U.S. hotel construction has declined for seven consecutive months, according to STR, but planning activity continues to rise nationally, albeit at a slower pace. In Construction: 149,198 rooms (-20.1%), Final Planning: 178,809 rooms (-11.3%), Planning: 281,190 rooms (+6.1%).
RE Loans
The value of securities backed by real-estate loans issued by banks was $20.6 billion in the second quarter, down from $29 billion during the quarter prior.
Hotel Workers
Hundreds of thousands of hotel workers have left the industry since the pandemic. There were about 1.7 million accommodation workers employed nationwide in June, a roughly 16% decline from June of 2019.
Negative Yields
The world’s pool of negative-yielding debt has shrunk to a roughly seven-year low, as an era of exceptionally loose monetary policy draws to a close in most major economies. The total stock of negative-yielding debt last week stood at $2.4 trillion, an 87% plunge from the $18.4 trillion peak reached in December 2020.
Major US Hotel Sales
Comparing Q2 2022 with Q2 2021, the number of trades increased by approximately 122 percent while total dollar volume grew roughly 12 percent, however sale price per room declined by 25 percent.
Slow Hotel Recovery
The latest data shows the top 25 hotel markets are now at 65% of year-to-date 2019 levels of gross operating profit per available room and are just seven percentage points below the 2019 year-to-date gross-operating-profit margin. Additionally, all these markets year to date are beyond 50% of 2019 levels in total revenue per available room and beyond 24% of 2019 GOPPAR levels.
Market Valuation
The valuation of the U.S. stock market has fallen faster than in the aftermath of the dot-com crash, recording the biggest six, 12 and 18-month drops since data on price-to-forward-earnings ratios began in 1985.
Home Sales
The median existing home price hit another record in June, rising to $416,000, and sales declined for the fifth straight month as higher interest rates pushed more buyers out of the market.
Foreign Purchases
Foreigners bought 98,600 U.S. homes in the year ended in March, down 7.9% from the prior year. That is the lowest level on record since NAR began collecting the data in 2009. But the dollar volume of residential real estate purchased by international buyers rose 8.5% to $59 billion, reflecting a large increase in U.S. home prices.
New Funding
There are 2,845 private equity funds currently in the market, collectively aiming to raise over $1 trillion in capital. Both figures represent increases of more than 60% over the beginning of 2021.