register of Historic Places in 2014 for its use of glass, steel and abstract geometry in a skyscraper. It is near the city's French Quarter, the Mercedes-Benz Superdome, the Ernest N. Morial Convention Center, the Audubon Aquarium, Harrah's Casino and historic Jackson and Lafayette squares.

THE AMERICAN HOTEL & Lodging Association recently renamed its On the Road series of regional events to The Hospitality Show, providing networking opportunities and industry updates to hospitality professionals nationwide. The events enable hoteliers, suppliers, and service providers to connect and stay informed on market data and policies at federal, state, and local levels, AHLA said in a statement. The events, accessible to all individuals in the hospitality industry, will expand The Hospitality Show brand, the primary industry event launched last year, slated for Oct. 28 to 30 in San Antonio, the statement said. "After the phenomenal success of The Hospitality Show last year, we're bringing the best-in-class networking and learning opportunities from this industry-leading event to hospitality professionals in cities all across the country," said Kevin Carey, AHLA's interim president and CEO. "We can't wait to connect with stakeholders from Boston to California."

The Best Western Shackleford is open in Little Rock, Arkansas, following a $1 million renovation. The 60-key hotel on Shackleford Road is owned by Rahul Patel. "We are excited to welcome guests at our newly renovated property while they discover Arkansas' capital city," Patel said. "The updates ensure our guests find a comfortable place to relax after days exploring our lively downtown, known for its thriving arts and music scene and a range of attractions suitable for all ages." Several rooms in the hotel are designed in a suite-style with king-sized beds and hot tubs. Amenities include a renovated 24-hour fitness center, indoor swimming pool and a 700 square-foot meeting space. The vicinity offers a range of attractions including Little Rock Zoo, Wildwood Park for the Arts, Arkansas State Capitol, Big Dam Bridge, Museum of Discovery, Heifer Village and Urban Farm, Pinnacle Mountain State Park and various dining options, shopping centers, educational facilities, recreational centers and transportation hubs.

HUNDREDS OF RED Roof franchisees gathered for the company's 2021 regional meeting in Dallas. It was part of a "Look & Listen" tour for Red Roof's newly appointed President George Limbert, and it provided a snapshot of the company's future. Limbert and other company executives addressed the crowd of hotel owners during the conference at the Gaylord Texan Resort & Convention Center. Topics included updates on the company's new HomeTowne Studios prototype, launched in August during the 2021 AAHOA Convention & Trade Show, that the company said is more cost-effective to develop with improved operational efficiency. For Limbert, who was appointed in August, it was another opportunity to meet the people he serves in order to chart Red Roof's course in the post pandemic hospitality marketplace. Look & Listen Limbert said he went to 11 properties during a visit to Atlanta for the Red Roof regional meeting there the week before the Dallas event. He planned to visit 12 more during his time in Texas. "I'm a people person. I love people. I love learning their stories. I love hearing their origins stories, I love hearing about franchisees," Limbert said. "We've got such resilient franchisees. We started outperforming 2019 numbers in April of 2021. So, our recovery wasn't now, it wasn't the summer, it was in April, so our brand is resilient, our brand is doing great."

WITH A ROCK and roll theme, Best Western Hotels & Resorts held its annual conference in Cleveland on Oct. 28 to 30. During the event, which marked the completion of the first year of the company's former general counsel Larry Cuculic as president and CEO, the company launched a new extended-stay brand, Home by BWH. Thousands of Best Western members attended the conference, with the theme "BW Rocks 2022." Cuculic, who took over for long-time president and CEO David Kong last year, gave an update on his first year. "When my journey began in this position last year, I was anxious," Cuculic said in the first general session of the recent conference. "The honor of the position and the responsibilities are absolutely huge. Consider, though, that being anxious is actually a good thing. It's a good thing. It's a reflection of my wanting to do my best for you."