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1. US inflation rose at smaller rate than expected
Inflation in the United States fell unexpectedly last month, according to the Consumer Price Index that was released by the Bureau of Labor Statistics Thursday. The New York Times reported that this result "likely reflected distortions caused by the government shutdown, creating an uncertain picture for the Federal Reserve as it simultaneously contends with rising unemployment."
The CPI rose 2.7% compared to the same time last year, which falls below the previous 3% pace as well as below the 3.1% rise expected by economists.
2. US hotel performance dips slightly for some metrics
The U.S. hotel results for the week of Dec. 7-13 showed mixed year-over-year performance results for the industry, according to data from CoStar. Overall occupancy was down 1.6% to 58.6%. Revenue per available room was also down 1.1% to $91.76, while average daily rate increased slightly by 0.4% to $156.46.
Of the top 25 markets, New Orleans had the sharpest decrease in ADR — a 18.3% drop to $146.70 — and RevPAR — a 29.9% decline to $83.92. Last year's Society of Health-System Pharmacists Midyear Clinical Meeting & Exhibition is affecting year-over-year comparison for the market.
Meanwhile, Tampa saw the largest drop in occupancy — a 14.3% decrease to 72.6% — and Washington, D.C., reported the second-steepest declines in ADR — a 12.9% dip to $172.40 — and RevPAR — a 24.2% decline to $115.92.
3. Signia strategy strengthens Hilton's global growth
Since its launch in 2019, Hilton's Signia brand has faced one of the most difficult times for new brands to scale. However, the brand has managed to find a way to grow its portfolio and global presence, CoStar News' Sean McCracken reports.
Meghan Fitzgerald, Signia's brand leader at Hilton, said new-builds are in the works for the brand, but for now Hilton is "targeting high-quality conversions to grow the brand."
4. Marriott to open first African location of Edition brand
Marriott International Inc. and V&A Waterfront Holdings signed an agreement to open the first Edition brand location in Africa, according to a Marriott news release. The 142-key hotel will be located in Cape Town's V&A Waterfront and will also have six residences, a signature rooftop bar, a spa, pool and meeting and event facilities on the property.
“The signing of our first Edition Hotel in Africa marks a significant milestone for the company’s growth strategy in the continent," said Karim Cheltout, senior vice president – development, Middle East & Africa, Marriott International. "Cape Town is a city that embodies creativity, diversity, and a dynamic spirit — qualities that align perfectly with the brand’s ethos. The V&A Waterfront is an iconic location, and we are confident that this project will set a new standard for luxury hospitality in the market.”
The hotel is expected to open sometime next year.
5. IHG breaks ground on largest new build in Japan
IHG Hotels & Resorts revealed new details about its biggest new build project in Japan. The project, located near Universal Studios Japan, is in partnership with Sakurajima Kaihatsu LLC and will feature three branded hotels — InterContinental, Kimpton and Holiday Inn Resort — totaling 817 keys.
"IHG’s growth continues apace in Japan where we have 57 open hotels across 10 brands and 20 pipeline properties. This trio of exceptional new-build hotels will expand our current portfolio of 10 properties in Osaka and 12 in the wider Kansai region,” said Abhijay Sandilya, managing director, Japan & Micronesia, IHG Hotels & Resorts, and CEO of IHG ANA Hotels Group Japan.
The hotels are expected to open in 2029.