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North America

Airbnb’s Listings in New York Will Shrink

Alan Woinski and Kim Woinski

December 5th, 2022


Skift Take

  • Morgan Stanley re-launched coverage on the lodging sector, saying they prefer C-Corps over REITs.
  • Truist updated their estimates and price targets on some hotel names in their coverage.
  • According to the NY Daily News, more than 10,000 Airbnb listings for short-term rentals in New York City are likely to disappear when tight new housing rules take effect next year.

The DJIA fell 483 points while Nasdaq was down 222, the S&P 500 fell 73 points and the 10 year treasury yield was up .07 to 3.60%. Lodging stocks were lower. AINC was the bright spot, up 15%. SLNA fell another -9% to another all time low. VCSA fell another -6% to another all time low. MCG was down -7%, AHT was down -5% and PK, SVC, VAC, HST and BHR were each down -5% on the day.

Morgan Stanley re-launched coverage on the lodging sector, saying they prefer C-Corps over REITs. MS said they believe C-Corps have undergone structural changes over the past 10 year that have yielded a more resilient, higher margin free cash flow. While they believe US hotel REITs have cut costs, the cyclical environment and high capex remain. MS said they believe the macro risk everyone talks about is more muted than a typical cycle, especially as the recovery in travel is still underway. As for stock selection, MS launched with Overweight ratings on Hyatt (Top Pick), Hilton, Marriott and Wyndham. Underweight ratings were given to Xenia Hotels, Pebblebrook Hotel, and Sunstone Hotels while Equal Weight ratings were put on Choice Hotels, Host Hotels, Park Hotels, DiamondRock and Membership Collective Group.

Truist updated their estimates and price targets on some hotel names in their coverage. They lowered their target price on Choice Hotels to $120 from $135; Hilton to $147 from $150 and Sunstone Hotels to $11 from $12. They upped their target price on Marriott to $185 from $184.

BMO Capital cut their rating on Pebblebrook Hotel Trust to Market Perform from Outperform. BMO lowered their price target to $18 from $20.

According to the NY Daily News, more than 10,000 Airbnb listings for short-term rentals in New York City are likely to disappear when tight new housing rules take effect next year. The rules, set to be implemented on January 9, will require all Airbnb hosts in the city to register their units with the Mayor’s office of Special Enforcement. In addition, Airbnb will be barred from processing payments for any hosts who fail to register and, according to the office’s executive director, Christian Klossner, those requirements will root out thousands of illegal listings across the five boroughs that are currently advertised on the platform. Airbnb has sharply opposed the rules. In a statement, the company said it will result in a “draconian and unworkable registration system that will prevent lawful and responsible hosts from listing their homes.” Under existing law, it is only legal for New Yorkers to rent out a section of their homes for short-term use – not the entire dwelling. Hosts must also reside in the apartments while renting parts of them on a short-term basis, which is defined as less than 30 days, meaning it is illegal for someone to temporarily sublet their home while away on vacation. 

Hyatt Hotels Corporation announced continued global growth of its Independent Collection brands, including recent openings and a strong development pipeline through 2025 across The Unbound Collection by Hyatt, Destination by Hyatt and JdV by Hyatt brands. The Unbound Collection by Hyatt brand is more than a compilation of one-of-a-kind hotels, each of the 35 properties are a thoughtful curation of stories worth collecting. Hyatt said they have four new openings signed for 2023 and beyond. The Destination by Hyatt brand is a diverse collection of 55+ independent hotels, resorts and residences that are individual at heart yet connected by a commitment to embody the true spirit of each location with two properties already signed to be added in the future. The JdV by Hyatt brand offers a collection of more than 20 vibrant, independent hotels that are true reflections of the urban neighborhoods they call home. They have four new hotels signed on for the future plus an agreement with Lindner Hotels that could add more than 30 hotels and 5,500 rooms across Germany and other countries.

