Skift Take
Experts signified they like what’s happening with Hyatt’s push into more leisure-oriented properties following an almost $2.7 billion acquisition.
Cameron Sperance
Here’s a tasting of what the Daily Accommodations Report offered to its readers this previous week. If you’re not a customer, you ought to be. Do not wait. Sign up now here.
Sunday, Jan. 16
STR stated the number of U.S. hotel rooms in building is down roughly 61,000 from the country’s all-time high accomplished in early 2020. STR’s December 2021 pipeline information revealed rooms In Building and construction down -19.2% in comparison with December 2020 at 158,906 while Spaces in Final Preparation were down -20.6% to 185,231 and Spaces in Planning were up 38.9% to 284,502. STR stated since January 5, 2022, New York City still leads the pipeline with 15,069 rooms in Building. Las Vegas is 2nd with 5,368.
Skift Note: The building and construction pipeline may be below the U.S. all-time high, however the information does not show interest fading in New york city City. The death of the Big Apple may have been significantly overemphasized, a minimum of from a designer point of view.
Monday, Jan. 17
Accor revealed a new finalizing for their MGallery brand name with Shenzhen Longhua Building And Construction and Advancement Co. Ltd. This will bring the first MGallery Hotel Collection address to Shenzhen. The Shenzhen Dalang– MGallery will be the very first international premium hotel to go into the popular district within the city. The hotel will be found in Dalang, occupying the northern part of Longhua District. The MGallery will have 250 designer rooms and suites, an all-day dining restaurant, a specialty dining establishment and a premium Chinese restaurant with private dining rooms. The hotel consists of an upper story executive lounge and a lobby lounge, expansive banquet and conference centers, state-of-the-art fitness center, swimming pool and a glamorous medspa.
Accor revealed they will have more than 300 hotels and resorts opening worldwide in 2022. Southeast Asia has 14 hotels on the books to open this year, beginning with the 257 space Pullman Lombok Mandalika Beach Resort and the Mercure Rayong Lomtalay. The Pacific area will have three openings, beginning with the Porter Home Hotel, Sydney, MGallery and Hotel Morris, Sydney. In Greater China, Accor will open six hotels with the Raffles at Galaxy Macau and the Silveri Hong Kong– MGallery identified as early 2022 openings. The Middle East is considered a fortress for Accor, especially with the 2022 World Cup in Qatar as Accor was selected as the official provider of lodging for visitors of the occasion. Accor will also widen its Rixos portfolio in Qatar and in the region overall with 3 openings while likewise releasing new Raffles, Fairmont, and Banyan Tree hotels throughout the Middle East area in 2022. Concerning their joint endeavor with Ennismore, they will continue to growth their way of life brand names including Mondrian, SLS, The Hoxton, Morgans Originals and Mother Shelter. The very first Mondrian in China will open this year while the TRIBE Phnom Penh Post Office Square will bring vibrant style to Cambodia’s hotel scene. A larger than life Mom Shelter Dubai will open, bringing the concept of a resort in the heart of the city with houses, swimming pools and an outdoor cinema.
Skift Note: Just because Accor’s stake in Chinese hotel company Huazhu is diminished doesn’t suggest the Paris-based company is slowing down its development streak in the Asia Pacific area.
Tuesday, Jan. 18
Truist said the hotel business they continue to favor the most are the more drive-to leisure-centric ones, specifically Wyndham Hotels for the hotel C-Corps and the vacation ownership business, BVH, HGV, TNL and VAC. The firm upgraded Hyatt to Purchase from Hold with a price target of $106, up from $78. They look favorably on Hyatt’s long-term transition to a more asset-lite leisure centric business. Truist said they do not enjoy the hotel REITs provided the numerous concerns out there but would be cautious on being too negative given NAV discount rates and prospects of private equity bids. They continue to see the greatest driver/wildcard and source of volatility for lodging stock efficiency in 2022 coming from progress and/or problems in the international battles versus Covid and its variants.
Morgan Stanley upgraded Sunstone Hotels to Obese while reducing Option Hotels to Underweight. They upped price targets on their covered names, raising 2022/2023 RevPAR and EBITDA quotes to show stronger prices power. That being said, they think pent-up need, Covid and virtual meetings present growth dangers. MS is anticipating 2022 United States market RevPAR to be 7% below peak 2019 levels, a rebound from 48% listed below peak in 2020 and 18% below in 2021. Their AlphaWise surveys of 200 business travel supervisors considering that the beginning of Covid recommends a shift of 20% of travel volumes to virtual conferences long term. Leisure continues to outperform in the present environment. MS expects that to continue but at a lessening rate. In regards to rate target modifications, their most significant one was Hyatt Hotels, upping it by 9% to $88 from $81 while keeping their Equal Weight score.
Skift Note: Financiers and analysts appear to rally behind Hyatt’s increased focus on leisure travel with its recent Apple Leisure Group takeover.
Wednesday, Jan. 19
Oyo Hotels is expecting a valuation of about US$ 9 billion in its proposed going public. That is a huge drop from the $12 billion that was boldly forecasted last year and allegedly OYO came down to earth after discussions with potential financiers. The SoftBank-backed business is expected to get approval in the next week approximately and will start a formal roadshow. Remember that OYO was valued at $10 billion in 2019 however preliminary conversations had actually been for a 15% discount on the $10 billion appraisal, so this is not all problem. OYO’s offering in India will be the biggest IPO considering that the devastating Paytm, raising $2.4 billion in November, just to see their stock price halve. OYO prepares to raise US$ 1.1 billion through the sale of brand-new shares and some secondary shares held by existing investors.
Skift Note: Oyo is lastly going public with reasonable expectations on its company model.
Thursday, Jan. 20
Jefferies stated their leading lodging choices are Hilton and Wyndham and while they reduced estimates throughout the space for 1Q22, they believe the traditionally high valuations are secondary which the lodging names will continue to grind higher as need recovers.
Skift Note: Grind, indeed. Profits season is quickly upon us, so let’s see if Jefferies’ choices can hold true.