MINNEAPOLIS — Minneapolis-based Magid HTL Forecast Tracker has released its predictions for the upcoming 12 months for the hotel industry. The forecast suggests the impact of the COVID-19 pandemic will lead to a 29 percent decline in annual hotel occupancy. The results will be a projected approximately $75 billion revenue loss for the industry. The estimate is according to the Magid HTL Forecast Tracker and Horwath HTL, a global hotel, tourism and leisure consulting brand. The forecasted decline is driven by the disappearance of business and leisure travel coupled with a projected 22 percent decline in consumer sentiment for attending meetings or conferences over the next 12 months. “The forecast shows the continuing significant impact COVID is having on hotel occupancy,” says Rich Garlick, vice president and strategy consultant for Magid. “Currently, the forecast suggests a 39 percent decline in occupancy for the next month. If the average occupancy at this time of the year (summer) is 70 percent, this would put current occupancy around 43 percent.” The most recent wave of research, conducted July 29 to August 2, shows that 71 percent of consumers expect to next stay in a hotel 24 months from now — a result that …
WASHINGTON, D.C. — Retail sales in July rose 1.2 percent on a month-over-month basis, the U.S. Commerce Department reported in its advanced estimate this morning. Total sales for the month clocked in at $536 billion, up from $529.4 billion in June. The Commerce Department reported sales reached $527 billion in February, marking the first time during the pandemic that retail sales have exceeded pre-pandemic levels. Furthermore, the Commerce Department revised its May to June growth up 90 basis points to 8.4 percent. Despite the growth, the total volume of retail spending wasn’t as robust as economists surveyed by Dow Jones expected. Economists forecast a 2.3 percent increase from June. A major reason for the sales coming in lower than expected was due to auto sales falling behind. The Commerce Department reports that excluding auto sales, retail would have grown 1.9 percent. Though the growth is slowing, the National Retail Federation (NRF) says the July figures add to the turnaround seen since the spring’s decline, namely when sales dipped 16.4 percent in April. “Retail sales for July were another positive step in the right direction as our economy continues to slowly reopen,” says Matthew Shay, CEO and president of the NRF. …
WASHINGTON, D.C. — For the week ending Aug. 8, 963,000 people filed first-time unemployment claims, which marks the first time since the week ending March 14 that fewer than 1 million Americans filed for assistance, the U.S. Department of Labor reported this morning. The most recent figure is a 228,000 decrease on a week-over-week basis. Economists surveyed by Dow Jones were expecting 1.1 million claims for the week. The four-week moving average stood at nearly 1.3 million claims, a decrease of 86,250 from the previous four-week average. For the week ending Aug. 1, continuing claims — for which data is a week behind — decreased by 604,000 from July 25 to 15.5 million.
INDIANAPOLIS — During its second-quarter earnings call on Monday, Simon Property Group (NYSE: SPG) said it is “capitalizing on various value-creating opportunities.” Sparc Group, a joint venture between Simon and Authentic Brands Group, made bids to acquire bankrupt retailers Brooks Brothers and Lucky Brand. Brooks Brothers has selected Sparc as the winning bidder with a $325 million offer. Since Sparc is buying the brands out of bankruptcy, it is acquiring the inventory at or below cost, according to David Simon, CEO and president. In its second quarter that ended June 30, the Indianapolis-based mall giant reported that net income fell to $254.2 million compared with $495.3 million in 2019. As of June 30, occupancy at Simon’s U.S. malls and outlet centers was 92.9 percent. Base minimum rent per square foot was $56.02, an increase of 2.8 percent year over year. Due to COVID-19, Simon closed all of its properties on March 18 and began reopening them on May 1. As of Aug. 7, some 91 percent of the tenants across Simon’s portfolio were open and operating. Simon collected approximately 51 percent of its contractual rent billed for April and May combined, 69 percent for June and 73 percent for July. …
WASHINGTON, D.C. — Retail imports at major U.S. ports are expected to see their lowest annual totals in four years as the coronavirus continues to affect the economy, according to the National Retail Federation (NRF). The NRF forecasts year-end 2020 totals to reach 19.6 million TEUs, which would be a 9.4 percent decrease from 2019 and the lowest number seen since the 19.1 million TEUs of imports in 2016. The NRF and Hackett Associates released their monthly Global Port Tracker report, which found that U.S. ports handled 1.6 million 20-foot equivalent units (TEUs) in June, which was up 4.9 percent from May 2020 but down 10.5 percent year-over-year. “The economy is recovering but retailers are being careful not to import more than they can sell,” says Jonathan Gold, NRF vice president for supply chain and customs policy. “Shelves will be stocked, but this is not the year to be left with warehouses full of unsold merchandise. The more Congress does to put spending money in consumers’ pockets and provide businesses with liquidity, the sooner we can get back to normal.”
