Service Properties Trust Completes Sale of TravelCenters to BP

The DJIA fell 140 points but Nasdaq was up 63, the S&P 500 managed a 1 point gain and the 10 year treasury yield was up .03 to 3.72%. Lodging stocks were mostly lower. SOND was the biggest loser, down another -10% whole SLNA traded down to a new all time low, down -6% on the day.

Sonder Holdings was cut to Perform from Outperform by Oppenheimer. InterContinental Hotels Group was upgraded to Neutral from Sell by Redburn.

The Baird/STR Hotel Stock Index rose 1.4% in April from March. The Hotel Brand sub-index rose 2.5% from March while the Hotel REIT sub-index was down -2.6%.

Last week BP plc completed the acquisition of TravelCenters of America Inc. Service Properties Trust received $379.3 million in cash as part of the transaction, including $188 million in prepaid rent from BP, $101.9 million in merger consideration for their 7.8% state in TA and $89.4 million for certain trade names and trademarks associated with TA’s business previously owned by SVC. Annual minimum cash rents under the amended leases are $254 million, with annual 2% increases throughout the initial 10 year term and five 10 year extension options.

Opwest Partners, in collaboration with Iridius Capital and Remington Hotels, announced the grand opening of The Leo Kent Hotel, Tucson, A Tribute Portfolio Hotel in Tucson, Arizona. The 145-room property includes a fitness center, function hall, over 1,500 square feet of meeting space and a restaurant with an elevated bar and lounge. 

Frenchman’s Reef announced the opening of Morningstar Buoy Haus Beach Resort at Frenchmen’s Reef, Autograph Collection located in St. Thomas, U.S. Virgin Islands. Operated by Aimbridge Hospitality and part of an extensive $425 million rebuild project at Frenchman’s Reef, the intimate resort offers 94 guestrooms, food and beverage venues, 13,000 square feet of meeting and event space and multiple boats including its prized catamaran. Guests of Buoy Haus will also enjoy full access to The Westin Beach Resort & Spa at Frenchman’s Reef. Amenities at this adjoining resort include restaurants and lounges, an expansive pool deck, Heavenly Spa by Westin, fitness studio and 72,000 square feet of meeting and event space. The two resorts will be connected via a shared stretch of Morningstar Beach.

Developers are planning to build two Jacksonville, Florida-area TownePlace Suites by Marriott hotels. Construction is set to start on a 5-story TownePlace Suites by Marriott in Middleburg in Clay County. Construction will start in the second quarter of 2023, with an estimated opening in late summer of 2024. The hotel will include 126 rooms, a pool, fitness center, indoor-outdoor dining, barbecue grills, lakefront fire pit, convenience store and guest laundry facility.  The hotel is being developed by Paradigm Development Partners and Kellogg & Kimsey Inc. The city of Jacksonville is presently reviewing a permit application for a second, three-story, TownePlace Suites by Marriott. Shivam Property Management LLC is the developer of the $7.9 million, 93-unit hotel. 

The Edge Central Development Partners, the group behind the mixed-use Orange Station development in St, Petersburg, FL, is adding an Autograph Collection Hotels property to the overall project. The announcement of the hotel addition comes as the partners scrapped plans to build 61 condos, known as The Residences at Orange Station. The full-service hotel will have approximately 160 rooms, a bar and restaurant concept, meeting and conference rooms, fitness facilities, a multi-level theater and a rooftop pool. Ellison Development will lead the Autograph Collection Hotels property development and become a joint venture partner on the overall project. 

In coastal Alabama, the Gulf Shores City Council will vote on a series of street closures to accommodate the construction of a new $140 million, eight-story, 257-room Embassy Suites hotel and conference center. PHG WB Gulf Shores LLC, a partnership of Peachtree Hotel Group, Woodbine Development and DD Partners, will own and operate the new hotel and conference center. 

The Southaven, Mississippi, Board of Aldermen approved designs for a new seven-story, Embassy Suites by Hilton hotel featuring a pool, lazy river and higher-end restaurant. The hotel will be part of the Landers Center expansion and will be the first convention center with a hotel inside of it in the state of Mississippi. As of now, construction is set to begin both on the convention center and the hotel in the third quarter of 2023. The estimated completion and opening date is in 2025.

