U.S. PERFORMANCE UPDATE: According to STR’s most recent data through December 31, 2022, hotel performance in the U.S. was higher than the previous week and improved from 2019.
- Occupancy: 54.2% (+10.4%)
- ADR: $167.21 (+21.7%)
- RevPAR: $90.63 (+34.3%)
The comparable week three years ago covered December 29-January 4. Norfolk/Virginia Beach had the highest occupancy increase (+22.9% to 48.5%) among the top 25 markets in 2019. Phoenix had the highest ADR increase (+53.5% to $174.33). ADR decreased in none of the top 25 markets. The only RevPAR declines in 2019 were in San Francisco (-9.3% to $92.78) and Los Angeles (-4.2% to $127.74).
MARRIOTT TO CAPITOL HILL: PM Hotel Group, based in Chevy Chase, Md., will be opening the first franchised Marriott hotel inside the Capital Beltway on January 11. The Washington Marriott Capitol Hill will have 235 rooms, two food and beverage concepts, 18,000 square feet of event space and a fitness center. It will be located within walking distance of the United States Capitol. The hotel’s public spaces are designed by Washington, D.C.-based designer Darryl Carter; it is developed by The Buccini/Pollin Group and Perseus TDC and managed by PM Hotel Group.
MISSION HILL ACQUIRES IN NEW HAMPSHIRE: Denver-based Mission Hill Hospitality has acquired the Hanover Lebanon Courtyard by Marriott, a 124-key property in Lebanon, New Hampshire. The terms of the deal were not disclosed. Developed in 2006, the hotel will undergo a complete renovation of rooms and public spaces. The hotel includes 2,500 square feet of meeting space, a pool, a fitness center and a business center. This marks Mission Hill’s first investment in New Hampshire and the seventh in New England. Hanover Lebanon Courtyard by Marriott is the 25th addition to Mission Hill’s portfolio since the company was launched in March 2021.
TRUIST ON U.S. REVPAR: The overall RevPAR in the U.S. was +4.2%, up from -0.2% y/y the previous week. In comparison, the first three weeks of December averaged approximately +13% y/y. Last week’s RevPAR was against a +94.4% comparable result in y/y 2021/2022 vs. +90.7% in the prior week. On a 3-year run-rate (vs. 2019), RevPAR was +34.3% vs. -7.6% the previous week. Regarding the weak y/y results for the past two weeks, Christmas and New Year’s falling a day later in 2022 caused a “negative holiday shift” for visitation, reversing the “positive holiday shift” of last year. According to Truist, the current week’s performance will be significantly better than the previous two weeks due to school vacations being pushed into the first week of January.
Q4 RESULTS FOR ASHFORD HOSPITALITY: The Dallas-based Ashford Hospitality Trust, Inc. expects to report 68% occupancy in Q4 2022 with an ADR of $175 and a RevPAR of $118. This RevPAR represents a 25% increase over the same quarter in 2021 and a 1% decrease over Q4 2019. Furthermore, RevPAR in December 2022 remained unchanged from December 2019. RevPAR fell 2% in November 2022 compared to November 2019. In October 2022, RevPAR fell 1% compared to October 2019.
LBA HOSPITALITY REACHES MILESTONES: LBA Hospitality, the Alabama-based hotel management company, has reached two significant milestones in its history. The company celebrated its 50th anniversary in the industry by signing five new third-party management contracts. LBA Hospitality now manages 100 hotels in the Southeast and the Northeast of the United States, with the latest addition. The five new hotels are TownePlace Suites by Marriott Patuxent River in Lexington Park, Md., TownePlace Suites by Marriott in Goldsboro, N.C., Residence Inn by Marriott in Savannah at the Airport, Ga., Best Western Plus Arbor Inn & Suites in Chattanooga, Tenn., and Holiday Inn Express & Suites Lookout Mountain in Chattanooga.