The DJIA rose 424 points on Friday while Nasdaq was up 267, the S&P 500 rose 73 points and the 10-year treasury yield was down .04 to 2.85%. Lodging stocks were higher. VCSA once again led the group, up 19%, while SOHO continued its recent rebound, up another 8% on Friday.
Truist lowered target prices on their vacation ownership names despite publishing a positive report on their beat and raise quarters along with the continued return of capital. They lowered BVH to $56 from $57, HGV to $63 from $64, TNL to $72 from $78 and VAC to $202 from $205. Considering all the positives, Truist is just reacting to what they call investor interest in the sector being lukewarm. They also do not believe it is unreasonable to expect 2023 growth rates to decelerate from this year’s extraordinary levels.
STR and Tourism Economics adjusted occupancy downward but lifted projections once again for ADR in the revised U.S. hotel forecast just presented at the fourteenth Annual Hotel Data Conference. RevPAR remains on track for full recovery this year on a nominal basis but not until 2025 when adjusted for inflation. The updated forecast adds a little more than $2 to the ADR projection for both 2022 and 2023. Occupancy was lowered by less than a percentage point for each year. STR and Tourism Economics now project an average 2022 U.S. daily room rate of $148, up from $145 in their previous forecast. They also project an occupancy rate of 63 percent, down from 63.4 percent in the prior forecast. The companies project 2022 RevPAR of $93, up from $92 in the prior projection. The new figure represents an 8 percent increase from 2019. The companies’ new projections for 2023 call for an occupancy level of 64.6 percent, compared with 65.1 percent in the June forecast. They project average daily rate of $152, compared with $150 in the prior forecast. The RevPAR forecast of $98, unchanged since June, represents a 14 percent increase from 2019 levels.
Mission Hill Hospitality has acquired the Courtyard by Marriott Lenox and Hampton Inn & Suites Berkshire-Lenox, located in the heart of the Berkshire region of Western Massachusetts. The 92-key Courtyard by Marriott Lenox features The Bistro, 1,394 square feet of meeting space, a business center, outdoor pool and whirlpool and a fitness center. The 79-key Hampton Inn & Suites Berkshires-Lenox offers 912 square feet of event space, an indoor pool, fitness center and a business center. These are the twenty-second and twenty-third hotels added to the Mission Hill Hospitality portfolio since the company was launched last year. Terms of the deal are undisclosed.
Two hotel properties in Winston-Salem, Home2 Suites Hotels by Marriott and SpringHill Suites by Marriott, have been purchased for the second time in four years. 1102 South Tryon LLC paid a combined $30.35 million for the North Carolina properties. The group paid $16.83 million for the 91-room Home2 Suites property and $13.35 for the 95-room SpringHill Suites, both located on Marriott Crossing Way. The hotels were purchased from BVWM.
Park Hotels & Resorts Inc. is exploring a sale of the 652-key Caribe Hilton in San Juan, Puerto Rico. The real estate investment trust is seeking more than $200 million for the property.
The Hyatt Regency La Jolla at Aventine has been sold for more than $216 million following a $10 million renovation last year. Purchasing the 416-room hotel, located in San Diego, CA, is IQHQ, a biotech developer. IQHQ previously purchased an adjoining office building on the Hyatt Regency site.
IHG Hotels & Resorts announced the opening of its new Holiday Inn Express & Suites in Marshalltown, IA. The 93-room property features 288 square feet of meeting space, on-site business center, indoor heated pool, and a fitness center. The Holiday Inn Express Marshalltown is owned by Marshallgaam Lodging LLC and managed by Hawkeye Hotels.
IHG Hotels & Resorts also announced the opening of the Staybridge Suites Wilmington Downtown hotel located in Delaware. The property features 134 suites 1,000 square feet of meeting space, a business center and fitness center. The Staybridge Suites Wilmington Downtown is owned and managed by Driftwood Hospitality.
