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North America

Apple Hospitality and Xenia Hotels Beat Expectations

Alan Woinski and Kim Woinski
May 3rd, 2023 at 4:37 PM EDT

Skift Take

  • Apple Hospitality and Xenia Hotels were the next up to report earnings. APLE beat expectations and continues to be one of the few hotel REITs reporting EBITDA above 2019 levels.
  • XHR also beat expectations on a higher top line with RevPAR growth of 23.9%.
  • STR reported US lodging data for the week ended April 29. Year over year hotel RevPAR was up 5.6%.

The DJIA fell 270 points while Nasdaq was down 55, the S&P 500 fell 29 points and the 10-year treasury yield was down .04 to 3.40%. Things were going ok until the Fed Chief held his conference call after raising rates again. The same thing happened that has happened nearly every one of his conference calls the past year or so. AHT was the big winner today, up 25%, while SLNA fell to another new low, down -10%, just 32 cents from joining the other lodging Spacs as a penny stock.

Apple Hospitality and Xenia Hotels were the next up to report earnings. APLE beat expectations and continues to be one of the few hotel REITs reporting EBITDA above 2019 levels. As part of the report, APLE said they are purchasing the 154-room Courtyard Cleveland University Circle for $31 million. APLE also spent $3.6 million repurchasing 250,000 shares in the quarter.

XHR also beat expectations on a higher top line with RevPAR growth of 23.9%. XHR bought back 1.9 million shares for $27 million in 1Q and so far in 2Q has repurchased an additional 1.2 million shares for $15 million. 

STR reported US lodging data for the week ended April 29. Year over year hotel RevPAR was up 5.6%. When compared with the same week in 2019, RevPAR was up 12.8%.

Two hotels are in the works for downtown Fort Myers, Florida, both under the Hilton hotel chain brand and set to rise on Jackson Street. The city council recently approved the nine-story Tempo Hotel, while the other, Home2 Suites, will seek financial incentives from the city and clearance from the city Historic Preservation Board before committing to construction. The Tempo Hotel will be the most recent in a series of investments considered for the Jackson Street corner. Originally the plan was to open as First Street Place, a Marriott Hotel. It later changed to the Tempo. The 1629 Jackson Street site is the planned home of Home2 Suites property. HOS Management bought it for $760,000 in 2020. The property will be a limited offering, no frills, just your free breakfast facility. The Tempo will offer valet parking in the Main Street parking garage for 60 guest spaces leased from the city. A bar and lounge and a pool will open on the roof.

Resch Property Group and The Sprigler Company announced the construction of The Elsby Hotel in New Albany, Indiana. The hotel, an adaptive reuse of the Elsby Building, will debut as a full-service, 82-room boutique hotel in Spring 2025. With a total development budget of $29 million, renovation and new construction will begin in late Spring 2023. Among the new social and conference spaces planned are three food and beverage outlets, and a new 13,000-square-foot event and conference center to be constructed on an adjacent lot on the property. The Elsby Hotel is managed by First Hospitality and will be a Tapestry Collection by Hilton.

Sonesta announced the grand opening of two new Red Lion Inn & Suites hotels in Liberty, Missouri, and Gretna, Nebraska. Both the 60-room Red Lion Inn & Suites Liberty and the 53-room Red Lion Inn & Suites Gretna are select-service hotels.

IHG Hotels & Resorts announced the opening of a recently converted and renovated Holiday Inn Express hotel in Kitty Hawk, North Carolina. The hotel features 97 redesigned guest rooms and an outdoor pool. The Holiday Inn Express Kitty Hawk – Outer Banks is owned by Wright Coast Associates, LLC and managed by Coastal Hospitality Associates

AutoCamp Hospitality Group opened its first location of its new lodging brand, Field Station, in Moab, Utah. The property features 139 rooms, a refreshing pool and deck experience, group meeting spaces for events and a Gear Shop opening late 2023. 

