The DJIA rose 5 points, Nasdaq was down 76, the S&P 500 was down 19 points and the 10-year treasury yield managed to stay under 4%, up .08 to 3.994%. Lodging stocks were mixed but the big movers were all to the downside. SLNA traded down another -7% to another all-time low. VCSA and MCG were both down -6%.
Service Properties Trust kept its positive momentum going, reporting a 159% increase in normalized FFO in 4Q22. Adjusted EBITDAre rose 27%. They also sold four hotels for $25.8 million last quarter, completed $610.2 million in secured financing and recently announced (stock symbol: SVC) is purchasing Travel Centers of America, including SVC’s interest. SVC is under agreement to sell its remaining nine Marriott branded hotels with 1,210 keys for $88.5 million.
Xenia Hotels & Resorts reported 4Q results slightly ahead of expectations but gave a mixed 2023 outlook. While 2023 guidance was below expectations, they are undergoing significant renovations at some of their hotels. XHR repurchased $26 million of stock in the quarter. So far this year they have bought back another $15 million worth.
Hilton Grand Vacations announced a solid 4Q EBITDA beat while also giving 2023 guidance which was higher than expectations. HGV bought back 2.5 million shares for $100 million in the quarter as well as an additional 2 million shares for $80 million, year to date.
STR’s global “bubble chart”, updated through February 17, 2023, showed strong performance to kickstart the year. Among all countries with room supply of more than 50,000 rooms, Israel, Singapore, France and the United Arab Emirates led in RevPAR on an actual basis. On the other hand, Tunisia, Hungary, Poland, Czech Republic, and Indonesia were among the bottom five performers in RevPAR. Overall, 29 of the 48 countries with hotel supply greater than 50,000 rooms recorded growth in RevPAR versus the matching 28-day period in 2019. Saudi Arabia grew RevPAR by a staggering 67% and China was among the countries with gains in RevPAR for the first time since 2022, as the country celebrated its first restriction-free Chinese New Year in the last three years. Nearly two-thirds of markets posted RevPAR higher than 2019 to begin 2023. Nigeria is the first African market to be highlighted in this monthly analysis, which took a spot in the top five RevPAR growth markets. Hainan, in China, was also among the top five performers for the first time since July 2022. Overall, global markets were able to carry the recovery momentum as only 8% of markets saw their occupancy level remain under 75% of 2019 comparables. More improvements are to be expected as the Asia Pacific region returns to normalcy.
In a look back at the year plus since its merger, Pyramid Global Hospitality is celebrating record growth and development, including the addition of 59 properties to the company’s portfolio, six key executive promotions and notable investment in the technology and tools provided across the collection. Continuing the momentum of the company’s success, Pyramid Global is on track to hit a major milestone of 250 properties in the portfolio. Noteworthy additions included Riverhouse on the Deschutes in Bend, Oregon; La Quinta Resort & Club in Palm Springs, California; W Hotel in Rome, Italy; as well as the 12 illustrious properties within the Provenance portfolio in locations from Seattle to Nashville. Executive promotions include Calvin Banks to Senior Vice President of Development & Culture; Lisa Compton-Martin to Senior Vice President of People Operations; Paul Bashaw to Vice President of Global Sales; Suya Davenport to Vice President of Global Sales; Greg Goodwin to Vice president of Information Technology and Chad Heilsen to Vice President Finance Operations. Additionally, President Alex Cabañas will assume the role of Executive Chairman for the Pyramid Global Hospitality Board of Directors and Warren Fields will continue leading the operations of the company as CEO.
Aimbridge Hospitality announced the expansion of its specialized Select Service operating division with the addition of nine properties owned by Neema Hospitality. The nine hotels, totaling 774 keys, are located across Maryland, Pennsylvania and West Virginia and represent select service, extended stay and economy verticals under the Choice and IHG Hotels & Resorts families of brands.
Accor announced key openings and renovations at iconic properties across North & Central America. 2023 marks the much-anticipated opening of both Sofitel Legend Casco Viejo Panama and Raffles Boston Back Bay Hotel & Residences. The biggest and brightest projects recently unveiled or set to be unveiled in 2023 include: Fairmont Mayakoba, Fairmont Palliser, Fairmont Tremblant, Fairmont Banff Springs, Fairmont Kea Lani, and Fairmont Empress.
The St. Regis Punta Mita announced the completion of the highly anticipated first phase of its property-wide reinvention project. The property has enhanced the lobby and concierge areas, a selection of guest rooms and suites including eight Ocean Front Beach Villas, Altamira Lobby Bar, Las Marietas Restaurant & Bar, Marietas Pool & Beach and outdoor wedding spaces. The St. Regis Punta Mita also features two Jack Nicklaus Signature golf courses and six food and beverage dining outlets. The St. Regis Punta Mita will begin phase two of its renovation beginning May 2023 and will include the remainder of the guest rooms and suites, Beach Club, and Reméde Spa.
The St. Regis Hotel & Residences project in Miami, Florida’s Brickell neighborhood is moving forward with the developers signing a utilities deal with the county. Located at 1809 Brickell Avenue, the project will include 350 resort residences and 30 hotel guestrooms. Related Group and Integra Investments are developing the project.