Rieley Properties and Snyder Commercial Properties are partnering with Redstone Development on a second new hotel in the Finney Crossing neighborhood in Williston, Vermont. The proposed 115-room hotel will be sited on one of three remaining unbuilt lots in Finney Crossing. 

Hyatt Hotels Corporation announced plans for the 168-room Thompson Palm Springs, marking the second Thompson Hotels property in California. Developed by Hall Group, the property is expected to open in late 2023 with a signature restaurant, indoor and outdoor bar and lounges, a spa and fitness concept and over 8,000 square feet of flexible meeting and event space. Thompson Palm Springs will also offer over 20,000 square feet of ground-level retail and restaurant space.

Benchmark Resorts & Hotels will open InterContinental Bellevue at The Avenue this October in Bellevue, Washington. The first Pacific Northwest hotel by InterContinental Hotels & Resorts is owned by Fortress Development. The lifestyle property features two towers housing 365 luxury condominiums, a 208-room Intercontinental Hotel, over 12,000 square feet of meeting space with nine function rooms, 85,000 square feet of high-end retail space and celebrity chef-led dining.

Elevations Hotels and Resorts announced the Lexi Hotel, formerly the Artisan, will formally open on June 2. The cannabis-friendly – the first in Las Vegas – 64-room boutique property was acquired by Elevations in November 2021. The group invested more than $3 million to renovate every room of the property as well as its entry, grand lobby, bar, lounge and pool. 

Maison Canada Design & Build, the developer of the Lakeshore Inn, expects the four-story, luxury hotel to be completed by the end of the summer, and hopefully come in around the original $6.5 million price tag. Located in Sauble Beach, Ontario, the 21-room hotel will feature an onsite restaurant. 

Coast Hotels Limited, a fully-owned subsidiary of APA Hotel Canada, Inc., announced the opening of its latest franchise property in Hinton, Alberta, Canada. Coast Hinton Hotel features 87 rooms and suites, an onsite restaurant, fitness room, guest laundry facilities, and free parking. 

A $10.5 million renovation project to renovate the original six-story hotel at Grand Traverse Resort and Spa, in Traverse City, Michigan, has been completed.  242 rooms in the original portion of the hotel have been renovated including two new junior suites and four more new hospitality suites.

Since acquiring Tamarack Resort, in Idaho, MMG Equity Partners has invested over $150 million into the development and expansion of the resort community.  This includes completion of the initial phase of the resort’s core amenity, The Village at Tamarack, which includes 40,000 square feet of retail, restaurants and 130 luxury residences. Enhancements to the resort include new food and beverage concepts, Tamarack Outfitters, installation of Wildwood Life, onsite Mountain Community Charter School, additional snowmaking capacity and downhill trails, and onsite employee housing village. Improvements being made in the summer of 2023 includes:  return of golf with an 18-hole championship course, opening of Sugarloaf Creamery, launch of The Club at Tamarack, new green and blue ski runs, and the opening of The Sugar Shack on Serenity. Late in the year and into 2024, Tamarack will undertake additional developments including:  developing a 200-slip marina on Lake Cascade, opening of mid-mountain lodge, construction of The Village’s pool and hot tub, and a kids’ club in the Village.

SureStay announced the opening of the dual-branded 42-room SureStay by Best Western Victoria and 54-room SureStay Studio by Best Western Victoria, located in Victoria, Texas.  Connected via a shared lobby, the two hotels offer combined amenities including an outdoor pool, business center and guest laundry.  The dual-branded property is owned by Kamal Bhkata.

The Marquette, Michigan City Planning Commission approved a site plan development for a new hotel. The developer, Moyle Companies, has plans for an 81-room, three-story Best Western Hotel and Suites. 

Less than two years after opening, Disney World’s Star Wars: Galactic Starcruiser will close in September. The never-before-done resort was a two-night immersive experience unlike any other hotel on the property. According to Disney, the final voyage will be on September 28, 2023 culminating in a closing date of September 30. 

The Famous Anthony’s building in the Crystal Spring neighborhood of Roanoke, Virginia, is now gone. Work on the boutique hotel has begun. The developer, Rudy Van Thiel, plans to have 21 rooms and a bistro restaurant in the hotel. Construction is expected to take at least a year and Van Thiel hopes to open it by the end of 2024.

