Read the latest hotel industry news from around the Americas region.
Analysts anticipate that second-quarter earnings commentary from hotel brand and real estate investment trust executives will broadly be about projections for 2023, reports Hotel News Now’s Trevor Simpson.
Among those projections could include the severity of a potential recession, said
Michael Bellisario, senior research analyst at Baird.
“The big focus is macro and not even what’s going on now. It’s about later in this year and into 2023, which is always hard to see for travel because you know how quickly it can turn off and turn back on,” he said.
Companies to watch include Wyndham Hotels & Resorts, Hilton and Pebblebrook Hotel Trust, said C. Patrick Scholes, managing director of lodging and leisure equity research at Truist.
Wyndham Hotels & Resorts has formed a commercial alliance with Spanish company Palladium Hotel Group to expand Wyndham’s all-inclusive Registry Collection Hotels, reports HNN’s Dana Miller.
Wyndham will add 14 all-inclusive luxury TRS Hotels and Grand Palladium Hotels & Resorts across Mexico, the Dominican Republic, Jamaica and Brazil.
Though hotels continue to be an attractive asset class for investors to pursue, several challenges, including rising costs, will affect the financing of hotel deals, reports HNN’s Bryan Wroten.
Croft Young, managing director of real estate, gaming and lodging at Morgan Stanley, said during the “Wall Street Outlook” panel at the ALIS Summer Update 2022 conference, that the cost of borrowing is now near 7.5%, while many loans used to be at 4% or lower.
“I think we’re in a bit of a flux right now,” he said. “That’s going to put a damper on transactions in the near future.”
Hotels in major urban markets that had been slowest to recover from the pandemic are now making a comeback, writes CoStar Analytics’ Emmy Hise and Romy Bhojwani.
Markets including Los Angeles, New York, Boston, Seattle and Chicago are leading the recovery for urban markets, while Washington D.C. and San Francisco are lagging in revenue per available room levels.
- Residential hospitality brand Mint House opened two new locations in Philadelphia, the Mint House at The Ledger and Mint House at The Divine Lorraine Hotel.
- McNeill Hotel Company formed a joint venture with Prospect Ridge and Fulcrum Hospitality, and will now operate as McNeill Investment Group.
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