Latest news with #hotelperformance
Skift
24-06-2025
- Business
- Skift
Many Would-Be Hotel Buyers Are in a Wait-and-See Mode
The latest CBRE U.S. Hotels State of the Union report reveals a modest recovery in hotel performance, plus more hotel development news from Peachtree and other leaders. The DJIA rose 375 points, the Nasdaq was up 184, the S&P 500 was up 57 points and the 10-year treasury yield was down .05 to 4.32%. There were probably a lot of people who expected the markets to act differently today. Lodging stocks were modestly higher. The biggest mover was to the downside, with SOND down -8%. SOHO rose 7% on the day. JPMorgan initiated coverage on Lodging Stocks, saying in the current environment, the only certainty is uncertainty. Their Economics team expects U.S. GDP growth to slow in the second half of the year and JPM believes this will likely coincide with a further deceleration in RevPAR growth. JPM initiated coverage with Outperform ratings on Hilton, Wyndham, and Ryman Hospitality, Neutral ratings on Host Hotels and Marriott, and Underperform ratings on Choice Hotels, Park Hotels, and Sunstone Hotels. The latest CBRE U.S. Hotels State of the Union report reveals a modest recovery in hotel performance amid shifting economic conditions and rising competition from short-term rentals. CBRE trimmed its growth forecasts for 2025 and 2026 by approximately 0.5 percentage points, citing persisting consumer price pressures. When adjusted for the timing of Easter, RevPAR rose 0.4% in March and April, supported by a 1.5% increase in ADR despite a 1.1% dip in occupancy. Upscale properties led the field with a 2.9% RevPAR uplift, though half of U.S. markets underperformed. Combined with corporate travel shifting later in the year, overall revenue growth slowed, and operating margins saw a slight contraction year-on-year even as business travel improved during Easter. April marked another month of strong performance for short-term rentals, with demand rising 6.0% compared to 0.1% for traditional hotels. STRs now make up 13.7% of U.S. lodging demand; both their RevPAR and ADR have substantially outpaced 2019 levels, aided by nearly full occupancy rates. Rising disposable income and household savings, up 2.9% and 4.9% year-on-year in April, along with a rebound in stock markets and confidence, could support leisure and business travel this summer. However, international inbound travel remains weak, offset by stronger outbound travel, and TSA passenger volumes dipped in May, hinting at potential softening later in the snapshot suggests that while the U.S. hotel sector is navigating rising costs and competitive pressure from STRs, unemployment, and consumer finances offer a buffer heading into peak season. Still, subdued inbound travel and margin pressures point to a cautious road ahead for hotel operators through 2025. The volatility and uncertainty in the U.S. hotel transaction market have pushed many would-be buyers into wait-and-see mode as they evaluate their investment strategies, according to a new report from PwC. As a result, year-to-date private-equity-sponsored deals have dropped 85% year-over-year in 2025. PwC's 'Hospitality and Leisure: U.S. Deals 2025 Midyear Outlook' also found that targeted mergers and acquisitions still give operators opportunities to adapt portfolios, sharpen strategic focus, and scale digital capabilities. For well-capitalized buyers, current conditions offer an opening to acquire differentiated assets at favorable terms. Peachtree Group marked a major milestone in the construction of the 10-story, 171-room Residence Inn by Marriott in downtown San Antonio, Texas with a topping-out ceremony. Scheduled to open in the summer of 2026, Residence Inn is being co-developed with Merritt Development Group. The hotel will be owned by Peachtreeand managed by its hospitality management division. Concord Hospitality and PBA Group of Companies celebrated the opening of Calgary's first downtown office-to-hotel conversion project. Previously the Canadian Centre, a 12-story downtown office building, Element Calgary Downtown by Westin, is a new hotel boasting 226 suites and two culinary offerings, including a ground-level café and a rooftop lounge and restaurant. It marks the first hotel to open in Calgary this year. The Beeman Hotel, which was purchased by an ownership group including NewcrestImage for an undisclosed sum in October, is being rebranded as The Mockingbird Hotel. The property is also being added to Marriott's Tribute Portfolio collection. It isn't clear when the rebranding effort will be complete. As of March, the Beeman is undergoing a $1.2 million renovation slated to wrap up in November. The property is managed by Coury Hospitality, where NewcrestImage is a 50% owner. Safehold Inc. has closed on the acquisition of an existing ground lease beneath the Asher Adams hotel in Downtown Salt Lake City. Developed through a partnership between The Athens Group and Hatteras Sky, the 225-key, full-service hotel was completed in 2024 and operates as part of Marriott's Autograph Collection. Asher Adams neighbors The Gateway, a 