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1. Large Company CEOs More Worried Than Smaller Company Execs
A new survey from Teneo Holdings shows more than two-thirds of CEOs at large companies "expected the next six months to bring worsening customer demand, industry conditions, access to capital and domestic and global growth," the Wall Street Journal reports. Conversely, two-thirds of midsize company CEOs expect those things to improve.
"Teneo’s findings echo a range of mixed economic data and surveys in recent months," the newspaper reports. "Measures of global consumer confidence are mixed, with one U.S. survey at levels near those of the 2008-2009 financial crisis, and another showing declines but roughly average levels overall, according to analysts at consulting firm Oxford Economics. In the United Kingdom and Germany, consumer confidence is at record lows."
2. MGM, Hard Rock Complete Mirage Deal
Executives with MGM Resorts International have completed the $1.075 billion sale of the operations of The Mirage Hotel & Casino to Hard Rock International, HNN's Bryan Wroten reports. MGM projects $815 million net cash proceeds from the deal.
Concurrent with the sale, Hard Rock has signed a new lease agreement with owner Vici and a three-year, royalty-free licensing deal for The Mirage name and brand. MGM retains ownership of the branding but has agreed to license it as Hard Rock finalizes its plans to rebrand the property.
3. San Francisco Hotels Still Clawing Back To Pre-Pandemic Highs
Hotels in San Francisco still have a long way to go to return to the city's high-flying performance from before the COVID-19 pandemic, but HNN's Trevor Simpson reports the city is making incremental improvement.
According to data from STR, CoStar’s hospitality analytics firm, San Francisco in 2022 — through November — had occupancy of 64.7%, average daily rate of $208.96 and revenue per available room of $138.18, all improvements compared to 2021 levels but sharp decreases from 2019 levels. In 2019, the market had an occupancy of 81.9%, an ADR of $249.30 and a RevPAR of $204.13.
“The San Francisco market continued to see its gradual or slow or minimal growth year over year in terms of occupancy, and then you did see decent rise in the average daily rate, naturally due to inflation, but compared to pre-pandemic levels, the market still hasn’t fully recovered,” said Krishelle Cruz, vice president of national sales for Island Hospitality.
4. Crescent Buys Denver Kimpton from Xenia
Crescent Real Estate purchased the 189-room Kimpton Hotel Monaco Denver, HNN's Dana Miller reports. CoStar records show hotel-focused real estate investment trust Xenia Hotels & Resorts was the seller and the property traded for $69.75 million, or roughly $369,000 per key.
HEI Hotels & Resorts will operate the property, which is expected to see a "modest renovation focused on upgrading the meeting space and restaurant," according to the news release announcing the deal.
5. Hotel Performance Dips in November
Revenue numbers for U.S. hotels still beat pre-pandemic comparisons for November but saw a month-over-month drop from October, the latest data from CoStar's hospitality analytics firm STR shows.
Weak demand sunk strong rate growth. Occupancy came in at 59.4%, a 3.2% drop compared to the same month in 2019. Average daily rate was $144.46, up 15.2% from November 2019, and revenue per available room was $85.74, up 11.4%.
New York City saw the strong demand among the top 25 markets, with 79% occupancy, and Minneapolis had the worst at 51.2%.