Sonesta to Reflag Two Properties to The James Brand

The DJIA rose 113 points on Friday while Nasdaq was up 78, the S&P 500 rose 16 points and the 10 year treasury yield was up .06 to 3.51%. Lodging stocks were mixed but the biggest movers were to the upside. VCSA and SLNA both rose 6% on the day.

Goldman Sachs cut its price target on Airbnb to $87 from $98. It maintained its Sell rating on the stock.

The Baird/STR Hotel Stock Index fell -10% in December. That put all of 2022 down -15% from 2021. The Hotel Brand sub-index was down -9.2% in December from November while the Hotel REIT sub-index was down -12.8%.

Sonesta International Hotels Corporation announced the expansion of its global development strategy to include The James brand as part of the Sonesta Franchise portfolio in the U.S. and in Latin America. Currently, The James Nomad, New York is the prototype for future properties under its license agreement. Sonesta will reflag two of The Royal Sonesta properties from its managed portfolio later this to The James brand - The Royal Sonesta Chicago River North and the Royal Sonesta Washington DC Dupont Circle.

A hotel is being proposed for the Speer neighborhood in Denver, Colorado. Plans were submitted to the city for a nine-story, 123-key hotel under the Residence Inn brand. Plans for the hotel include a total of 59 parking spaces between a basement garage and spots on the main level, where there will also be a small lobby and a fitness area. On the second level, plans show a larger lobby area, meeting room, courtyard, work areas and employee rooms, in addition to nine guest rooms. The owner and manager are the Guddanti Partnership.

IHG Hotels & Resorts announced the opening of its recently-converted Holiday Inn Express & Suites hotel in Park City, Kansas. The recently converted 56-room Holiday Inn Express Wichita North - Park City is owned by Park City Hotel, LLC and managed by Pagosa Lodging, LLC. 

Capital Vacations is the new management company for Four Sails Resort in Virginia Beach, Virginia. The oceanfront resort offers 49 one-bedroom suites and 6 two-bedroom units for owners and guests. 

Legacy Ventures assumed management of the Lively Beach Resort on Mustang Island in Corpus Christi, Texas. The 68-unit beachfront resort features an outdoor pool, scenic dunes boardwalk, nature walk, beach club, private beach access and rooftop communal spaces. The resort was developed by Tortuga Dunes Holding Company, LLC. 

Xenia Hotels & Resorts, Inc. has obtained a new $675 million senior unsecured credit facility comprised of a $450 million revolving line of credit, a $125 million term loan and a $100 million delayed draw term loan. The $450 million Revolving Credit Facility matures in January 2027 and can be extended up to an additional year. The Revolving Credit Facility’s interest rate is now based on a pricing grid with a range of 145 to 275 basis points over the applicable adjusted term SOFR rate. The Company has full availability on its Revolving Credit Facility The Initial Term Loan and Delayed Draw Term Loan each mature in March 2026, can be extended up to an additional year, and bear interest rates consistent with the pricing grid on the Revolving Credit Facility. The Company used the proceeds of the Initial Term Loan to pay off a $125 million loan that was due in September 2024. The Company intends to use the proceeds of the Delayed Draw Term Loan to pay off a $100 million mortgage loan which is collateralized by the Renaissance Atlanta Waverly and due in August 2024. The company’s remaining 2024 debt maturities are limited to one $55 million mortgage loan.

Maverick Real Estate Partners filed a suit against Chetrit Group and its president, Meyer Chetrit, over an unfinished hotel near Penn Station. The Commercial Observer report that Meyer is named because he personally guaranteed the debt, according to the suit. Chetrit has been working on a 33-story, 323-key hotel at 255 West 34th Street in Manhattan. The developer purchased the site in 2014 and began developing the hotel in 2019, setting up IHG Hotels & Resorts as the operator. Arbor Commercial Mortgage provided construction financing. In May, Maverick bought $110 million of debt on the project and asked Chetrit to pay what was owed; the loans matured in April 2022, and Chetrit was required to finish the hotel by the end of 2021. The two sides agreed to extend the repayment date to October 31. Maverick alleged that day came and went without the necessary cash payments. The lender also said Chetrit didn’t pay property taxes on the site, a breach of the loan agreement. Maverick is seeking $19 million to cover the principal of the loans, as well as interest. The lender is also demanding Chetrit either complete the hotel or pay the $106.4 million Maverick claims is necessary to finish the project.

Marcus & Millichap announced the sale and financing of Courtyard by Marriott Dallas Grand Prairie, a four-story, 120-room hotel in Grand Prairie, Texas. Marcus & Millichap’s Austin office represented the seller, Anderson Companies and procured the buyer, MCR Hotels.

