Hotels top CRE to beat inflation, IHG adds in Riyadh, Asian GOPPAR exceeds 2019.

Inflation fighter - According to recent JLL statistics, average ADR growth in the United States has outpaced CPI growth by 55 basis points from 1988 to 2022. Indeed, during the high inflationary period of 2022 and the first quarter of 2023, the hotel industry in the United States was able to greatly outperform inflation increases. ADR growth outpaced inflation growth by 4.3 percentage points in the first quarter of 2023. This outperformance is linked to strong leisure demand as well as the revival of group and corporate travel.

IHG adds in Riyadh - IHG Hotels & Resorts has agreed to manage the first Kimpton hotel in the area in Riyadh, Saudi Arabia, with The King Abdullah Financial District Management and Development Co. (KAFD DMC), a subsidiary of Saudi Arabia's Public Investment Fund (PIF). The 212-room Kimpton Riyadh will open in June 2024. IHG presently operates 37 hotels in Saudi Arabia across five brands, with 31 more in the pipeline to open within the next three to five years.

Asia GOPPAR outperforms 2019 - According to STR's March 2023 P&L data release, the majority of Asia Pacific's top hotel markets outperformed their 2019 levels in terms of gross operating profit per available room (GOPPAR). Bali's March GOPPAR was US$52.92, 227.6% more than the pre-pandemic comparative. The market posted GOPPAR of US$41.90 in February, which was 121% of the 2019 level. New Delhi came in second with a GOPPAR of US$82.40, or 164.4% of the 2019 comparable. GOPPAR was marginally lower than in February (US$101.71). While up from February, Hong Kong's GOPPAR was just 76.1% of the similar in 2019.