Belmond and the Cipriani Family Make Peace

The DJIA ended today down 232 points while Nasdaq was down 11, the S&P 500fell 12 points and the 10-year treasury yield was down .01 to 3.92%. Lodging stocks were modestly lower. SVC traded up to a new high but ended the day in the red. MCG was the big winner, up 7% while INN was down -7% despite earnings that seemed to please analysts. AHT was down -6% while BHR fell -5% on the day.

RLJ Lodging Trust reported in-line results with some limited guidance they gave in January at ALIS. While RLJ reported limited share buybacks, only $7.6 million in 4Q, they noted they need to be leverage neutral. What RLJ did do was raise their quarterly dividend by 60% to $0.08, bringing their dividend yield to 2.8%.

Summit Hotel Properties reported 4Q results ahead of estimates with strong earnings contributions from the recently acquired properties, including NewcrestImage. INN also announced they are selling six hotels and a land parcel for combined gross proceeds of $80 million.

Argus Research upped their rating on Airbnb to Buy from Hold with a $144 price target.

Crestline Hotels & Resorts, LLC announced the addition of two hotels to its managed portfolio, the Fairfield Inn & Suites Fairmont, West Virginia and the Hampton Inn & Suites Legacy Park-Frisco, Texas. The Fairfield Inn & Suites Fairmont offers 84 guestrooms, a boardroom, indoor pool and a fitness center. The Hampton Inn & Suites Legacy Park-Frisco boasts 105 guestrooms, an outdoor pool, fitness facility and a business center.

The Kimpton Surfcomber recently completed a multimillion-dollar revamp. The Surfcomber sits on 200 feet of prime oceanfront property with direct beach access on Collins Avenue in Miami Beach, Florida. Between the pool and the beach is the new High Tide Beach Bar and Grill. Another new feature is The Vines Cabanas at Surfcomber complete with upper and lower cabanas and the K’alma Spa Cabana. Just off the lobby is the hotel’s social hub, aptly named the Social Club, an inviting bar/restaurant.

A stalled hotel project in the heart of Speedway, Indiana could once again get approval. The Town of Speedway introduced a proposal for a $2.5 million short-term construction loan at the council meeting. The town’s loan originates through tax increment finance revenue. The loan would help the new developer jump-start the more than $30 million Wilshaw Hotel project. The development team is HE Speedway owner LLC and includes partners Hotel Equities and 33 Degrees. The Wilshaw Hotel will offer 128 suites, a full restaurant and a meeting room. If everything goes through, the construction could start as early as late spring with completion expected in early 2025. 

Warwick Hotels and Resorts announced the acquisition of Hotel Le Crystal, located in downtown Montreal. The hotel will henceforth be known as Warwick Le Crystal-Montreal. The hotel will feature 131 rooms and suites, a number of meeting rooms, onsite restaurant, spa Elements Maison de Beauté, an indoor pool, fitness center and underground parking. Warwick Le Crystal-Montreal is scheduled to welcome its first guests in May this year.

Bluegreen Vacations Holding Corporation announced the groundbreaking for the Bluegreen Mills Springs Lodge Resort in Pigeon Forge, Tennessee. Expected to open in 2024, the new lodge-style resort features 67 guest accommodations, waterfalls, outdoor pools, fire pits, and a spa.

This past fall, Evon and Brian Salle purchased Hotel Osceola in Osceola, Iowa. The Las Vegas couple purchased the empty property with the hope of reviving the building for people to reminisce and appreciate the history it has to offer.

Berkadia announced the sale of the Holiday Inn Express & Suites Orange County – Santa Ana, a 161-key, select-service hotel located in Santa Ana, California. Berkadia Hotels & Hospitality led the transaction on behalf of the seller, Glacier House Hotels. The 10-story hotel sold for $29.49 million to Heritage Hotel Group.

Malliouhana Resorts, the first five-star hotel in Anguilla, announced it will return to operating as an independent property, led by Storey Hotel Management Group. The handover of Malliouhana on April 1 marks the second management transition from Auberge Resorts Collection to Storey Hotel Management Group. Malliouhana Resort offers 63 rooms and suites, multiple food and beverage venues, a two-tiered infinity pool and the Spa at Malliouhana.

Personnel Moves

Kolter Hospitality appointed George Martinez as the Area Director of Revenue for a collection of three Florida-based Hyatt hotels. As he steps into this next role, Martinez will continue to be responsible for leading the strategic positioning of both transient and group pricing, as well as forecasting and budgeting top lines revenues for the Hyatt Centric Las Olas, Hyatt Place Fort Lauderdale Cruise Point and Hyatt Place Coconut Point. 

Unique Vacations Inc. announced the appointment of Tony Cortizas as Chief Marketing Officer, effective immediately. He is charged with directing research, creative, and brand marketing for the hospitality brands under the UVI umbrella, particularly all-inclusive trailblazer Sandals Resorts and sister brand, Beaches Resorts. Prior to his promotion to CMO, Cortizas was SVP of Brand Development, a role he held since his return to Unique Vacations in 2021. Before that, Cortizas spent fourteen years with Meliá Hotels International, most recently as V.P. of Global Brand Strategy.

Europe Highlights

IHG Hotels & Resorts strengthened its portfolio in the UK & Ireland with the addition of nine new hotels. The properties span five of IHG’s brands across its four collections: Luxury & Lifestyle Collection brand, Hotel Indigo; Premium Collection brand, voco hotels; Essentials Collection brands Holiday Inn and Holiday Inn Express; and Staybridge Suites in its Suites Collection. The nine hotels include: Hotel Indigo Exeter; Hotel Indigo London - K West Shepherd’s Bush; voco Lythe Hill Hotel; Holiday Inn Manchester Oldham; Holiday Inn Sunderland; Holiday Inn Manchester Airport; Holiday Inn Express Fleet; Holiday Inn Express & Suites Halifax; and Staybridge Suites Brighton.

Marriott International signed an agreement with Grimit S.r.l. to bring The Ritz-Carlton brand to Italy. Through a significant conversion of the former Hotel Grande Bretagne in Bellagio, the brand will bring its legendary service and elegant aesthetic to Lake Como. Expected to open in 2026, the waterfront property is slated to offer 59 guestrooms and 46 suites. Comprehensive resort facilities include a destination spa complete with an indoor pool, casual and fine dining restaurants, meeting and event facilities, a large outdoor pool, private boat dock, and extensive parkland and gardens. 

Dubai Holdings has acquired full ownership of The Westin Paris - Vendome after purchasing Henderson Park’s stake in the 400-room hotel. The Westin Paris - Vendome will continue to operate in partnership with Marriott International, under The Westin brand. Dubai Holdings said it will begin considering future plans for the property after the Paris Olympics in 2024.

Belmond and the Cipriani family have reached an agreement to put an end to all litigations between them around intellectual property. As part of the agreement the Hotel Cipriani of Venice, a flagship property of Belmond, will be the only one in the world with that name. The Cipriani Group will be able to continue to expand its hospitality activities with some of its projects developed with Belmond as partner.