New York City Continues Its Hotel Recovery

The DJIA fell another 313 points, Nasdaq was down 110, the S&P 500 was down 44 points and if you thought mortgages were high before, the 10-year treasury yieldwas up another .08 to 3.57%. Lodging stocks were lower. PLYA was the one difference with investors buying into the share repurchase announcement, up 6%. Have they seen the list of insider selling the past few months? AINC was down -8% and SOND fell -6%.

Playa Hotels & Resorts announced its board of directors reauthorized the repurchase of up to $100 million of the company’s outstanding shares.

According to Hodges Ward Elliott's Q2 report, the New York City hospitality sector continues its recovery as travel surges and hotels reopen. Major highlights from the report include the following: According to Expedia’s Q1 2022 Travel Recovery Trend Report, New York is one of the top 10 cities in terms of total bookings across all regions, NORAM, LATAM, EMEA, and APAC, indicating strong domestic and international travel demand. Business and leisure travel in New York City have historically displayed a 20/80 split. Since the split dropped to 12% in 2021, NYC & Company projects this segment to reach 16% in 2022. Since Broadway reopened, theatergoers have returned in droves with an average theatre capacity of 81.8%. The Transient Luxury segment in Manhattan has proven to be incredibly resilient through Q2, exceeding 2019 rates by 31.9%. The lodging market in Manhattan and Brooklyn totaled 535 hotels (111,543 keys) pre-COVID and as of June 2022, the two boroughs boast 541 open hotels (105,230 keys, 94% of pre-COVID inventory).

Voyager Space announced Hilton would be the official hotel partner of Starlab, Voyager’s planned free-flying commercial space station. Hilton will bring the company’s hospitality expertise and experience to support the design and development of crew suites aboard Starlab, helping to re-imagine the human experience in space and make extended stays more comfortable. Voyager and Hilton will partner in the areas of architecture and design to develop Space Hospitality crew headquarters aboard Starlab, including communal areas, hospitality suites, and sleeping arrangements for the astronauts.

Marriott International announced the opening of its global headquarters in downtown Bethesda, MD. The 21-story, LEEDv4 Gold-certified building is the new workplace for corporate associates, supporting over 8,100 hotels in 139 countries and territories around the world. Marriott’s new HQ campus includes the new Marriott Bethesda Downtown at Marriott HQ hotel next door. The new building will also serve as a global hub for Marriott’s research and development operations, featuring its Innovation and Design Lab, a premium test kitchen and beverage bar, as well as “model” hotel rooms in the adjacent Marriott hotel, where new concepts, design elements, service approaches, and amenities will be tested for potential use across the company’s portfolio of 30 brands. Building amenities include a health and fitness center; a Wellness Suite which includes a lactation station, meditation rooms, massage chairs and treadmill desks; wellness, medical resources and health advisors; and a childcare center for up to 91 children, with outdoor covered space for all-weather play. The Marriott Bethesda Downtown at Marriott HQ will serve as an extension of Marriott’s Design Lab, containing 13 sample test rooms, each customizable to reflect different brands. Marriott’s new headquarters includes several unique elements such as an outdoor garden space and a green, planted roof; associate cafeteria; 2,842 workstations, including offices, workstations and flexible spaces; 180 conference rooms; nearly 20,000 square feet of open, flexible, modular, and virtually collaborative workspace for individuals or group meetings; and five levels of parking under the building, including 66 EV charging stations. The building is owned by The Bernstein Companies and Boston Properties and was designed by Gensler.

Construction is underway on the AC Hotel by Marriott Naples in Southwest Florida. The hotel is the hospitality component of Naples Square, a mixed-use development by Wheelock Street Capital and The Ronto Group. Once fully complete, Naples Square will include nearly 300 luxury condominium units, multiple restaurants and a performing arts complex in addition to the new 150-room hotel. OTO Development is developing and will manage the 3-story AC Hotel Naples. Slated for completion in Fall 2023, the hotel will include a ground floor café and lobby, 2,500 square feet of divisible meeting space, a rooftop pool, and a destination rooftop restaurant and bar with indoor and outdoor seating. 

NewcrestImage announced an agreement to buy 16 Marriott-branded hotels in nine states through a joint venture with Hospitality Capital Partners. The portfolio includes 13 Courtyard by Marriott and three Residence Inn properties, with a total of 2,155 rooms. Terms of the deal were not disclosed and it is expected to close in Q4 2022.

IHG announced the signing of its first all-inclusive resort for Kimpton Hotels & Restaurants, Kimpton Hacienda Tres Rios Resort, Spa & Nature Park. Together with the resort’s owner, Sunset World, and operator, Playa Hotels & Resorts, Kimpton Hacienda Tres Rios Resort, Spa & Nature Park will bring the brand’s signature barefoot luxury to the Riviera Maya’s Playa del Carmen in Early 2024. The boutique brand’s first-of-its-kind resort property will boast 255 guest rooms, suites and villas, as well as 11 unique culinary concepts, five pools, private beach access, a spa, fitness center, 26,200 square feet of meetings and events space, and several family-friendly facilities. The resort joins Kimpton Aluna Hotel as the brand’s second property in Riviera Maya.

