IHG Hotels & Resorts is highlighting its leadership in the midscale segment at the HUNTER Hotel Investment Conference. The company had over 150 openings and 300 signings for its midscale brands in 2023. The midscale segment is projected to grow from $14 billion to $18 billion in revenue by 2030 in the U.S. alone. IHG's midscale portfolio includes six brands and over 4,400 open or in pipeline hotels in the Americas. Jolyon Bulley, CEO - Americas, IHG Hotels & Resorts, emphasizes the growth and evolution of their brands based on guest and owner feedback. IHG's midscale brands focus on high-quality experiences at affordable prices, guest preferences, smart designs, and clear brand identities. IHG's midscale brands include Holiday Inn, Holiday Inn Express, Candlewood Suites, Atwell Suites, avid hotels, and Staybridge Suites. IHG plans to extend its reach across new markets and generations of travelers with nearly 800 additional properties in the regional pipeline. IHG's midscale brands have had recent openings in Dallas, Philadelphia, Jalisco, Mexico, Canada's Vancouver Island, and major U.S. cities such as Dallas, Atlanta, Austin, San Antonio, Phoenix, and Tampa. IHG's brands are also expanding globally, with plans for franchising in Mexico and Canada and expansion in the EMEAA region. IHG's midscale brands include avid hotels, Atwell Suites, Candlewood Suites, Holiday Inn, Holiday Inn Express, and Staybridge Suites [dc34f0a3].
IHG Hotels & Resorts is reassuring developers that building their brands is more affordable and economical. The company reported strong performance numbers, including a 16% year-over-year increase in global revenue per available room (RevPAR) compared to 2022. IHG generated a total gross revenue of $31.6 billion, which is 23% higher than in full-year 2022. The company also achieved a net room growth of 3.8% to 946,000 rooms and has a global pipeline of 297,000 rooms. In addition, IHG launched a new $800 million buyback program and expects to return over $1 billion to shareholders in 2024 [6e39824f].
The hotel industry in the US is projected to fare better than the general economy in 2024, according to analysts. The industry finished 2023 with record highs in average daily rate (ADR) and revenue per available room (RevPAR). The growing employment level of college-educated professionals and the increase in the number of households earning $100,000 or more are expected to contribute to the success of the travel economy. Corporate profits are also projected to grow, indicating increased spending on business travel [09a24642].
The latest forecast from CoStar Group predicts a 4.1% growth in RevPAR in 2024, with average daily rate (ADR) growth expected to outpace inflation. RevPAR growth is expected to occur primarily in the upper-tier segments of the hotel industry. Direct channels, particularly brand.com, have been the main source of growth in hotel revenue per available room. Loyalty programs have also played a significant role in driving room nights. Online travel agencies have not experienced significant growth compared to brand.com [09a24642].
The first U.S. hotel forecast of 2024, released at the Americas Lodging Investment Summit (ALIS), shows minimal adjustments to growth projections. ADR was raised by 0.1 percentage points for 2024, while occupancy and RevPAR remained unchanged. However, growth projections for 2025 were downgraded for occupancy (-0.1 ppts), ADR (-0.3 ppts), and RevPAR (-0.5 ppts) due to stabilization of long-term average trends [baee6d53].
Amanda Hite, STR president, expects continued growth in the travel economy due to solid travel fundamentals and a low unemployment rate among college-educated individuals. Aran Ryan, director of industry studies at Tourism Economics, anticipates modest lodging demand growth supported by household prioritization of travel, rebuilding of business travel and group events, and a rebound in international visitation. Among the chain scales, luxury and upper upscale hotels are projected to see the largest increases in costs due to growing group demand. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry, while Tourism Economics focuses on the intersection of the economy and travel sector, providing economic insights and forecast models [baee6d53].
CBRE raised its 2024 GDP growth outlook from 1.2% to 1.6%. Wage growth continued to outpace inflation in December. Hotel demand fell 1.6% in December, while short-term rental demand rose 4.3%. Outbound international travel was 114% of 2019’s level in December. Full-year 2023 TSA throughput was 101% of 2019. December RevPAR declined 1.1% for all chain scales. Direct bookings continued to take share in Q4 2023. GOP margins declined in November, but profit growth was slightly positive [a9b1e070].
