From the desks of the Hotel News Now editorial staff:
- Property pricing for hotels continues to decline
- Hotel loyalty program members still use Airbnb
- The issues created by growing supply in 2017
- Hilton stock expected to continue climb
- Less Zika cases leads to optimism in Puerto Rico
Property pricing for hotels continues to decline: An assessment from Ten-X shows that valuations for hotel properties continued to drop in the month of December, Globe Street reports.
Pricing dropped 0.7% from November, and values are down 6.6% year over year, falling every month of 2016, according to the report. Values did rise 3.9% in the Southeast for the year.
Commercial real estate pricing across all sectors remained relatively flat, up just 0.3%, in December.
Hotel loyalty program members still use Airbnb: A recent report from Morgan Stanley Research shows that “members of hotel loyalty programs are more likely than other travelers to have booked a stay in Airbnb,” Quartz reports.
The report says that 36% of loyalty program members have booked with Airbnb before, while 15% of non-loyalty members said they have used Airbnb.
The study from Morgan Stanley also shows more than 50% of loyalty members around the world are loyal to a single hotel brand.
The issues created by growing supply in 2017: Supply and its effect on hotel performance has been a hot topic among the industry in 2016, HNN’s Bryan Wroten reports.
In a roundtable on supply, industry experts weighed in on how supply will affect the hotel industry in 2017, including how it will change hoteliers’ ability to raise or hold rates and what markets see the most impact.
“Supply has primarily been a major gateway market headwind across the last few years. But supply growth will spread across the country in the coming years and provide a significant challenge in suburban markets,” Neil Shah, president and COO of Hersha Hospitality Trust, said when asked how the current supply and pipeline will affect performance in 2017.
Hilton stock expected to continue climb: Hilton Worldwide Holdings continues to expand its reach within the hotel industry, and its success has been reflected in the growth of its stock, Forbes reports.
Forbes contributor Gene Marcial writes that the price of Hilton’s stock has continued to rise all year, and reached $28, up from $17 a share in January 2016 and surpassing a 52-week high of $27 a share. Forbes reports that some analysts believe Hilton’s stock could reach $33 a share.
“We expect Hilton’s room share expansion to be among the industry’s fastest over the next decade because of an industry-leading pipeline, favorable next-generation traveler position supported by newer brands, and its highly rated (customer) loyalty program,” Dan Wasiolek, senior equity analyst at Morningstar, said.
Wasioleck also expressed optimism about the company’s planned spinoffs of its owned real estate as a real estate investment trust and its timeshare business.
Less Zika cases leads to optimism in Puerto Rico: The Puerto Rico Tourism Company is more optimistic about travel to the market in 2017 after seeing a 96% drop in the number of new Zika cases reported, Caribbean News Now reports.
From 7 October to 14 October, 5,317 new Zika cases were reported in Puerto Rico. That number dropped to 222 new cases from 19 December to 23 December.
“The dramatic decrease in the number of Zika cases in Puerto Rico is a testament to our integrated aggressive program to inform and disseminate the facts and allay the fears. The PRTC worked incredibly hard with the industry and health officials to communicate accurate and precise messages about Zika to the public,” said Ingrid Rivera Rocafort, executive director of the PRTC.
Complied by Danielle Hess.