US performance remains flat: U.S. hotel performance stayed relatively flat from the earlier week, as per STR’s latest data through January 22.
- Occupancy: 48.7% (-15.9%)
- ADR: US$122.17 (-1.4%)
- RevPAR: US$59.52 (-17.1%)
While none of the Top 25 Markets recorded an occupancy increase over 2019, Tampa came closest to its pre-pandemic comparable (-1.7% to 72.1%). The market also saw the largest rise in ADR (+14% to US$151.74) and the only RevPAR rise over 2019 (+12% to US$109.39). San Francisco/San Mateo recorded the largest occupancy decrease from 2019 (-46.5% to 39.3%). The steepest RevPAR deficits were in San Francisco/San Mateo (-66.7% to US$61.46) and Anaheim/Santa Ana (-48.6% to US$68.64).
Dallas leads US construction pipeline: Dallas leads the U.S. markets in the number of pipeline projects with 152 projects/18,180 rooms, according to Lodging Econometrics. Atlanta comes second in project count with a cyclical high of 133 projects/19,303 rooms, followed by Los Angeles with 120 projects/19,815 rooms and Houston with 91 projects/9,912 rooms. Three markets announced more than 10 new construction projects in Q4 2021. Miami had the highest number of new projects with 17 projects/2,797 rooms, followed by Dallas with 13 projects/1,308 rooms and Orlando with 11 projects/1,791 rooms. At the end of Q4, markets with the highest number of projects already in the ground are New York with 90 projects/14,513 rooms, Dallas (28 projects/3,945 rooms), Austin (28 projects/3,706 rooms), Atlanta (26 projects/4,120 rooms) and Detroit (23 projects/2,432 rooms). These five markets account for 20% of the projects under construction in the U.S. The top 50 markets saw 449 hotels/63,742 rooms open in 2021. LE is forecasting these markets to open an additional 446 projects/57,837 rooms this year for a 2.2% growth rate and 421 projects/52,460 rooms in 2023 for a growth rate of 1.9%.
Record construction pipeline highs for franchise companies: Franchise companies ended 2021 with record highs, with Marriott International reporting the highest U.S. construction pipeline with 1,345 projects/170,586 rooms, according to the Lodging Econometrics. Hilton came second with 1,239 projects/141,053 rooms, followed by IHG with 761 projects/76,987 rooms. The three companies accounted for 69% of projects and 67% of rooms in the total U.S. construction pipeline. At the end of quarter, around 56% of Hilton’s pipeline projects are in the early planning stage, a record high in this stage for the company, with 689 projects/76,058 rooms. Hilton has 228 projects/29,036 under construction at Q4 and 322 projects/35,959 rooms scheduled to start within the next 12 months. Marriott also hit a record high for both projects and rooms in early planning at the end of the fourth quarter, with 534 projects/63,120 rooms. Marriott has 262 projects, accounting for 38,289 rooms under construction at the end of Q4 and 549 projects/69,177 rooms are scheduled to start in the next 12 months. IHG has 121 projects, accounting for 11,376 rooms, in the early planning stage. About 136 projects, with 16,221 rooms, in IHG’s pipeline, are in the under construction stage while 504 projects/49,390 rooms are scheduled to start within the next 12 months. The leading brands by project count for these three companies continue to be Home2 Suites by Hilton (421 projects/43,824 rooms), IHG’s Holiday Inn Express (288 projects/27,620 rooms) and Marriott’s Fairfield Inn (247 projects/23,344 rooms).
Andaz to debut in Bangkok: Hyatt Hotels Corp. has announced that an affiliate of Hyatt has entered into a management agreement with One Bangkok Co. Ltd. to debut the Andaz brand in Bangkok. The 244-key luxury lifestyle hotel will open in 4Q23 as part of One Bangkok, one of the biggest integrated development in the city with an investment value of over Thai Baht 120 billion (US$3.63 billion) jointly developed by TCC Assets (Thailand) Co. Ltd. and Frasers Property Holdings (Thailand) Co. Ltd. The hotel will include Andaz Tavern and Lounge along with a rooftop restaurant and bar.
Millennium Hilton Downtown rebrands: Millennium Hotels and Resorts announced the transition of the Millennium Downtown New York into the Millennium portfolio of brands. The 55-story was previously known as the Millennium Hilton New York Downtown. All amenities and services will remain the same at the hotel. All four Millennium properties in the city are managed by Highgate.
The Annex Hotel appoints Daniel Caesar as chief culture officer: Toronto’s The Annex Hotel, with unspecified plans to expand in New York City and Los Angeles in the next 12 months, has hire Canadian Grammy Award-winning singer-songwriter Daniel Caesar as chief culture officer. He will curate a culturally relevant space for modern travelers and locals through music, art, design and programming. The Annex also announced the appointment of Eric Lachance as its new lead designer.
Hotelier technology outlook: The number of hotels using popular technology (self-service check-in, automation, in-room technology and chatbots) jumped 31% throughout the pandemic and is expected to rise 19% additionally in 2022, revealed the 2022 Hotelier Technology Sentiment Report conducted by Stayntouch, a guest-centric hotel property system, in partnership with graduate students of NYU School of Professional Studies Tisch Center of Hospitality. The report collects insights of more than 500 hoteliers across North America, Europe and Asia Pacific. About 92% of respondents reported a rise in acceptance of contactless technology by guests and about 75% of respondents feel contactless tech will be a long-term trend.