The Vinoy Resort and Golf Club, an Autograph Collection property in St. Petersburg, FL, announced the opening of French patisserie Lottie, to its collection of diverse culinary outlets as part of The Vinoy’s ongoing renovation. The 354-room resort features a re-imagined lobby, a lush poolscape with private cabanas; an on-site marina; diverse on-site dining experiences; an 18-hole championship golf course; tennis complex; a brand new holistic spa and wellness center; and a high-end boutique.

Oxford Capital Group, LLC and Hunter Pasteur, in collaboration with Chickpea Hospitality, announced Hamilton’s, a ground floor restaurant for The Godfrey Hotel Detroit, which will open shortly after the hotel’s projected opening in summer 2023. The 227-room luxury lifestyle will feature the brand’s indoor-outdoor I|O Rooftop lounge, a ballroom and a fitness center.

Colwen Hotels has signed on to develop a hotel at Burlington International Airport, in South Burlington, Vermont, with DEW Corporation. The two companies, collectively listed as BTV Hotel LLC, have signed on to a new lease agreement with the airport with a revised rent structure between the developers and the airport. While the details of the hotel have not been finalized, DEW Corporation expects a five-story building with approximately 120 rooms. The goal is to break ground sometime between late fall and spring of next year.

Magnuson Hotels announced the renewal of affiliation with Magnuson Hotel Virginia Beach in Virginia Beach, Virginia. The recently renovated hotel boasts an outdoor pool, conference rooms and meeting spaces and a Sushi bar and restaurant.

LIIC – The Lodging Industry Investment Council is annually surveyed to develop a list of the major hotel investment opportunities and challenges for the upcoming year. Mike Cahill, CEO and Founder of HREC, and LIIC co-chairman, produced this year’s survey. The 2023 LIIC Top Ten Survey Results include: the 2023 LIIC Survey indicates a soft, slower transaction market with prevailing concerns about the hotel debt markets. 67% of LIIC members feel uncertainty in debt acquisition financing is the top threat to hotel investment with 47% worrying about refinancing their existing hotels. Upscale (23%) and Upper Upscale (35%) are preferred target categories for buyers today. 94% of investors are trying to purchase at least one hotel over the coming 12 months. 56% believe the total dollar volume of U.S. hotel transactions in calendar 2023 relative to year-end 2022 will decrease overall, while 35% predict an increase. 53% predict the total number of assets forecasted to be sold by year-end 2023 to decline; yet 28% still envision an uptick. There is more but you can contact HREC or the Lodging Industry Investment Council for the full report.

Paramount Lodging Advisors announced the sale of the LaQuinta Inn & Suites AngletonTexas. PLA represented the seller in the transaction. The 57-room limited-service hotel was sold to regional owners who are excited to take on the Wyndham property improvement plan and compete in the local market with an updated hotel. 

Cronheim Hotel Capital secured $27 million to refinance a portfolio of Hilton and Marriott-flagged hotels in downtown Grand Junction, Colorado. The loan was originated with a regional bank and provided a 10-year fixed interest rate of 3.5%.

Palladius Capital Management, in joint-venture partnership with Marquee Funding Group, has originated an $11.5 million loan to finance the construction of Cambria Hotel Hillsboro, a four-story, 115-key asset located in Hillsboro, Oregon. The fixed-rate loan carries a term of 24 months and is provided to sponsors Evergreen Hospitality Development and Fine Hotel Group. The upscale hotel will be constructed on land that is owned by Majestic Realty Col, which is adjacent to Majestic Brookwood Business Park, a master-planned 118-acre commercial development in the heart of Hillsboro’s business sector.

Peachtree Hospitality Management announced the appointment of Kathleen “Kat” James to vice president of sales, responsible for managing and overseeing the sales strategies that support the overall profitability and growth of PHM’s portfolio of hotels. Before joining Peachtree, James was a senior director of sales and head of focused service sales for Sonesta International Hotels.

