The DJIA fell 39 points but Nasdaq keeps rolling on, up another 385 while the S&P 500 rose 61 points. The 10-year treasury yield was flat at 3.40%. Lodging stocks were higher. SOND led the group with a 19% rise, MCG was up 9% but SLNA fell -6% on the day.
Wells Fargo changed price targets on a bunch of hotel names in their coverage. They upped Marriott’s target price to $189 from $182. Park Hotels’ PT was upped to $17 from $16. Both stocks were maintained at Overweight. WF upped Hilton’s target price to $148 from $145, DiamondRock Hospitality’s PT was upped to $10.50 from $10, Apple Hospitality’s PT is now $18, up from $17 and Pebblebrook Hotel Trust had their target price lowered to $17 from $18. Those four remain with an Equal Weight rating. Finally WF upped Service Properties Trust’s target price to $7.50 from $6.75 and maintained their Underweight rating.
In November 2022, total non-US resident international visitor volume to the United States increased 61.3% compared to November 2021 with 4,601,142 international arrivals, according to the latest data by the US National Travel and Tourism Office. November 2022 was the twentieth consecutive month that the total non-US resident international arrivals to the United States increased on a YOY basis. Of the top 20 tourist generating countries to the United States, Colombia, Ecuador, and the Dominican Republic, were the only countries to report a decrease in visitor volume in November 2022 compared to November 2021. The largest number of international visitor arrivals was from Canada, Mexico, the United Kingdom, Brazil and Germany. Combined, these top 5 markets accounted for 68.7% of total international arrivals. The U.S. citizen international visitor departures from the United States of 6,661,750 increased 41% compared to November 2021. YTD through November 2022, total U.S. citizen international visitor departures from the United States reached 72,873,660, a YOY increase of 69.3%. The YTD market share for North America (Mexico and Canada) was 53% and overseas was 47%.
According to the Q4 2022 Hotel Construction Pipeline Trend Report for Canada by Lodging Econometrics, Canada’s total construction pipeline stands at 267 projects/35,758 rooms. At year-end 2022, projects presently under construction in Canada stand at 52 projects/6,593 rooms. Projects scheduled to start construction in the next 12 months stand at 87 projects/12,098 rooms, and projects in the early planning stage stand at 128 projects/17,067 rooms. At year-end 1011, Renovation totals closed the fourth quarter at 50 projects/6,080 rooms and conversion totals are at 55 projects/6,061 rooms. Ontario is the most active province for pipeline projects in Canada at the Q4 2022 close with 153 projects/20,996 rooms, followed by British Columbia with 54 projects/8,211 rooms, and then Quebec with 18 projects/2,318 rooms. The top cities in Canada’s hotel construction pipeline, at the Q4 close, are Toronto with 65 projects/9,617 rooms, Vancouver with 20 projects/3,008 rooms, and Niagara Falls with 13 projects/3,899 rooms. The top hotel franchise company in Canada’s construction pipeline is Marriott International with 79 projects/10,457 rooms, followed by Hilton Worldwide with 64 projects/7,826 rooms and then InterContinental Hotels Group with 41 projects/4,153 rooms. The top brands in Canada’s pipeline at the Q4 close are Hilton’s Hampton by Hilton brands with 25 projects/2,872 rooms, Marriott’s TownePlace Suites with 20 projects/2,022 rooms, and IHG’s Holiday Inn Express with 19 projects/2,053 rooms. Other notable brands in the Canadian hotel construction pipeline are Fairfield Inn by Marriott with 19 projects/1,805 rooms, Home2 Suites by Hilton with 17 projects/1,821 rooms, and Hyatt Place with 11 projects/1,695 rooms. Canada had 29 new hotels accounting for 3,213 rooms open in 2022. LE’s forecast for new hotel openings in 2023 anticipates 31 hotels/3,756 rooms will open in Canada and 39 hotels/4,147 rooms expected to open in 2024.
