Short-Term Rental Demand Is Up

The DJIA ended the day down 280 points while Nasdaq was down 67, the S&P 500fell 31 points and the 10 year treasury yield was up .02 to 3.13%. Lodging stocks were lower. MCG fell -8% today and hit a new all time low. SOND was up 5%.

STR said U.S. hotel RevPAR for the week ending August 27 was up 18.2%.  RevPAR versus the same week in 2019 was up 12.1%.

Speaking during a session at the Hotel Data Conference, AirDNA Director of Product Max Bernstein said as of June 2022, demand for short-term rentals is up 21% indexed to 2019, while hotel demand is down -3.4%. The rental demand is largely coming from small city/rural markets. STR found that rental demand increased the most in markets with under 5,000 hotel rooms. June 2022 year-to-date data indexed to 2019 also shows that for everyone one home rental sold across all location and market types in 2019, nine hotel rooms were sold, whereas in 2022 the ratio dropped to seven rooms.

BM5 Hospitality LLC is proposing the construction of a four-story, 91-room TownePlace Suites hotel in Turlock, CA. A total of 88 onsite parking spaces would also be built.

Construction is underway for a new TownePlace Suites by Marriott in the Estero/Ft Myers, FL area. The new 126-suite hotel is expected to be open by early 2024. The project is the first of several joint ventures planned between Weathervane Capital Partners and General Hotels Corporation. This new property offers studio and one-bedroom suites, outdoor Weber grills, and a market.

Pacifica Hotels unveiled the latest addition to its portfolio with the debut of Hotel Virginia Santa Barbara, Tapestry Collection by Hilton, following an extensive remodel and rebrand. The 61-room property offers a new onsite eatery.

Campisano Capital and TruVine Companies plan to build a six-story, 168-room Canopy by Hilton in downtown Louisville, KY. The hotel will feature a restaurant, pool and bar. The developers plan to start construction later this year and have the hotel complete in 2024.

Paralelo 19 announced the all-new Four Seasons Resort Tamarindo, Mexico is now accepting reservations ahead of its anticipated opening in late 2022. The Resort will offer 157 contemporary Mexican accommodations, four restaurants and bars, a golf course and more. The resort includes unique features such as an onsite working farm and a Discovery center. The Four Seasons Resort Tamarindo will also offer a Spa, a fitness center, three pools, three beaches and numerous coves. 

NewcrestImage finalized its purchase of the La Quinta Inn & Suites LAX with a closing today on the 281-room, 10-story property that is located less than one mile from Los Angeles International Airport. The hotel, which will be managed by Highgate Hotels, is part of NewcrestImage’s acquisition of four La Quinta properties that together have 696 rooms. Closing on the other three hotels took place earlier in August. The La Quinta LAX features meeting/banquet facilities, restaurant and bar, fitness center and an outdoor pool with sun deck. 

Two hotels in Bloomington, MN came under new ownership this month. The Best Western Plus and La Quinta Inn and Suites by Wyndham both sold in deals that were worth similar per-room prices. Ramkota Cos. sold the 200-room Best Western to Hempel Cos. for $13.2 million. Hempel partnered with Embassy Hospitality Management on the acquisition. Hempel plans to invest $1 million in property improvements and transition the restaurant to a leased concept. The La Quinta Inn and Suites by Wyndham sold to Hariom Hospitality Eight LLC for $14.25 million. The seller was Highgate.

Bird Dog Hospitality finalized its acquisition of the AmericInn Hotel in Park Rapids, MN. The two-story property offers 42 rooms along with a pool and hot tub. Bird Dog Hospitality will retain all team members and is already working on plans to make property improvements. 

Omni Hotels & Resorts announced the completion of the $22 million renovation of Omni Austin Hotel Downtown. The unveiling includes refreshed public spaces including the lobby and arrival experience, accommodations, event spaces and additions of new dining venues. The hotel features 10,000 square feet of meeting spaces across 19 venues. Additional specialty spaces include a 3,400 square foot Bridge Ballroom that can be divided into two spaces, and a dedicated podcast room. 