IHG Hotels & Resorts announced the signing of its first Vignette Collection hotel in the United States in McMinnville, Oregon. Scheduled to break ground in late 2023 and open in 2025, The Gwendolyn will feature 92 guestrooms, destination restaurant and retail spaces, a rooftop pool with restaurant and bar, a fitness center and a spa. IHG Hotels & Resorts will oversee the hotel’s evolution alongside owner Hugh Development and operator Practice Hospitality.

Hilton announced the signing of a brand and management agreement with EKN Development Group to welcome the Waldorf Astoria Hotels & Resorts brand to Nevada’s Crystal Bay and Incline Village community with the all-season Waldorf Astoria Lake Tahoe, expected to debut in 2027. Situated on a 15-acre site, the mixed-use development will introduce 76 guest rooms and 61 Waldorf Astoria branded residences to the Nevada side of Lake Tahoe. Managed by Hilton, the new build luxury hotel will mark the brand’s first property in the Sierra Nevada mountain range. The property will boast a myriad of distinctive restaurants and bars, an upscale casino with live entertainment and a speakeasy, and a Waldorf Astoria Spa and fitness facility with an outdoor terrace connecting to an expansive resort pool along with a dedicated pool for residents. Ideal for all seasons, the resort will offer a sophisticated three-acre lakefront beach club on the North Shore of Lake Tahoe complete with a resort-access-only signature restaurant and event hall.

HP Hotels has been chosen by Welcome Group of Hospitality to manage the Hampton Inn and Suites Atlanta / Marietta in Marietta, Georgia. The 104-room property features 1,000 square feet of meeting space, a rooftop terrace, indoor pool, Suite Shop and a fitness center.

Island Hospitality Management has been named the operator of the 150-room Hampton Inn & Suites Yonkers, New York. The property offers 920 square feet of flexible meeting space, a business center, fitness room and an indoor pool.

EJC HOTELS, LLC announced its first acquisition, the former Newark Garden Finger Lakes Hotel – Newark, New York. Upon completion of the transaction, the hotel ceased operations to begin an approximately $10 million redevelopment of the site to completely re-conceive the interior, exterior and identity of the project. The company is in discussions with major brands to reflag the property. One of the brands being considered is Trademark Collection by Wyndham. In addition, approximately 40 new upscale apartments will be added to the property which will have their own entrance with private elevator access. The renovations will also include new features such as a rooftop bar; a large boat with dinner cruises offered; updated, modern event space, and other upgrades that will elevate this hotel. EJC HOTELS is partnering alongside David Eckert who heads up a group of EB-5 capital investors. 

CL Hotels closed the acquisition of Coachman Hotel, a 104-room boutique property, located in South Lake Tahoe, California. The first investments that CL Hotels plans to do in the Coachman include the remodeling of 22 rooms to be added to the 82 recently renovated, and the expansion of the meeting space, adding 900 square feet to the actual 800 square feet available. CL Hotels also plans to open a F&B outlet offering a variety of contemporary options and grab-and-go. Long-time partner Aimbridge Hospitality has been selected to manage the hotel under its Evolution Lifestyle division.

Dan Gilbert’s real estate firm bought a recently closed boutique hotel on Detroit’s east riverfront, near other buildings the firm recently purchased. The 109-room Roberts Riverwalk Hotel, once known as the Omni Detroit Hotel at River Place, was sold to Bedrock for an undisclosed price. Bedrock’s future plans for the hotel are not immediately clear. The Swearingum Group was the principal broker for the seller.

Chetrit Group received a financial boost for the Collins Park Hotel project at 2000 Park Avenue in Miami Beach, Florida, earning an $82.5 million construction loan. Kawa provided the financing, according to Galaxy Capital, who brokered the loan. The new mortgage replaces a $62.5 million construction loan approved by Maxim Capital last year. Chetrit is converting six post-war modern and art deco properties into a 271-room hotel complex on 1.6 acres.

