Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently senior editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers. Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
THE BAIRD/STR Hotel Stock Index dropped 8.2 percent in January, according to STR. The decline in performance came in connection with difficulties in distribution of the COVID-19 vaccine.
Both the S&P 500, which fell 1.1 percent in January, and the MSCI US REIT Index, which remained flat, outperformed the Baird/STR index. The hotel brand sub-index dropped 9.1 percent from December while the hotel REIT sub-index decreased 5.3 percent.
In December, the Baird/STR rose 5 percent based on some optimism following the announcement of the vaccines, but over the month that feeling changed.
“Hotel stocks pulled back in January and significantly underperformed the broader indices as the vaccine rollout and reopening narrative lost some momentum,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The ‘pent-up demand’ thesis remains topical for bullish investors and industry participants, especially on the leisure travel front, but the more important intermediate- to long-term recovery needs to come from the business traveler, for which a rebound appears further out, in our opinion.”
The first few months of the year will likely resemble the slowest months of 2020, said Amanda Hite, STR president.
“Once vaccine distribution becomes more widespread and the pandemic numbers improve, we should see better travel conditions that will push recovery,” Hite said. “Our latest forecast points to Q3 as the period with more meaningful recovery of corporate and group business.”
Sonesta launched Americas Best Value Studios, an extended-stay version of ABVI.
The model targets owners seeking limited front desk and housekeeping.
The brand meets demand for longer-term, value-focused stays.
SONESTA INTERNATIONAL HOTELS Corp. launched Americas Best Value Studios by Sonesta, an extended-stay version of its franchised brand, Americas Best Value Inn. The model targets owners seeking limited front desk and housekeeping, optional fitness center and lobby market along with standard brand requirements.
The brand aims to address the growing demand for longer-term, value-driven accommodations, Sonesta said in a statement.
"Americas Best Value Studios by Sonesta represents a strategic evolution of our trusted Americas Best Value Inn brand," Keith Pierce, Sonesta’s executive vice president and president of franchise development, said. "We are expanding our offerings to directly address the increasing demand within the extended-stay segment, providing a practical solution for travelers seeking longer-term lodging at value. This new brand type allows our local franchised owner-operators to tap into a growing market while maintaining the community-focused experience that Americas Best Value Inn is known for."
ABVI has a majority presence in secondary and tertiary markets, the statement said.
The extended-stay brand’s operational model features a front desk, bi-weekly housekeeping, on-site laundry and pet-friendly accommodations, Sonesta said. Guests can also earn or redeem points through the Sonesta Travel Pass loyalty program.
In August, Sonesta named Stayntouch its preferred property management system after a two-year review of its ability to support the company’s franchise model. The company operates more than 1,100 properties with more than 100,000 rooms across 13 brands on three continents.
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