California

U.S. hotel industry saw positive growth in RevPAR and rates for the week ending September 30, with Group RevPAR showing significant improvement. Rosewood Hotels & Resorts is expanding its branded residence portfolio especially in Europe. Various hotel projects and developments are underway in different locations, including downtown Springfield, Norfolk, San Antonio, Beaufort, and Las Vegas, with a range of amenities and timelines.

Wedbush initiated coverage on lodging REITs, with Ryman Hospitality and Host Hotels receiving Outperform ratings and price targets of $94 and $19, respectively. Park Hotels and Pebblebrook Hotel Trust were initiated with Neutral ratings and price targets of $13 and $14, respectively. Keybanc downgraded Airbnb's rating to Sector Weight from Overweight. A report by Morning Consult indicates that the "revenge travel" trend may be declining, with travel intentions increasing in some countries but declining in others, particularly in Europe. China is experiencing a significant surge in travel, driven by pent-up demand.

Canopy by Hilton in Scottsdale, Arizona sold for roughly $102 million, and Home2 Suites by Hilton in Colonie, New York was acquired for $12.75 million. The Floridian Palace Hotel in Tampa is undergoing a $30 million renovation to become "The Flor" and join Hilton’s Tapestry Collection, while Fairmont The Queen Elizabeth in Montreal partners with Mattel for a Barbie-themed experience. Online travel companies, including Orbitz and Expedia, face a lawsuit in Nevada over alleged avoidance of hotel room taxes, potentially amounting to over $1 billion in damages.

Barclays expects a weak quarter for lodging REITs in 3Q23 and adjusted price targets for several hotel stocks. Various hotels across the US, including Marriott Vail and Signia by Hilton Atlanta, are undergoing construction or renovation. Hyatt Hotels plans to launch a vacation rental platform, Homes & Hideaways, while Sonesta opens a new hotel in Houston and Mandarina Oriental expands into Zurich.

Corporate travel data company TRIPBAM reports a 25% increase in booking volumes for US travel in mid-September compared to 2022, with expectations of a return to pre-Covid levels by the end of the quarter and surpassing them in 2024, albeit slower in tech-heavy San Francisco. The third edition of the Hospitality Industry Sentiment survey shows a shift in expectations, with group demand and major events on the rise, while labor costs and supply challenges remain top concerns for the hotel industry. Various hotels announce renovations and openings, including Le Meridien Tampa, Springhill Suites Truckee, Hotel Dena Pasadena, Omni Charlottesville Hotel, and a new hotel project in East Austin. Nashville International Airport opens a new international arrivals facility, and citizenM appoints Rani Gharbie to lead its Americas expansion. Ennismore aims to change the reputation of all-inclusive resorts, and LEGOLAND Windsor Resort announces a LEGO Woodland-themed holiday village. London & Regional is close to acquiring the Kempinski Hotel Bahia in Estepona, Spain.

B of A Securities gives IHG Hotels & Resorts a Buy rating. Sonder announces a 1-for-20 reverse stock split. Hyatt plans to expand with over 30 new hotels in the Americas by 2025, emphasizing luxury, resort, and lifestyle rooms. Miraval Resorts unveils its spa after a $60 million renovation. Raffles Boston and The Fontainebleau Las Vegas announce their openings.

DJIA, Nasdaq, and S&P 500 all experienced declines while the 10-year treasury yield rose to 4.32%. Lodging stocks had mixed performance. Truist updated price targets for lodging/hotel group stocks, with several adjustments both up and down. Various hotels announced renovations, expansions, and new locations, including the Westin Denver Downtown, Hyatt's growth plans, and the EV Evolution Venue Hotel in Tampa and Washington, DC.

Financial markets showed mixed performance with the DJIA, Nasdaq, and S&P 500 rising while the 10-year treasury yield also increased. JP Morgan expressed optimism about Hyatt's future, anticipating growth in RevPAR and an asset-light business model. Various hotel-related developments were reported, including property sales, renovations, and new openings, with several companies expanding their portfolios.

Deutsche Bank initiated coverage on Hilton Grand Vacations with a Buy rating and a $59 price target, citing compelling stock levels. Hyatt CEO Mark Hoplamazian observed a return to offices in big cities, indicating potential growth in business transient travel. Hilton plans to install up to 20,000 Tesla Universal Wall Connectors at 2,000 hotels in North America, creating the largest EV charging network in the hospitality industry.

Truist reports strong trends in the U.S. hotel industry, with no signs of demand slowdown and expectations of growth in Q4 2023, driven by group business, business travel, and international visitors. CoStar data indicates a shift in U.S. hotel occupancy trends, with family travel slowing, group events strengthening, and a return of business travel, particularly during weekdays. Various hotel-related developments include property updates, new hotel constructions, and management changes across different locations in the United States.