Aimbridge has taken management from Three Wall Capital of this Residence Inn in the Phoenix area Latest HITs: Aimbridge, TWC deal; CBRE reforecasts; first Hyatt StudiosBy Jeffrey Weinstein | August 16, 2023Share The latest global news about deals, development and data. Aimbridge, TWC team-up again. Third-party management giant Aimbridge Hospitality has been selected to manage five Marriott properties recently acquired by Three Wall Capital, a New York City-based investment group that has invested over $2 billion in the hospitality sector. Located in the Phoenix and Fort Lauderdale metros and totaling 642 keys, the five properties will be managed through Aimbridge’s Select Service Division. Aimbridge is now responsible for the management of nearly 80 extended-stay, select-service, and full-service properties owned by TWC, continuing a partnership first established in 2019. TWC’s current portfolio encompasses 83 hotels of which 76 are extended-stay properties.CBRE reforecasts. CBRE is reducing its forecast for hotel performance this year, as weaker-than-expected summer demand resulted in a shortfall in Q2 2023 RevPAR. It now forecasts 2023 RevPAR at $96.64, up 4.6% year-over-year, but down $1.25 from its previous forecast in May. The revision is predicated on a 70-basis-point (bps) decrease in expected occupancy compared with the earlier forecast. ADR is expected to increase by 3.6% in 2023, down 10 bps from the previous forecast. CBRE’s baseline-scenario forecast anticipates 1.6% average GDP growth and average inflation of 4.3% in 2023. CBRE also forecasts that hotel supply will increase at a 1% compound annual growth rate over the next five years, below the industry’s 1.6% long-term historical average.Margins fall in 1H23: Gross operating profit (GOP) margins in the U.S. fell by 1% in the first half of 2023 compared to the same period in 2022, according to HotStats. The two segments that suffered the highest year-on-year margin declines were luxury (down 4%), midscale and economy (down 3% — see graphic below). An increase in labor costs was a major reason for the trend as many hotels faced continued shortages. The luxury segment saw labor costs per available room outpace TRevPAR growth by 5.3%, while the midscale and economy segment had a 6.6% gap. The labor cost also had a significant impact on achieved GOP per available room for luxury (2.1% increase YOY) and midscale and economy (3.3% decline YOY.)First Hyatt Studios. Hyatt Hotels Corp. has executed franchise agreements for the first upper-midscale extended-stay brand in the Americas, Hyatt Studios, with locations in Mobile, Alabama, and Marysville, California. These deals emphasize Hyatt’s strategy of entering untapped markets where its brand presence is yet to be established. In Alabama, 3H Group, founded by Hiren Desai, has entered into a franchise agreement to build the inaugural Hyatt Studios hotel in Tillman’s Corner, just outside of Mobile. This property is set to open in late 2024. Presidio Hotel Development has entered into a franchise agreement for a 113-room Hyatt Studios hotel in downtown Marysville, California, located in Yuba County and part of the North Sacramento area. The property is expected to open in 2025.Accor, Sarin tie-up. Accor has signed an agreement with Sarin Hotels to open a second The Sebel hotel in Wellington - The Sebel Wellington Thorndon in New Zealand. The 72-room property is set to open in September 2023 and will be managed by Sarin Hotels, a family-owned company which specializes in hotel and events center ownership and management. This marks the third hotel that Sarin Hotels has partnered with Accor on in New Zealand.New Hilton leader for MEA. Guy Hutchinson will become the new president of Hilton for the Middle East and Africa. The role puts him in charge of 285 hotels in the region, either open or in the pipeline, and a combined workforce of over 29,000 people. He starts the role early next year. It marks Hutchinson's return to Hilton for the first time in a decade. He was previously the group’s VP of operations in India. Since 2014, he has been with Rotana, serving as its president and CEO since 2020. Hutchinson’s appointment follows the passing of Jochem-Jan Sleiffer in April 2023. He will be based in Dubai and report to Simon Vincent CBE, evp and president, EMEA, Hilton.Tru trades. The 85-room Tru by Hilton Harbison Columbia in Columbia, South Carolina was sold by Sycamore Investment Group, Johns Creek, Georgia, to APS Wheeler for an undisclosed amount. Hunter Hotel Advisors arranged the sale on behalf of the seller.