Skylark Negril Beach Resort in Jamaica has increased its number of guestrooms from 28 to 40. The resort also opened a beachfront lounge at the Miss Lily’s restaurant and a game room behind the lounge. The Skylark Negril Beach Resort is the sister property of the Rockhouse Hotel.

The Ritz-Carlton Aruba announced the completion of the reimagination of all 320 guestrooms, suites and corridors. The property also introduced new culinary experiences and family-friendly packages. The resort introduced the Madero Pop-Up Bar, a vibrant addition to the pool area.

Personnel Moves

Four Seasons Hotels and Resorts announced key appointments to its operations leadership team with the promotion of Rainer Stampfer to President, Global Operations, Hotels and Resorts, and Rami Sayess to President, Hotel Operations, Asia Pacific. In his new role, Stampfer joins Four Seasons Executive Leadership Team overseeing a diverse and growing portfolio of hotels, resorts and private residences as the company continues to expand its global presence. Stampfer succeeds Christian Clerc, whose career with the company spanned more than 20 years. Stampfer joined Four Seasons in 2001. In 2016 he was promoted to President, Hotel Operations, Asia Pacific, overseeing the operations for all properties across the region. Four Seasons veteran of 18 years, Rami Sayess will assume the Asia Pacific operations leadership role in March 2023. Most recently Sayess held the position of Regional Vice President and General Manager based at Four Seasons Hotel Bahrain Bay, with oversight of six properties in Europe, Middle East and Africa region. In his new regional leadership role, Sayess will be based out of Singapore and will work closely with his leadership counterparts in hotel operations around the globe.

G6 Hospitality LLC announced that Julie Arrowsmith, President and Chief Financial officer of G6, has been appointed President and Interim Chief Executive Officer. Rob Palleschi will step down as the Company’s CEO, effective today, as he transitions to the position of CEO of American Campus Communities, the nation’s premier student housing manager, owner and developer. Both companies are owned by Blackstone. Ms. Arrowsmith has served in various leadership positions across the G6 organization over her 28-year career. As President and CFO, she has been responsible for all finance and revenue-driving efforts, including the oversight of the revenue management, sales and e-commerce departments. 

AKEN Hotels & Resorts announced the appointment of two industry creatives: Matias Ranieri, Vice President, Operations and Development and Liz Speichinger, Vice President, Brand Development and Strategic Sales. Ranieri will lead operations, development, and owner relationship for the company. He most recently worked with experiential brands such as Selina and Habitas. Speichinger will lead the North American sales expansion and brand partnerships. Liz brings her tenure from Auberge Resorts and Four Seasons. 

Accor appointed Kamal Rhazali as Secretary General and General Counsel of its Luxury & Lifestyle division. In his new role, Kamal will be assisting in setting up the Luxury & Lifestyle division, defining its strategy and ensuring its consistent implementation. As part of his role, he will also be involve in M&A transactions. Kamal Rhazali will be part of the Executive Committee of the Luxury & Lifestyle division and member of the Group Management Board.

Paramount Lodging Advisors welcomed Michael Sheppard as their newest Associate. Michael is based in New Mexico and will be focusing on the Southwestern region of the United States.

Europe Highlights

Madrid is home to the first UMusic Hotel. Co-created by Universal Music Groupand Dakia Entertainment Hospitality Group, the hotel is located inside the historic Albéniz Theater building. The hotel opened on November 14, 2022 at a 60% capacity and is now fully operating. 

Schroders Capital purchased The Standard Hotel in Ibiza for an undisclosed amount. The recently-built 67-room hotel is located in the Ibiza Old Town and features a ground-floor restaurant and a rooftop with a pool. This is Schroders Capital’s fourth acquisition over the past 12 months in the European luxury-lifestyle hotel sector. 

De Vere Cranage Estate, located in Cranage, Crewe, UK, will undergo an £850,000 refurbishment due to be completed in March 2023. The transformation will include an update to 25 of its deluxe bedrooms, of which five will be turned into interconnecting family rooms; the corridors will also be refreshed; the gym will be redecorated with new equipment; and six electric chargers will be installed in the car park, that will be suitable for all models. 

Almanac Hotels announced the April 1, 2023 opening of the Almanac Palais Vienna, a boutique property set inside a pair of former Austrian palais dating to 1871. The property’s restoration transformed the historic palais into an 80-suite, 31-guestroom stay, steeped in Viennese heritage. The property offers a two-floor wellness sanctuary featuring a 14-meter indoor pool with thermal waters, a restaurant, and a specialty coffee shop.