The DJIA ended the day down 245 points while Nasdaq was down 22, the S&P 500 fell 21 points and the 10-year treasury yield was down .04 to 3.73%. Lodging stocks were lower. SOND was down -10%, AHT was down -8% but SLNA rose 7% on the day.
The travel and tourism industry witnessed a massive 41% YoY decline in deal activity from 475 deals during January-May 2022 to 282 during the same time 2023, according to GlobalData. All deal types registered decline in volume. For instance, merger and acquisitions deals volume decreased by 43% while the number of venture financing deals and private equity deals YoY declined by 34% and 44% respectively, during January to May 2023. North America experienced a decline of 48% in deals volume during January to May 2023 compared to the same period during the previous year while Europe, Asia Pacific, and South and Central America regions registered decline of 49%, 27% and 36%, respectively. Deals volume for the middle East and Africa region remained unchanged. The US, the UK, India, France, Australia, and Japan witness significant YoY decline of 48%, 33%, 7%, 29% and 54%, respectively, in deals volume during January to May 2023.
The SpringHill Suites Pinehurst-Southern Pines, in Pinehurst, North Carolina has sold for $11.7 million to Hotel Pinehurst LLC. The group plans to do a significant $4.5 million renovation of the 107-room property. Concord Hospitality will manage the asset.
A suburban St. Paul hotel that fetched nearly $13 million a few months before the pandemic has sold for a discounted price. MA LAXMI HOSPITALITY, LLC paid $11.3 million for the Hampton Inn in Oakdale, Minnesota. SW OAKDALE, LLC was the seller. The four-story, 100-key hotel includes an indoor pool, fitness center, business center and meeting rooms.
theWit, a Hilton Hotel unveiled its top-to-bottom renovation, debuting a completely re-imagined hotel with new amenities and re-imagined spaces in Chicago, Illinois. The property features 310 redesigned guestrooms and suites, lively food and beverage experiences, 14,000 square feet of indoor and outdoor meeting space, a fitness center and a spa.
A $19 million Hampton Inn & Suites hotel is set to open in October in the Hyde Park neighborhood of Cincinnati, Ohio. Brandicorp and Lexington Hotel Group are partnering to develop the seven-story hotel which will have an indoor pool, exercise facility and meeting rooms.
Construction continues at the Hard Rock Hotel in London, Ontario. Set to open in 2022, the project experienced delays due to supply chain issues, labor issues, resources, etc., but is now on track to open in 2024. The Hard Rock Hotel – London will have 164 guestrooms, an indoor-outdoor pool, lounge spaces, restaurants, and shops.
Extended Stay America announced the opening of the Extended Stay America Suites Huntsville-Madison, located in Madison, Alabama. TGC Group developed the property, and it will be managed by TGC Hospitality Management. The four-story, 108-room newly constructed property offers a fitness room and an on-site guest laundry.
Red Roof announced the opening of four new properties across the country. These properties include: the 80-room Red Roof Inn & Suites Thomasville, Georgia; the 42-room Red Roof Inn Kimball, Tennessee; the 77-room Red Roof Inn & Suites Duncan, South Carolina; and the 40-room Red Roof Inn Greencastle South in Cloverdale, Indiana.
A long-anticipated hotel in Cotati, the only city in Sonoma County without lodging, is set to break ground next week. Construction of the 152-room Cotati Hotel is expected to be competed by August 2024.
Westside Investment Partners’ $102.1 million bid was approved by U.S. Bankruptcy Court for the 200-acre Banyan Cay hotel, residential and golf project in West Palm Beach, Florida. The property sale is expected to close by July 25.
Roost Apartment Hotel is opening up on the Baltimore Peninsula. The new 81-room building is a hotel suited for both short and long stays. 40 of the rooms are also apartment units available for rent, with access to all the conveniences of the hotel. The hotel side of things opened up for reservations today, for guest stays beginning July 1.
The Shibari Tulum hotel has opened in Tulum, Q.R., Mexico. The hotel offers 64 suites, fine dining, a spa and a Jacuzzi lounge.
The Lodge at Schroon Lake, located in Schroon Lake, NY, debuts following a yearlong, $22 million+ renovation that converted the former World of Life summer retreat into a year-round hotel with chalets, cottages, restaurants, bars, a ballroom and 13,000 square feet of meeting space. Two couples, Sonny and Julie Bonacio and Andrea Crisafulli and her husband Alan Ayers are the owners of the 36-acre property which is managed by Hay Creek Hotels. The project was financed by Community Bank NA.
