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1. US economy faces a more cautious consumer
Heading into the 2025 holiday season, there are signs consumers are pulling back, with CNBC pointing to more frugal 25 to 35 year olds. One way this is showing up is less spending on burritos, with Chipotle recently cutting its full-year guidance.
“This group is facing several headwinds, including unemployment, increased student loan repayment and slower real wage growth,” CEO Scott Boatwright said on the company's most recent earnings call.
Signs also indicate higher-income shoppers are looking more for deals.
2. CMBS data shows Starwood preparing to sell 65-hotel portfolio
CoStar News' Mark Heschmeyer reports Starwood Capital Group is modifying its loan on an underperforming portfolio of 65 U.S. hotels in order to clear the way to sell.
"The portfolio transferred to special servicing in March following steep revenue drops," he writes. "Net cash flow by that time had plunged 60% below origination levels, according to bond rating firm Morningstar Credit. Occupancy rates declined to 65% in 2024, down from 75% at issuance."
The loan was first originated in June 2017.
3. Caribbean tourism demand levels off
While massive waves of travelers sought out Caribbean destinations after COVID-19-era restrictions lifted, demand in that region seems to be stabilizing, CoStar News' Natalie Harms reports.
Speaking at the Caribbean Hotel Investment Conference & Operations Summit, STR senior analyst Hannah Smith said demand in 2025 seems to have reached a new phase.
"We're no longer in that really high-growth environment where, no matter what hotels did, people were going to come and they were going to pay a couple of years ago," Smith said. "Now we're in kind of that mature phase of we need to think a little bit more about who are these guests we're bringing in. Do we need to change our strategies to bring them in?"
4. PPHE's biggest owners consider selling
PPHE Hotel Group's two largest owners, co-founder Eli Papouchado and president and co-CEO Boris Ivesha, are considering plans to sell off most of their combined 44% share of the company, CoStar News' Terence Baker reports.
The company issued a news release noting the two “intend to hold a small handful of meetings with financial investors in relation to a range of potential options, from contributing growth capital to PPHE, to a potential partial monetization of their stakes in PPHE.”
PPHE has 51 hotels and approximately 9,600 rooms in eight European countries. At the end of 2024, its portfolio was valued at £2.2 billion ($2.89 billion).
5. Airbnb sues Biloxi, hotel association over short-term rental ban
The city of Biloxi, Mississippi, and the Mississippi Hotel & Lodging Association are being accused of artificially inflating hotel room rates by banning short-term rentals in a lawsuit brought by Airbnb and a homeowner in the city, Reuters reports.
The lawsuit could end up being a test case for the alternative lodging giant as it seeks to push back more broadly on government restrictions on using homes for guest stays.
The company issued a statement saying Biloxi's rules are “setting a dangerous precedent for property rights across the country while protecting incumbents from competition.”