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North America

Hotel Acquisitions Cool in Northern California

Alan Woinski and Kim Woinski

August 18th, 2022


Skift Take

  • The DJIA rose 19 points, Nasdaq was up 27, the S&P 500 was up 10, the 10-year Treasury yield was down .01 to 2.88% and lodging stocks were higher on a calm day in the market.
  • B.Riley Securities upped its price target on Ashford Inc to $23 from $19.
  • Pebblebrook Hotel Trust said total revenue in July topped pre-pandemic levels for the first time since the onset of the pandemic.

The DJIA rose 19 points, Nasdaq was up 27, the S&P 500 was up 10, the 10-year Treasury yield was down .01 to 2.88% and lodging stocks were higher on a calm day in the market. The two big gainers were anything but calm as the big SOHO machine was up another 9%. SOND was also up 9% on the day.

B.Riley Securities upped its price target on Ashford Inc to $23 from $19. It maintained its Neutral rating.

Pebblebrook Hotel Trust said total revenue in July topped pre-pandemic levels for the first time since the onset of the pandemic. RevPAR was above July 2019 levels as well, boosted by continued increases from business travel. PEB said occupancy across urban hotels reached 79% for the last two, non-holiday weeks in July and leisure travel demand continued to show strength.

Hotel buying activity cooled off in Northern California, including the Bay Area, during the first six months of 2022. During the first six months of 2022, the dollar volume for the purchase of Northern California hotels totaled slightly less than $1.03 billion, a plunge of 63.4% from the $2.8 billion in hotel deals during the first half of 2021, according to a report released by Atlas Hospitality Group. Southern California’s hotel market experienced a 1.3% rise in the dollar volume of lodging deals. Hotels in Southern California hauled in $2.42 billion in total purchased during the first six months of this year, compared with $2.39 billion in the first half of 2021. Atlas Hospitality predicts a large decline in sales moving into the second half of the year. Multiple factors are likely to depress hotel purchasing in California such as rising interest rates and an increasingly wobbly and uncertain economy in the Bay Area, California and nationwide. As far as conventions go, according to Atlas Hospitality, conventions have a lot of options, such as Las Vegas. They don’t have to be in San Francisco, where people see the city as having a big crime problem and issues with homelessness.

AC Hotels by Marriott announced the opening of AC Hotel Bethesda Downtown, located in the heart of downtown Bethesda, MD. OTO Development developed and will manage the new hotel, which is adjacent to and shares amenities with Avocet Tower. The 18-story property comprises 220 guest rooms and more than 11,000 square feet of shared space, complete with a signature restaurant. Additional amenities include 3,500 square feet of flexible, top-floor meeting space with an outdoor terrace and a fitness center.

An affiliate of Electra America Hospitality Group has purchased the Loews Boston Hotel in Back Bay for $117 million and plans a $20 million renovation and rebranding of the 225-room hotel. The hotel, to be renamed Hotel AKA Back Bay, will be the first Boston property for the extended-stay company. AKA and Electra America partnered last year on a $725 million hospitality fund and have since acquired six hotels in markets including Miami, New York, Washington, D.C., and West Palm Beach, FL. 

IHG Hotels & Resorts announced the opening of its first dual-brand avid hotels and Holiday Inn & Suites property in Mt. Juliet, TN. The hotel features 96 Holiday Inn & Suites rooms and 72 avid rooms, an indoor pool, onsite fitness center and restaurant. avid hotels/Holiday Inn & Suites Mt. Juliet-Nashville Area operates under the ownership of Mt. Juliet Hotels Partnership. 

Aimbridge Hospitality added the Eaglewood Resort & Spa in Illinois to its portfolio. The resort includes 295 rooms and suites, 37,000 square feet of event space, The Golf Club at Eaglewood, a spa, several food and beverage outlets, a market. Additional amenities include a fitness center, bocce ball court, bowling lanes and a golf simulator. 

Mission Hill Hospitality has acquired the Oread Hotel, a 102-key property adjacent to the University of Kansas in Lawrence, KS. It will be branded as Oread Hotel, Tapestry Collection by Hilton. Terms of the deal are undisclosed. Oread Hotel boasts 15,000 square feet of meeting space, a restaurant, bar, retail space, two large outdoor terraces and a fitness center. The 10-story property was original developed as a 99-key hotel with nine residential condominium units. Planned capital improvements will feature conversion of three condo units to hotel suites, substantial upgrades to guest bathrooms, new furnishings, and renovated event and public space. The Oread Hotel is Mission Hill Hospitality’s 24 acquisition since the company was launched in March 2021.

