Hotel Business Has Returned to Pre-Pandemic Levels

The DJIA was up 193, Nasdaq was up 70, the S&P 500 was up 26 points and the 10-year treasury yield was up .03 to 3.29%. Lodging stocks were mixed despite the big rally in the overall market. MCG and SOND were up 9%, VCSA rose 7% while AINC was down -8%.

STR reported US lodging RevPAR for the week ended 9/3 was up 24.6% versus 2019 while rising 13.2% on a year-over-year basis.

According to the D.C. Office of the Chief Financial Officer, the hotel industry in Washington, D.C., has largely returned to pre-pandemic business and most of that bounce back has come only in recent months. Hotel jobs have returned as well. Starting in April, the City said hotel occupancy began surging on both the return of business and vacation travelers. Hotel occupancy in D.C. now averages 70%, in line with pre-COVID levels, and hotel room rates have returned to 2019 levels. As of May, the accommodations sector in D.C. employed 10,500 people, 88.6% more than in May 2021. Food service now employs almost 46,000 in D.C., a 48.3% increase. Hotel sales tax revenue has improved from near zero in April 2020 to just shy of the 2018-2019 average.

The State of the American Traveler report showed show that in addition to service issues caused by staffing shortages, crowds/too many people traveling and the possibility of flight cancellations were among the top 10 travel deterrents Americans cited for why they didn’t travel more in the past few months. Some highlights of what American travelers are finding appealing about travel right now are: the most desired domestic destinations that leisure travelers want to visit in the next 12 months are Florida, New York, Las Vegas, California, and Hawaii. The top most desired international destinations that leisure travelers want to visit in the next 12 months are Italy, Mexico, Canada, France, and Spain. These same American leisure travelers are most excited to take family trips and romantic getaways in the next 12 months. Luxury travel is also on trend for leisure travelers, with 37% reporting that luxury travel experiences are typically important components of their leisure trips. They also prefer visiting new places and having active time vacations. Travel transportation preferences remained the same compared to last month, with almost half of travelers reporting they prefer road trips. 

Accor and SHe Travel Club announced a partnership aiming to re-imagine the female travel and hospitality experience. Key Accor brands including Sofitel, MGallery, Novotel and Mercure will be part of a 50-hotel pilot in Europe and in the Middle East to encourage the deployment and growth of the SHe label. Women represent 64% of global travelers, but according to SHe’s global survey of 5,000 women in five regions, 85% consider their needs are not fully met by the industry. The survey identified four key pillars: Safety, Comfort, Service and Dining & Entertainment. As such, the labeling process assesses hotels against these four categories and provides three levels, Silver, Gold and Platinum, catering for all hotel segments. More than 200 hotels around the world have already been certified by the SHe label. 

PTM and DoveHill Capital announced the October 12 groundbreaking ceremony for Edge Collective, the highly anticipated new project for St. Pete EDGE District, in St. Petersburg, FL, which will also have a Moxy Hotel as part of the development. 

The Turlock, California Planning Commission approved the building of a new Marriott TownePlace hotel will be exempt from the Westside Industrial Specific Plan’s height limit, allowing the project to move forward. The project, being developed by BM5 Hospitality LLC, includes a 4-story, 91-room hotel with a total of 88 onsite parking spaces. Additional improvements including paving, parking lot striping, lighting, fenced outdoor pool area and landscaping.

The Sheraton Memphis, located in downtown Memphis, TN, currently has 600 rooms and more than 16,000 square feet of meeting and exhibit space, across the street from the Renasant Convention Center. An application has been filed to reinvigorate the Sheraton Memphis to be the “living room” of the Convention Center and to complement the Convention Center’s $200M renovation. Renovations to the existing structure could include updates to the lobby and lobby bar, guest room and bathroom updates, updates to meeting spaces and converting the existing bar and restaurant into an upscale Sports Bar and Grill. Construction of a second hotel tower could take approximately 22 months. The applicant plans to enter into a parking agreement with the adjacent Renasant Convention Center for approximately 230 parking spaces for a period of 10 years.

