The DJIA rose 29 points while Nasdaq was down 13, the S&P 500 fell 5 points, and the 10-year treasury yield was down .08 to 2.73%. The equity indexes have really calmed down while treasuries get really volatile. Lodging stocks were higher. AINC was the big mover, up 11%.
SMBC Nikko cut its rating on Park Hotels & Resorts to Neutral from Outperform. Its price target is $16.
The CBRE Hotels Research State of the Union showcases current demand trends, as well as fundamentals by segment, location type and chain scale. Key takeaways from the report include: nominal consumer credit card balances are at an all-time high, and at a ratio of 2 to 1, the number of job openings to job seekers is the highest in 20 years. CBRE forecasts a steep decline in GDP growth. Inflation is expected to remain elevated through the end of the year, and unemployment is expected to increase. For now, ADR continues to outpace elevated inflation levels, however, CBRE expects ADR growth to moderate in the second half of the year and beyond. June RevPAR growth continued to exceed 2019 levels because of strong leisure travel and high ADR growth. All location types exceeded 2019 RevPAR levels except for urban hotels. International outbound expenditures continued to rise as inbound expenditures have dropped off because of a strong dollar. Inbound travel remains strongest in the East, with the West gaining steam. Short-term rental demand has normalized. Brand.com continued to gain market share during Q2 from 19% to 21% compared to 2019.
According to the Q2 2022 United States Construction Pipeline Trend Report from Lodging Econometrics, at the close of the second quarter, the top five markets with the largest hotel construction pipelines are Dallas with 173 projects/20,707 rooms; Atlanta with 140 projects/18,131 rooms; Los Angeles with 124 projects/20,365 rooms; New York with 113 projects/19,238 rooms; and Phoenix with 108 projects/14,964 rooms. The top five markets with the most projects currently under construction are New York City with 78 projects/13,063 rooms; Atlanta with 25 projects/3,905 rooms; Dallas with 25 projects/3,725 rooms; Phoenix with 23 projects/4,955 rooms; Los Angeles with 22 projects/3,606 rooms. At Q2 ‘22, Atlanta has the most projects scheduled to start in the next 12 months, with 62 projects/8,020 rooms. Following Atlanta are Dallas with 55 projects/6,465 rooms; Phoenix with 49 projects/5,948 rooms; Houston with 45 projects/4,619 rooms; and Los Angeles with 43 projects/6,715 rooms. Dallas has the most projects in early planning with 93 projects/10,517 rooms. Behind Dallas are Los Angeles with 59 projects/10,044 rooms; Atlanta with 53 projects/6,205 rooms; Orlando with 44 projects/7,640 rooms; and Washington, D.C. with 40 projects/5,659 rooms. Dallas recorded the highest count of new projects announced into the pipeline with 16 projects/1,654 rooms. Atlanta followed with 11 projects/1,206 rooms, then the Inland Empire, CA market with 11 projects/1,113 rooms; Houston with 9 projects/929 rooms; and Charlotte with 9 projects/916 rooms. LE recorded a combined renovation and conversion pipeline total of 1,889 projects with 237,420 rooms for the U.S. The markets with the largest combined number of renovations and conversions are Houston with 42 projects/4,666 rooms, Atlanta with 39 projects/5,246 rooms; Chicago with 34 projects/4,908 rooms, Dallas with 30 projects/3,785 rooms, and San Diego with 28 projects/4,753 rooms. Twenty-six percent of the new hotels forecast to open between now and 2022 year-end are concentrated within seven markets. These markets are New York, Austin, Atlanta, Los Angeles, Nashville, Detroit, and Inland Empire. At Q1, the top 25 markets in the U.S. are forecast to open 46% of the rooms expected to open by year-end. Of the top 50 markets in the U.S., the New York City markets is forecast to open 58 projects/8,329 rooms by year end, followed by Austin with 25 projects/3,291 rooms; Atlanta with 22 projects/2,598 rooms; Los Angeles with 18 projects/3,191 rooms; and Nashville with 17 projects/2,630 rooms. The top 50 markets saw 151 projects/18,966 rooms open in the first half of 2022. LE is forecasting these same 50 markets to open an additional 252 projects/33,948 rooms in the second half of the year. In 2023, 366 projects/46,176 rooms are forecast to open within the top 50 markets and in 2024, LE forecast 402 new hotel projects/47,065 rooms to open.