Knighted Ventures announced the opening of Champions Club Texas in the former Hampton Inn & Suites in Houston, Texas.  Champions Club Texas is Knighted’s latest venture, and the Houston hotel and club is the first location, with a second one planned for Dallas. The 71-room full-service hotel features a restaurant, a lounge with a bar, a pool and a 3,500 square foot private poker club with 19 tables.

21c Museum Hotels is leaving Oklahoma City, set to depart the market this summer as the owners of the property seek a new flag to attract more business travelers. Owned by the Hall family, the 135-room hotel features Mary Eddy’s restaurant and the Bodega and Pool Bar. 21c Museum Hotels is set to end its operation on July 31, at which time Avion Hospitality will take over as the management company.

Frenchglen Hotel in southeastern Oregon, needs a new operator to take over management in partnership with the Oregon Parks and Recreation Department.  The previous concessionaire retired. There are 12 rooms and a restaurant on the property. 

LuxUrban Hotels Inc. entered into an agreement with its pre-IPO investors that will eliminate an estimated $87.5 million in Revenue Share payments in exchange for a one-time issuance of 6,740,000 shares of the Company’s common stock subject to an extended lock up agreement. As a result of the agreement, the Company is increasing its EBITDA forecast for 2023 to $25 to $30 million from its previous estimate of $21 to $25 million. The Company is also initiating 2024 net rental revenue and EBITDA guidance of $220 to $240 million and $48. To $60 million respectively. The Company will issue the Agreement Shares to Greenle Partners LLC Series Alpha P.S and Greenle Partners LLC Series beta P.S in exchange for the termination of any and all rights of Greenle to receive any future Revenue Share and any related payments with respect to any property or operations of the Company. 

DSH Hotel Advisors arranged the sale of the seven-story, 197-room Comfort Suites Maingate East in Kissimmee, Florida. The property sold for $22 million. DSH Hotel Advisors held the exclusive listing with the seller and represented both the seller and buyer in the transaction.

Walker & Dunlop, Inc. arranged $140 million in loan proceeds to facilitate the refinancing of Soho Beach House, a private members club and hotel in Miami Beach, Florida. Walker & Dunlop were exclusive advisors to Beach House Owner, LLC, a subsidiary of Soho House & Co. SHCO selected JP Morgan Chase Bank, N.A. and Citi Real Estate Funding Inc. for a favorable ten-year, fixed-rate, interest-only loan, which repaid the existing debt, repatriated equity, and covered financing and closing costs.

Ashford Hospitality Trust, Inc. successfully refinanced its mortgage loans for the 157-room La Posada de Santa Fe in Santa Fe, New Mexico and the 252-room Hilton Alexandria in Alexandria, Virginia. These two loans were the Company’s only final debut maturities in 2023.  The new, non-recourse loan totals $98.5 million and has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of SOFR + 4.00%

Personnel Moves

The American Hotel Lodging Association announced Steven Nicholas, Managing Principal and Head of Asset Management for Noble Investment Group, has been appointed to the board of directors. 

HVS announced Peter Anderson is joining HVS as a Managing Director and the Company’s Wellness Practice Leader within the Americas region. 

Coast Hotels Limited announced the appointment of Grant McKegney as the Company’s new Director, Technology.  In his new role, McKegney will be responsible for overseeing the daily IT operations, as well as leading the development and execution of the Company’s short and long-term technology strategy. Most recently, he served as Director of Information Technology for Canadian North Airlines. 

Hospitality America named Jon Jones to the newly created role of Vice President of People and Culture. Jones will partner with hotel leaders and team members to ensure the best employees experience is provided at every step of the employee journey.  Jones previously served as Director of Team Member Experience and Engagement at World Acceptance Corporation.

Aimbridge Hospitality hired senior executive Stephanie Peterson to the newly created role of Head of Marketing & Communications.  Peterson will oversee all marketing and communications duties.  Peterson most recently served as Head of Communications for Kraft Heinz’s US and Canada business.

Europe Highlight

Westmont Hospitality Group, owners of the Hilton Dublin Airport hotel in Dublin, Ireland, are preparing to put it on the market for more than €30 million. The Company has appointed JLL to begin marketing the property.  The Company renovated and extended the hotel in 2020 and it has about 180 bedrooms.