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North America

New Hotel Fees Are on the Way

Alan Woinski and Kim Woinski

September 11th, 2022


Skift Take

  • The DJIA ended Friday with a gain of 377 points while Nasdaq was up 250, the S&P 500 rose 61 points and the 10-year treasury yield was up .03 to 3.32%. Lodging stocks were modestly higher.
  • USA Today published a story, actually a prediction that new hotel fees may be popping up.
  • The St. Joe Company and InterMountain Management, LLC announced the commencement of construction on a new hotel in Panama City Beach, FL.

The DJIA ended Friday with a gain of 377 points while Nasdaq was up 250, the S&P 500 rose 61 points and the 10-year treasury yield was up .03 to 3.32%. Lodging stocks were modestly higher. SOND was up 10% while AINC and AHT both rose 5% on the day.

USA Today published a story, actually a prediction that new hotel fees may be popping up. They said the next big hotel fee will be for daily housekeeping charges. They interviewed a bunch of different people with opinion, none directly related to the hotel industry. A Virginia Tech hospitality and tourism professor discussed how he recently stayed at a hotel and was charged a $100 fee for housekeeping and it had not been disclosed before she made the reservation. As for the previous fee uproar, it was over resort fees. ResortFeeChecker.com reported that the number of hotels charging these fees is down 17% from 2018 but the article predicted they are about to make a comeback.

The St. Joe Company and InterMountain Management, LLC announced the commencement of construction on a new hotel in Panama City Beach, FL. The current plan calls for the 121-suite Residence Inn by Marriott, located in the popular Pier Park shopping and entertainment district, to be managed by InterMountain. Amenities will include a conference room, pool, fitness center, and outdoor patio with grills. Sitework has already begun on the Residence Inn by Marriott, with an anticipated completion date in 2024.

Opwest Partners has partnered with Iridius Capital to open the first soft branded lifestyle hotel, in Tucson, AZ, inside the iconic One South Church building in early 2023. The first nine floors of the building are currently being renovated into The Leo Kent, A Marriott Tribute Portfolio Hotel, while the upper floors of the tower have been upgraded and will continue to function as office space. In addition to 145 rooms, the property will feature a function hall, a casual dining restaurant, an elevated bar and lounge, and a fitness center.

Two Roads Development is planning to tear down an existing condo building in the Edgewater neighborhood of Miami, FL to build a 55-story condo hotel. The Marriott Edition Residences will contain 155 units, two pools, a fitness center, yoga and spinning rooms, a spa, a club lounge, a library, motive room, dog spa and kid’s play area. Two Roads plans to break ground on the Edition Residences, Miami Edgewater in summer 2023. Construction is expected to take three years. 

Hyatt announced the grand opening of the Hyatt Place in Downtown Gainesville, FL. Six years in the making and forged through an agreement between the Hemisfair Park Area Redevelopment Corporation and Zachry Hospitality, a hotel tower is part of the developer’s plans for mixed-use development within Civic Park in San Antonio, TX. Construction on the hotel is expected to start in December and open to guests in February 2025. The 17-story tower will have street-level retail space and 200 hotel rooms above. 

New Angle Development has plans for a 19-story, 340-room hotel near Allegiant Stadium in Las Vegas, NV. The non-gaming hotel would include a restaurant, spa, pool bar, rooftop bar, and ballroom and meeting space. New Angle hopes to break ground on the $275 million project in early 2024. 

RH announced the opening of RH Guesthouse New York, a first-of-its-kind hospitality experience. The property features six guest rooms, three guest suites, and RH Chairman & CEO Gary Friedman’s private residence occupying the entire top floor, which is sometimes available for booking. The Guesthouse also features a dramatic live-fire restaurant, The Champagne & Caviar Bar, a rooftop garden, pool & dining terrace. Located in the Historic Meatpacking District, RH Guesthouse is only steps from the RH New York gallery.

