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