The DJIA plunged 630 points on Friday while Nasdaq was down 421, the S&P 500 fell 105 points and the 10 year treasury yield jumped .06 to 3.88%. Lodging stocks were lower. MCG fell 5% while PLYA traded down to another new low.
Jefferies lowered their price target on Hersha Hospitality to $12 from $13 and Sunstone Hotel Investors to $11 from $12. They maintained their Buy rating on HT and Hold rating on SHO.
Data recently released by the National Travel and Tourism Office showed in August, international visitors spent more than $13.7 billion on travel to, and tourism-related activities within, the U.S., an increase of nearly 103% compared to August 2021. Americans spent $13.4 billion traveling abroad, yielding a balance of trade surplus of $360 million for the month. Year to date, international visitors have spent more than $97.2 billion on U.S. travel and tourism-related goods and services, up more than 105% when compared to the same period last year. Purchases of travel and tourism-related goods and services by international visitors traveling in the United States totaled $7.2 billion in August 2022, compared to $2.0 billion in August 2021. Travel receipt accounted for 52% of total U.S. travel and tourism exports in August 2022. Fares received by U.S. carriers from international visitors totaled $2.3 billion in August 2022, compared to $1.1 billion in August 2021. Passenger fare receipts accounted for 17% of total U.S. travel and tourism exports in August 2022. Expenditures for educational and health-related tourism, along with all expenditures by border, seasonal, and other short-term workers in the United States totaled $4.2 billion in August 2022, compared to $3.6 billion in August 2021. Medical tourism, education, and short-term worker expenditures accounted for 31% of total U.S. travel and tourism exports in August 2022.
Somera Capital Management announced the acquisition of Quorum Hotels & Resorts. The new ownership group will be led by President, Todd Moreau, who previously led a California-based hotel management company as Chief Operating Officer. Quorum Hotels & Resorts currently operates properties in Texas, California, Arizona, South Carolina, George and Kentucky. Quorum will maintain corporate headquarters in both Dallas, TX and Newport Beach, CA. Since its inception, 30% of Somera’s acquisitions have been in hospitality which is the largest segment of the portfolio. Somera continues to invest capital and actively manages more than two dozen projects in a portfolio valued at more than $900 million.
According to an article in Barrons, the luxury hotel industry in New York is booming. Vijay Dandapani, president and CEO of the Hotel Association of New York City, states the market is doing astoundingly well with the demand to stay at a high-end property at an all-time high. This interest is being driven mostly by a leisure clientele and is unprecedented. Dandapani says the city’s swankiest hotels are seeing occupancy rates upwards of 80%, the most expensive they have ever seen. The fall season has been especially brisk for hotels around town with a slew of hotel openings and updates to existing properties. The most anticipated of them all is Aman New York. Located in the historic Crown Building the property offers 83 rooms, an expansive wraparound terrace, a Jazz Club, two restaurants and a spa with a swimming pool, ten treatment rooms and hot and cold plunge pools. The 250-room Ritz-Carlton Nomad marks the debut of a reinvented Ritz-Carlton, looking to win over affluent millennials. Nearby, The Ned Nomad, a private club and a hotel, is the second location for the Ned Brand. It has 167 rooms and an Italian restaurant. The Wall Street Hotel is another new entrant on the scene. Located in the Financial District, the hotel offers 180 rooms and a French restaurant. Debuts aside, Hotel Chelsea has reopened with am updated look, 155 rooms, a notable art collection and a Spanish restaurant. The St. Regis New York is offering a new class in sabering. The Carlyle has two significant updates. Its cabaret Club Café Carlyle recently reopened and the property offers a new restaurant.
John Murphy, the developer that transformed the landmark Chicago Motor Club building into a Hampton Inn, is looking to cash out. Murphy Development Group has hired Berkadia Hotels & Hospitality to sell the 143-room Hampton Inn Chicago Downtown. There is no asking price listed for the 16-story building, but according to Crain’s Chicago Business, a source familiar with the offering said bids are expected to come at more than $40 million.
First Hospitality assumed management and operations of Hampton Inn & Suites Kenosha, Homewood Suites by Hilton Milwaukee Downtown, and Candlewood Suites Kenosha. Totaling 277 keys, the three Wisconsin properties are owned by Bear Real Estate Group. The 94-room Homewood Suites by Hilton Milwaukee Downtown offers one meeting room, 589 square feet of event space, a fitness center and a pool. The Hampton Inn & Suites Kenosha features 93 guestrooms, two meeting rooms, 938 square feet of event space and an indoor saltwater pool. Finally, Candlewood Suites Kenosha features 90 rooms, a guest laundry and a fitness center.