Hyatt Hotels Corporation completed the Dream Hotel Group lifestyle hotel brand and management platform acquisition, bringing Dream Hotels, The Chatwal and Unscripted Hotels, into the Hyatt portfolio. The asset-light acquisition includes 12 lifestyle hotels, nine managed and three licensed, with another 24 signed long-term management agreements for hotels expected to open in the future. Dream Hotels will joins as a brand within Hyatt’s Boundless Collection. The Chatwal and Unscripted Hotels brands will be welcomed into Hyatt’s Independent Collection, joining The Unbound Collection by Hyatt and JdV by Hyatt brands, respectively. The acquisition welcomes more than 600 new colleagues into the Hyatt family. Dream Hotel Group founder Sant Singh Chatwal will continue his commitment as an owner of four open and two future hotels that are expected to join the Hyatt portfolio. Former Dream Hotel Group CEO Jay Stein is joining Hyatt as Head of Dream Hotels; former Dream Hotel Group Chief Development Officer David Kuperberg is joining Hyatt as Head of Development – Dream Hotels; and former COO Michael Lindenbaum is joining Hyatt as Head of Operations – Dream Hotels.
KSL Capital Partners, LLC announced an affiliate has acquired the Martin Resorts Collection of five independent boutique hotels along California’s Central Coast. The collection includes the 54-suite Avila Lighthouse Suites in Avila Beach; the 70-suite Pismo Lighthouse Suites and 100-room Shoe Cliff Hotel in Pismo Beach; and 98-room landmark Paso Robles Inn and the 24-room The Piccolo in Paso Robles. Terms were not disclosed. KSL Resorts will manager each of the hotels.
Crescent Real Estate LLC, through its investment vehicle GP Invitation Fund III, acquired the Element Basalt-Aspen, a 113-key hotel located in Willits Town Center in Roaring Fork Valley, Colorado. The mixed-use development boasts commercial space, residential condominiums, a plethora of dining and retail options all anchored by Whole Foods. The hotel will undergo a guest-facing renovation to modernize the guestrooms and refresh the public spaces. Crescent will employ HEI Hotels & Resorts to manage the property.
High Hotels, Ltd. announced the sale of the York (PA) Hampton Inn to Wankawala Organization. Since March 2022, High Hotels has closed on 7 hotel transactions, 5 divestitures and 2 acquisitions, totaling $109 million.
Hyatt Hotels Corporation announced the planned rebranding of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch to Grand Hyatt Scottsdale Resort & Spa in late 2024, marking the first Grand Hyatt hotel in Arizona. The hotel’s ownership group, Xenia Hotels and Resorts, plans to invest approximately $110 million to fully transform the property. The resort will undergo extensive renovations and enhancements of its guestrooms, pools, food and beverage outlets, Spa Avania and Fitness Center, and key public areas and amenities, including the expansion of the hotel’s indoor and outdoor meeting and event spaces. Renovation of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch is expected to begin in early summer 2023 in a phased approach with an anticipated completion in late 2024. The hotel will remain in operation during the renovation process.
LRE & Companies and American Hospitality Services, Inc., revealed the featured hotel brands and the name of the sports and entertainment complex for Roseville Junction. The new mixed-use development project in Placer County, California will be home to two select service hotels: Caption by Hyatt Roseville and Hyatt House Roseville. Caption by Hyatt Roseville is set to feature 122 guestrooms and suites, a fitness center, meeting facilities and an on-site F&B space. Hyatt House Roseville will feature 126 guestrooms and suites; public spaces including H Bar, H Market, and Outdoor Commons; workout rooms; on-site laundry facilities; and a rooftop bar, the first of its kind in Roseville. Named The Electric Pickle, the project’s entertainment and sport complex will have a bocce ball court an 10 pickle ball courts.
IHG Hotels & Resorts announced the opening of its newest Holiday Inn Express & Suites hotel in Glen Rose, Texas. Owned by P-N & K Hospitality LLC, the Holiday Inn Express & Suites Glen Rose offers 71 guestrooms and 900 square feet of meeting space.
Sonesta International Hotels Corporation announced it added 74 properties to its franchise portfolio during 2022. The new properties further expand Sonesta’s global presence and include more than 8,500 guestrooms.
One of the first Black hotel owners in New Orleans, Big Freedia, is planning to open a new entertainment venue. The new center will include a restaurant, music club, pool and micro boutique hotel. Zach Kupperman, who owns the building that will be transformed into an entertainment center, is developing the concept with Freedia and several other local investors. Hotel Freedia, which is expected to open by 202, will only have five rooms. Despite its name, the building will serve more as a music club and bar with food. The venue will also include an outdoor pool-party space. While the restaurant and music venue will be located on the found floor, the hotel rooms will be on the second. The pool and clubhouse will be located in the adjacent open space. The development is expected to cost about $5 million.
