The Fed Sell Off continues in the financial markets as the DJIA fell another 486 points on Friday, Nasdaq was down 199, the S&P 500 fell 65 points and the 10-year treasury yield was down .01 to 3.70%. Lodging stocks were crushed again with the list of new lows getting longer. That list on Friday included WH, HT, PK, TNL, HGV, CHH, IHG, PEB, DRH, APLE and PLYA.
Amidst this terrible backdrop in the US, Skift Global Forum in New York and the Lodging Conference in Arizona were held this past week. The Arizona conference was your traditional sector conference, complete with cautious optimism being expressed by industry executives. Think about it this way: lodging stocks are hitting new lows, while RevPAR continues to impress. While there have been plenty of reports that business travel is hitting its stride, executives at this conference said the opposite, mainly that the rebound has been slower than expected and that is not positive as the US economy continues to be expected to falter.
In New York City, the Skift (parent company of this publication) conference generated a lot of headlines, the biggest one being Barry Diller of IAC once again trashing working from home. He did this at past Skift conferences. This time he made headlines by calling it ‘a Crock.’ Aside from that, we found out Marriott and other big companies are not expecting any mega deals in the near future but they all are looking to buy or build more brands.
Hotel Per La, a new lifestyle property in Los Angeles, CA, has opened. Housed in the former Giannini Building, the opening Hotel Per La Los Angeles follows a re-imagining by HN Capital Partners and Sage Hospitality Group. It features 241 rooms and suites, 10,000 square feet of event space, a ground floor restaurant & bar, a daytime café, and a rooftop bar. A member of Preferred Hotels & Resorts, Hotel Per La also features a variety of indoor and outdoor public spaces for hosting events from a lush courtyard on the second floor to various intimate and larger settings throughout the ground floor, mezzanine, and rooftop.
TMGOC Ventures, a partnership between The Montford Group and Opterra Capital, have closed on their thirteenth joint venture, The Hilton Garden Inn Miami Beach. Located in the heart of Miami Beach, FL, the property, which will be managed by Aimbridge Hospitality, marks TMGOC’s eighth acquisition in Florida. Set within the historic Royal Polo Hotel building, the Hilton Garden Inn Miami Beach hotel is home to 96 guest rooms, a fitness center, business center, on-site restaurant and beach access.
Cambria Hotels announced the opening of the Cambria Hotel New Haven University Area. The opening of the six-story, 130-room hotel is the brand’s first property in Connecticut. The property features upscale amenities including multi-purpose indoor and outdoor spaces, on-site dining, multi-function meeting and event spaces and a fitness center. The Cambria Hotel New Haven University Area was developed in collaboration with HighSide Development.
Dynamic Group opened the first of three new hotels in Hamilton County this fall. The group is spending $49 million and adding 309 hotel rooms at its newest Tennessee hotels in East Ridge, East Brainerd and Hixson. Next year, Dynamic is planning to open other new hotels in Cleveland, TN, and Tampa, FL, as it continues to expand across the Southeast. The new four-story TownePlace Suites, in East Ridge, TX, is nearly identical to a 90-room version of the same hotel that the Dynamic Group hopes to open before the end of the year in Hixson, TX. In the next month or two, the company also plans to open a 131-room Element by Westin hotel in East Brainerd, TX.
Great Wolf Resorts Inc. broke ground in July on an indoor water park resort in Naples, FL. Construction on its first Florida location is expected to take 18-24 months, with a grand opening in spring/summer 2024. Plans include 500 suites, a 100,000 square foot indoor water park, a 62,000 square foot family entertainment center, several dining options and a collection of family events and activities, on 20 acres. The investment for the Naples resort is estimated at $250 million.
