The DJIA fell 102 points, Nasdaq was down 165, the S&P 500 fell 23 points and the 10 year treasury yield was down .01 to 3.72%. Lodging stocks were mixed. SHCO was up 6%, SLNA was up 5% but AHT fell -5% and VCSA was also down -5% but it traded down to another all time low.
The American Hotel & Lodging Association announced they were successful at lobbying Congress and the Small Business Administration in issuing new PPP eligibility guidelines. The update clarifies that hotel owners who utilized third-party management companies and participated in PPP are eligible for loan forgiveness for payroll expenses they paid via a management company. Hotels facing improper loan forgiveness denials will now have their cases properly adjudicated and will protect those whose loans have already been forgiven.
According to May 2023 data from STR, the U.S. hotel industry reported higher performance from the month prior. May 2023 (percentage change from May 2022): Occupancy: 64.8% (-0.2%); ADR: $156.25 (+3.8%); and RevPAR: $101.31 (+3.7%). Among the Top 25 Markets, New York City experienced the highest occupancy level (84.0%), up 3.6% year over year. Markets with the lowest occupancy for the month included Minneapolis (59.1) and Houston (60.2%). Reflecting continued improvement in business travel and groups, the Top 25 Markets showed higher occupancy and ADR than all other markets.
STR reported US lodging data for the week ended 6/17. US hotel RevPAR rose 1.5% year over year led by Group RevPAR which was up 6.2%.
RevPAR Companies and Emerge Hospitality Group are planning a Residence Inn by Marriott in Nashville, Tennessee. The 11-story building will offer both a ground-level food and beverage component and a rooftop bar.
The Ritz-Carlton, New Orleans announced a refresh of its Maison Orleans Club Lounge and accommodations that will be unveiled in late 2023. The exciting transformation is the next chapter of the hotel’s multiphase enhancements, which included the recent debut of The Residence Suite and luxury spa renewal.
The Grand Wailea, a Waldorf Astoria Resort announced the debut of its newly re-imagined dining concept, Olivine, following the recent refresh of four additional onsite culinary venues, and a property-wide revamp of the resort’s rooms, suites and exclusive Napua private lounge. The opening of Olivine spurs the next phase of the refresh, including a full renovation of the resort’s flagship Humuhumunukuapua’a
dining venue, followed by the debut of Grand Wailea’s re-imagined spa in the coming year.
BPM Real Estate Group announced the August 15, 2023 opening of Block 216, the 25-story mixed-use tower located in the Central Business District of Portland, Oregon. Residential condominium sale closings will be scheduled for new owners of The Ritz-Carlton Residences, Portland beginning on opening day as well as the debut of The Ritz-Carlton, Portland hotel’s ribbon cutting ceremony that day. The mixed-use tower also offers restaurants, retail space and office space. This announcement comes on the heels of BPM Real Estate Group’s recent closing of additional financing that will secure project funding through construction completion and the start-up period though December 2024. BPM Real Estate Group and the Portland Housing Bureau have also reached an agreement regarding the timing of the $7.76 million payment under the City’s Inclusionary Housing Program, which is made to facilitate offsite affordable housing. This payment, due on December 31, 2024, will result in the single largest investment supporting affordable housing in Portland’s history.
Mission Hill Hospitality has acquired two new hotel assets in a single transaction: the 111-key Residence Inn Tuscaloosa in Tuscaloosa, Alabama and the 103-key Home2 Suites by Hilton in Blacksburg, VA. Terms are undisclosed. These are the 28th and 29th properties added to the Mission Hill Hospitality portfolio and the company’s first acquisition in Alabama and second in Virginia.
Gulph Creek Hotels announced a redevelopment plan for the 168-room Best Western Plus in King of Prussia, Pennsylvania. The project entails the demolition of three, two-story sections of the hotel, totaling 100 guest rooms, and the subsequent construction of a 136-room Residence Inn by Marriott. The Residence Inn will feature a bar, expansive patio, grills and fire pits surrounding an outdoor pool. The remaining 68 guest room building will be renovated and converted to the Hotel Prussia, BW Signature Collection. The Hotel Prussia will feature a private lounge/workspace with food and beverage offerings, cross-fit gym and a 600 square foot meeting room. The 68-room Best Western Plus will remain open and operational through the redevelopment. In addition to two hotels, a 10,000 square foot retail center anchored by two restaurant tenants will be built on the site previously occupied by the hotel lobby, breakfast area and meeting space. The two hotels and the retail center will be connected by an expansive courtyard. The hotels and retail center are expected to open in the summer of 2024. The Best Western conversion to the Hotel Prussia is expected to be completed by the spring of 2024.
Developer Bill Ranguette and Cobblestone Hotels are planning to build a Cobblestone Hotel & Suites and Wissota Chophouse in Waunakee, Wisconsin. The building proposal is part of a larger plan encompassing 6.7 acres with 3 acres for an office and flex building and the hotel located on the remaining acres.
Developer Blue Crane has selected Practice Hospitality to operate an independent lifestyle hotel under construction in downtown Bentonville, Arkansas. Scheduled to open in the second half of 2024, the new hotel will offer 142 guestrooms, a ground floor destination restaurant and café, 3,300 square feet of meeting space and a jewel-box second-floor cocktail bar.
Personnel Moves
Peachtree Group has further strengthened its leadership team within its broker-dealer affiliate, Peachtree PC Investors, with the appointment of Brian Cho as president of PPCI. In addition, Daniel Savage and Kyle Freda have joined PPCI as senior leaders. Cho, as president, will be responsible for PPCI’s operations and supporting the firm’s investment objectives. Before joining PPCI, Cho served as senior vice president of operations for Overlay Capital. Savage, as vice president of investments and strategy, will be responsible for capital formation strategies and investor communications and liaise with internal and external investment sales and Peachtree’s investment teams in this newly created role. Prior to joining the company, Savage served as vice president, investor relations for Cohen Investment Group. As director of external wholesaling for the Southeast region, Freda will be responsible for developing relationships with financial advisors and strategic partners to raise capital for Peachtree’s various investment offerings. Before Peachtree, Freda was vice president, external wholesale, South Atlantic, for CION Investments.
Christie & Co hired Guillaume Garcin as the new managing director of its hotel team in France, following the recent appointment of Jean-Christophe Charolle as head of brokers – hotels France. In his new role, Garcin will be responsible for defining the French team’s business objectives; focusing on the strategic growth of the company and the development of other alternative assets, while supporting the team spread across the five French offices. Garcin joins Christie & Co from IKORY, where he held the role of head of asset management. Jean-Christophe joined Christie & Co in 2022. In his new role, he will be responsible for developing and securing Christie & Co’s position as a leading player in the French hotel market.
Europe Highlights
The Peninsula announced The Peninsula London, is now accepting reservations for stays from September 12, 2023. The hotel, along with 25 opulent luxury residences, centers around an expansive, off-street courtyard. The property features 190 guestrooms; special-event venues; refined restaurants, bars, and lounges; a Spa and Wellness Centre; valet parking and an underground garage. The Hongkong and Shanghai Hotels, Limited is owner and operator of The Peninsula.
Hyde Ibiza is now accepting reservations for an eight week preview season starting August 15, ahead of the hotel’s official opening in spring 2024. The bohemian getaway features a thriving pool scene, live music, wellness programming, and bars and restaurants. Hyde Ibiza will have two buildings with five floors, which will have a total of 401 rooms for the 2024 season. Alongside Hyde Ibiza, Mondrian Ibiza will also open in August for a preview season with 154 guest rooms. Guests are able to enjoy entertainment and dining across both properties.
