The DJIA fell 172 points while Nasdaq was down 164, the S&P 500 fell 31 points and the 10 year treasury yield was up .07 to 2.89%. Lodging stocks were lower. SOND plunged -26%, while MCG was down -16%, VCSA was down -8% and AHT was down -6%. SOHO was up another 5%.
Membership Collective Group shares took it on the chin today, announcing 2Q results on a day when investors were not in the mood for anything. They cut their revenue and adjusted EBITDA forecast and the -20% drop in the stock was swift and brutal this morning. They recovered somewhat but was still down -16% by the close.
Host Hotels’ price target was raised to $20 by Citigroup.
Baird issued a bullish report on Apple Hospitality REIT but removed the Bullish Fresh Pick designation as shares have increased 18% since their positive call in late June. APLE announced an increase in their monthly dividend today. Their regular monthly cash distribution was raised to $0.07 per common share from $0.05.
STR reported US lodging RevPAR for the week ended 8/13 was up 13.2%. Relative to the 2019 week, RevPAR was up 10.5%.
According to the recent Latin America Construction Pipeline Trend Report from Lodging Econometrics, the region’s total construction pipeline has 555 projects/90,496 rooms at Q2 2022. In the first half of 2022, 40 projects/8,481 rooms began construction in the region. New project announcements, in Q2 2022, are at 36 projects/6,208 rooms. In Latin America, there are 254 projects/46,670 rooms presently under construction, projects scheduled to start construction in the next 12 months are at 158 projects/23,371 rooms, and projects in the early planning stage are at 143 projects/20,455 rooms. Mexico leads Latin America’s construction pipeline at Q2 with 211 projects/34,509 rooms. Next is Brazil with 89 projects/14,471 rooms; Peru with 29 projects/3,669 rooms; the Dominican Republic with 24 projects/5,563 rooms; and Columbia with 19 projects/2,936 rooms. Cities in Latin America with the largest pipelines at Q2 include Mexico City, Mexico with 26 projects/3,371 rooms; Guadalajara, Mexico with 21 projects/2,595 rooms; Cancun, Mexico with 19 projects/8,379 rooms; Lima, Peru with 18 project/2,567 rooms; and Sao Paulo, Brazil with 11 projects/2,101 rooms. At the close of the second quarter, the top hotel franchise companies in Latin America’s construction pipeline are Marriott International with 105 projects/17,559 rooms; Hilton Worldwide with 100 projects/14,166 rooms; Accor with 80 projects/10,274 rooms; and InterContinental Hotels Group with 59 projects/6,8278 rooms. The largest brands in the pipeline for each of these companies at the end of the quarter are Accor’s ibis brands with 53 projects/6,678 rooms; Hilton’s Garden Inn with 25 projects/3,271 rooms; Holiday Inn Express by IHG with 13 projects/1,538 rooms; and Marriott International’s Marriott Hotel with 12 projects/3,011 rooms. In the first half of 2022, Latin America had 38 new hotels with 6,961 rooms open. The LE forecast for new hotel openings calls for another 72 new hotels to open in the second half of the year bringing the total to 110 by year-end. In 2023, LE analysts are forecasting 108 projects/19,637 rooms to open in the Latin America region. In 2024, LE’s forecast for new openings is expected to increase to 129 new hotels with 17,494 rooms.
Peachtree Hotel Group’s principals have formed Peachtree Group. The new company will manage and control its multi-billion-dollar investment portfolio and direct investment strategies across its distinct operating and real estate divisions, including hospitality, commercial ends, residential development and capital markets. Peachtree will be led by its managing principals, Friedman and Jatin Desai, serving as CEO. Peachtree’s operating companies will continue to be led by their current executives. Peachtree’s hospitality division includes Peachtree Hotel Group, which will continue to invest in hospitality-related real estate; Peachtree Hospitality Management, a management company that operates 80 hotels across 23 brands in 21 states; and Peachtree Hospitality Development, the hotel construction and renovation group.