InterMountain Management announced the opening of Fairfield Inn & Suites Lancaster/Palmdale in Lancaster, CA. The new four-story hotel features an event room, indoor pool and a fitness center.
IHG Hotels & Resorts recently broke ground on its new Hotel Indigo Barbados property, to be built on the site of the former Caribee Hotel in Christ Church. The seven-story hotel will feature more than 130 guestrooms and three food and beverage options. Hotel Indigo Barbados is projected to open in late 2024.
Cambria Hotels announced the opening of the Cambria Hotel Manchester South Windsor. The four-story, 108-room hotel is the second property in Connecticut this year, joining the Cambria Hotel New Haven University Area. The new hotel features multi-purpose indoor and outdoor spaces, indoor heated pool, outdoor patio with firepits, onsite dining, multi-function meeting and event spaces and a fitness center. The Cambria Hotel Manchester South Windsor was developed by Radius Hospitality Development.
Lodging Dynamics Hospitality Group has been appointed to manage the Park City Peaks Hotel located in the heart of Park City, UT. The Park City Peaks Hotel features 123 guestrooms, a restaurant, bar, and on-site ski and snowboard rentals.
The Easton, Pennsylvania Planning Commission granted a conditional land development approval for the proposed Grand Riverview Hotel. The proposal is for an eight-story, 108-room hotel by developer Terry Briggs of Chester Franklin Group LLC. In addition to the guest rooms, meeting and event spaces, a restaurant and bar, rooftop venue, terrace and gazebo are planned.
A resort destination, in Port St. Lucie, FL, launched as the new Sandpiper Bay Resort. New local ownership Altitude Hospitality selected OTH Hotels Resorts to oversee the conversion of the iconic property – formerly the Club Med Sandpiper Bay. Briefly closed to resort guests at the end of this summer as the property changed ownership, Sandpiper Bay Resort will reopen this month as part of the Trademark Collection by Wyndham, with plans for a full-scale renovation to the 307-room, 216-acre property. With $25 million slated to be invested in phase One, the waterfront hotel will see a complete refresh. All guestrooms will get a full makeover and impressive updates are planned to the on-site golf course and driving range, tennis and pickleball courts, volleyball courts, soccer fields, and countless sports offering supported by Altitude Academies. In addition, the marina and the additional amenities of the all-inclusive resort will be updated through the process with expected completion over the next two years. The resort will remain open during the renovation. Zel Capital Partners represented both the buyer and seller in the transaction.
A 600-room hotel will open in Fort Worth, TX early next year, serving a very special purpose. The hotel is owned by American Airlines and is located on the carrier’s headquarters campus. American is building the facility, known as Skyview 6, to house employees who visit its campus and are there for meetings or trainings, it is not open to the public. In addition to the 600 guest rooms, all floors of the Skyview 6 hotel feature a lounge area that the airline intends to be used for studying. Skyview 6 will feature a 10,000 square foot ballroom for large gatherings. The facility comes with new dining options and a fitness center with an exercise pool. Outdoor basketball, tennis, pickleball and volleyball courts are also being built. These new facilities will be open to all employees, not just those staying at the hotel.
Developer Youngwoo & Associates announced the opening of the Radio Tower & Hotel, a new 23-story mixed-use tower in the Washington Heights neighborhood of New York City. The property includes a 221-room hotel, ground-floor retail, office space, a restaurant with its own indoor-outdoor lounge, and an 8,000 square foot outdoor courtyard and a ground-floor garden.
The first permit has been issued for a long-awaited hotel development at 1528 N. Wells in Chicago, IL. Developed by Condor Partners, the project will see the construction of a 12-story hotel tower. Dubbed The Duke of Wells, the boutique hotel will include 203 rooms, a rooftop lounge, a spa, fitness center, restaurant and three levels of parking. A timeline for the project is currently unknown.
Mumford Company announced the sale of the Best Western Kilmarnock Hotel, in Kilmarnock, VA, on behalf of HIExpectations, LLC. The new owner is a well-established hotelier based in Virginia, with several hotels in the region. The property will continue under the Best Western flag after cosmetic updates.
Accor announced the opening of TRIBE Paris La Defense in May. The hotel offers 184 rooms and suites, a social hub and multiple food and beverage options.