This is your one free issue for the month.

Subscribe today for full access.

North America

U.S. Hotel Sales Fell in First Half 2023

Alan Woinski and Kim Woinski
July 16th, 2023 at 1:32 PM EDT

Skift Take

  • Stock Market: DJIA rises while Nasdaq and S&P 500 experience slight declines.
  • Hotel Sales: Major U.S. hotel sales show decreases in transactions, dollar volume, and prices per key.
  • Hotel Developments: Construction progresses on a skyscraper in New York and new hotels are planned in Virginia, Connecticut, and South Carolina.

The DJIA rose 114 points on Friday while Nasdaq was down 25, the S&P 500fell 5 points and the 10-year treasury yield was up .06 to 3.82%. Lodging stocks were modestly lower. The only mover of note was SHCO, down -6%.

Citi lowered their price target on Pebblebrook Hotel Trust to $15 from $16.50. They maintained their Neutral rating.

LW Hospitality Advisors’ Major U.S. Hotel Sales Surveys for the first two quarters of 2023 show year-over-year decreases in hotel sales and dollar volume as well as prices per key. The surveys track hotel transactions valued at $10 million or more. According to the surveys, there was a 36% decrease in the number of transactions priced at $10 million or more. Total dollar volume declined by 50%, and the price per key dropped 4%. Eight-three single hotel assets sold for $10 million or more in the first quarter, totaling almost $3.5 billion. That comprises roughly 12,500 hotel rooms with an average price per key of $279,000. In the second quarter, 84 single-asset sales totaled $3.1 billion, comprising 12,100 rooms and an average price per key of $257,000.

Gaw Capital was dealt a foreclosure lawsuit in Cook County court this month by a lender who claims the firm’s $39 million debt tied to the 17-story, 285-room Ambassador Hotel in Chicago remains unpaid after the maturity deadline was extended until May. The foreclosure suit was filed by SitusAMC, the special servicer of the debt Gaw obtained in 2016, when it bought the property for $61.5 million and put another $11 million into renovations. The suit claims more than $33 million is still owed on the loan, meaning the value of the property is less than half of what its owner spent on it. Gaw’s failure to pay back the loan for the Ambassador is indicative of how much more cautious lenders have gotten when it comes to borrowers using hotels as collateral. Even with hotel performance across the city and state improving, it would have been nearly impossible for Gaw to refinance the Ambassador’s debt at an equal or higher valuation in today’s market of rising interest rates. 

Façade installation is moving along quickly on a 51-story skyscraper in New York’s Hudson Yards, being developed by Marx Development Group. The structure will house a 379-room Aloft hotel with a business center, a ballroom, and a fourth-floor restaurant with a bar and outdoor terrace. A revised completion date has yet to be announced, thought YIMBY anticipates 450 Eleventh Avenue to finish construction around the middle of next year. 

The Martinsville, Virginia City Council approved plans for the construction of a $10 million hotel. The new Holiday Inn Express will include 80 rooms, an indoor pool and a gym.

Construction has begun on the Delamar Mystic Hotel on the ground of Mystic Seaport Museum in Mystic, Connecticut. The luxury boutique hotel is being developed by Greenwich Hospitality Group and will feature 33 guestrooms, a waterfront restaurant, ballroom, event lawn and a pool. The hotel, which will be Delamar’s sixth location, is planning a fall 2024 opening.

A new hotel beside Carowinds in Fort Mill, South Carolina, could add more options for the amusement park’s guests. Property owner Cabela’s Wholesale Inc. applied to rezone almost three acres beside the Cabela’s store in Fort Mill, just beside the two-state them park, to allow a new hotel. The planning commission in York County unanimously voted in favor of that zoning change. Final say will come from York County Council. Plans involve a four-story hotel with 107 rooms

Sandman Hotel Group and its parent company, Northland Properties, are excited to announced that the new Sandman Signature Fort Worth Downtown Hotel is now open in the century-old W.T. Waggoner Building, marking the brand’s second Signature-branded hotel property in Texas. Owned and operated by Sandman Hotel Group, the 20-story hotel features 245 new guestrooms, a lobby bar, modern fitness facility and multi-use meeting space. Guests of Sandman Signature Fort Worth Downtown Hotel can enjoy a first-class onsite dining experience at the famed Musume restaurant, owned by Rock Libations Restaurant Group. 

Landmark Properties acquired the Lodges at 777 in Baton Rouge, Louisiana. The Lodges at 777 is Landmark’s second acquisition in Baton Rouge and adds 382 total units to the growing Landmark portfolio. The Lodges at 777 offers many resident amenities including a resort-style pool with poolside cabanas, a two-story clubhouse with gaming areas and areas for studying, and a large fitness center. The Lodges at 777 is currently 100% pre-leased for the fall 2023 term and is a top choice for LSU students.

Hotel Equities announced the enterprise wide implementation of a digital tipping platform for their associates powered by Grazzy. The initiative aims to enhance the overall associate and guest experience by providing a convenient, secure and cashless way to guests to express their appreciation for exceptional service. Hotel Equities has begun implementing the Grazzy platform across its portfolio of hotels and will continue to do so over the coming months.