IHG Hotels & Resorts unveiled the latest evolution of its upscale Even Hotels brand through an updated design, refresh restaurant and integrated wellness experience. Developed in collaboration with franchisees, the new Even Hotels prototype will be more efficient to build and operate. The prototype features a new Even Kitchen & Bar restaurant and enhanced in-room fitness options delivered through three new room types, each featuring experiences that increase the potential for premium rates and give guests more workout choices.

Choice Hotels International, Inc. signed an agreement with ServiceStar Capital Management to develop 21 new Everhome Suites hotels. The transaction represents Choice’s largest investment in the brand, outlining a significant expansion across the U.S. with future Everhome Suites planned in Colorado, Arizona, Utah, Nevada and Florida over the next few years. Choice’s newest brand, Everhome Suites, is a new construction, midscale extended stay offering featuring modern and sophisticated public spaces with fitness centers, business centers, libraries, guest laundry facilities and 24/7 self-service marketplaces.

SH Hotels & Resorts announced the first Treehouse Hotel to open in the U.S. in Sunnyvale, CA in late 2023. The property repurposes several existing structures and elevates a new six-story building. The property will offer 254 rooms, including 21 suites; a causal café with indoor and outdoor seating; a garden and buzzy beer garden, a courtyard pool complete with cabanas; hot tub; pizza oven; and a fitness facility. Three meeting rooms inside the hotel complement an expansive event space crafted from a rustic barn, complete with an outdoor pre-function space flowing into a sweeping lawn. 

Avion Hospitality has been awarded the management contract for a new branded lifestyle hotel in the South Congress corridor of Austin, TX. The hotel will be part of a larger master plan that includes, retail and luxury condominiums for purchase. In addition to management of the hotel, Avion is advising on all aspects, including identifying the hotel branding and programming. The property is owned and developed by Withers & Co. and American Ventures.

Olympia Hotel Management announced it will operate the Historic Boone Tavern Hotel & Restaurant, in Berea, KY. Owned by Berea College, the Boone Tavern Hotel features 63 guestrooms and six suites, 8,552 square feet of meeting and event space across seven rooms, and a restaurant. Two miles from the hotel is the Pine Croft Cottage offering three bedrooms, two bathrooms, a kitchen, dining and living area.

Interval International and Mundo Imperial Entertainment & Hospitality announced the long-term affiliation of Club Imperial and three iconic properties in Acapulco to Interval’s global resort network. Club Imperial encompasses three premier travel, convention, and entertainment destinations: Palacio Mundo Imperial, Princess Mundo Imperial, and Pierre Mundo Imperial. The oceanfront properties offer top amenities including fitness centers, world-class spa, two 18-hole golf courses, numerous pools and tennis courts. In addition to upgrading its Acapulco properties, Mundo Imperial Entertainment & Hospitality has introduced several world-class amenities. These include Expo Mundo Imperial Entertainment, an exhibit and convention complex; XTESEA - a 5,900 foot-long above ocean zip-line; the new Scala Beach Club; Forum Mundo Imperial Theater & Concert Hall; and Arena GNP Seguros, a multi-use complex hosting major concerts and sporting events. 

CorpHousing Group Inc. acquired long-term rights for 217 units in downtown Manhattan through a 15-year Master Lease Agreement with one of the largest privately-head real estate investment companies in the world. The 217 units associated with this luxury hotel is the first step in the Company’s post IPO scaling strategy and increases units by 35% bringing CHG’s total units under long-term lease to 853. CorpHousing plans to start operating this property during Q4 2022. The new addition to the CHG portfolio is a premier luxury hotel that includes a fitness center, outdoor terrace, and rooftop. The Company will operate this hotel under its LuxUrban brand. 

Actabl has been selected by Highgate as the preferred provider of asset management solutions for its global portfolio of properties, which includes over 530 properties comprising over 87,500 owned and/or managed hotel rooms across the U.S., Europe, Latin America, and the Caribbean. Highgate elected to partner with Actabl, due to its unique range of modular integrated technologies, which includes Transcendent’s industry-leading enterprise asset management software that helps hotel managers optimize their maintenance, risk prevention and capital planning operations, while minimizing labor costs and increasing the longevity of property assets. Other Actable solutions already in use across the Highgate portfolio include the Hotel Effectiveness labor management platform, which is implemented in 328 Highgate hotels worldwide and the ProfitSword business intelligence solution which is currently in use by 172 Highgate properties. As part of the strategic partnership agreement, Actable will provide preferred pricing to Highgate properties, as well as discounted training and implementation services.

Wyndham Hotels & Resorts announced Stacey Nadolny joined the company as Senior Vice President, Franchise Sales & Development. Nadolny will be responsible for the overall development of Wyndham’s lifestyle and full-service brands, leading the team to success by building on existing relationships developed throughout her career, in addition to creating new connections with key clients. Prior to Wyndham Hotels & Resorts, Nadolny served as managing director and senior partner at HVS Consulting and Valuation.

HVS Executive Search announced the promotion of Alice Sherman to Senior Vice President. Prior to joining HVS in 2016, Sherman worked in the fine-dining restaurant and boutique hotel industries in roles such as recruitment, training, new openings, operations, public relations, and communications.