NewcrestImage reached a definitive agreement to acquire 45 hotels from a private investment firm, adding approximately 3,300 rooms to NewcrestImage’s portfolio. The company will gain 35 Marriott International-branded properties, seven Hilton-branded and three Choice Hotels International-branded properties, including one Radisson. The hotels are located across 11 U.S. states. The terms of the transaction were not disclosed. 

The new Riverbend Hotel and Suites in Ashtabula, OH, is under construction, with a scheduled opening in late July 2023. The $11 million project is being developed by Riverbend Hotel LLC, a partnership consisting of local entrepreneurs Larry Laurello, Pete Huggins, and Todd Canter. The hotel will be managed by Emerald Hospitality and operated under a long-term franchise agreement with Wyndham Hotels & Resort’s Trademark brand. The 43-room hotel will offer a rooftop bar and event center and a lobby café.

Financial filings show three prominent hotels in Portland, OR, are facing foreclosure. Willamette Week reported the expected foreclosures at Dossier, The Duniway and the Hilton Portland Downtown, city property and court records. Financial filings confirm that the 205-room Dossier had a lender that was dual-tracking “foreclosure and appointment of receiver if deemed necessary.” Meanwhile, the Duniway and the Hilton are part of one portfolio and that loan moved to special servicing as of June 2020 because of monetary default, with the hotels used as collateral. The special servicer is dual-tracking a foreclosure, which is expected by the end of September 2022, while remaining open to modification discussions. The two bundled properties go up for sale on September 13, while Dossier goes up for auction November 29. 

Eastdil Secured, L.L.C. and A&G Real Estate Partners have been engaged as exclusive advisors to market The Williamsburg Hotel located in the heart of Brooklyn’s Williamsburg neighborhood. The 147-room luxury lifestyle hotel features a restaurant and bar, a rooftop bar and pool lounge, and a ballroom supported by an adjacent, well-appointed breakout space. 

HREC Investment Advisors arranged the sale of the 91-guestroom Home2 Suites by Hilton Salem Hanes Mall and the 95-room SpringHill Suites by Marriott Winston Salem Hanes Mall, both located in Winston Salem, NC. HREC Investment Advisors exclusively represented the seller, which was a partnership between Woodmont Lodging, Milestone Companies, and an affiliate of Blue Vista Capital Management, on this transaction. The buyer is an affiliate of ABC Investments and Management Co.

Mumford Company represented S&P, LLC, in the sale of the Red Roof Inn & Suites in Biloxi, MS, marking the third transaction involving members of the group. The purchaser was Maha Lakshmi Corporation.

Wyndham Hotels & Resorts announced its acquisition of the Vienna House brand for €44 million, adding an upscale and mid-scale portfolio of approximately 40 hotels and more than 6,000 rooms. Wyndham acquired the Vienna House brand from HR Group which will continue to own or lease and operate existing Vienna House hotels under long-term franchise agreements with Wyndham. Upon closing, the Vienna House brand will become part of Wyndham’s portfolio and will be known as Vienna House by Wyndham. The acquisition of the brand adds 28 hotels in Germany along and together with Wyndham’s current presence in Europe, the combined portfolio is more than 400 hotels in more than 30 countries.

Hilton announced the October 20^th opening of the Hilton Garden Inn hotel in theFaroe Islands. 

Hyatt Hotels announced the opening of the Thompson Madrid, the first Thompson Hotels branded property in Spain and the third Hyatt-branded hotel in the city. Housed in two historic buildings, the 175-room property features three signature dining venues, six individual event venues, an infinity pool and a fitness center. 

Hotelbeds announced a partnership that adds Sandals Resorts and Beaches Resorts, to its global portfolio. The adults-only Sandals Resorts and the family-friendly Beaches Resorts offer a combined 20 resorts in eight Caribbean Island destinations including Antigua, The Bahamas, Grenada, Barbados, Jamaica, St. Lucia and Turks & Caicos. The brand’s growing portfolio includes the newly opened Sandals Royal Curacao, its first resort in the Dutch Caribbean, along with highly anticipated concepts, including Sandals Dunn’s River in Ocho Rios, Jamaica, opening May 2023.