Il Mulino New York is looking to expand its restaurant license division. The fine dining restaurant company seeks opportunities to add hotels and brand partners as its braded licensees. Licensees will be able to leverage the Il Mulino menu with a choice between the Il Mulino New York, Trattoria Il Mulino or Il Mulino Prime concepts. Currently, Il Mulino has three licensing partners at hotels: Swan & Dolphin Hotel in Orlando, FloridaHilton in Nashville, Tennessee; and Mt. Airy Lodge in Mt. Airy, Pennsylvania.

Preferred Hotels and Resorts announced the addition of 14 new member properties, which includes more than five openings, to its global portfolio between April 1 and June 30 this year. The new properties include: The Hotel Maria, Helsinki, Finland – Legend Collection; Pulso Hotel, Sao Paulo, Brazil – L.V.X. Collection; Hotel Saint, London, U.K, – Lifestyle Collection; Wynn Palace Cotai, Macau China – Legend Collection; EPIC SANA Marques Hotel, Lisbon, Portugal – L.V.X. Collection; The Bo Tree, London, U.K. – Legend Collection; Only YOU Boutique Hotel Madrid, Madrid, Spain – L.V.X. Collection; Tangla Hotel Brussels, Brussels, Belgium – Lifestyle Collection; Wynn Macau and Encore, Macau, China – Legend Collection; Milano Verticale UNA Esperienze, Milano, Italy – Lifestyle Collection; Principi di Piemonte UNA Esperienze, Torino, Italy – L.V.X. Collection; Only YOU Hotel Valenica, Valencia, Spain – L.V.X. Collection; The Retreat, Links and Spa at Silvies Valley Ranch, Seneca, Oregon – Lifestyle Collection; and Pendry Newport Beach, Newport Beach, California – L.V.X Collection.

Europe Highlights

Hilton announced a franchise agreement with Tsiledakis S.A to open Imperial Flair Chania Old Town, Curio Collection by Hilton, joining two Curio Collection by Hilton hotels in Crete, Greece. Set to open in 2026, the 85-room hotel will take a prime beachfront location in the town of Chania and all guestrooms will feature a private pool. Imperial Flair Chania Old Town, Curio Collection by Hilton will feature two dining outlets, indoor and outdoor pools, upscale fitness facilities, a spa and meeting space.

TFE Hotels expanded its European footprint with the launch of the 131-key Adina Service Apartments Vienna. The serviced apartment-style property is the second of three openings for the hotel brand in the Austrian capital, following Adina Apartment Hotel Vienna Belvedere and ahead of a brand-new 108-room property in the Danubeflats – Austria’s tallest new residential tower, which will open next year.

The Steigenberger Hotels & Resorts brand is expanding its portfolio: LFPI Hospitality Group and Deutsche Hospitality signed a franchise agreement for a hotel in BielefeldHistoric Hotel Bielefelder Hof will be operating under the name, Steigenberger Hotel Bielefelder Hof beginning February 1, 2024. The 4-star hotel features 161 guestrooms, a bar, restaurant, twelve meeting and event rooms, a fitness room and its own underground car park. 

Commerz Real has sold Marriott Charles de Gaulle Airport Hotel to asset manager AEW. The 300-room hotel offers a lobby with an integrated bar, a restaurant, nearly 2,500 square meters of conference space, a fitness area, 133 underground car parking spaces, 131 outdoor car parking spaces and 3 parking spaces for coaches.

Alan Woinski and Kim Woinski
July 16th, 2023 at 1:32 PM EDT

Companies: Adina Hotels, Aloft Hotels, Curio Collection by Hilton, Gaw Capital, Greenwich Hospitality Group, Hilton, Hilton Hotels & Resorts, Holiday Inn Express, Hotel Equities, IHG Hotels & Resorts, Landmark Properties, Marriott Hotels, Marriott International, Northland Properties, Pebblebrook Hotel Trust, Preferred Hotels & Resorts, Soho House and Co Inc., TFE Hotels

Locations: Chicago, Connecticut, Dallas, Greece, Louisiana, Nashville, New York City, Orlando, South Carolina, Vienna, Virginia

Up Next


IHG Opposes Marriott’s City Express Trademark Bid

InterContinental Hotels Group is challenging Marriott International’s attempt to trademark City Express by Marriott, citing potential confusion with its Holiday Inn Express brand.


Kimpton Unveils Plans for Hawaii 

Kimpton Hotels & Restaurants is partnering with Coco Palms Resort to open a luxury resort in Kauai, Hawaii in 2026, featuring 350 accommodations, a coconut grove, spa, pools, and dining options.

You've Read Your Free Issue for the Month

Subscribe today to get access to 20+ new issues a month and our entire archive.

Already a subscriber? Login

North America
Per Month
Charged $495 per year.
APAC + NA Combo
Per Month
Charged $795 per year.