The DJIA fell 5 points while Nasdaq was up 128, the S&P 500 was up 16 points and the 10 year treasury yield was up .08 to 3.80%. Equity indexes did better than lodging stocks today as consumer and leisure stocks were in the red today. The only mover of note today in lodging was VCSA, trading down to another all time low this morning and then ending the day up 6% from yesterday’s close.
Jefferies Nantucket Conference took place this past week. Across lodging their takeaways included that companies are experiencing moderation in leisure demand, strength in group business and uneven recovery of business transient that is market-dependent. Management teams are particularly encouraged by compelling hotel fundamentals with demand holding up and supply noticeably below the historical average. Jefferies said that the limited conviction in the industry and among investors is impacting strategies and stock performance for now. They believe the limited support for asset trading coupled with the expectation of low supply growth should benefit incumbent owners and is mixed for C-Corps on NUG potential. M&A across the sector remains a topic of interest to investors for the long term with little near term likelihood of events. The favor the long term durability of HST and VAC as growth names for investors.
Canada’s hotel industry reported its highest performance since September 2022, according to STR’s May 2023 data. May 2023 (year-over-year percentage change): Occupancy: 69.2% (+9.3%); ADR: CAD197.10 (+15.0%); and RevPAR: CAD136.32 (+25.7%). Among the provinces and territories, Newfoundland and Labrador recorded the highest May occupancy level (79.9%), which was up 46.0% year over year. Among the major markets, Vancouver reported the highest occupancy level (83.0%), which was 8.5% above May 2022. Prince Edward Island (+15.1% to 59.1%) and New Brunswick (+7.9% to 59.1%) matched for the lowest occupancy among provinces. At the market level, the lowest occupancy was reported in Edmonton (60.9%), 10.2% above the 2022 comparable.
The Westin Riverwalk, San Antonio, in San Antonio, Texas, has completed an extensive renovation. The elevated revamp includes development to its guest rooms and corridors, a full renovation of the Business Center, public restrooms and fitness center, as well as a full restoration for the on-site restaurant and bar. The Westin Riverwalk, San Antonio provides 473 renovated guestrooms and more than 26,000 square feet of meeting and event space.
Prominence Hospitality has added the 75-key Courtyard by Marriott hotel, located in Albion, Michigan, to its portfolio. Owned by Albion College, the Courtyard Albion is the second Michigan hotel and fourth Marriott to join the Prominence portfolio.
NCG Hospitality announced the Moxy Madison, in Madison, Wisconsin, has celebrated its topping out. The new hotel will feature multiple bars and restaurants when it opens early next year.
MMI Hotel Group has been selected to operate Fontana Village Resort & Marina in Fontana Dam, North Carolina. The Smoky Mountain getaway is comprised of approximately 356 scenic acres and includes a 91-room lodge, 124 cabins, two restaurants, a general store, two pools including a lazy river, multi-purpose sports fields/courts, post office, gas station, a 60-slip marina with 18 floating cabin moorings, horse stables, public trails and more.
IHG Hotels & Resorts announced the opening of its newest Holiday Inn Express & Suites hotel in Northern California’s Yuba Sutter region. The Holiday Inn Express & Suites Yuba City – Marysville features 93 guestrooms, a heated indoor pool and a fitness center. The hotel is owned by Yuba City Hotel, LP and managed by Lotus Management, Inc.
Mystic Sahajanand, LLC has proposed a five-story, 80 guestroom Extended Say America hotel in Pawcatuck, Connecticut. Mystic Sahajanand, LLC will operate and manage the property when it opens.
Eagle Point Hotel Partners announced the opening of The Ozarker Lodge in Branson, Missouri. The completely re-imagined roadside lodging concept boasts 102 all-new guestrooms, modern amenities, heated outdoor pool, cedar soaking tubs, coffee and wine bar and easy access to the Ozark Mountains.
Urban Properties Development has partnered with Align Venture Capital to redevelop 757 St. Charles Avenue in New Orleans, Louisiana into The Hotel Perle. The company is planning a full renovation of the existing three-story structure into a large-format hotel featuring 11 suites, a café/bar concept, outdoor amenity deck with a pool and bar, and 40 covered parking spaces. Urban Properties Development will handle the project management of the renovation, along with overseeing property and asset management of the completed development. The hotel operate has not been announced. Construction began in late April and the project is slated for completion in Spring 2024.
Black Swan Holdings LLC has acquired the Lyric brand to complement the real estate strategy of its asset manager, Black Swan Asset Management LLC. The acquisition includes domestic and international trademark rights, a comprehensive brand package, operational and performance data, and the lyric.com domain. The company’s relaunch of Lyric is slated for Summer 2023. In addition to rebranding the current Black Swan Class A assets, including its holdings at LIZ and The Grant in Savannah, Georgia, to reflect luxury Lyric standards, the company’s asset manager is already executing on its robust real estate acquisitions pipeline to open future Lyric properties.
