The U.S. Federal Reserve Board raised interest rates by a quarter of a point and the financial markets rallied. Then Fed Chief Jerome Powell held his press conference and the DJIA ended the day down 530 points, Nasdaq was down 190, the S&P 500 fell 66 points but the 10-year treasury yield was down .11 to 3.50%. We can’t tell if the markets genuinely hate Powell or if the guy should just have a stand-in for his press conferences. Lodging stocks were lower. AHT was down -8%, APLE, PEB, BHR, RLJ, DRH and XHR were each down -6% and just about every other REIT was down -5% today.
Compass Point cut its rating on Sunstone Hotels to Sell from Neutral, lowering their price target to $9 from $12. Host Hotels was cut to Neutral from Buy with the PT going down to $18 from $25. They also cut their rating on Apple Hospitality to Neutral from Buy, cutting their PT to $17 from $22.
Redburn Partners lowered its rating on InterContinental Hotels Group to Sell. UBS Group downgraded shares of Melia Hotels International from a Buy rating to a Sell rating.
While we have been discussing the increase in insider BUYING at lodging REITs, despite the share prices and sentiment continuing to go lower, now we bring the other side of that coin. Eric Breon, the founder of Vacasa and a director, had a vesting of 1,232,111 shares on 3/17. Breon sold 1,169,378 shares that day at $0.94. That is kind of a kick in the teeth to suffering VCSA shareholders.
STR gave U.S. lodging data for the week ended 3/18. US hotel RevPAR rose 10.4% year over year. When compared with the same week in 2019, US hotel RevPAR was up 20.8%.
The Windsor Aughtry Hotel Group acquired the 127-room SpringHill Suites by Marriott in the Carilion Hospital submarket of Roanoke, VA. This will be Windsor Aughtry’s second hotel in the Roanoke market after their Hampton Inn & Suites by Hilton Roanoke Downtown. Hospitality America, Inc. has been selected as the management company for the property.
The $800 million, two-and-a half-year-long project for the Residences at the St. Regis Longboat Key in Florida is moving along. In total, five buildings are working their way through construction. There is a five story hotel on the north end of the property, three five-story condo buildings on the south side of the property and a single-floor amenities building in between. The project is on a 17.6-acre lot of the previous home of the Colony Beach and Tennis Resort. The St. Regis Residences project is scheduled for completion in 2024.
The Miami Marriott Biscayne Bay announced the completion of a full multi-million dollar renovation project. The property is introducing refreshed and elevated amenities including a new coastal dining concept, Gold Coast Kitchen + Cocktails, as well as downtown Miami’s first M Club, the brand’s signature lounge. The Miami, FL hotel now includes 607 remodeled guest rooms and suites, many with a private balcony, all offering views of Biscayne Bay and the surrounding cityscape. The property has a reimagined lobby, a one stop convenience store The Market, and an expansive, two-tiered 18,000 square foot pool deck. The outdoor space will be available as early as Summer 2023 and will continue to roll out enhanced features, including a large grassed lounge area, private cabanas, and a pool bar with a curated selection of tequilas and poolside dishes. Miami’s first M Club, is a brand signature exclusive lounge, a place to retreat, recharge and refocus, available to Marriott Bonvoy Platinum, Titanium and Ambassador members as well as available for guests interested in upgrading their stay.
Shaner Hotels announced the completed conversion of the 124-room Courtyard by Marriott Marathon Florida Keys to the Courtyard Faro Blanco Resort. The newly converted property is owned by Prime Group and operated by Shaner and marks the first Courtyard Resort in the US from MAR. The hotel plans to add cabanas and additional lighting to the pool deck with more activities and on-site experiences for guests. The full-service resort includes an infinity pool, marina view pool, outdoor whirlpool, fitness center, private cabanas, firepits, family game lawn, private dock and private sunning beach. The resort provides 14,000 square feet of flexible indoor and outdoor venue space and dining options.
Midamerica Hotels Corp has entered into an agreement to bring a 92-room Tru by Hilton hotel to a parcel in front of Cape Girardeau SpotsPlex in Cape Girardeau, Missouri. They expect to break ground this spring with a planned opening in 2024. This will be Midamerica’s second Hilton property in Cape Girardeau after the Hampton Inn.