Club Med has parted ways with its popular all-inclusive location in Florida, the Sandpiper Bay in Port St. LucieAltitude International Holdings now owns the former Sandpiper Bay Resort and is continuing to operate the resort, honoring existing bookings and taking new ones. The 335-room resort will continue to operate and will undergo an extensive renovation to be completed over the next two years. The 200-plus acre property had a variety of fitness and sports activities including tennis and pickle ball courts, a circus trapeze, an 18-hole golf course and a golf academy and a large kids’ program, including circus school. According to a Club Med spokesperson, moving forward, the new ownership group will incorporate a hotel and sports academy that complements the property’s extensive athletic installations and infrastructure. 

Pacific Group Resorts Inc. made the highest bid and will take ownership of the Jay Peak Resort, in Jay, VT, following final approval from the U.S. District Court in Florida on September 16. If approved, Jay Peak will become the sixth resort in North America owned by the corporation. The winning bid was $76 million. Pacific Group Resorts expects the transaction to close prior to the start of the 2022-2023 ski and snowboard season. No major operating changes are expected at Jay Peak as part of the sale, and all existing season passes and multi-resort pass arrangements will be honored. A hearing on the resort’s sale is set for September 16th.

Tuscaloosa, AL is getting its first upscale boutique hotel, and it’s partially owned by University of Alabama football coach Nick Saban. Situated in the heart of downtown TuscaloosaThe Alamite offers 112-rooms, a fitness center, event spaces, and two dining options. The Alamite opens on September 15, just in time for football season. 

Marcus & Millichap will hold its sixth annual Hotel Investment Forum on Thursday, October 20th at the Hilton Miami Airport Blue Lagoon located in Miami, FL. The Kabani Hotel Group has successfully hosted the Hotel Investment Forum every October to record numbers. Topics include the economic outlook for 2023, challenges and opportunities in the hospitality market, hotel financing with rising interest rates, franchise relationships, and much more. 

Hilton Worldwide announced Kristin A. Campbell, General Counsel and Chief ESG Officer, plans to retire effective December 31.

CBRE said they were hired by the Porter family to explore strategic financing and partnership operations for the future expansion and growth opportunities for its Heli-Ski Lodge operation. Great Canadian Heli-Skiing is one of the leading boutique heli-skiing operators in Canada. Heather Mountain Lodge is part of the Porter family’s Heli-Skiing operations and is strategically situated along the Trans Canada Highway near the East Gate of Glacier National Park. 

Hyatt Hotels Corporation announced plans to expand Hyatt’s Inclusive Collection, a new global portfolio of distinct luxury all-inclusive resort brands, with five all-inclusive resorts in Bulgaria. Expected to open in 2023 and 2024, the all-inclusive resorts will be managed by Terra Tour Service EOOD and are expected to rebrand to the Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas and Alua Hotels & Resorts brands following significant renovations. Four of the properties are set to open under their new brands in summer 2023, with the fifth resort expected to open in 2024. The properties include: Secrets Resort & Spa, located in the Sunny Beach area, the 335-room resort will continue operating as an adults-only following a rebrand and renovation project. Dreams Resort & Spa, located adjacent to the Secrets Resort & Spa, the 597-room property will cater to the high-end family-friendly segment. AluaSun, located in Obzor, the 191-room hotel will offer an all-inclusive project equipped with superb outdoor facilities. Alua Resort, also located in Obzor, the resort will offer 318-room and an ideal environment for family, couples and groups. Breathless Resort & Spa, located in the center of Sunny Beach, the 395-room resort will reopen under an extensive renovation project expected to be completed in 2024. 

R&F Group has bought back 100% of a Vauxhall, London, development site that will include a hotel from Far East Consortium. The buyer sold the property in March to help balance its books but had a clause in that agreement that enabled it to buy back the site within six months. In March, R&F sold the property for 95.7 million pounds sterling, a discount of 68.8 million pounds sterling.

Alan Woinski and Kim Woinski

September 11th, 2022

Companies: Alua Hotels & Resorts, Breathless Resorts & Spas, CBRE Hotels, Club Med, Dreams Resorts & Spas, Edition Hotels, Hilton Hotels & Resorts, Hyatt Hotels Corporation, Hyatt Place, Marriott International, Pacific Group Resorts Inc., Residence Inn by Marriott, RH, Secrets Resorts & Spas, Tribute Portfolio

Locations: Alabama, Arizona, Bulgaria, Florida, London, Miami, New York City, Texas, Vermont

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