Best Western Hotels & Resorts announced the opening of the Best Western Lake Oswego Hotel & Suites in Lake Oswego, Oregon, following a $1.5 million renovation. The fully renovated property features 62 rooms including 37 suites, an indoor pool and spa, fitness center, 1,150 square foot conference room, a business center, and guest laundry facilities.
JLL Capital Markets arranged $20.7 million in financing for the Sheraton Tampa Brandon Hotel located in Tampa, Florida. JLL represented the borrower, Linchris Hotel Corporation, to secure the loan through the lender, Ready Capital. The Sheraton Tampa Brandon boasts 266 keys, a restaurant and bar, outdoor pool, fitness center, business center, and 32,175 square feet of meeting and event space.
Ramsfield Hospitality Finance and funds managed by AB CarVal have teamed up to provide an $83 million mortgage loan secured by the Dominick Hotel in New York, NY. The 46-story Dominick Hotel and features 391 guestrooms, over 11,000 square feet of meeting space, a spa and multiple food and beverage outlets and is the only independent hotel in New York.
Summit Hotel Properties, Inc. completed the refinancing of its $600 million senior unsecured credit facility, which is comprised of a $00 million senior unsecured revolving credit facility and $200 million senior unsecured term loan. The amended and restated credit agreement provides for a maturity date of June 2028 for both the Revolver and Term Loan, including extension options.
Tishman Speyer secured $750 in construction financing, led by Otera Capital, for the first phase of the nine-acre, mixed-use Harvard Enterprise Research Campus project in Boston, Massachusetts. Located next to Harvard Business School and the Harvard Science and Engineering Complex, the project, which Tishman Speyer has taken for its customer Harvard Allston Land Co., will feature two lab research buildings, apartments, a 250-room hotel, conference center and 580 permanent parking spaces. All permits have been secured and construction is scheduled to start this year. Project completion is expected in late 2025 and early 2026.
Hunter Hotel Advisors announced the sale of the 120-key Homewood Suites by Hilton Wilmington Downtown located in Wilmington, Delaware. SAK Developers purchased the property from The Buccini/Pollin Group, Inc. for an undisclosed price. PM Hotels will retain management.
Personnel Moves
Stonebridge Cos. announced Jim Sega joined the firm as senior vice president of operations. In his new role, Sega will be directly responsible for leading and developing Stonebridge’s hotel management teams, as well as its sales, marketing and revenue management teams. Sega most recently served as chief operating officer for Up & Away Adventures.
Gabriel Escarrer Julia has resigned as head of Melia Hotels and will be succeeded by his son, Gabriel Escarrer Jaume, as unanimously decided by the board. Gabriel Escarrer Jaume assumes the chairmanship of Melia Hotels and will continue to maintain his functions as CEO to manage the company.
Europe Highlights
The art’otel brand, owned by PPHE Hotel Group and part of Radisson Hotel group, is expanding across Europe with three new hotels in Zagreb, London, and Rome. The art’otel Zagreb will open in Croatia in autumn 2023, offering 110 rooms, a restaurant and bar, meeting space, a spa, indoor pool, and rooftop bar. In spring 2024, art’otel Rome will debut in Italy with a destination restaurant and bar, outdoor terrace, and art gallery. art’otel London Hoxton will open in early 2024 in the U.K., offering 357 guestrooms, a restaurant and bar, art gallery, event space, auditorium, and indoor pool. In addition to these developments, art’otel also plans to invest in its Berlin and Cologne properties this year.
Avani Hotels & Resorts announces its debut in Spain and Italy with the opening of Avani Alonso Martinez and Avani Palazzo Moscova. Both properties provide AvaniFit gyms and grab-and-go dining options. Located in Madrid, Avani Alonso Martinez offers 101 rooms. Avani Palazzo Moscova is located in Milan and offers 65 guestrooms and suites and the AmaTi Spa.
Minor Hotels announced the debut of its Tivoli Hotels & Resorts brand in Italy with the addition of a property in Portopiccolo, in northern Italy. The 58-key Tivoli Portopiccolo Sistiana Resort will launch later this month with 58 guestrooms and 73 branded apartments. The mixed-use development of Portopiccolo complex offers four restaurants, two bars, six pools, a beach club with three different areas, an in-hotel wellness and fitness center, a spa and 1,200 square meters of meeting space. Tivoli Portopiccolo Sistiana Resort, a former member of the Marriott Luxury Collection, is part of the Portopiccolo complex owned by the Porto Piccolo Fund, managed by Investire SGR
Christie & Co announced the Best Western Plus Keavil House Hotel, located in Dunfermline, U.K., has been acquired by Buxani Hotels Pte Limited. Keavil House Hotel has been sold by Queensferry Hotels. The 70-bedroom hotel and leisure spa will be managed by Compass Hospitality UK.