Melia Hotels International, and its joint venture partner Falcon’s Beyond, announced a new leisure and entertainment-based resort brand, Falcon’s Resorts by Melia. The all-inclusive resorts will be featured within world-class entertainment destinations, to be branded Falcon’s Beyond Destinations, being jointly developed by the two companies in prime leisure markets across the globe. The first of these new resorts, Falcon’s Resort by Melia | All Suites Punta Cana, will be a multi-phase transformation of two existing MHI properties in the Dominican Republic, Paradisus Grand Cana and The Reserve at Paradisus Palma Real, comprising a total of 622 rooms. Phase one, expected to open in December 2022, will be an all-inclusive resort with multiple high-end bars and restaurants, pools, swim-up suites, a water park, and a kids’ camp. Through the re-brand, the Paradisus Grand Cana resort will receive enhancements to facilities, amenities, and experiences across the property, and will integrate a unique interactive platform that is expected to be announced soon. Phase two, completion of the re-brand of The Reserve at Paradisus Palma Real, is expected in 2023. Falcon’s Resort by Melia | All Suites Punta Cana will be one of three components of a new multi-faceted $350 entertainment destination, Falcon’s Beyond Destination | Punta Cana, the first Falcon’s Beyond Destination to debut. The overall destination will also feature Katmandu Park | Punta Cana, a new theme park expected to also open December 2022, and Falcon’s Central | Punta Cana, a signature retail, dining, and entertainment district currently in development. MHI and Falcon’s have announced multiple Falcon’s Beyond Destination locations across the globe in the upcoming years including sites in Tenerife, Canary Islands scheduled to open 2024, and Playa Del Carmen, Mexico scheduled to open 2025.
Airbnb is piloting new anti-party technology in the U.S. and Canada in its ongoing efforts to fend off users who are looking to book a house to throw large, unapproved gatherings. The new tech is aimed at identifying “potentially high-risk reservations.” Airbnb will be looking at factors such as user’s history of positive reviews and history with the service, length of the requested booking, distance from their home to the booking, and whether its booked for a weekend or weekday. The new tech is meant to flag and prevent suspect bookings from being sent to the host for approval, so homeowners can approve bookings without fear of property damage or noise complaints. Airbnb has been testing the tech in Australia since October 2021 and says its seen a 35% drop in unauthorized parties in areas where the pilot was in effect. The safety tool has rolled out nationwide in Australia and will now be tested in the U.S. and Canada.
Bloomberg reported Related Companies is looking to sell the Equinox Hotel, three years after opening. Related has reportedly hired an advisor to solicit interest for the 212 key property.
The Hilton Beachfront Resort in Santa Barbara, CA, is planning an 80-room expansion to the already existing 360-room hotel. The plan also includes an adult pool, spa, fire pit, lounge and bar. Drawings have been submitted to the City of Santa Barbara’s Historic Landmark Commission for a review.
MIG Real Estate LLC has purchased the DoubleTree by Hilton Hotel Breckenridge from Vail Resorts, Inc. The hotel, located in Breckenridge, CO, is positioned at the base of Breckenridge Resort’s Peak 9. MIG has retained Vail Resorts Hospitality to manage and operate the asset. The DoubleTree by Hilton Hotel Breckenridge offers 208 rooms with approximately 8,500 square feet of meeting space, an underground parking garage, fitness center, outdoor hot tubs, and recreation equipment storage, as well as Breck Sports rental and retail shop, Made Market, and 9600 Kitchen. MIG Intends to reposition the asset in the coming year geared towards year-round resort activities, with curated amenities, premium dining, and equipment rentals for a variety of mountain activities.
Hyatt Regency San Francisco, CA, announced a multimillion-dollar guestroom enhancement, expected to be completed by September 2022. The hotel will remain open during the renovation process. The renovation includes a complete transformation of the hotel’s guestrooms and suites and the hotel’s elevators and atrium corridors will also be updated.
A major expansion of the Omni Fort Worth Hotel, in Fort Worth, TX, is back on track with plans for a second smaller tower and an additional parking garage. The $217 million project will result in a 400-room expansion over an entire city block, currently the site of a Tarrant Community College administrative building. Omni is under contract with TCC to purchase the property and the city of Fort Worth would contribute $53 million in incentives to the project. When complete, including a refresh of the existing hotel, the Omni Fort Worth will have 1,008 rooms over two blocks. The Omni has committed to creating 50,000 square feet of meeting space in the new tower and 15,000 square feet for a restaurant. The hotel chain must spend a minimum of $202.4 million on the expansion with 15% of hard and soft costs to minority and women-owned contractors. Completion is required by the end of 2026. The Omni also committed to transforming a TCC parking lot, across from the new hotel tower, into a 200-space parking garage estimated at $6 million. The city will own the garage, but the hotel will lease it and be responsible for constructing, maintaining and operation the structure. After 10 years, the hotel will have the option to purchase.
