Latest news: $31M daily losses; Schrager opening in LA; Airstreams for UAE

Shutdown costs hotels $31M per day. The U.S. hotel industry has already lost the equivalent of more than 6.7 million unbooked room-nights since the federal government shutdown began 36 days ago, according to analysis of AHLA data, which also suggests the industry continues to lose an estimated $31 million per day in missed hotel revenue nationwide. OysterLink analyzed AHLA's reported daily losses to estimate that roughly 186,000 rooms remain vacant each day because of the ongoing shutdown.

Tampa weak, SF strong. The U.S. hotel industry from October 26 to November 1 reported mixed year-over-year comparisons, according to CoStar data. Occupancy was 59.3% (-2.6% YOY); ADR was $156.09 (+0.4% YOY); and RevPAR was $92.54 (-2.3% YOY).  Among the Top 25 Markets, Tampa reported the steepest occupancy drop (-24.6% to 60.5%), due to the elevated displacement demand period that followed Hurricane Milton in 2024. New Orleans posted the largest decreases in ADR (-23.9% to $168.61) and RevPAR (-38.3% to $104.29). The market’s performance was due to a comparison against the back half of Taylor Swift’s Eras Tour, as well as a midweek conference. San Francisco registered the highest increases across each of the three key performance metrics: occupancy (+13.8% to 71.5%), ADR (+17.0% to $231.17) and RevPAR (+33.1% to $165.31).

Flight cuts start Friday. The FAA has stated it will reduce airspace flight capacity by 10% in 40 high-volume markets beginning Friday, November 7. U.S. Transportation Secretary Sean Duffy has repeatedly said in the past several weeks that there have been increased levels of call-outs by air traffic controllers, who aren't getting paid during the federal government shutdown. In a rough analysis generated quickly after the announcement, flight data provider Cirium estimated the cuts could amount to as many as 1,800 canceled daily flights totaling 268,000 seats.

Schrager preps in LA. Hotelier Ian Schrager will open the 137-room Public West Hollywood in spring 2026, the second site for his fledgling hotel brand. The property is a conversion of the former Standard Hotel on Sunset Boulevard. The property will include three F&B spaces, a pool, ‘social hub’ lobby, and a landscaped 16,000 square-foot open-air rooftop terrace with 360-degree views of Los Angeles. Schrager launched the first Public in New York City in 2017.

Florida recap. A joint venture between Prime Group and Shaner Hotel Group has secured $54 million in bridge financing from Peachtree Group to recapitalize the 126-key Faro Blanco Resort & Yacht Club in Marathon, Florida, now operating under Hilton’s Curio Collection. The three-year, floating-rate loan follows a major renovation and rebrand completed in August 2024, positioning the property to benefit from the Florida Keys Marathon International Airport expansion.

Airstreams for UAE. Lifestyle group Ennismore has partnered with Dubai Holdings to introduce Caravan Hatta by Our Habitas at Hatta Resorts in the UAE. Set to open in December 2025, the project marks Our Habitas' UAE debut. Fifty bespoke ‘airstreams’ with wooden decks will combine low-impact design, locally sourced materials and organic textiles that evoke a sense of place. The Lake House will serves as the central gathering point and experiential programming inspired by Hatta’s natural environment and cultural heritage will be central to the guest experience, with restorative rituals and creative workshops drawing from Hajar tradition. The holistic wellness concept will include a nature-inspired hot and cold therapy area with a barrel sauna, an outdoor cold plunge and a hot tub, as well as sound healing, yoga and meditation sessions. Dining concepts curated by Ennismore’s F&B platform will feature food trucks and live barbecue stations. Our Habitas first launched Caravan in AlUla, Saudi Arabia.

Pebblebrook guides lower. Pebblebrook Hotel Trust reported third quarter RevPAR of -3.1% and ADR was -5.4% as it guides lower for 4Q25 due to the impact of the government shutdown throughout the portfolio (October RevPAR impact was ~150 bps). Assuming a government budget resolution and normalizing travel conditions by mid-November. RevPAR growth is expected to be -1.25% to +2.0% Sale-property total revenues came in at -1.4% with guidance of -3.2% to -0.5%; non-rooms revenues were +1.7%. Same-property EBITDA was $105.4 (-7.0% YOY) and margins were -158 bps as expense grew 0.7%. Pebblebrook also entered into an agreement to sell one hotel for $72.0 million, rumored to be the 752-room Westin Michigan Avenue Chicago ($96,000/key), which has a franchise agreement set to terminate in December 2026.

RLJ earnings. RLJ Lodging Trust 3Q25 earnings were modestly ahead of estimates, which were reduced significantly throughout the quarter as the government shutdown weighed. Adjusted EBITDA was $72.6 million versus the Street $69.6 million. RevPAR growth was -5.1%, ADR was -2.1% and occupancy was -3.1%. Total revenues were -4.0%. RLJ noted that Austin and three large-scale renovations negatively affected RevPAR growth by ~200 bps in the quarter. Hotel EBITDA was $80.8 million in 3Q25 (-20% YOY). Margins were -480 bps and expenses were +2.6%. Implied RevPAR growth for the fourth quarter is approximately -3.4% at the midpoint.

Leela adds in Rajasthan. India’s The Leela Palaces, Hotels and Resorts has signed a management agreement with The Godwin Group for The Leela Jaisalmer, marking its foray into Rajasthan's desert capital, the Golden City. Spread across 30 acres of desert landscape, this 80-room luxury resort is slated to open in 2026. The Leela currently operates 13 properties with 3,544 keys across 11 cities in India. With 10 hotels in the pipeline, The Leela is on track to expand to 23 properties with over 5,000 keys over the next three years in high-growth markets including Agra, Ayodhya, Bandhavgarh, Mumbai, Ranthambore, Sikkim, Srinagar, Dubai and now Jaisalmer.

Zetter adds in London. In early 2026, The Zetter Group will expand its London portfolio with the opening of The Zetter Bloomsbury — a 68-bedroom townhouse hotel set across six interconnecting Georgian buildings on Montague Street, directly opposite the British Museum.

Anantara for Argentina. Minor Hotels has signed a management agreement with Argentinian developer Fideicomiso Urbanización Monte Susana for an Anantara property to be developed in Ushuaia, Argentina. Set to open in early 2028, Anantara Ushuaia Patagonia Resort will offer 60 guest rooms and suites, an extensive spa and wellness facility at sea level, signature dining concepts, and meeting facilities.