New Builds, Conversions and Proposals to Start the Year

The DJIA fell 350 points, Nasdaq was down 154, the S&P 500 fell 45 points and the 10-year treasury yield was up .01 to 3.72%. Lodging stocks were lower. SLNA was one of the few bright spots, up 10%. MCG was down -13%, SOND and AHT both fell -6% and BHR was down -5% on the day.

Mizuho cut their price target on Airbnb to $110 from $125. They maintained their Neutral rating on the stock.

STR reported US lodging data for the week ended 12/31. US hotel RevPAR was up 4.2% year over year while up 35.6% versus the same week in 2019.

Global Hotel Group announced the opening of the converted Ramada Plaza Monroe as the new DoubleTree by Hilton Monroe Township Cranbury in Monroe, New Jersey. The conversion included renovations to the building exterior, all public spaces, 11,000 square feet of meeting and banquet spaces, guest rooms and the restaurant. The 150-room property also offers a business center, fitness center and indoor heated pool.

Manchester United Group is proposing to build a 146-guestroom Hilton Garden Inn in Gilbert, Arizona. The five story property will include a hotel bar, conference room, fitness center, outdoor pool and spa, outdoor patios and about 2,800 square feet of office space on the top floor.

Mission Hill Hospitality acquired the Hanover Lebanon Courtyard by Marriott located in Lebanon, New Hampshire. This is the company’s first investment in New Hampshire and its seventh in New England. The hotel offers an indoor pool, whirlpool, fitness center, business center and 2,500 square feet of meeting space.

LRE & Companies unveiled plans for Fernley Promenade, a 13-acre mixed-use development project comprising of industrial, retail, and hotel in Fernley, Nevada. The four-story Home2 Suites at Fernley Promenade will have 98 guestrooms, a pool, fitness center, guest laundry room, and sundries shop. The project is slated to be completed by year-end 2024.

Hotel Ventures Inc. plans to build two hotels, with a total of 209 rooms, on vacant land in Huntersville, North Carolina. The “Northcross Hotel” project would include a Fairfield Inn and a TownePlace Suites extended-stay hotel.

CoralTree Hospitality has been selected to operate the Pier Sixty-Six Resort in Fort Lauderdale, Florida. Currently being re-imagined by Tavistock Development Company, Pier Sixty-Six is slated to re-open and debut the residences in 2024. The completely re-imagined 325-room luxury resort will offer a variety of culinary options; a destination spa and fitness program; two-level tropical pool oasis; and more than 40,000 square feet of indoor and outdoor event and meeting space. The property will also feature a new Marina Promenade with more than 33,000 square feet of waterfront retail, restaurant and office space.

IHG Hotels & Resorts announced the opening of its new Holiday Inn Kansas City - Downtown hotel. Owned by Lenexa Hospitality LLC, the property offers 108 guestrooms, more than 1,000 square feet of meeting space, a fitness center and a restaurant.

MMI Hospitality Group acquired the Mission Inn Resort & Club, a storied Florida meeting and golf destination resort. Mission Inn Resort & Club includes 176 guestrooms, two golf courses, three restaurants, spa and more than 30,000 square feet of indoor and outdoor event space, all located in Central Florida’s Lake County. Plans are already underway for phased property enhancements at the resort that will begin in early 2023. The resort joins an impressive portfolio of properties at MMI Hospitality Group that are both managed and operated by MMI Hotel Group.

Mooresville, North Carolina commissioners voted to annex 15 ½ Lake Norman acres where developer Brett Krueger plans 283 condominiums and the lake’s first waterfront hotel. Sunset Cove Partners LLC could start construction of the $250 million Sunset Cove hotel resort in the second or third quarter of this year and finish in about four years. The project will include a boutique upscale hotel with about 30 rooms, a restaurant, possibly a spa, and waterfront space for weddings and other events. Krueger may convert about 100 condos into Airbnbs, adding to the size of the hotel. 

B Group Capital Management submitted a $102 million stalking horse bid for nearly 20 acres in Miami’s Upper Eastside and El Portal that are tied to a lawsuit alleging EB-5 fraud. The Miami-based firm seeks to acquire the former U.S. immigration building site and a former trailer park. Both properties are now controlled by a court-appointed receiver, following a settlement agreement approved last month with the previous owners, Florida Fullview Immigration Building and several affiliates. The receiver, Michael Goldberg, is seeking court authorization to hold an auction, with B Groups $102 million bid as the starting price. Avison Young is marketing the properties.

