The DJIA fell 292 points on Friday while Nasdaq was down 260, the S&P 500 fell 55 points and the 10-year Treasury yield was up .11 to 2.99%. Lodging stocks were lower. AHT and VCSA led the group down with declines of -12% and -11% respectively. MCG was down -6%. SOHO, SVC, INN, BHR, ABNB, SOND, PEB and DRH each fell -5% on the day.
The Baird/STR Hotel Stock Index was up 14.3% in July. Year to date the first seven months of 2022, the stock index is still down by -10.4%. The Hotel Brand sub-index was up 14.2% in July from June, while the Hotel REIT sub-index was up 14.6%.
According to Bloomberg, the Abu Dhabi Investment Authority is exploring options, including a possible sale of the Miami Beach Edition hotel. The article said the property could fetch more than $580 million. ADIA is working with an adviser to solicit interest from potential buyers. ADIA’s Miami Beach hotel has 294 rooms and suites, oceanfront bungalows and restaurants.
AC Hotels by Marriott announced the opening of the new AC Hotel by Marriott Monterrey Valle, its first hotel in the city of Monterrey, Nuevo Leon, and the brand’s sixth hotel in Mexico. The 166-room property features four meeting rooms, a 102 square meter event space, the AC Terrace, AC Restaurant, AC Lounge and AC Gym.
Hotel Fraye Nashville Midtown, Curio Collection by Hilton debuted in Nashville’s Midtown neighborhood. Developed by Eagle Realty in partnership with Greystar and Whitman Peterson with Concord Hospitality Enterprises. The hotel will be managed by Concord. The 200-room Hotel Fraye encompasses a ground-floor restaurant, a lively lobby, swank rooftop bar and lounge, cabana-clad pool, fitness center, outdoor terrace and nearly 6,000 square feet of event space across four rooms on the seventh floor, including a ballroom.
Earlier this year, AWH Partners purchased the Leta Hotel in Santa Barbara, CA, with Spire Hospitality as the new management company. The charming beach chic hotel is now a Tapestry Collection by Hilton hotel featuring 158 guestrooms and 6,000 square feet of meeting space.
Aimbridge Hospitality said that its specialized Evolution Lifestyle Division has been selected to manage the Hotel Melby, Tapestry Collection by Hilton located in Melbourne, FL. The hotel, which was recently acquired by new ownership, features 180 guestrooms spanning 11 floors, along with amenities such as a rooftop bar, coffee shop, indoor-outdoor restaurant and a meeting venue.
Corner Lot and Kelco Management and Development Inc. broke ground on the downtown Jacksonville Home2 Suites. The $17 million hotel project consists of 100 rooms and 2,000 square feet for a restaurant. There are two other Home2 Suites properties in Jacksonville, FL.
Starwood Real Estate Income Trust Inc, reported that last month, it closed on two investments totaling $1.4 billion of purchase price and $691 million of invested equity. The REIT purchased a 46% stake in the Extended Stay Portfolio, a REIT that owns and manages nearly 25,000 extended stay units across the southeastern and southwestern United States. The company said that the properties operate similar to shorter-lease multifamily assets due to average length of stay around 100 days. The investment was financed 55% loan to purchase price. Starwood REIT also purchased, in an off-market transaction, the Blue Multifamily Portfolio, a four-asset, 1,164-unit portfolio located in Orlando, Tampa and San Antonio. The portfolio was financed with a 55% loan to purchase price, 10-year fixed-rate agency loan. In other company news, the SEC recently declared Starwood REIT’s $18 billion follow-on offering effective.
According to YIMBY, construction is nearing the halfway point on 255 West 34 Street, a 33-story hotel tower in Midtown, Manhattan. Developed by The Chetrit Group, the 397-foot-tall structure will yield 330 hotel rooms. YIMBY estimates that the property will be completed around the end of 2023 or early 2024.
With a soft opening this summer, Penny Williamsburg is a new hospitality concept located in Williamsburg, Brooklyn, NY. Created by Sydell Group, the property will be the first of its kind; a hybrid of hotel and housing for graduate students in partnership with Bard College. The Penny Williamsburg features 118 guest rooms, private classrooms and events spaces and a private guest courtyard. Opening in early 2023 and located on floor 11, the rooftop serves as both the hotel’s lobby and a lively gathering space. The rooftop offers indoor and outdoor space, two private terraces and a rooftop bar & restaurant.
StonePark Capital has acquired the 31-room Waterman Hotel, in Santa Barbara, CA, for an undisclosed amount. With the acquisition, the hotel will complete the transition to join Moxy Hotels as part of the Marriott Bonvoy portfolio. The transition process is expected to be complete by summer 2023 after StonePark completes upgrades to the common areas and guest rooms. The hotel will remain open during this time.
In Buena Park, CA, Knott’s Berry Farm officially is renovating several part of the theme park, including enhancing Fiesta Village, renaming and re-theming Montezooma’s Revenge and renovating the 322-room Knott’s Berry Farm Hotel. The hotel will be completed overhauled with newly designed rooms, lobby, pool, the conference center rooms and creating a new outdoor banquet venue. The renovations of the Fiesta Village include a row of new Mexican-inspired eateries and restaurants, and an upgraded performance stage. Knott’s officials said the renovations to the hotel will begin later this year and be completed in 2023. The hotel will remain open during the remodel.
Best Western Hotels & Resorts announced the opening of the Best Western Gallup West located in Gallup, NM. Owned by Murad Mohsin, the hotel feature 60 updated accommodations, a fitness center, renovated sundry shop, heated indoor pool, spa, business center and free parking.
Blue Water is taking over the management of Rising River RV Resort & River House in Roseburg, OR, in partnership with Torres Capital. The property features 91 sites, laundry facility, recreation room, enclosed area for pets and a well-outfitted general store. In addition to RV Sites, Rising River also offers The River House, a three-bedroom home for up to eight guests and has four designated parking spaces.
Arlo Wynwood is scheduled to open in October in Miami, FL. Wynwood’s first hotel will open with a trendy lounge, a rooftop bar and pool with a yoga deck, a cocktail program and a new restaurant. The hotel is nine stories and will have 217 rooms.
Oxford Capital Group, LLC, announced the recapitalization of its construction debt and equity at its newest California-based hotel property, The Godfrey Hotel Hollywood, including senior debt from Alliance Bernstein and preferred equity from Related Fund Management. The Godfrey Hotel Hollywood, a 220-room luxury lifestyle hotel with the SoCal-centric restaurant and bar ALK; a courtyard event space with seven adjacent hospitality suites; and the 12,000 square foot I|O rooftop featuring a 70-foot mapping video wall; two bars; a pool; fire pits and water feature, will continue to be sponsored and managed by Oxford Capital Group, LLC and Oxford Hotels & Resorts, LLC, respectively. After opening in August 2021, The Godfrey Hotel Hollywood is Oxford’s tenth California property and eleventh in the Western region.
Personnel Moves
SH Hotels & Resorts named Ron Sheldon as Senior Vice President of Technical Services. In this role, Ron will lead all Technical Services efforts and related standards and act as liaison between the company’s brands and its development partners. Ron comes to SH Hotels & Resorts with over two decades of experience in the hospitality industry. He was part of Kimpton Hotels and Restaurant’s Senior Development, Design and Construction management team for nearly 20 years.
