Upbeat Mood and News Frenzy at ALIS
Skift Take
- Truist said they are finding the sentiment at the ALIS Lodging Conference as mostly positive, with lots of “hope” that the most well-anticipated recession in the history of recessions will be a mild one.
- STR and Tourism Economics made a modest upgrade to the 2023 U.S. hotel forecast released at ALIS.
- Four Seasons said they started 2023 with new leadership, brand extensions and strategic portfolio growth.
The DJIA rose 104 points but Nasdaq was down 30, the S&P 500 was down 3 points and the 10-year treasury yield was down .06 to 3.47%. Lodging stocks were mixed. SOHO was the big gainer, up 26% as they announced they were starting to pay preferred dividends again. SOND was up 9% but MCG fell -14%.
Truist said they are finding the sentiment at the ALIS Lodging Conference as mostly positive, with lots of “hope” that the most well-anticipated recession in the history of recessions will be a mild one. CoStar’s HNN said leaders are all-out bullish on the health of the industry. Truist said the tone is that leisure is still strong while business travel sentiment is much more mixed. Labor growth appears to be moderating Development financing is still there with Truist describing CMBS as alive and well with plenty of expensive (8%+ interest) money available. Hilton’s new Spark brand is getting a lot of attention with analysts and reporters saying positive things.
STR and Tourism Economics made a modest upgrade to the 2023 U.S. hotel forecast released at ALIS. Additionally, a subsequent downward adjustment was made for 2024. The occupancy projection for this year was lower than the previous forecast by 0.1% while projections for ADR and RevPAR were lifted by 0.5% and 0.3%, respectively. For 2024, a 0.3% downgrade in occupancy coupled with a 0.1% lift in ADR meant a RevPAR downgrade of 0.4%. They now anticipate RevPAR to rise 3.7% in 2023 with ADR up 2.1% and occupancy at 63.6%. For 2024, they are expecting RevPAR to rise 6.6% with ADR up 3.8% and occupancy at 65.3%.
UBS upped their target price on Airbnb to $114 from $112. They maintained their Neutral rating.
Four Seasons said they started 2023 with new leadership, brand extensions and strategic portfolio growth. In October, they appointed Alejandro Reynal as President and CEO. In 2022, Four Seasons opened seven new properties and expanded its growing collection of standalone Private Residences. The company has more than 50 projects under planning or development, including in Italy, Spain, China, Japan, Saudi Arabia, Colombia, Belize and many more. In the year ahead, the company will expand its offerings with two new planned hotel openings in China in Suzhou and Dalian; and projects in the Middle East including new residences in Bahrain Bay, a second hotel in Doha, and a new hotel in Rabat, Morocco. Residential continues to be a significant driver for strategic growth, with a five-year pipeline comprising more than 30 projects worldwide. In addition to new hotel and residential openings, Four Seasons has expanded its experiential offerings to include the Four Seasons Private Jet Experience, At Home Collection, and the recently announced Four Seasons Yachts. A collection of nearly 600 restaurants and bars worldwide and 126 spas also extends the Four Seasons experience. With 2023 Four seasons Private Jet Experience itineraries nearly sold out and a full calendar of 2024 journeys just announced, the program continues to grow. In September 2022, Four Seasons announced the introduction of Four Seasons Yachts, with the first vessel anticipated to embark in 2025. New and exciting itineraries will be unveiled later this year for Beyond by Four Seasons driving journeys.
Aimbridge Hospitality unveiled the Aimbridge Accelerates Report, with a look back at successes from 2022 and what’s to come in 2023. Aimbridge Accelerates recaps the events that made 2022 a standout year including the full conversion to six vertical and geographically focused operating divisions; evolution of the leadership team leading to greater depth of bench; continued growth of the entire Aimbridge team; and portfolio growth. Aimbridge’s premium portfolio includes more than 1,500 properties (inclusive of pipeline) in all 50 U.S. states and over 20 countries. In 2023, Aimbridge is set to further disrupt the industry through the implementation of its global growth plan, led by a remained and restructured business development group; the acquisition and retention of top talent; and industry-leading practices to enhance guest experiences and enterprise operations.
Choice Hotels International, Inc. made a series of strategic moves to position itself as the challenger brand to watch in upscale and the growth leader in extended stay. From the grand opening of the first Everhome Suites and the opening of the sixty-fifth Cambria Hotel, to the Suburban Studios brand reliance and the acquisition of Radisson Hotels Americas, the Choice Hotels portfolio expanded in 2022 to 22 brands and nearly 7,500 hotels, representing nearly 630,000 rooms, in 46 countries and territories. Led by Cambria Hotels and Ascend Hotel Collection, Choice is rapidly expanding in Upscale now with eight brands including Radisson brands. Four distinct, extended-stay brands are driving growth including Everhome Suites, WoodSpring Suites, Suburban studio and MainStay Suites.
The success of a Hilton-affiliated extended-stay hotel has prompted Hogback Development Company to build another hotel next to it. Construction of Tru by Hilton – Yakima Airport has started in the Rainier Square shopping area, immediately west of the Home2 Suites by Hilton in Yakima, Washington. Construction of the 74-room hotel’s structure is expected to begin in March with a targeted opening in spring 2024.
Construction crews started work on a 5-star hotel and luxury condo building in downtown Tampa, Florida. Pendry, the new 38-story tower, will feature 200 hotel rooms and 107 residences. Construction is expected to be completed in two to three years.