Fontainebleau Development revealed the first details for the new luxury retail experience to debut within Fontainebleau Las Vegas. Slated to open in winter of 2023, Fontainebleau Development plans to create a shopping district that will span 90,000 square feet and feature approximately 35 luxury retail concepts across two levels. The resort shopping district is conveniently connected and highly visible from the larger resort and will be neighboring, either adjacent or above Fontainebleau’s casino, dining experiences, or other offerings. Additional details on the property’s retail partners will be announced in the coming months. Fontainebleau Las Vegas is a vertically integrated, luxury 67-story hotel, gaming entertainment and meeting destination scheduled to open fourth quarter of 2023. Located adjacent to the Las Vegas Convention Center expansion, the property will feature approximately 3,700 rooms, more than 550,000 square feet of convention space, a collection of restaurants, shops, pool experiences, nightlife options, and spa and wellness offerings.
New York-New York, located in Las Vegas, NV, launched a $63 million room remodel project of its 1,830 rooms and 155 of its suites. Completion of all guest rooms and suites is scheduled for summer 2023 with the first collection of standard and premier rooms available for stays in late October 2022. The room remodel is the next phase of a resort transformation that includes the recently launched Mad Apple; the refurbished and rebranded Big Apple Coaster; and the revamped Big Apple Arcade. More enhancements to the property will be announced in the coming months.
Nobu Hospitality, in partnership with RCD Hotels, announced the launch of a Nobu Hotel, Restaurant, and Residences in the beach destination of Tulum, Mexico. This is a significant milestone for Nobu Hospitality, marking the brand’s 30th hotel globally and the sixth hotel and fourth residential project between Nobu Hospitality and RCD Hotels. Located in Riviera Maya, Nobu Hotel Tulum will feature 200 guest rooms and suites including 12 villas, a beachfront Nobu restaurant, expansive meeting space with stunning outdoor venues, a fitness center and spa and 50 beachside residences.
The Woodward Hotel is gearing up to open just in time for fall and holiday getaways in downtown Macon, GA. The nine-room boutique hotel is now accepting reservations beginning September 3. The hotel is a partnership between Moonhanger Group and NewTown Macon. The property is home to Quill, a new craft cocktail bar offering a rooftop patio. Two of the hotel rooms open onto a balcony overlooking the patio.
Weekender Hotels acquired two new hotel properties in the Adirondack region of Upstate New York. Town House Lodge in Lake Placid, NY boasts a heated saltwater pool, a grilling area, and a classic Adirondack fire pit. There are 22 guest rooms, and following a renovation, will have the Weekender Hotels signature amenities and 3+ additional guest rooms and accommodations. Shaheen’s Adirondack Inn, located in Tupper Lake, NY features numerous activities including swimming, boating, fishing, paddling and snowmobiling in the winter.
Mag Mile Capital closed a $43.1 million loan in connection with the development of a four-story hotel with parking garage in the West End/Midtown region of Nashville, TN. The hotel will have 184 rooms, 70 parking spaces, 27,386 square feet of rentable space. The 3 year term with two 1-year extension options carries a 10.35% interest rate. The borrower is Elliston Hospitality LLC and the developer is JV Hospitality LLC. The project completion date is Spring 2024.
McNeill Investment Group named Tom Burdi as a Managing Director and its new Chief Operating Officer. Burdi will help develop and work with overall corporate and investment strategy, owner relations, and fundraising, among other responsibilities. Most recently, Burdi served as Head of Asset Management for L&B Realty Advisors.
Main Street Hospitality appointed Joe Crimmins, Vice President of Operations and Andres Gutierrez, Area Director of Revenue Management. As Vice President of Operations, Crimmins oversees the operations and sales teams for Main Street Hospitality’s portfolio of owned and operated hotels across the Northeast. Crimmins brings over 30 years of experience acquired in service to Hilton, InterContinental, Doral and Destination Hotels. As Area Director of Revenue Management, Gutierrez heads the execution and measurement of strategies and tactics designed to maximize revenue, market share and profitability for the assigned portfolio. Gutierrez previously worked with Omni Hotels & Resorts and The Biltmore Company.
Twenty Four Seven Hotels announced Gabriel Coy has joined the company as vice-president and general counsel. Coy will provide counsel, leadership and guidance on all legal issues arising with respect to hotel operations, hotel development, corporate governance and asset management. Prior to joining Twenty Four Seven, Coy was the principal attorney at Coy Law Firm.