Hotel Purchases and Development Heat Up in Early January

The DJIA rose 133 points while Nasdaq was up 72, the S&P 500 was up 29 points and the 10 year treasury yield was down .08 to 3.71%. Lodging stocks were higher. VCSA was up 13% to lead the group while SOND was up 6% and ABNB rose 5% on the day.

Canada’s hotel performance came in lower than the month prior but showed improved comparisons to 2019, according to STR ‘s November 2022 data. November 2022 (percentage change from November 2019) is as follows: Occupancy: 61.0% (+1.6%); ADR: C$169.69 (+14.8%); and RevPAR: C$104.98 (+16.65). Among the provinces and territories, Manitoba recorded the highest November occupancy level (76.6%), surpassing the pre-pandemic comparable by 16.3%. Among the major markets, Vancouver recorded the highest occupancy (75.9%), which was 3.5% above November 2019. Alberta (53.4%) saw the lowest occupancy among provinces, up 3.2% against 2019. At the market-level, the lowest occupancy was reported in Edmonton (53.5%) which was 2.8% below the 2019 comparable.

Kolter Urban is planning to build a Ritz-Carlton Hotel Residences in Sarasota Bay, Florida. The 20-story project will include 78 units, an arrival plaza, fitness center, health and wellness center, sports lounge, news café, board room, outdoor dog park and three different pools.

ARA US Hospitality Trust has entered into a conditional sale and purchase agreement to acquire Home2 Suites by Hilton Colorado Springs South hotel for $29 million. The property is being acquired from CH Tenderfoot Hill, LLC and is presently managed by Chartwell Hospitality, LLC. The asset is a select-service, extended-stay hotel with 119 rooms. ARA H-Trust expects to fund the acquisition fully with cash, using the net proceeds from its divestments made in 2022.

NexGen Hotels is proposing to build a Home2 Suites by Hilton in Des Moines, Iowa. The five story hotel would include 107 guestrooms and if approved construction would begin in the second quarter of 2023 and be completed in late 2024.

HCW announced the purchase of the 127-room Hyatt Place Phoenix Gilbert in Gilbert, Arizona. The six-story property recently experienced a partial renovation which HCW plans to continue in the upcoming year. Hyatt Place Phoenix Gilbert marks HCW’s sixth operating hotel in the Phoenix metropolitan area. Amenities includes a gym, outdoor pool, lobby bar, Market, and 1,100 square feet of meeting and event space.

Omni Tucson National Resort completed its multimillion dollar transformation. The iconic resort has now been upgraded with a suite of luxury accommodations, vibrant lobby transformation and the addition of Mokara Spa, Omni Hotels & Resorts’ signature wellness offering. A fully reimagined dining experience comprises three new restaurant and lounge concepts, several refreshed spaces and local favorites, and more than 25,000 square feet of indoor and outdoor meeting space has been remodeled to present a fresh, modern look.

HEI Hotels & Resorts has assumed management of the 312-room Austin Southpark Hotel. Owned by L+R, Hotel Southpark is located in the heart of South Austin, Texas. The property will become a Tribute Portfolio hotel upon completion of a comprehensive renovation, anticipated in late 2023. The property provides a pool and 15 meeting rooms that comprise more than 21,000 square foot of meeting and event space. The hotel’s food and beverage facilities include a restaurant and a lobby lounge.

Sonesta International Hotels Corporation announced the reinvention of The James and the launch of Sonesta Essential. Alongside the announcement of the two new brands, Sonesta is launching a new brand campaign “Famous Yet Nameless” to reframe the brand to consumers as it continues to grow and rapidly evolve. The James is all about the modernist lifestyle traveler, while Sonesta Essential will attract the traveler than just wants to get the essentials done right. Sonesta Essential is a brand where developers provide a clean room and a comfortable bed but few amenities or services beyond the basics. It enters the crowded but often profitable limited-service segment. The James Hotels is an upscale urban brand created by Denihan Hospitality Group, with a property run by Highgate in New York City. Sonesta acquired the intellectual property of the James Hotel brand in April 2022. It will play in the luxury lifestyle segment, having ample amenities and services, plus a notable investment in the hotel bars and restaurants.

Cambria Hotels announced the grand opening of its newest hotel in Connecticut, the Cambria Hotel New Haven University Area. The six-story, 130-room hotel features multi-purposed indoor and outdoor spaces and business center, open-concept lobby, a full service restaurant and bar, multi-function meeting and event spaces, and a fitness center. The Cambria Hotel New Haven University Area was developed in collaboration with HighSide Development. The hotel is owned by The LCP Group and will be managed by Crescent Hotels & Resorts.

The Chilean billionaire who planned to acquire 10 acres where the Riviera once stood, in Las Vegas, Nevada, has backed out of the $120 million deal with the Las Vegas Convention and Visitors Authority. According to the LVCVA, the land sale to developer Claudio Fischer did not close on December 15. As a result, the LVCVA terminated the agreement, received the $7 million nonrefundable deposit, and re-listed the property. Fischer said rising interest rates in the United States no longer allowed his planned resort to pencil out financially. 

Coast Hotels Limited, a fully owned subsidiary of APA Hotel Canada, Inc., has completed the acquisition of a master franchise agreement inclusive of all existing franchised hotels from Coast Hotels USA, LLC. The USA expansion plan enables Coast Hotels to increase its footprint, particularly throughout the West Coast. Operating as Coast Hotels USA, Inc., the company aims to achieve significant growth through a combination of new franchise and hotel management contracts, mergers and acquisitions and the purchase of hotel real estate in key locations by 2027.

