Business Travel May Be Back, Mostly?

The DJIA rose 151 points, Nasdaq was up 81, the S&P 500 was up 17 points and the 10-year treasury yield was down .06 to 2.79%. Lodging stocks were mixed on the day. VCSA was the big gainer again, up another 9%, while HT was up 6%.

B.Riley maintained its Neutral rating on Ashford Hospitality but lowered its price target from $12 to $9.

The Heard on the Street Column from the Wall Street Journal today focused on business travel, a positive article on how it is back with the potential to be better than ever. Then they disclosed that opinion was from travel executives, following it up with the negative that the boom might not last. Hilton and Marriott had different opinions on the pickup, with HLT believing the deteriorating economy has more companies sending out their employees to hustle and get more business. Marriott said bleisure is driving the increase in business trips. There are plenty, including Truist Securities, that believe higher-end business travel may never return or may take several more years to reach pre-pandemic levels. We call this the great debate, the same one that has been going on since the world began to reopen in mid-2020.

A company called CorpHousing Group Inc., which is engaged in the short-term rental of hotel units to guests across major metropolitan cities in the US, priced an IPO of 3,375,000 shares. The public offering price on Friday was $4, raising them $13.5 million. Maxim Group was the lead book-running manager. Maxim and joint book-running manager Joseph Gunnar has 45 days to exercise their over-allotment option on 506,250 shares. Since starting trading, the low has been $2.88 and the high $3.5441. They still have 43 days to go, but it certainly does not look promising. The symbol is CHG and today they closed down another -8% to $3.39.

Hyatt’s newest all-inclusive resort is opening on the Caribbean island of Cozumel, off the coast of Cancun, on September 16. The new Dreams Cozumel Cape Resort and Spa, an AMR Collection resort, will feature 154 Preferred Club Suites, five eateries and four bars. Adult guests at the Dreams will also have access to the adjacent Secrets Aura Cozumel resort and all guests, including adults and families will be able to access the nearby Sunscape Sabor Cozumel resort as well.

Miraval Resorts & Spas plans to bring its Miraval Life in Balance Spa concept to Southern California at Park Hyatt Aviara Resort, located in Carlsbad, CA. The joining of the Park Hyatt Aviara and Miraval Life in Balance Spa marks the culmination of a $60 million dollar resort-wide renovation. The Miraval Life in Balance Spa will include a full redesign to the resort’s existing 15,000-square-foot spa. The spa will feature 20 indoor and outdoor treatment rooms, a spa pool, fitness center, large studio for yoga and meditation classes and a retail space. The Miraval Life in Balance Spa at Park Hyatt Aviara is expected to open in Spring 2023. 

Executive, a pre-eminent lifestyle and hospitality brand, announced Executive on the Park West Vancouver, British Columbia. The project will comprise a collection of exclusive Executive branded Residences and an elegantly restored heritage masterpiece, the Woyatt Bowie building, all set within an expansive botanical garden park. Executive on the Park is expected to open to residents in 2025. 

Grotto Pizza, in Rehoboth Beach, DE, is getting into the hotel business. Under the name One Rehoboth, a new hotel is being proposed for the Rehoboth Beach Boardwalk. Grotto Pizza announced its ownership of oceanfront lots, between Rehoboth and Baltimore Avenues. The only difference is, the Baltimore Avenue side of the block is under the name of GP North Boardwalk LLC and has a mailing address for the Grotto Pizza corporate headquarters, while the Rehoboth Avenue portion of the block, under the name One Rehoboth LLC, has a mailing address of real estate developer Onix Group. Grotto is looking to construct a boutique hotel with underground parking but the footprint of the proposed hotel is unclear.

Bill Simpson has purchased The Inn at St. John, in Portland, ME, from Paul Hood for $6.5 million. The hotel has 39 rooms of different sizes and layouts, including traditional and luxury rooms with attached bathrooms and budget rooms with bathrooms in the hallways. Also, there is no elevator in the four-story building. Simpson doesn’t have any grand plans to change the inn immediately, although a few years down the road, he may enlarge it. Simpson also wants to make sure that every room has its own bathroom and he may also add an elevator to make it easier for guests to get to the top floors.

The $26 million Lockwood Hotel, in Waterville, ME, is now open. The 53-room property was built by Colby College and is managed by Charlestowne Hotels. The Lockwood offers a conference room and a restaurant that features a 14-seat, private dining room, and outdoor dining. 

JLL’s Hotels & Hospitality Group closed the sale of two select-service hotels totaling 171-keys in Lenox, MA. JLL marketed the property on behalf of the seller, Toole Companies, in the sale to Mission Hill Hospitality. The portfolio consists of the 92-key Courtyard Lenox Berkshires and the 79-key Hampton Inn and Suites Berkshires-Lenox.

HVS Brokerage & Advisory announced the sale of the 118-key Howard Johnson by Wyndham Beaumont, located in Beaumont, TX. The property was purchased by Pride Management from American Liberty Hospitality. 

DSH Hotel Advisors arranged the sale of the 68-room Microtel Inn & Suites by Wyndham Spring Hill/Weeki Wachee, FL for an undisclosed price. DSH Hotel Advisors represented the seller, S&R Hospitality LLC, and the buyer, Evolve Hospitality LLC. 

Europe Highlights

Rosewood Hotels & Resorts has been appointed by Arabella Hospitality to manage the 15th-century landmark, Hotel Schloss Fuschl in Austria, with a reopening scheduled in late 2023. Situated on the banks of Lake Fuschl, the new resort marks Rosewood’s second property in Austria, adding to the brand’s robust development pipeline of properties across Europe and the German-speaking market. The full renovation, beginning in 2022, will update the structure and grounds to feature 98 guestrooms, including 46 suites and six chalets. In addition, Rosewood Schloss Fuschl will be home to world-class restaurants and lounges and will feature Asaya, Rosewood’s well-being concept, with eight treatment rooms, indoor and outdoor pools, and a fitness center. This is the second partnership between Arabella Hospitality and Rosewood Hotels & Resorts, with the brands currently working together to debut Rosewood Munich.

Travelodge opened its first new-build budget luxe hotel in London Docklands. London Docklands Travelodge features 350 rooms, scenic views, and is also the most sustainable Travelodge hotel. The Company said London remains a key growth area is looking for 127 new hotel sites. This potential investment could represent an investment of nearly £3 billion for third party investors and create over 6,000 new jobs. The Group currently operates ten hotels in Hertfordshire and is looking for a further four locations in the area, including Kings Langley, Potters Bar, Chorleywood and Watford Hospitality.