The DJIA rose 217 points while Nasdaq was up 69, the S&P 500 rose 14 points and the 10 year treasury yield was down .11 to 3.45%. Lodging stocks were higher with the only big mover of note once again being AHT, up another 6%.
Baird gave their 2023 Hotel REIT outlook saying they are taking a more balanced approach in early 2023 as macroeconomic risks and growing expense pressures keep them selective. Baird said they see better buying opportunities if/when estimates reset further and more clarity emerges on the fundamental front. They said they don’t need to be too negative as a lot of investors are already there from a sentiment perspective and estimates have been trending lower. Xenia Hotels remains their Top Pick and Apple Hospitality remains a high-conviction Outperform-rated name. Baird downgraded Summit Hotels to Neutral from Outperform. Their price target was cut to $8 from $10. Baird said the downgrade and lower price target reflects reduced earnings estimates, less attractive valuation versus peers, recent acquisitions that have lagged underwriting expectations, and moving pieces/modeling uncertainty related to transactions and joint venture adjustments.
STR announced U.S. lodging data for the week ended January 7. Year over year RevPAR was up 21.8% on easy comps due to holiday/school timing and the Omicron outbreak last year. Versus the same week in 2019, RevPAR was up only 0.3%.
MCR has acquired the Courtyard Dallas Grand Prairie, a four-story, select-service hotel with 120 rooms located in Grand Prairie, Texas. The hotel was purchased with acquisition financing from American Momentum Bank in place, at a rate of SOFR plus 260 basis points and a 65% loan to value. The hotel features 2,000 square feet of meeting space, The Bistro, grab-and-go market, outdoor pool, putting green, patio bar, fire pit, fitness center, business center and on-site parking.
Mission Hill Hospitality acquired the Holiday Inn Steamboat, a 117-key hotel in Steamboat Springs, Colorado. Terms of the deal are undisclosed. This is the 26th property added to the Mission Hill Hospitality portfolio and its first in Colorado.
IHG Hotels & Resorts announced the opening of its newest Candlewood Suites hotel in Loma Linda, California. Featuring 91 suites, an outdoor gazebo and grill, a gym, and complimentary self-service laundry facilities, the Candlewood Suites Loma Linda – San Bernardino S is owned by SH-Richardson II, LLC and managed by Sagemont Hotels.
Choice Hotels International, Inc. finalized an agreement with The Brittano Group, Inc. to develop a new member of the Ascend Hotel Collection in South Boston, Virginia: The Rook Hotels. This agreement marks the first Ascend hotel awarded through the company’s emerging markets franchise development program in 2022. Expected to debut in Summer 2024, The Rook at South Boston, a four-story, 37-room boutique property will feature a rooftop bar, full-service restaurant and bar and an event center. The Rook Hotels is owned by Julian and Karie Brittano who originally acquired the historic hotel from the town of South Boston earlier last year for $11 million before entering into a franchise agreement with Choice Hotels.
Hilton announced the opening of the 319-room Hilton Motif Seattle in Seattle, Washington. Formerly Motif Seattle, the hotel offers a rooftop restaurant and bar, more than 36,000 square feet of meeting and event space, a business center, fitness center, grab-and-go market, and electric vehicle charging stations.
A hotel proposed for downtown Milwaukee, Wisconsin will need design changes to obtain city approval. The Historic Preservation Commission is delaying a decision on the eight-story, 161-room Tempo by Hilton, proposed by HKS Holdings LLC, pending those changes. The site was once home to the Republican House Hotel, which was demolished in 1961. Plans for the Tempo by Hilton include a hotel coffee shop, an outdoor plaza and a rooftop bar.
Windsor Aughtry Co. has started construction on Motto by Hilton in downtown Bentonville, Arkansas. The hotel will feature a sushi restaurant and a outdoor tiki bar. The opening will be in the first quarter of 2024.
A new hotel that developer Jim Merkel said captures the essence of the city is coming to downtown Columbus, Ohio. Junto, a boutique-style hotel will have 198 rooms, a restaurant, rooftop bar and a coffee shop. Once completed, it will be Columbus’ first independent lifestyle hotel. The Junto Hotel is set to open in May.
