The DJIA rose 190 points, Nasdaq was up 203, the S&P 500 was up 40 and the 10-year treasury yield was up .02 to 3.77%. Lodging stocks were mixed. The mover of note to the upside was ABNB, up 6% but SOND plunged -17% and VCSA was down -7%.
The Wall Street Journal followed up on a San Francisco Chronicle article, predicting more foreclosures and jingle mail for hotels in San Francisco. This follows Park Hotels’ announcement they were planning to surrender ownership of their Hilton San Francisco Union Square and Parc 55 properties back to the lenders, what will be the largest US hotel default since the pandemic. CoStar said there are more than 30 additional San Francisco hotels facing loans due in the next two years. The WSJ said that number is more than 20. The WSJ article said Club Quarters San Francisco has been in default on its loan since 2020 and may be headed to foreclosure. PK’s decision could be the test case for how much value the city’s hotels have left after they have been the slowest to come out of the pandemic.
As expected, Ryman Hospitality Properties closed their common stock offering, including the full exercise of the underwriters’ over-allotment option. RHP received total net proceeds of $396 million.
On the heels of its fiftieth anniversary, and in tandem with extensive renovations at the individual hotels, Woodside Hospitality Group debuted the Woodside Collection, a portfolio of hotels that are independently owned. Each displays its own charm that is rooted in the community in which they are located with a distinct California vibe. The new Woodside Collection includes The Lodge at Bodega Bay, The Stanford Park Hotel, Lafayette Park Hotel & Spa, Monterey Plaza Hotel & Spa, Napa Valley Lodge, Hotel Drisco, and Harvest Inn.
Concord Hospitality assumed management of The Exchange Sacramento, Curio Collection by Hilton in Sacramento, CA. Located in the newly renovated historic Fruit Building, The Exchange offers colorful, modern rooms and a restaurant and bar.
Hotel Equities assumed management of the Wyndham Moline on John Deere Commons in Moline, IL. Owned by Moline Hotel, LLC, the 163-room hotel offers meeting space, a heated indoor pool and hot tub, and a fitness center.
Extended Stay America is planning a new four-story hotel on a vacant lot in Pensacola, Florida. Artemis Hotel Group recently began the early stage of construction on the 124-room property. An estimated date of completion has not yet been provided.
Gateway Investment Partners has poured $35 million into renovations of the former nine-story, 274-room Edward Hotel in Rosemont, Illinois, to transform it into a dual hotel brand. The property has been split into a 145-room Staybridge Suites and a 139-room Holiday Inn, marking the first time the two hotel brands are under the same roof in the United States. Hostmark Hospitality Group is in charge of operations at the hotel, which includes more than 3,000 square feet of meeting space, an indoor pool, fitness center and LM Restaurant Group’s four outpost of the Land & Lake restaurant.
IHG Hotels & Resorts announced the opening of a new Holiday Inn Express hotel in Chino Hills, California. Located within the Rincon at Chino Hills mixed-use complex, the Holiday Inn Express Chino Hills features 119 rooms, outdoor heated pool, a fitness center and business center. The property is owned by Soquel Rincon LLC and managed by Twenty Four Seven Hotels.
Highline Hospitality Partners announced the debut of the Margaritaville Beach Resort South Padre Island, Texas, managed by Aimbridge Hospitality. The newly opened property is the first and only Texas beachfront resort in the Margaritaville portfolio, an its opening completes the $30 million transformation of the Pearl Hotel South Padre Island. The modernized resort and conference center features 200 guestrooms, 50 beachfront condos and 8,000 square feet of indoor and outdoor meeting space.
The once-famous Konocti Harbor Resort in Kelseyville, California held a soft opening last month following a complete remodel. The resort totals 137 acres and houses several hotel units, a lodge, restaurants, bars, a marina, spa, pool, tennis courts, indoor theatre and outdoor amphitheater. Though development will continue for the next few years, the focus has been on opening the hotel, theater, restaurants, spa and marina. As of now, the 124-room hotel, marina and Andy’s Tavern are completely operations with the marina bar and grill, spa and theatre in line to open by the end of this summer. The Konocti Harbor Resort is owned by Shekou Management LLC and members of Andi Saberi’s family.
Executive Hotels and Resorts announced the August opening of The Azur Legacy Collection Hotel in downtown Vancouver, Canada. The 13-story, 104-room Art Deco-style luxury boutique hotel will feature two restaurant and a bar.
The Defoor Brothers Hospitality Group took over the former Bode Hotel in downtown Chattanooga, Tennessee, last week after Clemons on Chestnut LLC purchased the building from TMC Hospitality. Defoor Brothers renamed the 54-room inn Hotel Clemons. The lobby in the hotel hosts game tables, a café, lounge and working area. Previous management converted a part of the garage area of the building into a stage, bar and event space.
The Las Vegas-based developer that spearheaded the renovation of the former Harrah’s Reno hotel-casino is pulling out from the project. CAI Investments confirmed with the Reno Gazette-Journal that it is selling its ownership stake in the downtown Reno City Center project to Gryphon Capital, who will fully own the property after acquiring CAI’s 10% stake. Gryphon’s decision to add a hotel component to the Reno City Center project was the main reason CAI decided to sell. The original plans for Reno City Center were for a mixed-use development with apartments, offices and retail but no hotel rooms. Adding hotel rooms to the project would conflict with CAI’s other downtown project, the Reno Kimpton.
New owners of the former Elks Lodge in Ventura, California are turning it into a boutique hotel called Hotel San Buena that will open to the public in August.
The former Duke of York Hotel in Yorktown, Virginia, is under new ownership. M.A. Bowry and Co. purchased the long-standing hotel, from the Crockett family in July 2021, and is renaming it the Yorktown Beach Hotel. The hotel is in the middle of a three- to 5-year renovation process which includes a new breakfast area and market, the elimination of the restaurant, and the pool being repaired and converted to a saltwater system. A grassy area with a gazebo in the of the hotel complex will remain a common space/event space. Future plans are to establish a rooftop deck.