BETHESDA, MD. — Marriott International (Nasdaq: MAR) has reported that its second-quarter revenue per available room (RevPAR) declined 84.4 percent worldwide at its hotels due to the coronavirus pandemic. RevPAR in its North American portfolio dropped 83.6 percent. Additionally, the hotelier’s occupancy rates are slowly recovering, having reached 34 percent during the week ending Aug. 1 after bottoming out at 11 percent April 11. Currently, 91 percent of the company’s hotels are open, compared to 74 percent in April. Marriott reported a net loss of $210 million in the second quarter, a significant drop from second-quarter 2019 when the company gained $525 million. The Bethesda-based company is seeing bright spots when it comes to its international recovery, especially in the area it refers to as “Greater China” (the area encompassing China, Hong Kong, Macau and Taiwan). “Greater China continues to lead the recovery,” says Arne Sorenson, president and CEO of Marriott. “As of early May, all our hotels in the region are open, and occupancy levels are now reaching 60 percent, compared to 70 percent the same time last year. While Greater China’s recovery was originally led by demand from leisure travelers, particularly in resorts and drive-to destinations, we are now seeing …
WASHINGTON, D.C. — The National Multifamily Housing Council (NMHC) has reported that 79.3 percent of apartment households have paid August rent as of Aug. 6. NMHC surveyed its network of 11.4 million professionally managed units as part of its Rent Payment Tracker metric. The latest figure is a decrease of 233,000 households, or 1.9 percent, from August 2019. However, the total number of those paying rent is an increase from July 6, 2020, in which 77.4 percent paid rent. President Donald Trump over the weekend signed an extension of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that provides unemployment benefits for citizens who have lost their jobs due to the COVID-19 outbreak. David Schwartz, NMHC chairman and CEO and chairman of Chicago-based Waterton, says that the CARES Act has been instrumental in helping millions of renters pay their rent. “Over the past few months apartment residents have largely been able to meet their housing obligations,” says Schwartz.
JACKSONVILLE, FLA. — During its second-quarter earnings call, Regency Centers Corp. (Nasdaq: REG) reported same-property net operating income of $162.3 million for the three months ending June 30, a 20.1 percent year-over-year decrease. The Jacksonville-based company says all 415 of its shopping centers nationwide have remained open during the COVID-19 pandemic, with 95 percent of its tenants being open as of July 31. Regency Centers collected 72 percent of base rents for the quarter and has agreed to more than 600 lease rent deferrals. The shopping center REIT estimates that 96 percent of deferred rents will be collected by the end of 2021.
WASHINGTON, D.C. — The U.S. economy added nearly 1.8 million jobs in July and the unemployment rate fell 90 basis points to 10.2 percent, the U.S. Bureau of Labor Statistics (BLS) reported Friday. The uptick on nonfarm payroll employment beat expectations as economists surveyed by The Wall Street Journal anticipated just under 1.5 million jobs to be added. Though the latest job tally surpassed expectations, Ball State University economist Michael Hicks cautions against drawing sweeping conclusions. The employment-to-population ratio is more than 5 percent below the level from July 2019 and more than 3.5 million workers have exited the labor force in the past few months. Hicks says if those 3.5 million workers were included in the jobs report, the unemployment rate would be 250 basis points higher. “Permanent job losses continue to increase, but temporary losses appear to be nearly fully recovered,” he said. “This means roughly 10 percent of those working in January remain unemployed, with no evidence of improving prospects for re-employment.” Employment surged in the leisure and hospitality sector, having added 592,000 jobs, making up for one-third of the overall monthly growth. The sector lost 8.2 million jobs in March and April, though has begun to reclaim …
WASHINGTON, D.C. — Nearly 1.2 million Americans filed for first-time unemployment assistance during the week ending Aug. 1. The latest figure is the lowest weekly total since the COVID-19 pandemic hit the United States. Economists surveyed by Dow Jones expected 1.4 million claims for the week. There have now been 20 consecutive weeks of initial claims totaling more than 1 million filings. The four-week moving average was 1.3 million claims, a decrease of 31,000 from the previous four-week average. Additionally, continuing claims dipped by 844,000 to 16.1 million.