For a change, the markets went up when Fed Chief Powell spoke. They interpreted his commentary and body language as blinking, that the bulk of the interest rate hikes are over. The equity markets surged in the afternoon, ending the day with the DJIA up 737, Nasdaq up 484, the S&P 500 rose 122 and the 10 year treasury yield was down .05 to 3.70%. Lodging stocks were modestly higher. ABNB was the big winner, up 7% while MCG was up 6%. SLNA traded down -6% to another new low.
STR said US hotel RevPAR the week ended November 26 was down -0.1% year over year. When compared to the same week in 2019, RevPAR was up 20.1%.
Redburn Partners initiated coverage on some hotel names today. They gave a Buy rating to Hyatt, a Neutral rating to Hilton and Wyndham Hotels. Redburn gave Sell ratings to both Marriott and Choice Hotels in their initiation.
Cambria Hotels announced the opening of its six-story, 121-room location in downtown Minneapolis to complete the newly constructed dual-hotel building. Four years after developers bought the one-acre plot, the hotel building is finally housing both the Cambria hotels and Fairfield Inn & Suites. The Fairfield Inn, also six stories, opened in August. JR Hospitality and Hawkeye Hotels began construction on the 215-room, dual-branded hotel in 2020. Cambria Hotels, franchised by Choice Hotels International Inc., features amenities including multi-purpose spaces; onsite dining as well as to-go options; meeting and event spaces and a fitness center. The Fairfield Inn brand is operated by Marriott International Inc.
Dynamic City Capital announced the acquisition of The Charter Hotel Seattle, Curio Collection by Hilton, the only Curio Collection by Hilton hotel in the Seattle/Bellevue market. Located in Seattle, Washington, the sixteen-story, 229-room Charter Hotel boasts more than 10,000 square feet of meeting and event space and multiple food and beverage options.
A Home2 Suites by Hilton hotel will be built in place of the Red Roof Inn and Suites on Route 896 in Newark, Delaware. A subsidiary of SSN hotels owns and operates the Red Roof Inn and has had plans for a replacement hotel since late 2016. The Newark City Council unanimously approved the latest proposal. SSN Hotels plans to demolish the Red Roof Inn and construct a six-story, 126-room hotel at the back of the property. The new building will have parking on the first floor, and hotel room and amenities on the upper five floors. SSN Hotels has left open a space to the south of the property for future development.
In Cincinnati, Ohio, the Hilton Cincinnati Netherland Plaza Hotel a part of the Carew Tower complex, is now under the control of a court-appointed receiver. John Gaydos of CNOH Associates LLC, an operating affiliate of GF Hotels & Resorts, is the acting receiver of the hotel, which was hit with a foreclosure complaint earlier this month. Wells Fargo, in conjunction with Wilmington Bank Trust, filed a foreclosure complaint against Cincinnati Netherland Hotel LLC after the hotel’s owner allegedly defaulted on a multimillion-dollar loan. The owner now owes just shy of $77 million. The Carew Tower complex was owned and operated by Greg Power, who recently sold the office tower and retail portion of Carew Tower.
After a $25 million investment from London developer Shmuel Farhi, the former Radisson hotel in Windsor, Ontario, Canada, is now a DoubleTree by Hilton. The former hotel had 208 rooms but following and extensive renovation, the DoubleTree by Hilton now has 140 rooms and 41 suites.
Developers are planning a new hotel at Downtown Chattanooga, Tennessee’s Southside that will be branded a Hyatt hotel. Developed by 3H Group, the $30 million project will be a five-level, 123-room Caption by Hyatt. Work is planned to start the first half of 2023 and take about 18 months to complete.
IHG Hotels & Resorts announced the opening of its newest Holiday Inn Express in Kenner, Louisiana, following an extensive conversion and renovation. The 105-room Holiday inn Express Kenner – New Orleans Airport features indoor and outdoor pools, 936 square feet of meeting space and an on-site business center. The property is owned by Hospitality Management Services, LLC and managed by Osman Khan Hotels.
The 173-room 21c Museum Hotel will open its first location in the St. Louis, Missouri area in June. Formerly the YMCA, the hotel will have a restaurant, café and wellness center that will include a hot tub, spa and the YMCA’s historic lap pool. The building’s old gymnasium and track will remains but turn into exhibit and event space. St. Louis marks 21c Museum Hotel’s tenth location.