Proper Hospitality announced the addition of the iconic Culver Hotel to The Collective, a growing portfolio of independent, boutique hotels managed and operated by the hospitality group. Located in the heart of Downtown Culver City, CA, The Culver Hotel offers 46 rooms, a ranch of all-day dining options, a modern exercise rooms and over 5,500 square feet of meeting and indoor-outdoor event spaces. The Culver Hotel is owned by Maya Mallick.

Four years after it was filed with Los Angeles, CA’s Planning Department, a proposal to redevelop a corner lot in Koreatown with a hotel and commercial uses is finally moving forward. The project calls for the construction of a six-story building containing 95 hotel rooms above 4,716 square feet of ground-floor commercial space and 70 parking spaces in three basement levels. 

Vesta Hospitality purchased the 95-room Surfsand Resort, in Cannon BeachOR, for $58 million. The beachfront property was previously part of the Martin North hotel group, which includes the Stephanie Inn and Public Coast Brewing Co. Vesta is planning a $9 million a top-to-bottom renovation of the property with updated public areas, guest rooms, meeting spaces, restaurant, and a new suite of guest amenities. Construction is slated to take place in fall 2023 and winter 2024. No property closures are scheduled. 

The Nags Head Planning Board recommended that the town commissioners approve the site plan for Inn at Whalebone, a four-story, 90-unit hotel being proposed for Pheasant avenue in Nags Head, NC. There are 93 parking spaces proposed for the hotel.

OTO Development announced co-founder, former VP of real estate, Todd Turner, was named CEO. He takes the role following the death of former CEO and co-founder, Corry Oakes.

CBRE Alternative Assets Group announced the sale of Charlton Banff & Royal Canadian Lodge in Banff, AB. The seller was The Charltons FamilyInnVest Hotels & Resorts acquired the property.

CBRE Alternative Assets Group also announced the sale of Four Points by Sheraton Kingston in Kingston, ON, to Easton’s group of hotels.

In the Dominican Republic, the recently renovated Hard Rock Hotel & Casino Punta Cana is sporting a brand-new amenity, the Rockaway Bay Water Park. The new park has 26 world-class waterslides for all ages, a Food Truck area, a family pool, and a variety of bars.

Villa Le Blanc, operated by Gran Melia, has officially opened one of Melia Hotels International’s most environmentally responsible hotels. Located on Santo Tomas Beach, the hotel was converted from the Sol Beach House Hotel on the island of Menorca, Spain. Villa Le Blanc features 159 guestrooms, including 45 luxurious suites; multiple dining outlets, a new spa by Anne Semonin Paris including a pool, Jacuzzi, sauna and hammam. 

Beer brand Corona will open its own tropical island resort in South America next year. Corona Island, off the coast of Colombia, will be the world’s first single-use plastic-free island when it opens to the public in mid-2023.

Santo Domingo-The Temptation Miches Resort and Temptation Grand Miches Resort will open on October 1 with 496 rooms and an investment of $190 million. The hotel chain is derived from Temptation Cancun Resort, located in Mexico, and is managed by original Group and Dominican businessman Angel Garcia Berroa. The Temptation Miches Resort will have 382 suites and The Temptation Miches Grand Resort will have 114 suites. Both projects will have a pool, recreation area and Jacuzzi, in addition, the all-inclusive resorts will have ten restaurants.

Alan Woinski and Kim Woinski

August 18th, 2022

Companies: AC Hotels by Marriott, Aimbridge Hospitality, AKA, Ashford Hospitality Trust, AVE, Avid, CBRE Hotels, Electra America Hospitality Group, Four Points by Sheraton, Hard Rock Hotels & Casinos, Hilton Hotels & Resorts, IHG Hotels & Resorts, Korman Communities, Loews Hotels & Co, Marriott International, OTO Development, Pebblebrook Hotel Trust, Proper Hospitality, Tapestry Collection by Hilton, The Collective, Vesta Hospitality

Locations: Boston, California, Dominican Republic, Illinois, Kansas, Los Angeles, Maryland, North Carolina, Ontario, Tennessee

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