Georgia

The hospitality industry is experiencing optimism and cautiousness, with hotels considering divesting assets and anticipating a potential distressed sale boom. Hoteliers are optimistic about increasing demand, but face challenges such as high-interest rates, labor shortages, and decreased construction activity. The U.S. hotel forecast shows improvements in occupancy, ADR, and RevPAR, while hotels are offering incentives to combat staffing shortages. International visitor arrivals to the U.S. continue to rise, with Mexico and Canada leading the way.

Stock market indices experienced gains, with DJIA, Nasdaq, and S&P 500 rising while the 10-year treasury yield decreased. Truist's RevPAR Monitor highlighted positive and negative trends in the hotel industry, including the recovery of group travel and sluggish corporate individual business/transient segment. Various hotel-related announcements were made, including the launch of IHG's Wi-Fi Auto Connect feature, expansion of Saks Fifth Avenue's personal shopping service to luxury resorts, and the opening of new hotels by Hyatt, IHG, Palisociety, and others.

The earnings calendar accelerated in both the REIT and C-Corp section in the past 24 hours. Hyatt received the most attention with a clean beat but then some concerns creeping in. Host Hotels had a lousy two days to issue a great report with a clean and positive beat and raise. Summit Hotels came in just under consensus even with a strong top-line performance as higher hotel-level expenses hurt results.

Raines announced they acquired HP Hotels , a full-service, third party hotel management company. Raines said this will result in operational expansion throughout the Southeast and Southwestern U.S. The Courtyard by Marriott Long Beach Downtown announced the addition of two Topgolf Swing Suites at their 216-room hotel. Borgata Hotel Casino & Spa , in Atlantic City, New Jersey , is embarking on a $55 million redesign and rebranding of The Water Club, in time for the resort’s twentieth anniversary.

Lodging stocks were higher. ABNB led the group with a 7% rise while MCG was up 5%. Raymond James upped their price target on Hilton to $165 from $150. They maintained their Outperform rating. Ian Schrager and Ed Sheetz have stepped in to possibly partner with Chetrit Group , to rescue its landmark Bossert Hotel , located in Brooklyn Heights, New York.

Jefferies said the looming recession and stabilizing credit market could be positive for the prospects of timeshare, but with a harder landing not off the table, they see stocks trading at rich valuations. Truist said with earnings season about to kick into gear for the lodging sector, they continue to see macro over micro. Park Hotels and Resorts Inc. closed on the sale of the 508-room Hilton Miami Airport , located in Miami, Florida , for $118.25 million.

Citigroup upped their target price on Park Hotels & Resorts to $15 from $13 while maintaining their Neutral rating. They also upped their target price on Pebblebrook Hotel Trust to $16.50 from $15. They also maintained their Neutral rating on PEB. Accor’s private rental brand, onefinestay , has launched monthly stays in New York with 16 homes available to book and many more being added over the coming months.

Lodging stocks were higher led by AHT, up another 10%. ABNB and PLYA were both up 7% on the day while VCSA was up 6% and HST rose 5%. Truist gave their 2023 lodging preview , saying they see a mixed bag for demand/pricing/supply trends for the lodging companies. Similar to the past nine months, they see “macro over micro” at the moment. DiamondRock Hospitality said their preliminary 4Q22 comparable revenue grew 23.4% year over year and 8.5% compared to 2019.

EF Hutton initiated coverage on Selina Hospitality with a Buy rating and $6.50 price target. STR reported US lodging data for the week ended 12/24. RevPAR was down -0.2% year over year while down -7.6% versus the same week in 2019. Bluegreen Vacation Holdings said they had a total of 3,040,882 shares of Class A Common Stock tendered in their cash tender offer to purchase up to 4.5 million common shares at $25 per share.

Aloft Hotels announced it has arrived in Playa del Carmen, Mexico , marking the third Aloft hotel in the Caribbean. Two new hotels are being planned by Performance Capital Partners LLC in Surprise, Arizona . A new dual-brand Marriott TownePlace Suites and Marriott Fairfield Inn & Suites. MCR acquired the Hyatt Place Miami Airport East in Miami, FL , marking the company’s ninth hotel in Florida and its first Hyatt hotel.