Latest HITs: Swifties drive US results; June extended-stay data; US pipeline updateBy Jeffrey Weinstein | July 28, 2023Share The latest news about development and M&A, as well as industry data updates. Rebounding occupancy. U.S. occupancy for the week of July 16-22 reached 72.9%, the highest level since August 2019, according to new CoStar data. ADR hit $`6`.65 and RevPAR was up 2% over the same week in 2022, hitting $117.91. Among the Top 25 markets, New York City saw the largest year-over-year increases in occupancy (+11.8% to 90.9%) and RevPAR (+21.2% to US$253.61)..Helped by Taylor Swift’s Eras Tour, Seattle posted the only double-digit ADR gain (+16.0% to US$251.29) and the second-highest RevPAR jump (+20.9% to US$222.77). The steepest RevPAR declines were seen in Miami (-12.8% to US$130.76) and Orlando (-10.3% to US$133.69).IHG adds in KSA. IHG Hotels & Resorts has signed a management agreement with Almuhaysin Group to open the first Regent Hotel in the Middle East, in Saudi Arabia. Set to open by mid-2024 on the Red Sea waterfront in Jeddah, the 182-room Regent Jeddah will join IHG’s 39 hotels across five brands in Saudi Arabia with an additional 30 hotels set to open within the next three to five years.Extended-stay results mixed. Following two previous months in which extended-stay hotels achieved better performance than corresponding classes of all hotels, the onset of the summer travel season produced varying results in June, according to The Highland Group. Economy extended-stay hotels continued to report declining demand compared to one year ago, but the decline was far less than for all economy class hotels. RevPAR growth for all hotels exceeded the extended-stay hotel gain but this was due to a smaller decline in occupancy as extended-stay hotels continued to report relatively strong growth in ADR. The 1.7% net increase in extended-stay room supply in June is consistent with the average over the last 12 months. June was the 21st consecutive month of 4% or less supply growth, which is well below the long-term average. However, the economy segment posted its strongest monthly supply gain in more than two years.US pipeline update. At the close of the second quarter, the hotel construction pipeline in the United States grew incrementally and stood at 5,572 projects/660,061 rooms, with projects up 7% year-over-year (YOY) and rooms up 6% YOY, according to Lodging Econometrics. At the end of Q2, the total pipeline was only 5% from its all-time peak in terms of projects. Projects under construction have experienced modest quarter over quarter growth over the past year and currently stand at 1,062 projects/141,681 rooms, up 10% and 8% YOY, respectively. Projects scheduled to start construction in the next 12 months saw an 11% increase in projects and 12% increase in rooms YOY, to stand at 2,232 projects/260,595 rooms. Year-over-year project counts in the early planning stage changed minimally and ended Q2 ’23 with 2,278 projects/257,785 rooms. Upscale and upper midscale new construction projects dominate the pipeline at Q2, accounting for 62% of the projects and 57% of the rooms in the total U.S. construction pipeline. Announced renovations and brand conversions, combined, reached record high project counts over the last four quarters, accounting for 1,939 projects/253,473 rooms, with upscale, upper midscale, and economy brands accounting for the majority of these projects at the end of 2023’s second quarter. Extended-stay hotel projects have also been on the rise in the U.S., increasing consecutively over the last eight quarters. At the Q2 close, there were 2,083 extended-stay projects, with 214,557 rooms in the U.S. hotel construction pipeline. Extended-stay projects account for 32% of projects under construction in the total pipeline, 42% of projects scheduled to start construction in the next 12 months, and 36% of the projects in early planning across the U.S.