The Plasencia Group announced the promotion of Andrew Pappas to Vice President. Based in the firm’s Tampa office, Pappas is responsible for providing advisory services to hotel and resort owners and investors on individual and portfolio transactions, capital markets and strategic consulting needs, and owner representation and development management situations. Pappas’ most recent position at The Plasencia Group has been as a Senior Financial Analyst.

According to the annual HVS European Hotel Transaction Report, transactions for the year totaled 13.3bn Euros an 18% fall on the previous year, although the average achieved price per room rose 13% to 235,000 Euros on the back of price rises in portfolio transactions. Single asset transactions totaled 8.8bn Euros for the year, a drop of 14% from 2021. The UK was again the most liquid market during 2022, with Spain retaining the second position, and with France replacing Germany as the third-most active investment location. Portfolio sales declined 25% during 2022 with total volume at 4.5bn Euros, although average price per room was 42% higher. Total UK portfolio volume was 1.6bn Euros for the year, with London again seeing more activity than any other European city, contributing 560m Euros towards portfolio transactions, although this was 53% less than in 2021. London accounted for 35% of UK portfolio transactions, compared to 62% in 2021. Real estate investment companies were the most active buyers and sellers by total volume in 2022, while institutional investors were the largest net buyers, acquiring 2bn Euros more assets than they sold.

Europe Highlights

Anantara Hotels, Resorts & Spas will make its debut in Ireland with the opening of Anantara The Marker Dublin Hotel. Previously known as The Marker, a significant renovation has now been completed with a multi-million investment at the iconic Dublin hotel which is a member of Leading Hotels of the World. All 187 bedrooms have now been refurbished while the lobby and bar have been refreshed. The property also features a new restaurant; eight event and meeting facilities; a spa with an infinity pool, sauna and steam room; and a rooftop terrace. The Dublin hotel will be the 7th Anantara in Europe.

Rotana announced its entry into the United Kingdom with the launch of two new properties under its hotel and serviced apartment brand, Centro, Centro New Malden and Centro Kingston. These are the first two properties to launch as part of a wider agreement to develop 1,500 keys over multiple sites across the greater London region, all under the Centro brand. Set to launch in 2023, Centro New Malden includes 70 distinctly designed apartments. The development of the Centro New Malden is set to commence in July 2023 with the support of a development Facility provided by Fairfield Real Estate Finance. Opening in 2024, Centro Kingston features 31 highly distinctive apartments. Colliers has been retained by the partners in the UK to provide structuring advice and execution on equity and debt funding on both the specific initial projects and for what is planned to become a platform with assets in excess of £1 billion.

Alan Woinski and Kim Woinski
May 3rd, 2023 at 4:37 PM EDT

Companies: Anantara Hotels, Resorts & Spas, Apple Hospitality REIT, Ashford Hospitality Trust, Autograph Collection, Cambria Hotels, Choice Hotels International, Coastal Hospitality Associates, Colwen Hotels, Courtyard by Marriott, Cronheim Hotel Capital, Field Station, First Hospitality, Hilton Hotels & Resorts, Holiday Inn Express, Home2 Suites by Hilton, HOS Management, IHG Hotels & Resorts, La Quinta, Leading Hotels of the World, Magnuson Hotels, Marriott International, Minor Hotels, Palladius Capital, Paramount Lodging, Peachtree Hospitality Development, Plasencia Group, Red Lion Inn & Suites, Rotana, Rotana Hotels & Resorts, Selina, Sonesta International Hotels Corporation, Tapestry Collection by Hilton, Tempo by Hilton, Wyndham Hotels & Resorts, Xenia Hotels & Resorts

Locations: Cleveland, Colorado, Detroit, Dublin, England, Florida, Indiana, Missouri, Nebraska, North Carolina, Oregon, Texas, Utah, Vermont, Virginia Beach

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