Six Senses is taking its trademark wellness and sustainability focus to Napa County, California. An investment group, comprising Weller Development Partners, Pegasus Capital Advisors, and IHG Hotels & Resorts, will work with expert partners in sustainability to restore an original resort named after the natural thermal Aetna Springs and its recreational green spaces, vineyards, and agricultural activities supporting the resort. Six Senses Napa Valley will welcome guests to the western edge of a vast 3,000-acre estate. The existing structures will be sensitively preserved, and the landscape regenerated to bring back the beauty and functionality of the nature mineral springs. There will be a choice of 95 rooms and suites, including ten tent-style structures, and 16 branded residences, which will be serviced by Six Senses and, alongside all the resort amenities, enjoy access to a dedicated lounge. The historic mineral springs will be revived with indoor and outdoor thermal experiences and bathing. The property will also feature four food and beverage outlets. Six Senses Napa Valley is slated to open in 2026.
The City of Calera is considering adding a new hotel to the city. The plan features a four-story Comfort Inn and Suites with 78 rooms and an outdoor pool. Spurlin Construction purchased the property and next steps will be to finalize the engineering, architecture and construction plans for the project. Right now, the project looks like it will take about 12 to 14 months.
Berkadia announced its alliance with global property consultancy Knight Frank, an alliance that will offer the firm’s clients access to domestic and internationally-based capital while maximizing their property values. Knight Frank and Berkadia offer a combined global network comprising more than 22,750 people across 558 offices in 57 territories, spanning all key capital hubs. Together, they will be one of the world’s leading multifamily brokers.
Eric Danzinger announced Braintree Hospitality will be rebranded as Resolute Road Hospitality and expand into national third-party management services. Resolute Road Hospitality will act as a true partners, advocate, and fiduciary to the owner by applying the knowledge, resilience, and perspective they have cultivated over decades as owners. Resolute Road Hospitality’s current portfolio encompasses 15 properties totaling 1,732 guestrooms with a robust growth pipeline. The leadership team led by CEO Danzinger also includes Gary Horton, President; Daniel Pinheiro, Chief Business Development Officer; Kristen Knapp, Chief Investment Officer; and Aimee Tylor, Director of Operations. Kevin O’Neil and Richard Sprecher recently joined the team as Vice Presidents of Business Development to expand the existing pipeline.
Hay Creek Hotels and Restaurants announced a joint venture with Royal Property. Royal Realty currently operates The Charlee Hotel and Luxe by the Charlee in Colombia, with an additional property slated to open in 2023. The new JV will focus on acquisitions and development throughout Central America and the Caribbean. This strategy will be focused on third-party management and JV opportunities. The hotels being added to Hay Creek Hotels and Restaurants’ expanding portfolio are: The Charlee Hotel featuring 42 suites, over 2,500 square feet of event/meeting space, a rooftop bar/lounge and a number of culinary options. Luxe by The Charlee with plans for cabins along with luxury apartments located on a vast forest in the heart of Guatape.
Personnel Moves
Valley of the Moon Partners announced Haydn Kramer, with a career including Senior Executive roles with Marriott International; Vice President of Sales and Marketing with Concord Hospitality Enterprises; and Vice President of Operations for Hostmark Hospitality, has accepted a full partnership with The Valley of the Moon Partners. Valley of the Moon Partners, LLC is an international hotel consultancy focusing on luxury tier branded or independent hotels.
The IHG Owners Association announced Navroz Saju has assumed the Chair position of its Global Board of Directors for 2023. Saju is the Founder and Principal of Hotel Development & Management Group Hotels. Saju has been very active with the Association for more than a decade, beginning in 2010 when he started serving on various committees and task forces including Revenue Management, Responsible Business, Technology and the Holiday Inn Express brand.
Horwath HTL announced Melissa Maher joined the group as Managing Director to support hoteliers with actionable items to optimize their business offerings. Maher most recently spent the last 21 years with Expedia Group in various positions. The company also announced Dorothy Dowling has joined the group as Managing Director to support global hospitality industry clients with go-to-market strategies to help grow scale, revenue, and profitability with services ranging from repositioning to commercial business planning and activation. Dowling most recently spent the last 18 years as Chief Marketing Officer of Best Western. Dowling will be opening a new office for Horwath HTL in Scottsdale, Arizona.
Fergus Stewart has been appointed chief executive of Lancaster Landmark Hotel Company. He was promoted from his previous role as deputy managing director of the company. He is also general manager of the 300-bedroom Landmark London in Marylebone. As group chief executive, Stewart will run several projects across the portfolio of hotels including the £1.3m renovation of the Landmark London and the rebrand of K West Shepherds Bush into Hotel Indigo by IHG Hotels & Resorts. Prior to his appointment to the Landmark Hotel Company, Stewart was senior vice president and acting chief operating officer at Jumeirah hotels and Resorts in Dubai.
Hilton announced the signing of a franchise agreement with Zetland Capital to open Lindian Village Beach Resort Rhodes, Curio Collection by Hilton. Anticipated to open by Summer 2023, the 196-room resort will be managed by SWOT Hospitality. Lindian Village Beach Resort Rhodes will be the first Curio Collection in Rhodes, one of the most visited Greek islands. The resort will offer five restaurants, two bars and one gelateria; two outdoor pools; a fitness center; spa; water sports; a tennis court; and two meeting rooms.
European Highlight
Minor International and its European subsidiary, NH Hotels Group, announced plans for a massive expansion with 50 new hotels worldwide in the next 24 months. NH Hotel Group will open 27 hotels in Europe and the Americas, with a total of 4,471 new rooms. The openings include three new Anantara luxury brand hotels; three new Tivoli hotels; and four NH Collection hotels. Minor hotels will open 23 hotels in Asia, increasing its offer with 5,653 rooms. NH and Minor use eight brands in the hotel market. Minor International owns 94.1% of NH Hotels Group’s shares.