The DJIA was down 222, Nasdaq was up 22, the S&P 500 was down 7% and the 10-year treasury yield was down .05 to 3.40%. Lodging stocks were lower. SLNA traded down to a new low, down another -6% but SOND was down -20% and AHT was down -5%.
Hyatt Hotels held an Investor Day today. They are forecasting $650 to $850 million of free cash flow by 2025 and will be 80% asset-light for their earnings mix. H said they had increased their mix of Luxury, Lifestyle and Resort rooms to 44% of the portfolio in 2022 versus 32% in 2017. They expect the acquisition of Mr & Mrs Smith will expand its brand presence in luxury. They also are strategically expanding their portfolio in upper midscale and upscale, including the recent announcement of the Hyatt Studios brand. They reinstated their dividend at $0.15 per share a quarter. Once again it was a lousy day in the stock market to have a good announcement.
B.Riley cut their price target on Service Properties Trust to $13 from $15. They maintained their Buy rating.
Citigroup cut their target price on Airbnb to $135 from $148. They maintained their Buy rating.
Effective Thursday, the Board of Directors of Louvre Hotel Group has appointed Federico J. Gonzalez as Group CEO. From this new position, Federico will lead Louvre Hotel Group’s strategy and business. At the same time, Radisson Hotel Group’s Board of Directors has appointed Federico J. Gonzalez as Executive Vice Chairman. From this position, Federico will continue to supervise Radisson Hotel Group. Starwood Capital and Jin Jiang International Holdings Co., Ltd. acquired Louvre Hotels in 2015. Jin Jiang is a majority stakeholder in Radisson Hotels Group. Jin Jiang, a Shanghai-based tourism powerhouse, became the majority owner of Radisson Hotel Group in late 2018. (Jin Jiang also has a 13 percent stake in Accor.) it owns Louvre Hotels Group, parent of the Golden Tulip brand. Jin Jiang has a master franchise agreement with Radisson Hotel Group that let it sign last year more than 25,000 Radisson-branded rooms in Greater China via Jin Jiang’s entities.
Moment Development is proposing a Home2 Suites by Hilton Hotel to be built in Ontario, Ohio. The project could begin construction at the end of 2023 and take 12 months to complete.
The Hilton Anatole Hotel, located in Dallas, Texas, is planning a more than $30 million guestroom renovation project. With more than 1,600 guestrooms, the refresh is set to start this summer and will be completed early next year. The Anatole is owned by an affiliate of Crow Holdings.
Hilton announced the signing of a management agreement for the first all-inclusive Curio Collection by Hilton property in the Dominican Republic, the new build Zemi Miches All-Inclusive Resort, Curio Collection by Hilton. The brand-new, 502-room resort is owned by Zemi Hotels & Resorts, S.R.L. and will be managed by Hilton. Expected to open in 2024 as Hilton’s tenth all-inclusive property in the Caribbean and Latin America, oceanfront resort will offer a sprawling pool complex with water park, fitness center and juice bar. A dedicated spa building will offer ten treatment rooms, a beauty salon, an indoor pool, sauna, jacuzzi, and an outdoor terrace. The resort will also boast 15,000 square feet of flexible indoor and outdoor meeting and event space.
Prism announced construction of the long-awaited 266-room Marriott AC/Element Hotel on the On3 campus in Nutley, NJ can move forward after the Township of Nutley lost a lawsuit to stop the project. The seven-story, dual-brand hotel will feature both limited-service and extended-stay options, and a rooftop bar.
IHG Hotels & Resorts announced the opening of the Candlewood Suites DFW Airport North – Irving in Irving, Texas. The property features 98 suites, an outdoor gazebo and grill, the Candlewood Gym, and self-service laundry facilities. Candlewood Suites DFW Airport North – Irving is owned by Plaza Hospitality, LLC and managed by Countrywide Hospitality, LLC.
Galaxy HG Birmingham has sold the Sonesta Select Birmingham Colonnade to Baron Hospitality LLC for $6.8 million. The four-story property is located in Birmingham, Alabama.
AIMCO is planning a mixed-use development for the former Sears Town site in Fort Lauderdale, Florida. Plans call for 797 apartments, office space, retail space, a grocery store, restaurants, 188-room hotel land 1,977 parking spaces. There would be two 30-story towers plus a 21-story tower, all connected by a nine-story parking podium. There will be an amenity deck atop the parking podium featuring three pools and a gym.
A historic building in Old Town Cottleville, Missouri is undergoing major renovations as the new owners bring fresh life to the 161-year-old building. Chelsey Sweeten and her family purchased the store and plan to convert the building into The Oak Street Inn and Lounge with a bar and restaurant on the main floor, eight hotel rooms on the second floor and an owner’s suite on the top floor. Several of the hotel rooms will sit on the second floor of a new building being constructed next door, which will connect through a staircase. The Pink Willow Café will occupy the main floor of the new building. A rooftop patio and bar will sit on the top floor.