A 122-guest room extended stay hotel is being proposed for Latham, New York. Reddy Patlola Rathnaker plans to build a $12 million WoodSpring Suites by Choice Hotels off the Interstate 87 Northway.
The highly-anticipated Ambiente, A Landscape Hotel, located in Sedona, Arizona, has opened with 40 cube-shaped atrium accommodations that blend seamlessly with the Red Rock terrain. The property features the Velvet Spa offering treatments and extensive activities, a signature restaurant, food truck, electric snack and drink car and a pool.
DGC Development Corp. wants to build a new six-story, 68-room hotel just west of Disney’s All-Star Sports Resort and All-Star Movies Resort in Osceola County, Florida. Amenities include an outdoor infinity pool and Jacuzzi, as well as a dock/pier on a small lake.
Omnia Group has put the former Ace hotel at 225 Bowery, New York into bankruptcy protection as the establishment faces foreclosure and a $10 million judgment. The bankruptcy temporarily stops the foreclosure. Omnia Group has problems with its lender, Bank Hapoalim, and partner, Northwind Group, but the bankruptcy filing blames Ace. Since the litigation began last year, some new elements have emerged. Bank Hapoalim recently said in a filing that it reach a deal to sell its loan, allowing another lender to foreclose on the property. Then, this month, Sortis Holdings agreed to buy the Ace brand and hotel management company for $85 million.
Avison Young Hospitality Group announced that with the closings last week, the hotel brokerage firm has closed 595 hotel transactions over the ten years, The brand mix was 149 Marriott, 114 Hilton, 67 IHG and Hyatt, 102 Choice and Wyndham and 163 other brands, boutiques and independents. Geographically, 64 of the closings were in the Northwest, 89 in the Northeast, 91 in the Northcentral, 66 in the Southcentral and 285 in the Southeast.
VICI Properties Inc. has agreed to provide a construction loan for up to $287.9 million to Great Wolf Resorts, Inc. related to the development of Great Wolf Lodge in Mashantucket, Connecticut, adjacent to the Foxwoods Resort Casino. The 549-room indoor water park resort is expected to start welcoming guests by mid-2024. The transaction represents VICI Properties’ fourth loan investment with Great Wolf for a total capital commitment of $553.4 million.
Retro Hospitality has selected Tambourine to re-imagine the Quirk Hotels digital experience. Tambourine designers crafted a dual splash page experience for Quirk Hotels to introduce potential guests to both properties. The website user can then toggle between the Richmond and Charlottesville, Virginia locations.
Hilton announced the opening of Embassy Suites by Hilton Aruba Resort. Located between Eagle Beach and the Bubali Bird Sanctuary, and marks the first Embassy Suites by Hilton property in Aruba and second Hilton hotel on the island. The 330-suite resort boasts five food and beverage outlets, nearly 7,000 square feet of flexible indoor event and meeting space, 2,500 square feet of outdoor meeting space, an expansive outdoor pool, children’s pool, outdoor playground and a fitness center. Later this year, the hotel will open a spa with five treatment rooms, Jacuzzi and sauna.
Personnel Moves
Clearview Hotel Capital, LLC promoted Chief Investment Officer David Jubitz to President. Mr. Jubitz joined the company in 2007 as an analyst.
Ferdinand Wortelboer is now the Chief Operating Officer for COMO Hotels and Resorts. Placed at COMO Hotels and Resorts’ headquarters in Singapore, Wortelboer will head up the Executive Committee and the group’s hotel operations globally.
GOCO Hospitality announced the appointment of Nicholas Clayton as President of GOCO America. In this newly created role, Clayton will guide the wider expansion of GOCO projects in America, including Glen Ivy Hot Springs in California. Clayton held CEO positions with Capella Hotel Group, Jumeirah Group and Viceroy Hotel Group.
CBRE announced Brian Nordahl joined CBRE Hotels as an Executive Vice President, specializing in institutional investment sales across Texas and the South Central US. Nordahl, who will be based in Dallas, joins CBRE from Goldman Sachs.