IHG Hotels & Resorts announced partnerships with two leading Historically Black Colleges and Universities - Clark Atlanta University and Morehouse College - both located in Atlanta, GA. Through these partnerships, IHG will contribute resources and expertise to support students’ professional development, with a goal to inspire careers in hospitality and create a robust pipeline of future employment opportunities within IHG. This summer, several students form both schools joined IHG for its internship program, which included engagements with senior leaders and working on a variety of in-depth projects across the business including Operations, Marketing and Revenue Management teams. IHG also has plans to offer scholarships in support of Clark Atlanta University and Morehouse College students who are interested in careers in hospitality. 

Cobblestone Hotels broke ground on a Cobblestone Hotel & Suites near Heritage Park in Cullman, AL. Site work for the 63-room hotel already has begun with the projected expected to finish late next year. The new indoor-access hotel will feature an onsite restaurant. 

Highway West Vacations announced the debut of Hotel Hygge, a charming 23-room property in the heart of the Santa Ynez Valley in Buellton, CA. Outdoor amenities include fire pits, bocce ball, and corn hold. Guests are invited to use the pool, hot tub, fitness center and other amenities at sister property Sideways Inn, just a short stroll away.

ICONA Resorts, current owner of the Beach Theatre in Cape May, NJ, want to build a $150 million hotel at the site. Plans call for 160 rooms along with high-end retail shops, restaurants, ballrooms, and extensive interior parking. To do all this, ICONA needs the city to declare the block an area in need of redevelopment, which would give the local government extensive leeway in approving projects. ICONA purchased the Beach Theatre property at a bankruptcy auction of $6.65 in 2019. ICONA estimates construction would take about 18 months once permits are in place.

We have been advised by Stockdale Capital Partners that the purchase price for The Source Hotel + Market Hall in Denver was $61.9 million. The news story saying Zeppelin Development sold it to Stockdale said the price was $70 million.

McNeill Investment Group named Travis Murray the new president of McNeill Hotel Company, a division of newly formed MIG. In this new position, Murray will be responsible for day-to-day supervision of McNeill Hotel Company, including brand and owner relationships, sales and marketing, revenue management and human resources, as well as focus on growing the Company’s third-party hotel property management portfolio. Murray joined McNeill Hotel Company in 2018, previously serving as a Regional Director and Vice President of Operations. 

Twenty Four Seven Hotels announced Dennis Eichen has been appointed vice-president of finance and accounting. In his new position, Eichen will oversee the company’s financial and accounting teams, financial systems and banking relationships/financing opportunities while provide asset management expertise and strategic direction with the executive team to ensure short- and long-term profitability. Eichen most recently acted as corporate controller for The Ruth Group.

Savills, on behalf of a private client, has completed the sale of the long leasehold of Mercure Perth Hotel in Perth, Scotland, to S Hotels and Resorts plc, owner of Jupiter Hotels, off a guide price of £2.25 million. The property has an unexpired long leasehold term of 46 years. The Mercure Perth Hotel comprises 76 en-suite bedrooms, restaurant, bar and conference facilities. It has parking for 60 cars and the total site area is 1.01 acres. 

Crimson Hotels has acquired The Trafalgar St. James Hotel in Central London, marking the second Hilton Curio Collection acquisition for Crimson Hotels. The hotel comprises of 131 rooms and several food and beverage outlets, including a rooftop bar. 

A developer plans to create “a Bali in beautiful Bahamas” through a mixed-use project, in Eleuthera, Harbour Island, forecast to generate up to 200 full-time jobs via a $50m investment in the resort component alone. Necessary planning and environmental approvals have been obtained to allow Bel Air Resort development to proceed with construction work, likely to start within five months. The first phase will involve a $15m investment on construction of the club house, associated amenities and 15 cottages. The first phase will likely take between six to eight months from start and the first building should be ready by summer 2023.  The project will feature 70 cottages complete with a restaurant, bar, pool, gym and spa. A further 20-30 cottages will be linked to a beach club house, while 44 residential lot/home packages will be offered to potential real estate buyers.