The San Francisco Planning Commission has unanimously approved a hotel project in Fisherman’s Wharf, paving the way for a new ground-up hospitality project in one of the city’s premier tourist destinations. The project will demolish the existing one-story commercial building at 2629 Taylor Street, and replace it with a four-story, 136-room hotel, with approximately 2,000 square feet of ground floor retail space fronting Taylor Street. Amenities include a fitness center, breakfast service area, employee shower and locker facilities, a roof deck and a large central courtyard. No vehicle parking will be provided as part of the project, but the hotel will include 16 bicycle parking spaces. Developer Blackridge Group is likely to open the hotel in summer 2025.

Disney is finally making a second Vacation Club Hotel at Disneyland in California. They are using the pre-existing Disneyland Hotel and making some major upgrades. Disney is calling it The Villas at Disneyland Hotel. A fourth tower is being seamlessly added to the other three already at the hotel. The new tower is projected to have 350 new rooms, be 12 stories high, and is going to add over 300 additional parking spaces. The projected completion date for this new Disney Vacation Club is sometime in 2023, aligning perfectly with the brand-new Disney Vacation Club Member Lounge coming to the Disneyland Resort.

China Oceanwide Holdings Ltd has found a potential buyer for a stalled Los Angeles complex where it spent $1.2 billion before running out of money. The filing, in Hong Kong, didn’t disclose the name of the potential buyer or terms of the deal, which still may not come to fruition. Oceanwide said it plans to use part of the proceeds to repay debt on its Shanghai properties, which are currently in receivership. The company faces $220 million in lawsuit liabilities on the LA project, where a partially built three-tower hotel and residential complex has been in limbo for years.

JLL Capital markets has closed the sale of the Dan’l Webster Inn, a 48-key historic inn within the Cape Cod community of Sandwich, Massachusetts. JLL represented the seller, Catania Hospitality Group. The 300-year-old inn features an outdoor pool and gardens fit shop, Beach Plum Spa and four distinct dining rooms as well as a tavern. The inn also offers several meeting and event spaces.

DSH Hotels Advisors arranged the sale of the 68-room Quality Inn by Choice Hotels located in Spring Hill / Weeki Wachee, Florida. The hotel sold for $5,650,000. DSH Hotel Advisors represented the seller, Maya Motels Inc, and the buyer, SMP Hospitality, LLC.

Personnel Moves

LuxUrban Hotels Inc. announced its president and chief operating officer, David Gurfein is moving on from those roles as he transitions into a position as senior adviser to the company’s chief executive. Shanoop Kothari, the company’s chief financial officer, has taken on the added responsibility of president, while Jimmie Chatmon, a director at the company, has been promoted to chief operating officer. The changes were effective November 30. Brian Ferdinand serves as the company’s chairman and CEO.

Alan Woinski and Kim Woinski

December 5th, 2022

Companies: Aimbridge Hospitality, Airbnb, Ashford Hospitality Trust, China Oceanwide Holdings Ltd, Choice Hotels International, Destination by Hyatt, Disney Parks, EKN Development Group, Evolution Lifestyle, Hampton by Hilton, Hilton Hotels & Resorts, Host Hotels & Resorts, Inc., Hyatt Hotels Corporation, IHG Hotels & Resorts, Island Hospitality Management, JdV by Hyatt, JLL, LuxUrban Hotels Inc., Marriott International, Pebblebrook Hotel Trust, Practice Hospitality, Quality Inn, Selina, Sunstone Hotel Investors, Inc., The Chetrit Group, The Park Hotels, The Unbound Collection by Hyatt, Trademark Collection, Vacasa, Vignette Collection, Waldorf Astoria Hotels & Resorts, Welcome Group, Wyndham Hotels & Resorts, Xenia Hotels & Resorts

Locations: Atlanta, Detroit, Florida, Lake Tahoe, Los Angeles, Massachusetts, Miami, Nevada, New York, New York City, Oregon, San Francisco

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