The DJIA fell 211 points while Nasdaq was down 127, the S&P 500 fell 36 points and the 10 year treasury yield was up .05 to 3.87%. Lodging stocks were modestly lower. SLNA was the big mover, down -7%.
B.Riley lowered its price target for Braemar Hotels & Resorts to $9 from $12; on Ashford Inc. to $18 from $23 and on Ashford Hospitality Trust to $9 from $12. BHR and AHT were both down -5% while AINC was up 3%.
Red Roof held its 2022 Brand Conference, telling their franchise owners they are positioned for long-term growth though state-of-the-art technology, strategic partnerships, new prototypes, and its ESG program Purposed with Heart, ultimately enhancing the guest and owner experience. Company performance highlights include: Revenue for 2021 was 16% higher than 2019. Revenue for the Red Roof brand from January through September 2022 increased 10% year over year, and RevPAR is up 9% for the same period. Revenue from Website, Mobile App, and Central Reservation System is growing faster than other channels. Revenue from Website and Mobil App is 22% higher than 2021 while revenue from CRS is 19% higher. RediRewards enrollment increased 48.2% during summer months of June to September. Strategic partnerships announced include: Innovative partnership with HotelKey to optimize operations and enhance guest experience though an advanced enterprise hospitality platform. A new digital marketing partnership with Zeta Global, positioning Red Roof to drive growth and demand. A new partnership with ibex, utilizing innovative call center technology and resources that increase loyalty, and boost revenue with a robust expert talent pool. A new Red Roof RediResponse Program, implementing a brand-wide, in-house solution for reputation management. A new dual branded prototype was announced offering franchisees an additional Red Roof option, Red Roof and HomeTowne Studios, as the brand draws closer to 700 properties system wide across the U.S. and internationally. The new prototype combines the efficiencies of a shared lobby and common area with streamlined back-of-the-house operations, enabling a hotel to operate with maximum staff efficiency.
Tilman J. Fertitta has acquired the Montage Laguna Beach Resort from ChinaDajia Insurance Group, offering 30 acres of oceanfront luxury in the heart of Laguna Beach, CA. The expansive resort includes the Spa Montage, a wealth of outdoor recreation including two pools and direct beach access, and more than 20,000 square feet of indoor and outdoor meeting space. The 260-guestroom property is included in the Legend Collection of Preferred Hotels & Resorts Worldwide.
A landmark in Champaign County should be opening but is still working on its renovation. It’s the Landmark Hotel in downtown Urbana, Illinois, which is now called Hotel Royer, a brand of Hilton. The city planned to open in by December 31, 2022 but says the timeline will be extended to sometime next year. When completed, the $15-20 million project will have about 130 rooms.
The 218-room Florida Express Hotel on International Drive in Orlando is being eyed for a conversion to an apartment community with 223 studio units. An application was filed for the property’s conversion, and substantial renovation, and will go before the city of Orlando’s municipal planning board in December. The updated project, titled Oslo at I Drive, would feature two buildings for housing, one common area building, a pool area, mail lobby, gym and parking. The cost could be at leas $5.5 million, based on construction industry standards. The hotel is owned by JTT Eagles, LLC.
Downtown Cincinnati’s landmark 49-story hotel, Carew Tower, faces foreclosure just a few months after other portions of the city’s second-tallest building were sold. The Carew Tower has a mix of tenants, most notably the 561-room Hilton Cincinnati Netherland Plaza Hotel, offices on the first and second floors, retail and restaurants. Portions of the building for offices and retail were sold to an affiliate of Veles Partners LLC, Victrix Investments. The previous owner, Belvedere Corp., faced foreclosure for defaulting on a $9.7 million loan and hundreds of thousands of dollars in unpaid utility bills. New court records say the owner of the Hilton Cincinnati Netherland Plaza Hotel defaulted on a 2019 loan in 2021. Cincinnati Netherland LLC owes more than $76 million as well as another $10.6 million in taxes and fees to business partners and state and federal governments. The hotel remains open and is accepting reservations. The plaintiff, Wells Fargo Bank, National Association, as trustee, is requesting a receiver be appointed to collect all rents, profits and income and manage and operate the hotel.
The Jane Hotel Ballroom and Rooftop, one of New York City’s most legendary party spots, is officially closing on November 20. The Jane Hotel had been sold in February 2022 to hotelier Jeff Klein, who plans to turn the space into an East Cost outpost of his members-only San Vicente Bungalows club, the latest example of a growing number of private restaurants for rich people.
