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1. US Companies Winning on Chinese Spending
The pent-up demand from foreign spenders is back as Chinese travelers emerge from nearly three years of strict COVID-19 measures to travel and enjoy leisure activities, Business Insider reports. American companies are among those cashing in on the trend.
Companies that have benefited from China's economic recovery include Airbnb, MGM Resorts and Disney.
Airbnb recorded a 20% year-over-year increase in revenues during the first quarter to $1.8 billion. The company also achieved a 48% growth in nights and experiences booked in the first quarter of the year in the Asia-Pacific region, the news outlet reports.
2. Supreme Court Takes Case on Trump Hotel Records
The Supreme Court has agreed to review this fall a Biden administration appeal to limit lawsuits filed by Congress members against the federal government, AP News reports, in a case that's tied to disputes over the former Trump International Hotel in Washington, D.C. The hotel, now a Waldorf Astoria, is no longer owned by the Trump family.
Democratic members of the House of Oversight Committee filed the complaint in 2017 "over the Trump administration's refusal to turn over information about the Trump Organization's lease of the hotel," the news outlet reports.
"Trump, while president, refused to sell off his stake in the hotel despite a prohibition in the lease on elected officials obtaining any benefit that 'may arise from the lease.' Democrats alleged that Trump’s ownership of the property created a conflict of interest," the news outlet reports.
3. Hotel Companies Raise Full-Year Revenue Outlook
A strong first quarter led most hotel companies to increase full-year 2023 revenue per available room projections, reports Hotel News Now's Sean McCracken.
“With the better-than-expected first-quarter results and robust global booking trends, we are raising our full-year guidance. Macroeconomic uncertainty is not impacting our short‐term demand, and trends across all customer segments remain strong," Marriott International Executive Vice President and Chief Financial Officer Leeny Oberg said during the company's first-quarter earnings call.
For the full year, Marriott now expects RevPAR in the U.S. and Canada to grow between 6% and 9% and international RevPAR to grow 22% to 25%, leading to global RevPAR rising 10% to 13%.
4. JLL Arranges $585 Million Refinancing for Mixed-Use Development
JLL's Capital Markets group has arranged a $585 million refinancing for The Ritz-Carlton Paradise Valley, The Ritz-Carlton Residences and The Palmeraie in Paradise Valley, Arizona, according to a news release.
The borrower, Five Star Development, secured the loan with Madison Realty Capital, which will be used to finish the construction of the The Ritz-Carlton Paradise Valley, The Ritz-Carlton Residences and The Palmeraie — a mixed-use development that includes luxury retail, dining and residential space.
"Madison Realty Capital's significant experience with branded hotel residences and deep understanding of the hospitality market sets their team apart," JLL Capital Markets Managing Director Bryan Clark said in the release. "We were pleased to work with them to deliver tailored financing for a hospitality and luxury retail project that will set a new standard in Paradise Valley."
5. Extended-Stay Segment Reaches New Records
Most extended-stay hotels in the first quarter of 2023 achieved hotel performance metrics that reached new high levels, according to the latest data from The Highland Group.
Mid-price extended-stay hotels reported its highest occupancy in more than two decades, while the economy extended-stay segment had its lowest first-quarter occupancy since 2010, the news release states. Additionally, the first quarter marked the fourth consecutive quarter in which extended-stay room supply growth was below 2%.
“Rising interest rates and construction costs, as well as tightening loan underwriting, means extended-stay supply growth should be relatively low nationally for two to three years. Assuming the overall hotel industry does not endure a correction, extended-stay hotels should set more new performance records during the near term at least," Mark Skinner, partner at The Highland Group, said in the release.