According to the latest STR Weekly Insights report, the US hotel industry experienced a seasonal pause in occupancy, but average daily rate (ADR) continued to grow, resulting in a gain in revenue per available room (RevPAR). The Top 25 Markets, excluding Las Vegas, saw strong RevPAR growth driven by growth in ADR and occupancy. RevPAR outside of the Top 25 Markets declined, particularly in Economy class hotels. Luxury and Upper Upscale hotels saw growth in group demand and ADR. The UK had the highest occupancy among the top 10 countries outside of the US. Italy saw strong performance gains, particularly in Rome and Milan. Spain saw the largest occupancy growth among the top 10 countries. Global RevPAR is expected to be driven by holidays, sporting events, concerts, conferences, and the change of seasons in the coming months. Double-digit global RevPAR growth is expected to wane by the beginning of the second quarter [f00177f8].
Wyndham Hotels & Resorts plans to increase its rollout of its brand family in the Asia Pacific region, where it currently has close to 1,800 hotels. In 2023, the group opened 158 hotels and signed 222 more into its growth pipeline. During a four-day visit to the region in early March, the CEO signed 27 new hotel agreements, including upcoming hotels in Greater China, Thailand, and Cambodia. The group expanded its presence in 2023 by launching nine of its brands into eight new country markets across Asia Pacific. The trend of blended business and leisure trips, or 'bleisure', is creating opportunities for Wyndham and its franchisees. In 2024, the group signed several new hotels in India and Nepal, including a 66-room Ramada in Jim Corbett National Park and a 46-room Wyndham Garden in Chitwan. The group also signed a deal to launch a 310-room Wyndham Grand Hotel & Branded Residences in Amer, Jaipur, which will open in 2027 [14c4a9f7].
Royal Orchid Hotels, a hospitality company, plans to add 30-35 new properties with about 2,000 rooms in the 2024-25 fiscal year. The company aims to expand its presence across India, particularly in places where it is not currently present, such as Andhra Pradesh and Telangana. The new properties will be added through management contracts and will include various segments. The company is also looking to expand its wedding destination portfolio by adding four to five locations every year. Prime Minister Narendra Modi's initiative to promote India as a wedding destination has encouraged the company to participate. Royal Orchid Hotels currently operates in more than 65 locations in India, Sri Lanka, and Nepal [3ff381a0].
Choice Hotels International Inc has promoted Judd Wadholm to Senior Vice President and General Manager, Core Brands. Wadholm, a nearly 17-year veteran of Choice Hotels and Radisson Americas, will be responsible for driving the growth and performance of the company's nine upper midscale, midscale, and economy brands in the U.S. market, which consist of 5,500 hotels. Choice's core brand portfolio includes Comfort, Country Inn & Suites, Clarion, and Clarion Pointe by Radisson. Recent highlights include the unveiling of newly redesigned guest rooms and common areas, the awarding of 10 new franchise agreements for Country Inn & Suites, and the opening of 33 new hotels for Comfort. Wadholm joined Choice in 2022 and holds an MBA from St. Cloud State University and a BBA in Finance from the University of North Dakota. Sandman Hotel Group has launched a campaign encouraging Canadians to spend less on accommodations and get away more. The campaign aims to increase trial and consideration for those who have not yet experienced a Sandman vacation. Sandman Hotel Group offers incredible value among midscale hotel brands, with 54 locations across Canada. Consumer research has shown that when someone stays at a Sandman Hotel, they come back more frequently than other midscale hotel brands. The campaign taps into the insight that families love decorating their fridges with mementos of their favorite trips. The campaign launches on April 18th and will be live in Western Canada for eight weeks. [73b55276]. Sandman Hotel Group is featured in an article on LBBOnline titled 'Make Memories'. The article highlights the hotel group's approach to giving brands the impact they need. Sandman Hotel Group is described as strategically brave, creatively bold, and fiercely independent. The article also mentions the Immortal Awards, an event that Sandman Hotel Group is entering. The article provides a link to view the work of Sandman Hotel Group on LBBOnline [a4360cec].
Niccolo Hotels, a collection of contemporary chic hotels, has been making waves in the hospitality industry since its inception in 2015. The brand's properties include Niccolo Chengdu, Niccolo Changsha, Niccolo Chongqing, The Murray Hong Kong, and Niccolo Suzhou. The guest rooms and suites at Niccolo Hotels are designed to emanate a sense of sophisticated simplicity, with a soft and neutral palette creating a serene ambiance. Art and architecture take center stage at Niccolo Hotels, integrating art and design elements to surprise and delight guests. Dining at Niccolo Hotels is an experience unto itself, with a range of spectacular rooftop venues, exquisite restaurants, tea lounges, and private dining rooms. The brand offers an enriching tapestry of guest rooms and suites that exude sophistication combined with artistic flourishes, as well as dining experiences that leave an indelible mark on the palate [c19a1065].