After 91 years of serving Southern Nevada, Railroad Pass Hotel and Casino will usher in a new era with the opening of the Holiday Inn Express & Suites. Owned by Joe DeSimone, the new four-story, 127-room hotel, built behind the existing hotel tower, is in partnership with IHG Hotels & Resorts. A gym/fitness center and soon-to-be completed pool will be accessible to guest of both hotels and once fully operational, the existing facility at the Railroad Pass will be turned into a dog park. DeSimone is in the process of obtaining permits to add the Bullet Train Tavern that will have 110 seats, a bar and slot machines. In addition to the new hotel rooms and suites, the existing hotel tower at Railroad Pass has 120 rooms.
Europe Highlights
Hilton revealed its anticipated new openings for 2023, many of which are located near the world’s most beautiful beaches, UNESCO World Heritage Sites and Wonders of the World. Hilton will open its first luxury hotel in Morocco in the exclusive area of Harhoura with the 120-room Conrad Rabat Arzana; Hilton Skanes Monastir Beach Resort will mark Hilton’s debut in Tunisia with 346 rooms and suites; in Egypt, Hilton Cairo Nile Maadi with 255 rooms and suites; the 102-room Kwetu Nairobi, Curio Collection by Hilton in Kenya; the 201-room The Bo Vue Hotel Bodrum, Curio Collection by Hilton and the 190-room DoubleTree by Hilton Sanliurfa, both in Turkey; the Hampton by Hilton London Old Street in the United Kingdom with 107-rooms; the 61-room Marty Hotel Bordeaux, Tapestry Collection by Hilton and the 125-room Sainte-Anne Hotel Dijon, Curio Collection by Hilton, both in France; the 244-room Hilton Heidelberg in Germany; the 219 guest room Hampton by Hilton Budapest City Centre in Hungary; the 59 guest room Legacy Hotel Cascais, Curio collection by Hilton in Portugal; the 330-suite Embassy Suites by Hilton Aruba Resort, the first property for Embassy Suites in Aruba; the 400-room Motto by Hilton Times Square in New York City; and Conrad Orlando will debut with 433 rooms in Florida.
Shiva Hotels sold Hilton London Heathrow Terminal 5 to Scala Capital Partners for an undisclosed price. The hotel has 350 bedrooms, five food and beverage outlets, 17 flexible meeting rooms spaces, an executive lounge, a business center, gym, full-service spa and 460 car parking spaces with electric vehicle charging points. Aimbridge Hospitality’s Aimbridge EMEA division has been selected to manage the property.
Baglioni Hotels & Resorts announced a strategic financial partnership with Palace Resorts. This structure initiative includes Palace Resorts becoming the majority shareholder of Cogeta Spa, a holding company of Baglioni Hotels & Resorts, acquiring 75% of the company. Guido Polito will remain CEO of the Italian group. The agreement brings mutual beneficial advantages allowing Baglioni Hotels & Resorts to further develop in the U.S. market which represents 70% of Palace Resorts’ business and also being able to reach their 75,000+ Palace Elite Vacation Club Members. Additional benefits for the Balioni Collection will be efficiency improvements, operational costs drop and, at the same time, new profitable openings in Italy and Europe through direct acquisition from the Real Estate Division of Palace Resorts. On the other side, Palace Resorts adds a luxury European brand to its current portfolio, gaining also an experience and professional management team to handle future hotels, resorts and real estate investments in Europe, Asia and the Middle East.
Roseate Hotels & Resorts has acquired The Dunstane Houses located in the heart of Edinburgh, Scotland. The property is set across two villas and offers 35 bespoke guest bedrooms and suites, a bar and restaurant, lounge, garden conservatory and private gardens. Roseate Hotels & Resorts is a brand of Bird Hospitality.
In March 2023, Mama Shelter will be launching its latest hotel in Rennes, France. The property will feature a rooftop and bar, the first in the city, a pool, hamman and sauna and Mama Skin Spa – a first for Mama Shelter.
Union Investment entered the resort market for the first time with the purchase of a Marriott Bonvoy Autograph Collection boutique hotel on Lake Tegernsee in Germany. The property is currently undergoing a renovation, which is expected to be completed in December. The hotel is slated to open in March 2023. The seller is a subsidiary of Planquadr.at, a partner company of Soravia. The transaction was brokered by Christie & Co and the purchase price was not disclosed. The hotel will offer 100 double rooms, 11 junior suites, 14 standard suites, a restaurant, rooftop bar, event facilities and a wellness area with a pool. Four Peaks Hospitality, a part of the Soravia Group, has already signed a 20-year lease for the property. The hotel will operate under the name Caro & Selig, Tegernsee, Autograph Collection.
