All Hotel Classes Are Showing ADR Recovery

The DJIA fell 400 points on Friday while Nasdaq was down 328, the S&P 500 fell 86 points and the 10-year treasury yield pierced the 4% ceiling and probably is not done yet, rising another .06 to 4.01%. Lodging stocks were mixed. SVC rose another 4.4%. We had to wonder just how long investors will realize by reinstating their quarterly dividend on Thursday, SVC gives them a 10%+ dividend yield even after the two-day 30% surge in stock price.

According to CoStar, boutique hotels are performing well in 2022 and all classes show recovery in ADR, surpassing 2019 peak levels and leading the U.S. hotel industry. Occupancy hasn’t quite recovered to 2019 levels and partially the reason is that lifestyle and upper-upscale independent boutique hotels are slightly behind in RevPAR. Lifestyle hotels also reported very large supply growth through June 2022. Compared to 2019, the strongest RevPAR increases were in the soft brand collection and independent luxury class due to a spike in the average rate. Luxury class hotels across the nation achieved strong RevPAR growth through June 2022 from increased leisure travel.

Hilton and Dittmar Company announced the signing of Hilton at The Key, Arlington-Rosslyn, located just minutes from Washington D.C. in Arlington, VA. The 36-story, 331-room hotel is under development as part of The Key, a project that includes a destination restaurant, retail and 517 luxury apartments. Once completed, Hilton at The Key will feature approximately 28,000 square feet of flexible meeting spaces, including an event space on the 36th floor. 

Kimpton Hotels & Restaurants announced it will open its first hotel in San Antonio, TX in late 2024. Located in the Central Business District, the 347-room hotel will be part new-build and part adaptive reuse of an 1850s-original schoolhouse. Owned and operated by White Lodging, the Kimpton in San Antonio will feature a