The Baird-STR Hotel Stock Index grew by 22.4% in February, following an 8.2% month-over-month decline in January. By comparison, the S&P 500 index was up 2.6% in February.
Manhattan Multi
Reduced demand for Manhattan apartments during the pandemic sent median rental prices down more than 17% for the year ending in December. Building owners removed 1,814 apartment listings in Manhattan in February, three times the number of apartments landlords removed from the market in February of 2020.
Apollo Athene
Apollo Global Management Inc. agreed to acquire Athene Holding Ltd. in an all-stock deal that values the annuity business at about $11 billion. The deal is expected to close in January 2022.
Hotel Industry Diversity
The hotel and lodging industry is making a $5 million commitment to reverse patterns of discrimination and exclusion. The five-year plan from the American Hotel & Lodging Foundation aims to increase diversity in the industry.
Dry Powder
Buyout firms’ global real estate funds are now sitting on more than $300 billion of unspent cash.
Sands Divestment
Las Vegas Sands Corp. said it has agreed to sell its Las Vegas properties, including the Venetian Resort Las Vegas and the Sands Expo and Convention Center, for about $6.25 billion as it looks to reinvest in its core Asia operations.
Cruise
Royal Caribbean’s net debt rose more than 42% to $16.45 billion in 2020 from the prior year. The cruise operator, which ended 2020 with about $4.4 billion in cash, expects to burn through between $250 million and $290 million a month during the cruise hiatus.
Delinquent Rent
It is estmated that 17% of renters are now behind on their payments—three times the typical rate. Unpaid rent exceeds $52 billion with the average delinquent household owing $5,586.
Home Mortgages
Mortgage lenders originated a record $3.69 trillion worth of mortgages last year. With the 30-year mortgage rate near 2.97%, between 15.2 million and 16.7 million Americans could lower their monthly mortgage payments through a refinancing.
Eviction Moratorium
The CDC order covers tenants who can’t pay their full rent due to a substantial loss of household income, loss of compensable hours of work, a layoff or extraordinary medical expenses. While the intent of the CDC moratorium was to prevent the spread of Covid, there is no requirement in the order that the income loss be due to Covid.