From the desks of the Hotel News Now editorial staff:
- Experts consider which markets could see 2021 recovery
- BLM calls for boycott on some DC hotels
- Months of job growth ends in US
- Weekly performance results for US hotels
- Hotel Stock Index rose 5% in December
Experts consider which markets could see 2021 recovery: Hotels in drive-to markets outperformed larger urban markets in 2020, and now experts are looking at whether hoteliers can expect a repeat performance in 2021, writes HNN’s Bryan Wroten.
Jan Freitag, SVP of lodging insights at STR and national director for hospitality market analytics at CoStar, said there are two scenarios that could play out when looking at which markets will perform well in 2021.
(STR is owned by CoStar Group and is the parent company of Hotel News Now.)
He said one possibility is a repeat of 2020 where people stayed closer to home for several reasons.
“At the beginning of the pandemic, they didn’t trust other people, they weren’t quite sure how the virus spread, they didn’t necessarily trust airplanes and driving seemed safer. Travelers also felt they better understood their local regulations than those in other countries,” Wroten writes.
BLM calls for boycott on some D.C. hotels: A Black Lives Matter chapter in Washington, D.C., has called for a boycott on hotels that “support white supremacists and hate” on Twitter after Wednesday’s protest at the U.S. Capitol, Business Insider reports.
The Tweet asks hoteliers in the D.C. area to "renounce (Donald) Trump-affiliated protestors and cancel the reservation of people coming to town to undermine democracy."
The Grand Hyatt Washington faced backlash on Twitter after a Bloomberg reporter posted videos of guests with Trump paraphernalia congregating in the lobby of the hotel and not wearing masks.
“Angry Twitter users were set alight after the video went viral, with some questioning where the Trump supporters' masks were despite the hotel's mask policy. Others have called for Hyatt to remove the hotel guests,” the news outlet reports.
In a company statement to Business Insider, Hyatt said the "violent and destructive events in Washington, D.C., (on Wednesday) were shocking, horrifying and indefensible." The statement also confirmed that through team efforts, “individuals ultimately returned to their guestrooms, vacated the premises or complied with these protocols without incident.”
Months of job growth ends in U.S.: Seven months of job growth has ended in the U.S. as 140,000 jobs were lost in December and the unemployment rate was at 6.7%, The Wall Street Journal reports from the latest U.S. Department of Labor data.
A combination of cold weather, the rising number of virus infections and new restrictions on businesses contributed to the slow in job growth in recent months.
“In one positive sign, job growth in November was stronger than previously estimated. The (Labor Department) said the economy added 336,000 jobs that month instead of the initially reported 245,000,” the news outlet writes.
Weekly performance results for U.S. hotels: Weekly hotel occupancy for the U.S. hotel industry for the week ending 2 January improved over the previous week due to a boost in travel leading into the New Year’s holiday, according to a news release from STR.
Occupancy decreased 17.2% to 40.6%, average daily rate decreased 21.5% to $107.93 and revenue per available room decreased 35.1% to $43.81.
“Hotel demand jumped in week-over-comparisons while TSA checkpoint counts showed five days with more than 1 million passengers. Substantial hotel demand growth is not expected to continue as leisure travel once again dissipates after the holidays,” the release states.
Hotel Stock Index rose 5% in December: The Baird/STR Hotel Stock Index rose 5% in December and ended the year down 13.2%, according to a news release.
“Hotel stocks continued their rebound in December as the positive vaccine and re-opening sentiment remained front and center for investors,” Michael Bellisario, director of equity research and senior analyst at Baird, said in the release.
“Despite the significant pandemic-related impact to hotel demand that occurred in 2020, hotel stocks performed relatively better than they did in 2011, 2015 and 2018, which demonstrates how forward-looking the stock market is today,” he said.
Compiled by Danielle Hess.