Scottsdale, AZ FOUR
INSIDE THIS ISSUE
COMPANY ANNOUNCEMENTS page 2
PREMIER SPOTLIGHT page 2
EMPLOYEE SPOTLIGHT page 2
Q2 2024 TRAVEL AND LODGING UPDATE page 3
“GUESS THE PROPERTY” CONTEST page 4
ASHFORD ANGLE
QUARTERLY NEWSLETTER
A MESSAGE FROM C. JAY STEIGERWALD III
CEO, Ashford Securities LLC
Top of Mind
We are pleased to share the Q2 2024 edition of the Ashford Angle Newsletter. We stayed busy last quarter, boosting our industry and investor awareness and expanding our independent broker-dealer and RIA selling groups. With over $625 million in total capital raised and over 100 selling group partners since the launch of our first offering in July of 2021, we continue to be active in the distribution of our alternative investment products.
How We’re Doing
In addition to annual broker-dealer and RIA conferences, our team has participated in several alternative investment industry events this year including FactRight, Blue Vault Bowman, ADISA, IPA, and Snyder Kearney. We also hosted a due diligence meeting at the Renaissance Palm Springs, a beautiful Ashford owned property located at the foot of the desert mountains that surround the Coachella Valley in Southern California.
I am excited to announce the promotion of Todd Brewer as Senior Vice President, National Sales Manager as he expands his role and manages our high-performing sales team. I am also thrilled to welcome Neel Patel, CAIA, as Senior Director of National Accounts. With over 22 years of alternative investment experience and a proven ability to grow and manage a dynamic selling group, Neel will help us build and strengthen strategic relationships with key stakeholders in wirehouse, regional, and RIA firms. I am also pleased to announce the promotion of Ruben Renteria to Accounting Manager after recently passing the CPA exam. We are extremely proud of Ruben for taking the next step in his career with the company. These three key professionals will support the ongoing growth of our distribution team.
2024 Outlook
We are excited about what the remainder of 2024 is projected to deliver as we believe fundamental shifts in consumer behavior continue to drive a strong long-term travel and hospitality outlook. We sincerely appreciate your ongoing support, and eagerly anticipate the opportunity to share another update with you in the coming quarter.
C. Jay Steigerwald CEO, Ashford Securities LLC
PREMIER SPOTLIGHT
Premier Project Management offers comprehensive solutions encompassing interior design, architecture, procurement, and project management services for any renovation, redevelopment, or ground-up new construction project.
A wholly owned subsidiary of Ashford, Inc., Premier provides in-house development expertise to Ashford-advised real estate platforms.
With over $3 billion of renovations and development projects completed in hospitality, multifamily, and student housing real estate, Premier has earned its position as an industry leader in construction, architecture, and design.
COMPANY ANNOUNCEMENTS
The Michelin Guide Awards Bardessono Hotel and Spa
Bardessono Hotel & Spa was awarded Two Keys in The MICHELIN Guide’s inaugural release of Key Hotels in the United States
The luxurious wellness retreat, nestled in the vibrant center of Napa Valley, also unveiled a $1.8 million guest room renovation endeavor led by Premier Project Management, an affiliated entity that provides in-house development expertise to Ashford-advised real estate platforms.
Ashford Securities is pleased to announce the promotion of Todd Brewer as Senior Vice President, National Sales Manager.
Todd Brewer Senior Vice President, National Sales Manager
Ruben Renteria Accounting Manager
Ashford Securities is also pleased to announce the promotion of Ruben Renteria to Accounting Manager, after recently passing the CPA exam.
Q2 2024 HIRE
Neel B. Patel, CAIA Senior Director, National Accounts
Key West, FL LA CONCHA HOTEL – Ashford Hospitality Trust
Napa, CA
BARDESSONO HOTEL AND SPA – Braemar Hotels & Resorts
Q2 2024 TRAVEL AND LODGING UPDATE
With hotel occupancy levels having not fully recovered yet to pre-Covid levels, industry experts expect rising demand to fuel hotel price hikes, aiding further RevPAR growth for the remainder of the year. Supply growth continues to be more constrained than demand growth and we expect this to further aid hotel pricing power. 4
Travelers Through U.S. Airports
The Transportation Security Administration has broken a new record after screening the most people ever in a single day. On Sunday, July 7, the agency processed 3,013,413 travelers at U.S. airports – which works out to be nearly 35 passengers every second! The summer travel frenzy is underway with eight of the ten busiest air travel days in the history of the TSA happening between May 23 and July 7 of this year.1 Some of the reasons why this year’s travel levels are so unprecedented include cheaper airfares that are looking more palatable than they did last year, an insatiable American appetite for summer travel, and younger adults fueling the summer’s demand for travel by taking more vacations. Whether they’re hopping on cruises or sightseeing in Europe, many Americans are hungry for international travel this year with a stronger dollar driving them to some of the world’s top tourist destinations, including Japan.2
TOP 5
Busiest Travel Days in TSA History 1
1. 07/07/2024 3,013,413
2. 05/24/2024 2,951,859
Hotel supply has been held back by high interest rates in a tough financing environment and by high construction costs. Hotel rooms under construction in the U.S. have fallen more than 30% since peaking in April 2020.4
THE CONTRIBUTION OF GLOBAL TRAVEL AND TOURISM TO THE GLOBAL GDP IS EXPECTED TO REACH $16 TRILLION BY 2034 AND IS FORECASTED TO GROW MORE THAN TWICE AS FAST AS THE GLOBAL GDP.* Date Total Passenger Volume
3. 06/14/2024 2,929,324
4. 06/09/2024 2,915,830
5. 11/26/2023 2,908,785
In the first four months of 2019, the top U.S. gateway markets welcomed more than 8.3 million international visitors. Five years later, these same markets have now achieved 89% of their 2019 levels. The loosening of travel restrictions globally, along with China lifting its group travel ban in August 2023, has greatly contributed to the increase in international travel to the U.S., notably in its top gateway markets. As a result, international travel is projected to continue its upward trajectory, reaching 2019 levels and fully recovering by the end of the following year. Look for the recovery of international travelers in the top U.S. gateway markets to be a positive signal for hotel investors to capitalize on the international recognition, diversity in demand, and robust tourism of these markets over the long term.3
1. TSA.gov,
The spread between acquisition and development costs of U.S. urban full-service hotels may present investors with a discount on replacement costs and an opportunity to invest in these urban markets.5 With roughly $52 billion in hotel debt maturities in 2024, we expect to see motivated sellers and a compelling acquisition landscape this year.6 The convergence of loan maturities and renovation needs, combined with limited supply growth, has the hotel industry potentially poised for growth.
The forecasts provided were not produced by Ashford Securities or any of its affiliates. There can be no assurance that similar performance will be experienced or that the forecasts will be accurate.
3. Source: JLL Research, ITA; Notes: Data as of month-end April 2024. Top gateway markets include New York, Washington, D.C., Chicago, San Francisco, Los Angeles, and Boston.
4. Skift Research, “Will Hotel Pricing Strength Continue into 2024?”, January 2024. Source: U.S. Bureau of Labor Statistics, STR, Skift Research and analysis.
5. Source: JLL Research, RLB Construction Cost Report, January 2024.
6. Source: NCREIF, MSCI/RCA, Cushman & Wakefield, MidYear 2023.
Wall Street Journal, “Summer Travel Is Booming. Why Are Airlines Doing So Badly?”, June 24, 2024.
*World Travel & Tourism Council. “Total contribution of travel and tourism to gross domestic product (GDP) worldwide”, April 10, 2024.