Starting from September 2022, Kempinski Hotels, in partnership with Grupo Inmobiliario Mosa S.A., will take over a luxurious beach hotel in the Mexican tourist destination of Cancun on the Riviera Maya. With no closure of operations, this well-known property will undergo various improvements and adjustments to the Kempinski brand standards in the coming months and will be named Grand Hotel Cancun, managed by Kempinski during the transition period. From the end of year 2022, it will be fully operated under Kempinski Hotel Cancun. The hotel offers 315 guestrooms and 48 suites, eight dining options, an exclusive club lounge, two pools and an oceanfront whirlpool, a spa, fitness center with sauna and steam rooms, tennis center, private cabanas and lounges on the hotel’s 400-metre stretch of beach, a beauty salon and a kid’s club. Abundant indoor and outdoor meeting space can be found around the resort, from an 11,220 square foot ballroom which can be divided to meeting rooms, boardrooms, breakout spaces to outdoor venues by the pool or a beachfront venue for up to 700 guests.
The Irvine Co. has sold the shuttered 541-room Hotel Irvine to Hyatt for $135 million in a deal completing its exit from business hotels. Hyatt will own and manage the Hotel Irvine under the Hyatt Regency brand after an extensive renovation.
Hartsfield-Jackson International Airport’s long-delayed hotel project has been officially canceled by the developer, according to the airport’s top official. The 11-story, 440-room hotel was proposed by a joint venture of developer Majestic Realty Co., real estate firm Carter and GPM Investments LLC.
In Port Clinton, OH, a well-known Columbus-area restaurant owner and developer is making a major investment in the Island House Hotel. Jason Liu is now the majority owner of Island House’s 39 condominium units and purchased the site’s two restaurant spaces. Island House’s restaurant spaces will close this fall for renovations and reopen in 2023 under the J. Liu brand.
A Denver-area development group expects to know within 30 days whether it will seek to proceed with its proposal to transform the historic 273-room Antlers hotel in downtown Colorado Springs, CO, into apartments. Castle Rock and Blueprint Investment Group have formed BP Antlers OZ and submitted a proposal to city government planners that envisions turning The Antlers into 166 apartments. The repurposed hotel would include indoor and outdoor pools, an exercise facility, restaurants, a coffee shop and collaborative workspaces. At the end of their 30-day timetable, the company expects to discuss its concept for The Antlers with current owners Perry Sanders Jr. and John Goede, who have owned the property since 2015. BP Antlers OZ does not have The Antlers under contract for purchase. The hotel is downtown’s only full-service hotel and is part of the Wyndham family of hotels and resorts.
Preferred Hotels & Resorts is continuing its expansion in Mexico, reaching 65 hotels in its portfolio, with the integration of three new Mexican properties. The Grand Fiesta Americana Oaxaca is located in Oaxaca, Mexico, and features 144 rooms, a restaurant and lounge. In Cancun, Mexico, the all-inclusive, Garza Blanca Resort & Spa Cancun, a Tafer Resort, features 452 suites, six dining concepts with two more to be launched later this summer, four heated family pools, an adults-only rooftop pool and the Imagine Spa. The third is HS Hotsson Hotel Guadalajara Expo in Guadalajara, Mexico. Grupo Hotsson has developed a strong alliance with Preferred, which has 12 properties across the country that are now part of the portfolio.
Mandarin Oriental, in collaboration with StayOne, launched a one-of-a-kind experiences with Mandarin Oriental Exclusive Homes. Experiences include Island to Yacht: The Ultimate Balearic Escape, combining the renowned Mandarin Oriental Exclusive Home, Tagomago Private Island, with a 7-night luxury yacht charter and private jet transfer. Barefoot Luxe in Ibiza: A Private Island Encounter; and In the Cote d’Azur, Shades of Blue: The French Riviera combining a stay in the Mandarin Oriental Exclusive Home, La Maison vue de Saint Jean, with a bespoke 7-night yacht charter itinerary.