The DJIA was up 141 points, Nasdaq was up 87, the S&P 500 rose 23 points while the 10 year treasury yield was down .02 to 3.55%. Lodging stocks were modestly higher. The only mover of note was AHT, down -6%.
Wells Fargo cut price targets on their lodging names under coverage with a good part of the blame being concerns over regional banks and their impact on the hotel space. They only downgraded two names, Park Hotels and Xenia Hotels, both downgraded from Overweight to Equal Weight with price targets cut to $12.50 from $17 and $13 from $18 respectively. HST’s PT was cut to $18 from $21, SHO to $9.50 from $11.50, DRN to $9 from $10.50, RHP to $96 from $101, APLE to $17 from $18, HT to $7 from $10, MAR to $183 from $190, HLT to $144 from $154, CHH to $113 from $122, PEB to $14 from $17 and RLJ to $10.50 from $13.
STR’s global “bubble chart” update through March 18 shows growing momentum in the Asia Pacific region and more than half of markets globally with better than 20% growth in RevPAR versus 2019. Among the countries with room supply of more than 50,000 rooms, Israel, Switzerland, Singapore, the Dominican Republic and New Zealand led in RevPAR on an actual basis. Singapore was also one of the leaders in occupancy along with two other Asia Pacific countries – Thailand and New Zealand. All countries in the RevPAR bottom five were the same as STR’s previous update, Indonesia, the Czech Republic, Tunisia, Poland and Hungary. Among the eight countries where RevPAR is behind 2019 levels, only two were from the Asia Pacific region while the remaining six are European countries. In growth terms, Saudi Arabia continued its momentum with a RevPAR increase of 71% from 2019. Vietnam stayed at the bottom with RevPAR 25% below the pre-pandemic comparable. Among all the markets with rooms supply larger than 15,000 rooms, roughly 85% saw their RevPAR grow from 2019 levels. Just 44% of markets saw an occupancy gain versus 2019, while 91% reported increases in ADR. For individual markets, Egypt Provincial and Egypt’s Red Sea Resort reported ADR up more than 150% due to recent exchange rate fluctuations.
HEI Hotels & Resorts assumed management of the Marriott Jacksonville Downtown Hotel in Jacksonville, Florida. The 354-room property is owned by L+R Hotels. The Marriott Jacksonville Downtown Hotel boasts nine meeting rooms comprising nearly 13,000 square feet of meeting and event space including a 7,000 square foot ballroom, multiple food and beverage facilities, and a rooftop pool. A comprehensive renovation of the hotel is in the planning stages with completion anticipated in the first quarter of 2024.
LBA Hospitality announced the Home2 Suites by Hilton Jacksonville, NC has completed its renovation. Located in Jacksonville, North Carolina, the 105-room hotel has undergone a complete transformation of its guestrooms and public spaces. The hotel is owned by Apple Hospitality REIT, Inc. and managed by LBA Hospitality.
Crescent Hotels & Resorts announced the addition of Colonial Williamsburg Resorts, in Williamsburg, VA, to its Latitudes: Lifestyles by Crescent portfolio. Colonial Williamsburg offers five unique offerings including the Williamsburg Inn, Williamsburg Lodge, Williamsburg Woodlands Hotel and Suites, the Griffin Hotel, and the Colonial Houses. Additionally, Crescent will oversee the collective 19 food and beverage outlets found at Colonial Williamsburg’s hotels and historic taverns.
Extended Stay America announced the opening of the Extended Stay Suites Atlanta-McDonough, located in McDonough, Georgia. The property was developed by TGC Group and will be managed by TGC Hospitality Management. The four-story, 84-room new construction property features a fitness room, onsite guest laundry and signature spacious lobby with additional vending options.
In Hawaii, the iconic Coco Palms Hotel on Kauai is about to be rebuilt. Reef Capital Partners plans to build a 350-room hotel, which should be completed in three years. Community leaders and residents are opposed to the new hotel and there are plans for a legal challenge to stop the project.