Developer Cymbal DLT Cos. revealed the next phase of its Raintree project along the New River in Fort Lauderdale, Florida featuring three towers including a hotel and a marina, bringing the cost of the project to about $1 billion. Cymbal DLT Cos. Started site work on the first phase of the Riverwalk Raintree Residences in October with 677 apartments and 21,000 square feet of commercial space planned in towers of 28 and 29 stories. The project named Nautica Residences and Hotel would have a 50-story condo with 241 units, 16,700 square feet of commercial space, restaurant space, a café and a marina with 78 dry stack slips and 12 wet slips. There would be 1,582 parking spaces. Amenities include a pool deck, spa, hotel ballroom, co-working center, game room, lounge, party room, fitness center and a kid’s room. Cymbal will choose a luxury hospitality brand for the condo, apartments, hotel and marina. Cymbal will break ground on the first apartment at Raintree Riverwalk Residences in June 2023 and the second phase six months later. Construction of the Nautica project in the first or second quarter of 2024.
Habitas is expanding its global portfolio with its first outpost in North America: Habitas on Hudson, an adults-only hotel housing in several structures located just outside Rhinebeck, New York. The retreat will feature 30 guest rooms and an exhaustive list of outdoor and indoor experiences transforming it into a year-round playground for adults. There is a nearby swimmable pond and beach club, a barrel sauna, Jacuzzi and cold-plunge pools, a game room, fire pits, and an outdoor performance venue.
Berkadia announced the sale of the 109-room Springhill Suites Lake Charles in Lake Charles, Louisiana. Berkadia Hotels & Hospitality completed the sale on behalf of the seller. Anish Hotels Group was the buyer. The property offers a fitness center, meeting space, indoor pool and hot tub.
Berkadia also announced the $8.5 million sale of the Hampton Inn & Suites Birmingham East Irondale in Birmingham, Alabama. Berkadia Hotels & Hospitality completed the sale on behalf of the seller. The 99-room hotel offers 576 square feet of meeting space, an indoor pool, fitness center and business center.
HREC Capital Markets Group arranged $83.3 million in financing for The RADCO Companies purchase of six Florida premium-branded, select-service hotels. The 583-room portfolio acquired by RADCO’s hotel division includes the 84-room Courtyard by Marriott Panama City; 90-room Courtyard by Marriott Pensacola; 128-room Courtyard by Marriott St. Petersburg Downtown; 89-room Hampton Inn Panama City Beach; 109-room Fairfield Inn & Suites Panama City Beach and the 83-room Home2 Suites Panama City Beach. The cross-collateralized loan facility served to finance acquisitions from three sellers. The non-recourse loan facility was provided by a national bank lender and features a five-year term, a fixed rate, a 2-year interest-only period, and a $6.3 million line of credit to fund property improvements.
Sonnenblick-Eichner Company arranged $22 million of non-recourse first mortgage financing for the leasehold interest in the DoubleTree by Hilton Los Angeles-Commerce, a 201-room hotel located in the city of Commerce, California. The five-year loan was placed with an international money-center bank at a fix interest rate of 5.9% for the entire term. Proceeds were used to pay off a maturing CMBS loan and provided for a return of equity to the partnership. Amenities at the hotel include a restaurant and bar, approximately 9,000 square feet of meeting and banquet space, an outdoor pool and Jacuzzi, fitness center, business center and up to 420 surface parking spaces.
Europe Highlights
Motto by Hilton marked a major milestone with its international debut in the Caribbean and Europe with the openings of Motto by Hilton Tulum and Motto by Hilton Rotterdam Blaak. The 115-room Motto by Hilton opened inside the Hunab mixed-use lifestyle center, the first mall in the Mexican resort town in Quintana Roo. The property boasts two rooftop infinity pools with private cabanas, a fitness center with indoor and outdoor workout areas, Motto Commons, and multiple food and beverage venues. The 108-room Motto by Hilton Rotterdam Blaak is located in bank building that has undergone extensive refurbishment. The property offers the Motto Commons, on-site dining and Grab & Go options.
Radisson Hotel Group opened the doors of its first Radisson hotel in France at Nice Airport, following an extensive renovation of the property. Radisson Hotel Nice Airport joins Radisson Blu Hotel, Nice as the second hotel of the city. The airport property features 151 rooms and suites; a restaurant; pool with large terrace which can be used for private events; a fitness room and 390 square meters of meetings and events facilities across six rooms.