40-acre mixed-use development consisting of retail, office, and residential uses. It is also adjacent to the Delta Center. The Hyatt Centric Chicago O'Hare has reopened after undergoing a revitalization project. Managed by Maverick Hotels & Restaurants, the hotel offers 206 re-imagined guestrooms, a transformed lobby, recreational facilities, 7,600 square feet of adaptable function and pre-function areas, and an onsite restaurant. PM Hotel Group and KWC Management announced the grand opening of Wolfe's Hotel located in Moab, Utah. Following a multi-million dollar re-imagination, the adults-only retreat offers an onsite restaurant and craft cocktail lounge, and an outdoor barrel sauna and fire pits. The first owner filed for bankruptcy. The second owner defaulted on a loan. Now, according to The Denver Post, a long-stalled hotel redevelopment near Denver International Airport has a third owner and is coming in with a fresh construction loan. Voyage Capital purchased the partially completed hotel at 16161 E. 40th Avenue for $21.6 million from Galaxy Hotels Group, according to public records. Voyage financed the deal with a $24 million construction loan from Peachtree Group. S Hotel Montego Bay, located on Doctor's Cave Beach in Jamaica, is opening its doors to younger guests for the first time. Starting July 1, 2025, the all-inclusive boutique resort will begin welcoming children ages 8 and older. Personnel News Avison Young has hired Cole Spain as Vice President of the firm's Hospitality Group, focusing on debt and equity financing. Prior to joining Avison Young, Spain served as Director of Business Development at Twenty Degrees North. Hospitality Ventures Management Group named Jessica Myers Vice President of Finance & Accounting. In her new role, Myers will lead the corporate team responsible for publishing monthly financial statements, ensuring the right processes are consistently executed to deliver timely and accurate financial statements. Prior to joining HVMG, Myers served as Vice President of Finance for Pyramid Global Hospitality. Mandarin Oriental announced two senior hires within its Development department. Effective June 2025, Brad Berry will join as Head of Residences & Homes and Philip Leighton will take on the role of Head of Mandarin Oriental Exceptional Homes. Berry most recently served as Vice President of Global Residential Development at Rosewood Hotel Group. Leighton most recently launched and led Villas by Bailey Robinson and previously contributed to the growth of Abercrombie & Kent's Global Villas business. Leighton will report to Berry. Europe Highlights Radisson Hotel Group announced the signing of its first Radisson RED in central London in partnership with PPHE Hotel Group. PPHE has entered into an agreement to acquire a mixed-use development site, which will be developed into a Radisson RED lifestyle hotel with a minimum of 182 bedrooms, a restaurant, bar, gym, and office space. Closing of this transaction is expected in the coming months, with the hotel scheduled to open in 2029.
Trade Arabia
01-06-2025
- Business
- Trade Arabia
Major wellness hotels post strong top-line recovery, says report
Major wellness hotels recorded a strong top-line recovery, generating more than twice the total revenue per available room (TRevPAR) compared to No Wellness hotels, according to the latest report by hospitality advisor RLA Global. Minor wellness hotels led growth in RevPAR and TRevPAR, and were the top performers within the Luxury and Upper Upscale classes, it stated. Occupancy remained largely stable across all segments, although ancillary revenue – a significant contributor to TRevPAR – was marginally lower than in 2023, said RLA Global in its 6th annual Wellness Real Estate Report. Based on performance data from over 11,000 hotels worldwide supplied by HotStats, the RLA Global report provides an in-depth analysis of 2024 hotel performance year-on-year by wellness property type (Major, Minor, and No Wellness) across asset classes (Luxury, Upper Upscale, and Upscale). According to the report, major wellness outperformed minor wellness in leisure performance and was the only group that could also raise per-room F&B revenue, albeit just slightly. Minor Wellness continued to excel in profit conversion, while Major Wellness properties saw sharp improvements in GOPPAR (gross operating profit per available room) in the Upscale category, it stated. "Major Wellness hotels came roaring back in 2024, displaying a standout top-line performance in TRevPAR and RevPAR and impressive year-on-year growth rates in the Upscale category," said Roger Allen, Group CEO, RLA Global. "The all-important bottom line performance showed Major Wellness outperforming Minor Wellness in GOPPAR in absolute terms in 2024, but minor wellness had higher year-on-year GOPPAR growth compared to 2023," he stated. TRLA Global said this year's report also explores key trends redefining luxury and wellness in 2025 - including a return to foundational health habits, a rising emphasis on restorative sleep, and the growing preference for meaningful experiences over material opulence.