Hilton will retain its headquarters in Fairfax County, including significant upgrades to its facility in McLean, VA. Hilton will re-imagine its space to create an even more vibrant place to convene and collaborate, fully integrating technology into the office experience to meet the needs of today’s workforce. Hilton located its global headquarters in Fairfax County in 2009 and plans to create 350 net new headquarters jobs over the next five years. Hilton currently employs approximately 800 Team Members at its headquarters location in McLean.
Hilton’s Motto by Hilton brand is opening its first-ever Caribbean hotel in the Mexican hotspot of Tulum. The hotel will be set in the Human Lifestyle Center, a mixed-use destination in Tulum. The new Motto by Hilton Tulum is now accepting reservations for a planned opening date of November 30, 2022, and beyond. The hotel will have 116 rooms, on-site dining, a boutique and a pair of rooftop pools.
Marriott International confirmed that The Ritz-Carlton, Cancun, will cease operating under The Ritz-Carlton brand flag as of August 31, 2022. The owner company and Marriott International continue to discuss next steps.
The Planning Commission of Silverthorne, CO, approved the preliminary site plan to build a new 147 guest rooms Element Hotel by Westin on Meraly Way. Summit Hotel Properties estimates that construction will last 20 to 22 months.
Aimbridge Hospitality announced its growing Select Service operating division added three extended-stay properties recently acquired by Three Wall Capital, LLC. Located along well-traveled routes near Minneapolis and St. Louis, the properties bring 277 keys under Aimbridge management. Three Wall Capital plans to acquire and develop another 35 midscale and upscale extended-stay hotels over the next 18 to 24 months.
Crescent Hotels & Resorts announced the addition of Atlanta Evergreen Lakeside Resort and The Inn to its portfolio of over 100 hotels and resorts in the U.S. and Canada. These two sister properties in Atlanta, GA, will be managed by Crescent Hotels & Resorts lifestyle portfolio, Latitudes: Lifestyles by Crescent. Atlanta Evergreen Lakeside Resort features newly renovated spacious rooms, two pools – both indoor and outdoor and private rooms for corporate events. The Inn features 92 home-like guest rooms, an outdoor courtyard, swimming pool and a buffet style dining experience.
The Planning Commission of Oceanside, CA, approved a giant mixed-use resort development and artificial surf lagoon. Ocean Kamp Resort will replace a 92-acre vacant log with a mixed-use development with 700 homes consisting of apartments, condos, town homes, and senior housing; 134,400 square feet of commercial space with offices, retail and restaurants; several miles of trails and 20 acres of open space; and a wave lagoon for year-round surfing, swimming and paddle boarding. The project also proposes to build a hotel resort with 232 hotel rooms, eight villas, 16 casitas, and permanent Airstream trailers. Parking for the resort and commercial uses will include 1,050 spaces. Jon Corn is partner and project developer.
Best Western Hotels & Resorts announced the opening of the Best Western Plus Beckley Inn in Beckley, WV. The hotel is owned by Vishnu Patel of V.P. Management and features 88 guestrooms, nine of which are suites. The property recently completed a $1.2 million renovation to update all guestrooms and public spaces including the lobby and breakfast rooms. The hotel offers an outdoor pool, fitness center, business center and guest laundry facilities.
Best Western also announced the opening of the Best Western Sycamore Inn located in Sycamore, IL. The property features a heated indoor pool, fitness center and meeting space for up to 40 people.
In Rockford, IL, The SureStay Hotel by Best Western Rockford East has opened with 122 guestrooms, a fitness center, business center, and guest laundry facilities.
HREC Investment Advisors arranged the sale of the 63-guestroom Best Western Colorado River Inn and the Giggling Cactus Restaurant, located in Needles, CA. SPIRE Hospitality acquired property. HREC Investment Advisors exclusively represented the seller, Commres Financial, LLC on this transaction.
