The four-quarter moving sum of the percentage of balances becoming 30-plus-days past due fell 0.26 percentage point from the second quarter to the third, to 8.79%. Early data show the trend continuing into the fourth quarter.
Hotel Investments
Global hotel investment activity strengthened in the past three months, with year-to-date Q3 liquidity reaching $40.9 billion, an increase of 10.2 percent relative to 2023.
Auto Loans
Sales of bonds backed by the riskiest auto loans to subprime borrowers hit nearly $40 billion this year through October, up 17% from all of 2023.
Hotel Cap Rates
The spread between hotel and commercial real estate (x hotels) cap rates expanded to 4.44% in 2020 then compressed to 2.44% by Q1 2024. The long-run average since 2001 equals 2.98% indicating a normalization of hotel investment risk.
Marriott Layoffs
Marriott International Inc. has started eliminating corporate jobs across the globe as part of a larger restructuring aimed at trimming annual expenses by as much as $90 million.
Household Wealth
Thirty years ago, Americans with a college degree accounted for roughly 20% of the population and held the same percentage of household wealth as those without a degree. Today, Americans with a college degree account for 38% of the population and 73% of household wealth.
Dollar
After strengthening nearly 3% since Election Day, the greenback was recently trading at a roughly two-year high.
Inflation Watch
The Labor Department on Wednesday reported that consumer prices in October rose 2.6% from a year earlier. That marks a pickup in the pace of inflation from September, when the consumer-price index was up 2.4% on the year. Core prices, which exclude food and energy items in an effort to better reflect inflation’s underlying trend, were up 3.3% from a year earlier.
Hotel Allocation
Funds targeting hotel assets reached $10B in YTD Q3 2024, an increase of 19% from the same period in 2019.
Q3 RevPAR
National RevPAR of $102 is up 1.2% to 2023 and up 14.3% to 2019, the highest YTD Q3 in U.S. history.