Edgewater Group LLC announced the acquisition of the boutique, full-service Inn on the Square in Greenwood, South Carolina. The property was purchased by 104 Court LLC, a wholly owned subsidiary of Edgewater Valley Forge Fund III LP, an affiliate of Edgewater Group LLC. The Inn on the Square features a full-service restaurant, casual bar/lounge, impressive event venues and a variety of business services for conferences, meetings, weddings and special events.
A dual-brand hotel and retail building are coming to the west side of Coralville, Iowa. The Coralville City Council gave unanimous final approval to rezone the 3.84 acres of land to make way for the hotel and retail buildings. JD Royal Hospitality are looking to build a four-story hotel consisting of an avid Hotel with 71 rooms and a Candlewood Suites with 68 rooms. The retail building will be one story with three units, as well as a drive-through.
Graduate Hotels announced plans for the forthcoming Graduate Auburn hotel in Auburn, Alabama. The ground-up, new construction hotel is currently under construction and expected to launch in 2024. The five-story Graduate Auburn will offer 177-keys, two food and beverage outlets, more than 10,000 square feet of meeting and event space and on-site parking.
Veris Residential has checked out of the North Jersey hotel market according to its fourth-quarter earnings report. Veris sold its 351-key Hyatt Regency hotel in Jersey City for $117 million to a joint venture of Taconic Capital Advisors and HEI Hotels & Resorts affiliates and the 371-key Residence Inn and Envue hotels at Port Imperial in Weehawken for $97 million to Blue Sky Hospitality Solutions, which is an affiliate of Navika Capital Group. Veris Residential will own solely residential properties in North Jersey, Westchester County and the greater Boston Area.
Life House announced the addition of two more properties in Mexico to its growing portfolio of 65+ independent hotels. The two properties are Faisano Nomadas in Aldea Zama and the Carmen in Playa Del Carmen. With these hotels, Life House is now managing five independent hotels in the Mexican state of Quintana Roo. The Carmen is a 37-room hotel located in the heart of Playa Del Carmen. The property features a rooftop bar and lounge and an Italian restaurant. The owner is a longtime Denver-based developer. Located in the heart of Aldea Zama, Faisano Nomadas features 24-rooms and a resort-style pool and bar. Francisco Mendoza and Gustavo Acosta are the developers of the property.
The Mayfair Hotel Group signed a 49-year lease at 242 W. Forty-Ninth Street in New York City’s Theater District. The 78-key hotel shut down due to the Covid-19 pandemic and has sat vacant since. The Mayfair will begin a $2.5 million renovation of the hotel, which will be named the Mayfair Hotel NYC. The renovation will include updated interior design, enhanced mechanical systems and new food and beverage operations. Renovations are expected to take up to a year. The Times Square/Theater District hotel was brokered off-market by Avison Young.
Two years after Hotel Henry shut its doors, the historic building will re-open again on Friday in Buffalo, New York. Buffalo developer, Douglas Jemal, signed a 99-year lease on the historic landmark. The hotel has 88 rooms, 5 suites, a meeting and banquet space, and plans for a restaurant, café, and bar.
Brittain Resorts and Hotels has deepened its partnership with MB National LLC, Beach Vacation LLC and the Litchfield Company by taking over management of four new resorts and two vacation rental companies in 2022. The new additions include: Monterey Bay located on the north end of Myrtle Beach, South Carolina; Marriott Courtyard Springhill Suites located in the heart of Myrtle Beach, South Carolina; Beach Vacations, a vacation rental company featuring luxury condos, villas, and suites; Litchfield Beach & Golf Resort in Pawleys Island, South Carolina; the Litchfield Inn in Pawleys Island, South Carolina; and Lachicotte, a Pawleys Island vacation rental company with luxurious beach homes.
California’s Labor Commissioner is suing the owner of the Beacon Grand hotel, previously known as the Sir Francis Drake, in downtown San Francisco, California, and a contractor who worked on the hotel’s renovation, seeking $730,000 in unpaid wages on behalf of 17 workers. The defendants named in the unlimited civil case are an affiliate of hotel owners Northview Hotel Group and Angelo Gordon; general contractor Excel Hotel Services Inc; and Excel CEO Stephen David Pavone. The commissioner is seeking recovery of wages from Excel and Pavone, while the hotel property owner is named in more than a dozen mechanics liens, which if granted, entitle foreclosure and sale of the property toward payment. The commissioner can prosecute unpaid wage claims on behalf of employees.
Meyer Jabara Hotels appointed Jay Sarkar as Chief Financial Officer. In addition to managing the accounting processes for Meyer Jabara’s 31 individual hotels, Sarkar is tasked with planning the financial future of the management company. He will also be working to get more hotels into the portfolio. Prior to joining Meyer Jabara Hotels, Sarkar served as CFO for StepStone Hospitality and prior to that held the CFO post at Alena Hospitality.
Banyan Tree Group signed an MOU with La Quinta Real Estate Group to open Angsana Real de la Quinta Benahavis Marbella resort and residences in 2026. Located in the charming Mediterranean town of Benahavis, the development will include a hotel, branded residences, apartments and commercial spaces. The property marks the Group’s debut in Spain. In addition to 90 guestrooms and suites, the hotel will also feature three dining venues, meeting spaces, spa and kid’s club, adult and family pools, and a wedding amphitheater. Angsana residences will come with amenities including a private courtyard, pool, parking, daily housekeeping and maintenance services.