Rachael Rothman, CFA, ISHC’s Post

Nice report from Rachael Rothman, CFA, ISHC and team. We have been tracking the blurring of lines between multifamily and hospitality since before covid. There will continue to be new and innovative business models that are created to meet the growing consumer demand for furnished, flexible living. Some of the novel approaches may indeed come from multifamily players, not just the hospitality companies. We remain highly interested in pursuing deals that live somewhere between the multifamily and hospitality industries. #hospitality #multifamily #commercialrealestate #furnishedapartments #flexibleliving #hotels #aparthotel #apartments #hybrid #realestateinvestment #realestatedevelopment

As the hotel industry navigates the challenges of 2024, brand leaders continue to maintain an optimistic outlook and have proactively planned for the year ahead. What specific developments do you foresee shaping the industry in the upcoming year? #HospitalityTrends #HotelIndustry #FutureOfHospitality #HotelInnovation #hotelnews #Hospitality #LodgingConference

Focusing on guest experience over unit growth is the aim that hotel investors are looking to take moving into 2024. For hoteliers, guests are the center of everything -- revenue growth, recommendations, overall business -- so an emphasis on their needs and meeting their expectations is not surprisingly a priority. #HotelInvesting #HospitalityIndustry

By now, you've likely seen the news of Host Hotels & Resorts acquisition of Turtle Bay Resort from Blackstone. One interesting tidbit is that Marriott International, the new operator of the asset, which will transition to the The Ritz-Carlton Hotel Company, L.L.C. flag, put in key money to help secure the deal. "In connection with the rebranding, Marriott provided key money and favorable modifications on several existing management agreements." I often hear about key money being used for new development, but in this precarious stage of the cycle where ground-up development is slim, hotel operators are having to up the ante to gain new management contracts. Would be interesting to know if they outbid any other suitors. Could have been as much as $45M in key money if you read the releases. Managers might now be more pliable to give concessions to owners going forward to secure contracts. Trend to watch.

Wyndham Hotels & Resorts has announced results for the three months ended June 30, 2024. The highlights of the results include: -Global RevPAR grew 2% in constant currency -System-wide rooms grew 4% year-over-year -Opened over 18,000 rooms globally, including over 7,000 in the U.S., which represented a year-over-year increase of 16%, and the first ECHO Suites Extended Stay by Wyndham -Awarded 180 development contracts globally, including 96 contracts in the U.S., which represented an increase of 33% year-over-year -Development pipeline grew 1% sequentially and 7% year-over-year to a record 245,000 rooms -Ancillary revenues increased 6% compared to the second quarter of 2023 Diluted earnings per share increased 30%, to $1.07, and adjusted diluted EPS grew 22%, to $1.13, or 12% on a comparable basis -Net income was $86 million for the second quarter, a 23% increase over the prior-year quarter; adjusted net income was $91 million, a 14% increase over the prior-year quarter -Adjusted EBITDA increased 13% compared with the prior-year quarter, to $178 million, or 6% on a comparable basis -Returned $162 million to shareholders through $131 million of share repurchases and quarterly cash dividends of $0.38 per share -Successfully completed the repricing of its Term Loan B Facility, reducing its interest rate by 60 basis points to SOFR plus 1.75% and upsizing the facility by $400 million https://lnkd.in/gxpa9rY8

Despite the challenges of high construction costs and interest rates, hotel development is on the rise. Executives from top hotel brands, including Hilton, Wyndham, Choice Hotels, and Marriott, are optimistic about net unit growth and pipeline numbers. These insights not only reflect the resilience of the hotel industry but also provide valuable guidance for navigating the evolving landscape of hotel development. As the industry continues to adapt to changing market conditions, collaboration and innovation remain key to driving growth and success. #Development #Hospitality #BusinessGrowth

A Strategic Shift in Hospitality Market Penetration... Hyatt Hotels Corporation’s pending acquisition of Standard International, LLC signifies another pivotal moment in the hotel industry. As major players expand their lifestyle brand portfolios, we are witnessing a profound transformation. This development is more than just a new chapter—it’s the result of a carefully orchestrated strategy that is redefining the future of hospitality. The sector stands at the juncture of exciting and dynamic shifts.

Hotel trends that drove Q4 revenue, portfolio growth Despite a still-challenged lending environment and economic uncertainty, hotel operators focused on conversions and the booming mid scale and luxury segments to fuel growth. The fourth quarter of 2023 posed several challenges for hotels. But in the face of adversity, operators remained optimistic on travel demand and found solutions to drive continued revenue and portfolio gains. Choice Hotels International and Wyndham Hotels & Resorts jumped through hoops on the regulatory front. Following Choice’s public bid to acquire its peer in October — and Wyndham’s subsequent rejection of the deal — the Federal Trade Commission began an investigation into antitrust concerns surrounding the proposed merger. 

#Frasers #Hospitality, a strategic #business unit of Frasers #Property, is fortifying its #international #expansion through collaborations with #capital partners and third-party #hotel #operators that complement its operational #excellence within the extended stay segment. https://lnkd.in/gv-pQ58S

How can hotel chains analyze markets and plan for expansion? What data helps them evaluate sites methodically? Our hotel industry spotlight digs deep into important factors and tools help hotel chains make better location decisions. https://lnkd.in/gDWtsRq2 #siteselection #retailsiteselection #hotels #hotelindustry #marketanalytics