The DJIA rose 199 points while Nasdaq was down another 178, the S&P 500 fell another 23 points, and the 10-year treasury yield was down .08 to 3.94%. Lodging stocks had a good day, with Selina’s first day of trading leading the way, surging to a close of $40.90. Before the deal’s closing, BOA Acquisition was trading under $10 yesterday. SOND was up 6%, but MCG was down -6%. The biggest decliner today was TNL, down -7%.
Hersha Hospitality, Accor and Travel + Leisure reported results with TNL getting the worst reviews. HT’s results had some noise with asset sales and one-time items but seemed to be well received by the Street, particularly their solid margins. Accor reported higher-than-expected RevPAR, discussing how the strong dollar created solid European visitation. Asia continues to be the weak spot, but they feel that situation will correct itself with recovery in China and Southeast Asian countries next year. TNL missed expectations and lowered guidance, which is not a good combination in such a nervous market. Hurricane Ian was blamed for the lowered guidance. TNL did accelerate its buyback activity, repurchasing $115 million worth of stock, up from $83 million in 2Q.
Selina and BOA announced the closing of their business combination which was approved by BOA stockholders on October 21, 2022. Samba merger Sub, Inc. a subsidiary of Selina, merged with and into BOA, with BOA surviving the merger and, as a result of that merger, BOA became a direct, wholly-owned subsidiary of Selina. Selina’s ordinary shares and public warrants began trading on the Nasdaq under the ticker symbol “SLNA” and “SLNAW”, respectively. The combined company will continue to be led by Rafael Museri, Co-Founder and CEO of Selina, alongside the rest of the current Selina management team. Selina’s Board of Directors comprises seven directors, including Museri and Daniel Radasevski, Co-Founder and Chief Growth Officer of Selina. The Board’s five independent directors include Chairman Eric J. Foss as well as Catherine Dunleavy, Eileen Moore Johnson, Richard S. Stoddart and Adi Soffer Teeni. In addition to potential cash proceeds from BOA’s cash in trust, the business combination is expected to provide Selina with $54 million of capital via its private placement funding, and $118 million from subscriptions to the $147.5 million principal amount of 6% senior unsecured convertible notes due 2026, each to fund Selina’s operations and continue its plans to achieve profitability.
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Apple Hospitality REIT, Inc. announced the acquisition of the AC Hotel by Marriott Louisville Downtown for $51 million and the AC Hotel by Marriott Pittsburgh Downtown for $34 million. The 156-room AC Hotel Louisville Downtown is located in Louisville, KY, within the vibrant East Market district, also known as NuLu for New Louisville. The 134-room AC Hotel Pittsburgh Downtown is located in Pittsburgh, PA, adjacent to the David L. Lawrence Convention Center. Following these acquisitions, the Apple Hospitality portfolio includes 220 hotels geographically diversified throughout 37 states.
Retreat Hotels & Resorts, The Axia Hotel Group and Leon N. Weiner & Associates, Inc. announced the grand opening of the new Fairfield Inn & Suites in Middletown, DE. The 90-key hotel features an indoor pool, a large fitness center and a unique outdoor patio that includes seating for dining and a firepit. The hotel is the only Marriott hotel within a 15-mile radius.
Hilton announced the reopening of the 478-room Hilton New York Times Square, owned by affiliates and/or funds managed by affiliates of Newbond Holdings, The Witkoff Group, and Apollo Global Management, Inc., and managed by Hilton. Soaring 44 stories above Times Square, Hilton New York Times Square features three dining concepts and a fitness center.
Chartwell Hospitality has purchased land in Brentwood and Lebanon, TN, to bring new hotels to these suburbs of Nashville. Chartwell Hospitality will transform the land in Brentwood into a TownePlace Suites by Marriott and build a Home2 Suites by Hilton in Lebanon. Chartwell has partnered with Rockbridge on both hotel projects. Chartwell Hospitality will develop and manage both properties. The Brentwood TownePlace Suites will feature 120 rooms and be located in the East Park development of Maryland Farms. Chartwell plans to demolish the existing obsolete building #1 within East Park by the end of 2022 and redevelop the space into the TownePlace Suites. The firm plans to break ground on the hotel’s construction in the spring of 2023. Chartwell Hospitality will concurrently break ground in Lebanon, TN for the 120-room Home2 Suites in the spring of 2023.
Crawford Hoying has entered into a joint venture with Whitestone Capital, the capital investment division of Whitestone Companies. The venture grows Crawford Hoying’s hotel portfolio across four states, including Pennsylvania, Wisconsin, West Virginia, and New Mexico. The shared portfolio for this venture includes five hotels – a Tapesty Collection Hilton and a Hampton Inn in Taos, NM; a DoubleTree by Hilton in Neenah, WI; a DoubleTree by Hilton in Huntington, WV; and a Holiday Inn in Wilkes-Barre, PA.
Raffles will bypass the major metropolises and luxury hotel scenes of Los Angeles, NYC, Chicago and Miami to open its first North American location in Boston. The new mixed-use building, developed by Saunders Hotel Group and Noannet Group, will have 145 hotel keys and 112 residential units. The 35-story glass skyscraper is set to open next May. Raffles Boston is located on the 19th floor, accessed from the Sky Lobby, and will feature event spaces and six food and beverage venues.