Developer Ellen Reid of Reid Luxury Real Estate is proposing Hotel Demun, with 24 rooms at the site of existing rental units on De Mun Ave. in Clayton, Missouri. The apartment building would be renovated and converted to a boutique hotel. Building the hotel would require a conversion and an addition. The properties are owned by LLCs organized by Mark Shklar.
DSH Hotel Advisors announced the sale of the 90-room Comfort Inn & Suites Fort Myers Airport for an undisclosed price on December 22, 2022, and the 104-room Ramada by Wyndham Davenport Orlando South on December 28, 2022, both located in the state of Florida. DSH Hotel Advisors represented the seller and buyer in both transactions, which were separate and not related.
IHG Hotels & Resorts formally opened its new global headquarters in Windsor, UK. Located close to key transport links to London and international airports, the office boast 57,000 square feet of space over five floors, complete with state-of-the-art technology, modern meeting rooms and event space, parking, and a recording studio.
Nobu Hospitality will open five new hotels in 2023, including Rome, Marrakech, Atlantic City, San Sebastian, and Toronto. This year will mark Nobu Hotels’ 10th anniversary following the opening of Nobu Hotel Caesars Palace in Las Vegas in 2013. 2023 will also welcome the band’s first luxury residences in Toronto and Los Cabos. With six other residential projects in the pipeline, including Al Khobar, Danang, Abu Dhabi, Tulum, Orlando and Punta Cana, Nobu is firmly positioning itself within the luxury lifestyle sphere by offering an exclusive curated experience for buyers.
Hotel Co 51 opened Marriott International’s second dual-brand property in Germany. The newly-built Moxy Dortmund City and Residence Inn by Marriott Dortmund City will offer 311 rooms in the heart of Dortmund. The 191-room Moxy Dortmund City becomes Hotel 51’s eleventh Moxy hotel in Germany, while the 120-suite Residence Inn Dortmund City offers the Bistro and a gym. In addition to onsite car parking for 18 vehicles, the dual-hotel complex also offers 50 bicycle parking spaces.
Hyatt Hotels Corporation announced the opening of FirstName Bordeaux, a lifestyle hotel joining the JdV by Hyatt collection of independent hotels. FirstName Bordeaux offers 147 guestrooms and suites, a restaurant and bar, and thee meeting spaces.
Hyatt also announced the opening of the Hyatt Regency London Albert Embankment. The 142-room hotel marks the eighth Hyatt-branded property in London. The Hyatt Regency London Albert Embankment boasts 15,273 square feet of combined meeting space, a multiple food and beverage venues and an onsite fitness center.
Radisson Hotel Group’s midscale lifestyle brand – prizeotel – has continued to expand throughout 2022, with the addition of three new hotel openings, in Germany and Austria, representing nearly 1,000 rooms. Prizeotel Bonn-City is a new build hotel featuring 214 rooms with a terrace and sky bar. Prizeotel Vienna-City is a 23-room hotel located next to Vienna Central Station, and prizeotel Münster-City features 195 rooms and is connected directly to Münster Central Station. The Group announced plans to expand the brand’s footprint to 45 new signings in select European countries with a special focus on UK and Ireland over the next five years, as it looks ahead to new openings including Dortmund and Dresden in 2023.
Highgate announced two significant European developments, the launch of HG Portugal and the re-launch of the Dorsett City London Hotel. HG Portugal begins with a portfolio of 18 hotels spanning the Algarve, Lisbon, Porto, and several other markets throughout Portugal. The portfolio includes hotels operating within the Hilton and IHG brand families, as well as several noteworthy independent hotels. Highgate has appointed Alexandre Sillier as Chief Executive Officer of HG Portugal. Alexandre brings over 30 years of hospitality leadership experience in Portugal. Alexandre and the HG Portugal team will build off of Highgate’s existing platforms and resources across Europe, the United States, the Caribbean and Latin America, while bringing dedicated Portugal-based experience. The launch of HG Portugal comes on the heels of two portfolio additions in the UK market, announced in October 2021 – the Dorsett City London Hotel and Grosvenor House Suites in London’s Mayfair District. Effective March 1, 2023, Highgate will also begin operating the Dorsett City London Hotel under a re-launched concept as part of a larger repositioning.