The old Maui Palms Hotel site between Maui Beach and Maui Seaside hotels in Kahului is under construction to become Maui Palms Hampton Inn and Suites by Hilton. The 136-room hotel is expected to be completed in 2025. The hotel is a joint venture between Argosy Real Estate Partners, Peachtree Hotel Group and Blackridge Group. The neighboring Maui Seaside Hotel, recently acquired by ASAP Holdings, will eventually be converted to a hotel in the Tapestry Collection by Hilton.
The 229-room Embassy Suites by Hilton Philadelphia Valley Forge announced the completion of the last phase of a major $18 million renovation. The renovation includes updates to all guest suites, the addition of a fitness center, redesigned lobby and bar area and the introduction of a new restaurant concept to the Greater Philadelphia area. Colmar Hotels acquired the hotel in 2018. The updated hotel is being managed by Synergy Hospitality Management.
A new boutique Hyatt House hotel is being proposed just northeast of the Walt Disney World’s Disney Springs complex in Lake Buena Vista, FL. Jumani Hotels & Resorts Inc. filed an application with Orange County on March 20th to build the 110-room hotel.
Hay Creek Hotels and Restaurants announced three new management deals. The company now has over 30 hotel and resorts under agreement and said they strategically relocated their corporate headquarters to Denver, Manhattan, and Medellin, Colombia to optimize their ability to service the needs of their owners and partners across the country and beyond to Central America. The hotels being added include the 143-room Grand Summit at Attitash in Bartlett, NH; 109-room Hotel Canandaigua, a new build Tapestry by Hilton hotel in the Finger Lakes region of NY; and the 88-room upper upscale Brookmere Hotel in Saratoga Springs, NY.
Sonesta International Hotels Corporation announced the establishment of a Luxury & Lifestyle Lodging Development Team. The team will lead Sonesta’s growth of its Upper Upscale brands, including The James and The Royal Sonesta franchises in the Americas. The Luxury & Lifestyle Lodging Development Team is led by Senior VP Phil Hugh who joins Sonesta with 20 years of experience leading and motivating lodging development teams. Regional VPs on the team include new hire William Hall, Tom Williams and Mike Higgins. Sonesta launched Sonesta Franchising in September 2021. That now features 17 brands.
The refreshed Pridwin Hotel and Cottages overlooking Shelter Island, NY’s Crescent Beach will reopen on April 20 for the 2023 season. The waterfront retreat soft launched in mid-summer 2022 following two years of extensive renovations. Cape Resorts manages the property. The refreshed Main House features 33 rooms and various gathering and meeting spaces, plus 16 private cottages, all situated on over 7 acres of restored shoreline that overlooks Shelter Island’s Crescent Beach. The Pridwin also offers an enclave of 16 private cottages of various configurations nestled among the trees, from studios to 2-bedroom duplex cottages. The Pridwin is Cape Resorts’ second property located on the East End.
Plans to develop and open the first all-inclusive Club Med in the U.S. at Snowbasin Resort in Utah will no longer proceed for 2025. Club Med said the agreement was mutual as Snowbasin is reassessing their development plans on the mountain and instead is focusing on improving the skier experience. As a result, Club Med said they are shifting their focus to other projects in the pipeline. Club Med confirmed plans to develop a future US mountain resort by the 2025 to 2026 ski season as part of a three- to five-property portfolio. This includes both openings and renovations that will also occur in the Caribbean. The exact locations of each remain unknown.
Sonder Holdings announced they expanded their business travel segment to include group bookings. Sonder also announced a new partnership with HelmsBriscoe, considered the global leader in meetings procurement and site selection. SOND said they had $70 million in booked corporate sales in 2022, five times more than in 2021. They are now increasing their share of group bookings within popular verticals such as sports and entertainment, hosting elite athletes and sports teams, and film and TV production crews. SOND said their portfolio now includes properties with on-site amenities and high key counts suited to groups such as Battery Park in NYC, Business Bay in Dubai, Cielo in Mexico City, Maisonneuve in Montreal, and The Witherspoon in Philadelphia.
Paramount Lodging Advisors said they executed the sale of the Best Western and Hilton branded hotels in Carrollton, GA. Paramount represented the receiver of the 77-key hotel.
Great Wolf Resorts named Mark Lewis as Senior VP of Field Operations. Lewis spent the past 12 years at Evolution Hospitality as its Senior VP of Operations.