VICI Properties Inc. announced the company has agreed to provide a mezzanine loan for up to $127 million to Great Wolf Resorts, Inc. related to the development of Great Wolf Lodge Gulf Coast Texas, a $200+ million family resort project in Webster, TX. The 532-room indoor water park resort is expected to start welcoming guests in mid-to-late 2024. The mezzanine loan has an initial term of 3 years with two 12-month extension options. The transaction represents VICI Properties’ third mezzanine loan investment with Great Wolf for a total capital commitment of $265.5 million as part of the Company’s arrangement to provide up to $300 of mezzanine financing to support the funding of the development of Great Wolf’s domestic and international water park resort pipeline.
Method Co. and The Buccini/Pollin Group announced the opening of The Quoin, an eclectic 24-room boutique property located in historic downtown Wilmington, DE. The Quoin boasts multiple food and beverage concepts including Wilmington’s first rooftop bar, a lobby coffee bar, an indoor/outdoor event space and a gym.
stayAPT Suites has added franchise partnerships in the following markets: Atlanta-Lithia Springs, GA; St. Louis-Bridgeton, MO; Phoenix-Peoria, AZ; and Riverside-Palmdale/Lancaster, CA. These new franchises, combined with the existing corporate and franchise pipeline of open, under construction, and pre-development projects, expands stayAPT Suites’ reach to over 75 locations across 22 U.S. states. stayAPT Suites is further accelerating momentum by adding a new 4-story prototype to its mix of flexible 2 and 3-story models. The 103-unit, 4-story prototype will be first introduced at corporate and franchise markets in North Carolina and California.
The Cleveland, OH Landmarks Commission approved revisions for plans for a high-rise apartment/hotel building overlooking the Flats from the west end of the Veterans Memorial Bridge. The 16-story building is to feature a luxury restaurant on the eleventh floor with a balcony. Earlier plans called for a 17-story, 200-foot building, instead of the current proposal for 16 stories rising 186 feet. The number of apartments has been reduced from 170 to 140 while the plans for 130 hotel rooms have not changed. Grammar Properties LLC and M. Panzica Development are the project developers.
The Mogharebi Group, on behalf of a local investor, has brokered the $8.6 million sale of a 44-key Days Inn by Wyndham hotel adjacent to Disneyland in Anaheim, CA.
JLL Capital Markets arranged an $11 million refinancing for the Anchor Inn and Greydon House in Nantucket, MA. JLL worked on behalf of the borrower, Faros Properties, to secure a fixed-rate loan through HarborOne Bank. The Anchor Inn is a 12-key bed-and-breakfast and Greydon House is a 20-key, luxury hotel. Combined, the two hotels offers 32 rooms and up-scale dining at Via Mare at Greydon House.
Newmark Lodging Capital Markets advised on the sale of the Balfour hotel in Miami Beach. Full G Capital purchased the hotel from Moto Capital Group and Leste Group.
Crystal Investment Property, LLC announced the successful sale of the Packwood Lodge in Packwood, WA. CIP represented the Seller in the sale in which the final sale price is confidential. Packwood Lodge is an independent, select-service hotel with 21 updated guest rooms and suites and 9 detached cabins and a leased restaurant.
Affiliates of Provenance Hotels closed an agreement with LNR Partners and funded the outstanding debt on the Dossier Hotel in Portland, OR. The amicable resolution brings the Dossier’s loan current, and all notices regarding foreclosure have been withdrawn and canceled. Provenance’s other properties remain in good financial standing.
A&R Group announced securing over $100 million for regional Alabama developments. During the second quarter of 2022, A&R sought to secure $150 million in capital, and as of the end of August 2022, A&R closed on over $50 million in invested equity capital and over $60 million in refinanced senior loans. A&R has 23 assets in its existing portfolio, 5-properties under construction and an additional 12 developments in its near-term pipeline.
AHC Hospitality announced the appointment of Adam Tanner to assistant vice president of food and beverage, where he will oversee the restaurant and catering programs of AHC Hospitality’s hotels, including the Amway Grand Plaza, Curio Collection by Hilton and the JW Marriott Gran Rapids in downtown Grand Rapids’ Hotel District. Most recently, Tanner led the food and beverage program of the Mandarin Oriental Taipei as its executive chef.