Olympia Hotel Management has been selected to operate a new hotel on the campus of the University of Maine in Orono. The groundbreaking ceremony was held on October 1, 2022 and the hotel is expected to be completed in early 2024. Two historic University buildings, Coburn Hall and Holmes Hall, are being converted to create the new campus hotel. The two buildings and a newly constructed addition will comprise a boutique hotel with 95 guest rooms and a bistro café. The project is expected to be completed in 2024 and the cost is anticipated to be $28 million.
Penn State University is getting closer to selling two hotels in the State College area. Back in June, the Penn State Board of Trustees gave its approval for the school to enter into a purchasing agreement and ground lease for The Nittany Lion Inn and Penn Stater Hotel and Conference Center with the Scholar Hotel Group. According to a WARN notice it filed with the state, Penn State is expected to sell the two hotels on December 19 or within two weeks of that date.
Fairmont Mayakoba announced the completion of the property’s two newest restaurants: La Laguna and Bassano. Both concepts are part of Fairmont Mayabokoa’s multi-million dollar renovation, which is expected to be fully complete by the end of the year. The continued renovation will be inclusive of many additional restaurant offerings that hotel visitors can expect to enjoy with friends and family this coming winter. Nestled in the heart of the Riviera Maya, Mexico, the 401-room Fairmont Mayakoba offers over 46,000 square feet of indoor and outdoor meeting space, the Willow Stream Spa featuring 20 treatment rooms, and El Camaleon Golf Course.
More than three years after Cornerstone Community Development Corp. was announced as the new owner of the Prichard Hotel building, a project to provide affordable housing for a community in need has secured its funding. The Huntington City Council fast-tracked a resolution through committees and the council to accept the terms of a $2.5 million grant from the West Virginia Department for Economic Development. Located in Huntington, the 13-floor Prichard Hotel offered 300 rooms. Cornerstone purchased the hotel in 2019 and will renovate it into 108 senior citizen one-bedroom apartments on floors three through 13. Floors one and two will be for services serving senior citizen, such as the Geriatric Innovation Health Clinic. Winterwood Inc. has been selected as the project developer. Cornerstone will remain the nonprofit partner and owner of the building.
reAlpha announced their partnership with Rare Treehouse Resorts to jointly develop a first-of-its-kind treehouse resort in the United States. reAlpha is in the process of identifying land in California to bring this innovative project to fruition, which will feature up to 10 “Free Spirit Spheres.”
Steeplejack Brewing in Manzanita, OR is planning an addition that will include: a family-friendly pub, taphouse and bar with a rooftop deck, a pinball and games arcade, a hotel, bocce ball court, and ice cream shop. Construction will start early next year with its completion slated for late 2024.
Owners of Lani Kai Island Resort, in Fort Myers Beach, FL, intend to rebuild around the existing structure after the September 28 devastation of Hurricane Ian. Hurricane Ian’s storm surge of at least 15 feet washed away the beach-side bars and Val’s Corner Bar. It also flooded Casa Blanca Café and Sabal Palm Resort on the second floor, which is about 20 feet above the ground level, but the 100 guest rooms in the hotel, and the 25 guest rooms across the street at the Bay Inn at Lani Kai remain intact.
The owner of the Majestic Hotel and Apartments is preparing to start renovations to the historic Boardwalk property. According to the Maryland Department of Assessment and Taxation, resort business owner, Avraham Sibony, paid more than $7.3 million for the existing hotel. He also bought three surrounding lots for a total $10.5 million. On October 13, the Board of Zoning Appeals members approved a request from Sibony to construct an enclosed space 10 feet into the required 32-foot setback from the Boardwalk.
A busy commercial area along Jackson Road, just outside Ann Arbor, MI, is planned to get a new business park and extended-stay hotel. Developers are proposing the project, called the Honey Creek Business Park, for a 25-acre property. The plans submitted to Scio Township are in early stages, they show a four-story, 122-room hotel. Concord Development is planning the project with owner RSH Equities LLC.
JLL Capital Markets arranged over $100 million in construction financing for OAK, a transformative mixed-use development in Oklahoma City. Phase 1 of OAK will include 320 residential units, a 133-key locally branded hotel and 142,071 square feet of specialty retail. JLL represented the borrower, Veritas Development, to secure financing. OAK will be developed in multiple phases with this first phase sitting on 11.85 acres of the overall 20-acre development. Upon completion of all phases, the community will offer 260,000 square feet of Class A office, 320 luxury residential units, 133-key boutique hotel, 250,000 square feet of retail, 7,000 square feet of community green space, and miles of sidewalks.
Hunter Hotel Advisors announced the sale of the Home2 Suites by Hilton LaGrange, GA. PHD Hotels Inc. sold the property to MJC Hospitality. Hunter represented the seller through the transaction.
HREC Investment Advisors and HREC Capital Markets Group arranged the sale and financing of the 319-guestroom Hilton New Orleans Airport located in New Orleans, LA. NOLA Airport 319 LLC has acquired the property.
Davidson Hospitality Group announced the promotion of Bill Hanson to Vice President, Food & Beverage within Davidson Restaurant Group. Prior to joining Davidson Hospitality Group, Hanson launched the food and beverage division of MilkBoy as owner/operator.Lodging stocks had a good day, with Selina’s first day of trading leading the way, surging to a close of $40.90.