Ramsfield Hospitality Finance and funds managed by AB CarVAl have teamed up to provide a $60 million mortgage loan secured by the Moran Hotel in Houston, TX. The 244-room property is located within The CITYCENTRE mixed-use development and includes 22 oversized residential rental units plus the restaurants Yardhouse and the Daily Gather. Midway, which built The CITYCENTRE project, also owns The Moran.
Hilton celebrated the 2022 mid-year mark with continued growth momentum in the Caribbean and Latin America. During the first half of 2022, Hilton opened 11 hotels with more than 2,100 rooms across seven brands and six countries in CALA. The Company expects to open its two hundredth hotel in CALA by the end of 2022. During the same time, the company confirmed plans to open another 15 hotels in the second half of 2022, and signed 15 new development deals, bringing its pipeline to 105 projects with nearly 15,750 rooms. Highlights from the first six months of the year include: the April 2022 opening of the 735-room Hilton Tulum Riviera Maya All-Inclusive Resort, Hilton’s first all-inclusive offering in Tulum. Conrad Hotels & Resorts announced the brand’s first Mexican Caribbean property with the January 2022 opening of Conrad Tulum Riviera Maya. Tru by Hilton opened its first property in the Caribbean and Latin America, the Tru by Hilton Criciuma. The brand plans to continue its CALA expansion with seven projects in the pipeline, include the opening of Tru by Hilton Monterrey Fundidora planned for later this year. In Peru, Hilton opened its tenth property in the county, Hampton by Hilton Arequipa, following the opening of DoubleTree by Hilton Trujillo and Hilton Garden Inn Lima Miraflores. Curio Collection by Hilton welcomed Botanika Osa Peninsula, Curio Collection by Hilton in Costa Rica and Royal Palm Galapagos, Curio Collection by Hilton, marking the first international hotel brand in the Galapagos Islands. Rok Hotel Kingston, Tapestry Collection by Hilton opened, marking Hilton’s return to the capital of Jamaica and the Tapestry Collection by Hilton brand’s first hotel in the Caribbean. Looking ahead, the Company expects to open approximately 15 additional properties in CALA across 10 brands by the end of 2022, including debuts in Brazil and Mexico, among other destinations. Upcoming 2022 opening highlights include Motto by Hilton Tulum; Tru by Hilton Monterrey Fundidora; DoubleTree by Hilton Foz de Iguacu; and Waldorf Astoria Cancun.
As it approaches the completion of an extensive $350 million rebuild project, Frenchman’s Reef is welcoming group inquiries for The Westin Beach Resort & Spa at Frenchman’s Reef. Located in St. Thomas, U.S. Virgin Islands and managed by Aimbridge Hospitality, The Westin each Resort & Spa will boast 72,000 square feet of multipurpose event space. It will also include an expanded variety of outdoor spaces, including a 20,000 square foot pool deck, multiple large outdoor terraces, a private catamaran and 2 beaches that can be utilized for groups of all sizes. The resort features 392 rooms, including 28 suites; nine restaurants and lounges; three pools; a Heavenly Spa by Westin; health club; retail shopping outlets; and a private adventure beach.
Accor opened the first UK property and eighth worldwide under the Tribe brand. Tribe London Canary Wharf is a six-floor development featuring 320 rooms across three categories; an all day dining restaurant; a bar; and a Grab and Go counter. The brand is targeting 50 properties within the next few years, with planned destinations including Budapest, Belo Horizonte, Warsaw, Riga, Lyon, Bangkok, Singapore, Milan, Birmingham, Liverpool and Chester.
Selina announced the opening of eight new properties during the second quarter of 2022. It also signed eight new properties, a 17% increase from Q1 2021, in Australia, USA, Greece, Mexico, Portugal, Panama and Israel, during the same period. With these openings and signings, Selina expands its portfolio to 163 open or secured properties across 25 countries and six continents. The eight newly-opened properties include: Selina Paros, Greece; Selina Brisbane, Australia; Selina Evora, Portugal; Selina Boquete, Panama, Panama; Selina Washington, D.C.; Selina Agafay, Morocco; Selina Desert Garden, Israel; and Selina Metula, Israel.