McWhinney Real Estate Services revealed more details about their master plan for Salt Lake City, Utah. The master plan outlines for the site include a remodel and reopening of the nine-story Red Lion Hotel, which has restaurant space on the ground floor. In addition, investors hope to add a new office building structure designated for life sciences, two private streets, as well as the new residential tower and converted south hotel tower. Named Lattice, the south tower is now 184 micro-apartments currently pre-leasing for late January occupancy. The new 35-floor, 334-unit tower will rise over a podium that includes a street-facing ground floor plus seven stories of parking. The seven floors of parking will hold 605 car stalls and 29 bike spaces.

Cushman & Wakefield has been exclusively retained to offer for sale the 100% fee simple interest in 110 Liberty Street, a development opportunity located in Manhattan’s Financial district just steps from the World Trade Center. Originally slated for hotel development, the site received an approved New Building Permit and as such is grandfathered under the new Citywide Hotel Text Amendment that was passed in December 2021. With its grandfathered status as hotel development at 110 Liberty Street is as-of-right and does not require a special permit. The approved plans call for 238 keys across 27 floors which will be branded as an AC Hotel with a Marriott franchise agreement. The building plans include a multi-level restaurant on the ground and second floors, AC Bar & Lounge on the second floor, along with a fitness center on the fourth floor. 

Hilco Real Estate completed the sale of the Tru by Hilton Bryan College Stationhotel for a total closing price of $9,900,000. HRE brokered the sale of the property on behalf of the seller, Wealth Hospitality. Located in Bryan, Texas the 98-room property features a large, modern lobby with a bar and lounge, meeting space, lobby market, game zone and fitness center.

Colliers San Diego Region announced CH Projects purchased the historic Lafayette Hotel in San Diego’s North Park neighborhood for $25.8 million. Colliers represented the seller, Lafayette Landlord. CH Projects plans to restore and update the rooms and add several food and beverage venues to the property. The Lafayette Hotel has 131 rooms, a pool and several restaurants and bars. 

Host Hotels & Resorts amended and restated its existing $2.5 billion credit facility. The Agreement extends maturities from January 2025 to January 2028, including all extension options, and continues to provide a $1.5 billion revolving credit facility and two $500 million term loans The amended and restated facilities reflect no increase in pricing and will bear interest pursuant to a credit ratings-based grid ranging from 0.725%-1.600% over the applicable adjusted term SOFR. In addition, the Agreement reflects the Company’s commitment to ESG initiatives by adding incentives linked to portfolio sustainability initiatives, including green building certifications and renewable electricity usage.

Balour Associates completed a $6.9 million first trust deed loan to Cambridge Lansdowne, providing funds for the investor’s $10.15 million acquisition of the White House Inn, a boutique hotel located in the heart of Napa, California. White House Inn features 17 keys, a restaurant, event space, spa and pool on just under one acre of land. Ackman-Ziff represented the buyer in this acquisition.

Personnel Moves

Charlestowne Hotels introduced additional leadership positions to its corporate office, enabling Charlestown to retain more complex assets and support diverse owner needs. The promotions include: Gareth Brown promoted to Vice President of Operations. Anthony Langan promoted to Vice President of Food & Beverage. Regina Pruitt hired as Vice President of Finance. Jennifer Jost promoted to Vice President of Marketing. Karl DeHaven promoted to Vice President of Revenue. Max Spangler promoted to Director of Technology. Angela Muschek promoted to Corporate Director of Human Resources. July Casey promoted to Corporate Controller and Kelsey Millman promoted to Director of Marketing Operations.

LW Hospitality Advisors announced the appointment of Edward Shapard as Managing Director, Platform Head and Robert Higley as Vice President of LWHA Asset Management Group. Shapard has more than 25 years of international hospitality industry experience having held an array of leadership roles in lodging management, food and beverage operations, sales and marketing, product development, and revenue management with blue chip organizations. Higley has 20 years of lodging sector and commercial real estate experience with numerous prestigious firms.

Marriott Vacations Worldwide Corporation announced the promotion of Stephanie Sobeck Butera to the position of Executive Vice President and Chief Operating Officer of Hyatt Vacation Ownership. Ms. Butera most recently served as Senior Vice President and Chief Operating Officer of HVO.