Just months after being shut down by the city of Fresno, California, the former Radisson hotel has new life and a new owner. The hotel was closed when it failed a safety inspection by the city and needed a new sprinkler system. Sevak Khatchadourian, the new owner of the building, hopes to bring the building back and get it on a paying basis.
Onix Group plans to build a $90 million, 14-story building in Orlando, Florida called the Gateway that will include a 150-room hotel, medical offices, a conference center, a restaurant and shops. Construction of the building will begin in spring 2024 and the building is scheduled to open in fall 2026. The hotel will be at the top of the Gateway building and will offer a sky lobby, artificial turf activity lawn, an outdoor pool, and a fitness center. AdventHealth will be the anchor tenant and is leasing several floors in the building.
The sudden, unexpected construction of a hotel in the middle of a protected reserve in southern Mexico has many conservationists scrambling to figure out what’s going to happen to one of the largest continuous rainforests in Mesoamerica. Developers broke ground on the project in Calakmul Biosphere Reserve, in the state of Campeche. The hotel is part of the Tren Maya, a controversial railway line that will move tourists an cargo throughout the Yucatan Peninsula and southern Mexico. The hotel will have around 150 rooms. The Tren Maya project will have seven lines that connect the states of Quintana Roo, Yucatan, Tabasco, Campeche and Chiapas. Six hotels are being built along different points of the route, a new feature of the project that was only announced last November.
A new hotel is coming to downtown Marquette, Michigan. Explore: Marquette Historic District will be a 16-room boutique hotel. Construction will begin this April and is expected to be completed in May of 2024.
GovOS announced the town of Hilton Head Island in South Carolina launched its short-term rental (STR) solution. A detailed dataset of the vacation rentals operating within the community will support the town in making data-driven decisions on how best to serve business owners while preserving the high quality of living that residents have come to expect and enjoy. In just the first few weeks following the launch of GovOS STR, the Town identified more than 6,000 STR properties and has permitted close to 5,000 STR property owners. In May 2022, the Town introduced new requirements for STR properties, including regular safety inspections by the owner or agent, maximum response time for complaints and a $250 annual registration fee for a permit to operate an STR. GovOS was selected for its end-to-end solution, which includes an advanced identification system, a registration portal for STR licensing, and a 24/7 STR complaint hotline for the community.
The master plan for the former Six Flags site in New Orleans East, Louisiana is out. As of right now, developers are calling it Bayou Phoenix. Now there are plans for 30 acres of athletic fields, eight NBA-level hardwood courts, an indoor and outdoor water park, hotels, restaurants, a film studio, and lots of shopping. That’s just a few details in the half-a-billion-dollar plan Troy Henry, the developer hopes will only take 42 months to complete.
Zien Group appoints Jens Gmiat as head of operations and Ruben Satink as chief financial officer. Both will have an instrumental role in delivering Zien Group’s ambitious growth strategy with both the existing portfolio and future acquisitions. Gmiat has held the position of COO for leading hotel brands, most recently at Hotel Co 51. In his role, Gmiat will oversee operation for all of Zien Group’s businesses. Satink joins Zien Group from IT Consultancy firm Levi9 where he most recently was CFO. Satink replaces long-standing Chief Financial Officer Joost Peeperkorn, who will be continuing in a new position that sees him working for one of the shareholders of Zien Group.
Sircle Collection is launching its newest lifestyle hotel brand; Sircle Hotels. Sircle will drive the group’s global expansion, which is set to continue through 2024 and beyond, with further hotel openings in some of the world’s most coveted destinations. Sircle Collection’s new openings 2023-2024 are: The Cover, Vienna, Summer 2023; The Cover, Amsterdam, Winter 2023; Sircle London – Autumn 2023; Max Brown, Milan – Autumn, 2023; Max Brown, Athens – Winter 2023; Max Brown, Vienna – Winter 2023; Sircle Milan – Spring 2024; Aterre Rotterdam – Spring 2024; and Sir Prague – Autumn 2024.