Arnold Companies is looking to build a 301-room hotel, a 183-unit apartment complex and a 380-space subterranean parking garage near the Columbia Metropolitan Convention Center is Columbia, South Carolina. It would see the first-of-its-kind dual-branded Hyatt House and Hyatt Centric hotel with a rooftop restaurant and bar space with a retractable roof for indoor and outdoor options. The massive project, dubbed Vista Depot Hotels and Apartments, is the latest attempt to add hotel rooms around the convention center. Arnold had previously been in talks with Columbia and Richland County leaders for a much larger project, but that deal fell through. The proposed apartment complex, called The Residence at Vista Depot would include a pool terrace, yoga studio, fitness center and dog spa. 

A 103-room, four-story hotel with a rooftop pool could be coming to Bradenton Beach, Florida. Shawn Kaleta, a rental property heavyweight on Anna Maria Island, and Jacob Spooner, a Bradenton Beach businessman and city commission, submitted the proposal in December. The hotel would have parking for 126 vehicles, including four golf carts. 

Four months behind schedule and 15% over his anticipated budget in building a new extended-stay hotel in Inverness, Florida, hotelier Dr. Paresh Desai said the SpringHill Suites hotel will be open by January 15 according to Chronicle Online. A few minutes later, he said, maybe by the end of January. The plan was to be operational and renting the hotel’s 72 suites well before the holidays but the delays and cost overruns were almost inevitable given the lack of the area’s skilled construction labor force and supply chain problems that continue to deeply plague the industry.

The Seminole Tribe of Florida will break ground on a casino hotel January 5 on the Brighton Seminole Reservation in Okeechobee. Seminole Casino Hotel Brighton, which will feature 100 rooms, two restaurants and a coffeehouse, will replace the tribes Seminole Brighton Casino, which is 3 miles north of the site of the future casino.

Norland James and his wife, Dr. Amina Gilyard James are the owners of the newest Black-owned Quality Inn hotel in Memphis, Tennessee. With the help of a cohort of first-time African American hotel investors, the two were able to acquire the 70-room property located in the Raleigh neighborhood part of the city for $3.85 million. 

Marcus & Millichap announced the sale of Fairfield Inn & Suites Williamsport, a 83-room property located in Williamsport, Pennsylvania. The asset sold for $4,610,000. Marcus & Millichap procured a first-time buyer and had the exclusive listing to market the property on behalf of the seller, a limited liability company. The asset features an indoor pool, fitness center and free parking.

Personnel Moves

Accor announced Omer Acar has been appointed as CEO Raffles & Orient Express. His appointment will be effective March 1, 2023. Omer will be based in New York and he will work closely alongside the other brand CEO’s of the division. To enhance the Group’s reach and recognition in the United States, Omer will also assume responsibility for representing Accor on the North American market.

Island Hospitality Management promoted Susanne LoFaso to regional director of operations. In her new role, LoFaso will oversee the company’s Hilton- and Marriott-branded hotels throughout the New York and Illinois regions, as well as providing acquisition support. Susanne joined the company in 2018 as general manager of the Ronkonkoma Homewood Suites by Hilton.

Europe Highlights

Manchester is set to welcome a new upscale hotel, as The Reach at Piccadilly, Manchester, a Tribute Portfolio Hotel announces plans to open in the U.K. in 2023. The 215-room property will be the third Tribute Portfolio hotel to open in the U.K. The hotel will be owned by Molo Hotels and operated by Lighthouse Hotel Management.

Iceland Parliament Hotel, Curio Collection by Hilton has opened in Reykjavik, Iceland. In a complex of seven rebuilt and new buildings, the 163-room hotel offers a restaurant, bar, spa and exercise area and meeting and event space. 

IHG Hotels & Resorts and Cycas Hospitality announced the opening of the first Holiday Inn Express in Deventer, Netherlands, with the opening of the 99-room Holiday Inn Express & Suites Deventer. The new-build property pairs 83 guest rooms with 16 suites, a Grab & Go Pantry, extensive ca4r parking and a café & bar.

Kew Green hotels announced a multi-million-pound investment across their portfolio of hotels to transform their properties, elevate their technological capabilities and enhance talent acquisition unemployed retention. Each refurbishment project will incorporate energy-saving features and will be seamlessly delivered as the hotels continue to operate. The Open Lobby concept is an integral part of IHG’s reinvigoration of its iconic Holiday Inn brand. The traditional hotel lobby format will be transformed by combining all public spaces, from the reception area to the restaurant, bar and lounge into one open, cohesive space. Kew Green Hotels is evolving its tech stack to enhance guest and employee experience as part of a holistic digital transformation strategy. Each system has been carefully selected to offer maximum integration and is cloud-based to future-proof the business. To support all employees, a dedicated employee online training platform has been enhanced with expanded content to support employees throughout their career with Kew Green hotels. 

Davidson Kempner Capital Management closed on a deal for a portfolio of hotels in Portugal valued at 850 million euros from seller ECS Sociedade Gestora de Fundos de Capital de Risco. The portfolio of 23 hotels includes the 60-room Palacio do Governador in Lisbon and several in the coastal vacation destination of The Algarve, as well as the 149-room NAU São Rafael Atlântico and 98-room Morgado Golf & Country Club. The deal also includes the 154-room Conrad Algarve and 176-room Hilton Vilamoura As Cascatas Golf Resort & Spa, also both in The Algarve.