Cronheim Hotel Capital has secured $12,000,000 for the Hilton Garden Inn in Orlando, Florida. The Sponsor is a subsidiary of Nimbus Investment Fund, LP.
Personnel Moves
EOS Hospitality appointed Nicholas Farina as Vice President of Operations. In his new role, Farina will focus on operational strategy and support for the over 40 hotels in the EOS Hospitality portfolio. Most recently, Farina oversaw the opening of 1 Hotel Nashville and was involved with the City of Nashville of the Mayor’s initiatives to drive climate change in the rapidly changing Nashville area.
Auberge Resorts Collection announced Robert Whitfield would join the company in July 2023 as Area Vice President. Whitefield will oversee development, operations, sales and marketing, finance, and culture for the brand’s West Coast properties. Over the last decade, Whitfield held a regional role with the Dorchester Collection in England, and was also Regional Vice President with Four Seasons Hotels and Resorts in the Americas.
With a remit across Cycas’s European operations, Julia Harnischfeger joins Cycasin July 2023 as Chief Operating Officer (Continental Europe). Most recently Julia served as Managing Director within Upartments Real Estate GmbH.
Ben Thomas joins Cycas this month as Chief Operating Officer (UK and Ireland) supporting hotels & service apartments in key locations across the UK, including the opening of the forthcoming Residence Inn Manchester – Piccadilly and Four Points by Sheraton Edinburgh. Ben formerly served as Chief Commercial Officer at Pentahotels.
LW Hospitality Advisors announced the appointment of Brett Russell as Managing Director of the firm, Mr. Russell has more than twenty-five years of domestic and international experience and has significant expertise with complex proposed and existing assets with a specialization in mixed-use resorts that include ski, golf, beach, and/or residential components.
Europe Highlights
Accor announced two new Mercure hotels in the UK, in Northampton and Thurrock, Essex. Both signings will be a joint venture between Frogmore and C1 Capital Partners. Mercure Northampton will be operated under a franchise agreement. The existing 146-room hotel will join the Mercure brand following a renovation. The hotel boasts 12 meeting rooms and a business center. Mercure Stifford Hall, which also operates under a franchise agreement, will offer 97 bedrooms, seven meeting rooms, a restaurant and bar, and a library. The hotel will undergo a renovation prior to opening as a Mercure. Both hotels are set to open later this year following the Mercure rebranding.
OYO announced it will be adding over 50 hotels to its portfolio in the UK in 2023. OYO currently has 150+ small hotels in over 65 cities in its network in the UK. While London, Birmingham, Torquay, Great Yarmouth and Manchester are the top markets for OYO in UK, it further plans to expand and focus on Leeds, Brighton & Plymouth in 2023.
Borealis Hotel Group announced the opening of the new Holiday Inn Eindhoven Airport Hotel, in Eindhoven, Netherlands. Located at the Eindhoven Airport, the hotel houses 180 guestrooms, a restaurant, bar, 75 square meters of meeting space across three rooms, and a gym. The hotel is franchised by IHG Hotels & Resorts and will be operated by Aimbridge Hospitality EMEA.
IHG Hotels & Resorts more than doubled its luxury and lifestyle presence in Italy, cementing its presence in this key growth market. The six new hotels include highly anticipated openings for Six Senses and Intercontinental hotels & Resorts in Rome, and four further signings, a Vignette Collection property in Rome, and Hotel Indigo hotels in Florence, Turin and Trieste. While the new Six Senses and Vignette Collection properties mark brand debuts in Italy, the three new Hotel Indigo properties joint a strong existing footprint in Verona, Venice, Rome and Milan. Now open are the 96-key Six Sense Rome and the 160-room InterContinental Rome Ambasciatori Palace. Opening in the second half of 2023 is the 160-room Hotel Indigo Florence Signed together with Molo Hotel Group, the 81-room Hotel Alexandra, Vignette Collection is expected to open in the first half of 2025. The 50-room Hotel Indigo Turin will be open in the coming months together with partners Gruppo CHC. Partnering again with Gruppo CHC, the Hotel Indigo Trieste – Palazzo Kalister, is a conversion project that will see the transformation of a historical palace transformed into a Hotel Indigo and is set to open in late 2025.
Radisson Hotel Group announced the opening of its first Radisson Individuals property in France’s Normandy region, the charming Les Maisons de Lea, a member of Radisson Individuals. The boutique hotel is composed of a main building and five adjacent houses. The property offers 43 rooms and suites, meeting and events space, a restaurant, a hammam, relaxation area, and Univers Spa by Thalgo.
