Latest news: STR adjusts forecasts; Hotel Equities partners; record US 4Q pipeline

Adjustments to 2024, 2025 US performance forecasts. STR and Tourism Economics made minor adjustments to growth projections for their U.S. hotel forecast of 2024, which was released at the Americas Lodging Investment Summit (ALIS). The forecast saw ADR raised 0.1%, while both occupancy and RevPAR projections remained unchanged. For 2025, growth projections were downgraded because long term average trends have begun to stabilize. Occupancy was down -0.01 ppts, ADR was down -0.3 ppts and RevPAR was down -0.5 ppts. STR also anticipates GOPPAR to growth as a result of improved TRevPAR levels combined with stable labor costs. 

Hotel Equities partners with PE firm. Atlanta-based owner, operator and developer Hotel Equities (HE) formed a strategic partnership with private equity firm PPC Enterprises to invest in future M&A, strategic alliances and joint ventures. The partnership with PPC, which took nearly a year to come together, will enable HE to accelerate its development pipeline.

US pipeline for Q4 highest ever. The U.S. hotel pipeline hit a record project count in the fourth quarter, according to Lodging Econometrics. At the end of Q4, the count stood at 5,964 projects and 693,963 rooms. The pipeline added 260 projects and 21,287 rooms, a 9% increase in projects and a 7% increase in rooms year-over-year. The previous project count was high in 2Q08, with 5,883 projects. At the end of 2023, 1,118 projects and 141,768 rooms were under construction, up 11% by projects and 5% by rooms YOY. There are 2,259 projects and 261,582 rooms scheduled to start in the next 12 months, up 9% by projects and 11% by rooms YOY. At the same time, projects and rooms in the early planning stage hit all-time highs in Q4, with 2,587 projects and 290,613 rooms, and up 9% by projects and 4% by rooms YOY. The number of hotel renovations and brand conversion projects in the U.S. continued to grow through the end of 2023, with 2,028 projects and 303,330 rooms, both records. The upper midscale segment had the highest project count at the end of 2023, with 2,245 projects and 218,112 rooms.

Two first for Hilton. Hilton has opened its first DoubleTree by Hilton hotel in Morocco and the first internationally branded hotel in Ben Guerir. The DoubleTree by Hilton Ben Guerir Hotel & Residences in Morocco has 215 rooms. Hilton has also opened the 433-key Conrad Orlando, the brand’s debut in the city and the second in Florida. The hotel is located on the 1,100-acre Evermore Orlando Resort property and has more than 65,000 sq. ft. of indoor and outdoor meeting and event space.

Pan Pacific adds first in Jakarta. Singapore-based Pan Pacific Hotels Group is opening the PARKROYAL Serviced Suites Jakarta in Indonesia later this month. The 180-key hotel is the first in the city for Pan Pacific.

Record ADR, RevPAR for Canada. Canada’s ADR and RevPAR for 2023 were the highest for any year on record, according to CoStar. For 2023, occupancy was up 7.7% (65.7%), ADR was up 9.7% (CAD200.08) and RevPAR also saw a huge gain and was up 18.3% (CAD131.48). Canada’s hotel room rate also outpaced inflation in 2023. Manitoba recorded the highest 2023 occupancy level (72.2%), up 10.8% YOY, while Vancouver saw the highest occupancy (78.5%), up 7.8% YOY.