Market Trends

🏕 andBeyond Ngala Tented Camp, after a 6-month refurbishment, reopened in October 2024 on the Timbavati River, South Africa. The redesign features spacious guest tents with secluded outdoor spaces, indoor and outdoor showers, and al fresco bathtubs. New guest areas, expanded decks, a larger swimming pool, and a gym complement the camp's elegant mix of traditional and contemporary design. The camp welcomes children over twelve, offering a private experience distinct from Ngala Safari Lodge.

💸 Inflationary pressures persist with 9 out of 10 foodservice categories experiencing month-on-month price increases. CEO of Prestige Purchasing, Shaun Allen, emphasizes the need for proactive and adaptable procurement strategies due to market volatility. Vegetables, particularly potatoes, remain highly inflated, while the largest month-on-month increase is in the oils and fats category, influenced by rising butter prices. The sugar, jam, syrups, chocolate, and vegetable categories show the highest year-on-year inflation, with ongoing pressure on revenue and margins expected through 2024 and into the next year, according to Reuben Pullan, senior insight consultant at CGA by NIQ.

💰 In Q3 2024, Hyatt Hotels Corporation saw a 3.0% increase in system-wide hotels RevPAR and 4.3% net rooms growth, but a 0.9% decrease in all-inclusive resorts Net Package RevPAR compared to Q3 2023. The company reported a net income of $471 million, an adjusted net income of $96 million, and an adjusted EBITDA of $275 million. Hyatt repurchased 4.5 million shares for $657 million and projects full-year net income between $1,400 million and $1,450 million with an adjusted EBITDA of $1,100 million to $1,120 million. Total liquidity stood at approximately $2.6 billion as of September 30, 2024, with a pipeline of 135,000 rooms. The company also declared a $0.15 per share dividend, payable on December 6, 2024, to stockholders of record as of November 22, 2024.

🏨 CMBS loans offer lower capital costs for hotel borrowers and can involve complex structures with "sliced and diced" tranches of varying risk and return levels. Post-closing, the master servicer handles day-to-day operations while a special servicer manages loans with performance issues. Borrowers should negotiate loan terms for operational flexibility and tailor recourse carveouts at the term sheet stage. CMBS loans require adherence to strict financial covenants and consideration of unique asset particularities, such as seasonality in revenue. Michael D. Maloff, a partner at Dentons in Louisville, highlights the importance of proactive loan document negotiations to navigate the CMBS market successfully.

🚘 In the U.S., over half of the travelers (51%) prefer driving to their winter holiday destinations, up 2% from last year. Most are motivated by proximity (46%) and cost savings (26%), with 80% finding road trips more enjoyable. A majority choose familiar places over new explorations (63%), visiting family (50%) and using paid time off (54%) for quality time. Accommodations often include staying with family (52%) or friends (14%), yet 25% will opt for hotels or motels to avoid uncomfortable sleeping arrangements. Travelers plan trips three weeks in advance on average, with 23% not booking ahead and 64% stressed by last-minute plans.

🛠 Philippe Starck and Duravit celebrate the 30th anniversary of the Starck barrel, introducing an update with glossy and matt ceramics, new lacquers, and c-bonded technology. The design maintains its minimal essence, aiming for timelessness and eschewing trends. Stark emphasizes durability, sustainability, and the notion of a product being an essential part of human life that should extend beyond temporary fashions. His approach to sustainability is rooted in his experiences since age 17, questioning necessity, promoting longevity, and prioritizing intelligent, sustainable design for generational use.

📍 Booking.com reported a growth of over 40% year-over-year in connected trip transactions for Q3 2024, a category now constituting a high single-digit percentage of total transactions. Expedia, a main competitor, has pushed the concept since 2004, yet connected trips represent less than 10% of their overall bookings. Traditional tour operators have offered such packages for 175 years, and despite the advent of connected trips online, less than 10% of Europeans travel abroad on packages, with the U.S. figure below 5%.

🏨 Main Street Hospitality's place in the hotel industry, the qualities of a good partner, asset management, and what hotel owners should seek are discussed in this video. Insights from Sarah's experience in the fashion industry, including working with Ralph Lauren and applying her career learnings to hospitality, are shared. Concepts of "dynamic stability," operational frameworks, responsible growth, and the importance of culture within Main Street Hospitality are explored. The discussion extends to the potential of hospitality to unite people.

📝 In October, the U.S. national unemployment rate held steady at 4.1%, consistent since May 2024 and higher than the pre-pandemic rate of 3.5%. The restaurant and bar industries saw a slowdown in job growth, adding just 3,700 jobs with an employment rate of 3.7%. This was a stark contrast to September's initially reported 70,000 jobs, which was later adjusted to 39,300. Overall, August and September's job growth was revised down by nearly 65,000 jobs. Despite these adjustments, the National Restaurant Association indicates the employment trend remains positive, with industry employment above the pre-pandemic peak of 12.3 million jobs. Full-service restaurants are still 4% below February 2020 employment levels, while limited-service and snack/non-alcoholic beverage sectors are 3% and 17% above, respectively.