The Southold, NY town planning board granted preliminary approval for a 44-room hotel. The proposal for “The Enclaves” calls for converting the former Hedges bed-and-breakfast into a 74-seat restaurant and building a two-story, 44-room hotel with four detached cottages and amenities including two pools, a spa and a rooftop lounge. Andrew Giambertone and his partners anticipate breaking ground on the development this fall and the hotel opening in 2025.
On June 26, guests can begin making reservations for stays starting November 3, 2023 at the much-anticipated Dollywood’s HeartSong Lodge & Resort in Pigeon Forge, Tennessee. The five-story, 302-room resort boasts indoor and outdoor pools, 26,000 square feet of flexible indoor and outdoor meeting space, new dining options and a mercantile.
Kelley Commercial Partners announced The Hotel Hot Springs, in Hot Springs, Arkansas, has been sold to an undisclosed buyer. The sale comes after Gary Gibbs, who had an ownership stake in the 200-room luxury hotel, was pushed into Chapter 7 bankruptcy and was accused of defrauding creditors. Creditor SBN V FNBC LLC regained control of the property at a foreclosure auction in 2019.
The historic Mosquito Beach, on James Island, South Carolina, is seeing new changes as development in the area continues. The main focus at Mosquito Beach is to restore the history, starting with the Pine Tree Hotel, which was destroyed by a fire in 2019. The hotel, owned by Bill “Cubby” Wilder, needs more funding in order to complete the project by September. The initial funding for the renovation project came in 2019 from the National Park Service African American Civil Rights Grant Program, but there have many unforeseen costs.
Great Canadian Entertainment announced the brand-new gaming floor and multiple dining venues opened at Great Canadian Casino Resort Toronto. Adjacent to Woodbine Racetrack, the brand-new destination is the newest and largest casino resort in Canada boasts 328,000 square feet of gaming space including 4,800 slot machines, 145 live table games, VIP rooms and sports betting kiosks. Opening later this summer at the landmark resort is a luxurious 400-room hotel with a fully equipped wellness center featuring an indoor pool, sauna, steam room. In the coming months, the property will unveil a 5,000-person entertainment venue. Great Canadian Casino Resort Toronto showcases a 250,000 square foot green roof, solar panel canopies and electric vehicle parking spots. The entertainment destination will host 15 retail locations, diverse culinary options and a parkade with 3,800 covered parking spaces.
JLL Hotels & Hospitality Group arranged the sale of Hampton Inn & Suites Fredericksburg South, in Fredericksburg, Virginia. The five-story, 121-key hotel includes an indoor pool and hot tub, fitness center, guest laundry, business center and 1,890 square feet of meeting space. JLL represented the seller, Sachs Companies Realty Investments.
LuxUrban Hotels Inc. entered into an agreement with Greenle Partners LLC Series Alpha P.S. and Greenle Partners LLC Series Beta P.S. and the holders of its’ senior secured convertible notes, that eliminates the approximately $2.6 million of remaining debt owed by the company to Greenle associated with financing agreements entered into prior to the Company’s IPO. Inclusive of the agreement, during 2023 the Company has retired all of its approximately $9.8 million of senior secured debt with Greenle. Under the terms of the agreement, Greenle will convert the final $2.5 million of Convertible Notes it owns into 1.3 million shares of Common Stock of the Company, and, in exchange, the company will registered the previously issued and last remaining warrants owned by Greenle Alpha and Greenle Beta to purchase 1,000,000 shares of the Company’s Common Stock, respectively, and reduce the exercise price of such warrants to $2.50 per share of Common Stock.
Personnel Moves
Crestline Hotels & Resorts, LLC announced the appointment of Alexander J. Belden as Vice President, Business development. Prior to joining Crestline, Belden served as Head of Institutional Growth at Avantstay.
Noble Investment Group announced the appointment of John Bianco as Senior Project Director of Development. In this new role, Bianco will help execute the development of Noble’s midscale extended-stay hotel strategies. Bianco joins Noble from WaterWalk Real Estate Development where he was the Vice President of Construction.
Matt Black has joined HVS Executive Search as Vice President based in New York City. Prior to joining the company, Matt worked as an external search partner for many renowned, chef-driven restaurant groups, lifestyle hotels, real estate owners/operators and food-tech brands.
