The DJIA rose 164 points, but Nasdaq plunged 295, the S&P 500 fell 31 points, and the 10-year treasury yield bounced back up .11 to 3.85%. Lodging stocks were lower on the day.
Oppenheimer downgraded RLJ Lodging Trust, Chatham Lodging Trust, and Braemar Hotels & Resorts to Perform from Outperform. They upgraded Host Hotels to Outperform from Perform.
Truist said they expect a mixed bag for 2Q earnings from the hotel sector, depending on geographic location and customer mix. They expect C-Corps to report results at least in-line with expectations, if not modestly higher. For the domestic-centric midscale & economy-focused C-Corps, like CHH and WH, they would be surprised if results were above initial expectations. Truist sees RevPAR at the low end of expectations for the lodging REITs and said the wildcard for their EBITDA will be how well they can control margins. They expect the global C-Corps to be the most optimistic in their outlooks. Their favorite name among lodging stocks continues to be Hyatt, with RHP remaining their favorite lodging REIT.
According to June 2023 data from STR, the US hotel industry reported higher performance from the month prior but lower year-over-year percentage changes. June 2023 (percentage change from June 2022): Occupancy: 69.7% (-0.4%); ADR: $158.40 (+2.3%): and RevPAR: $110.33 (+1.9%). Among the Top 25 Markets, New York City experienced the highest occupancy level (85.4%), up 1.7% year over year, and was the only market to post ADR over $300. Markets with the lowest occupancy for the month included New Orleans (58.2%) and Phoenix (62.7%).
Ashford Hospitality Trust, Inc. announced that the company expects to report occupancy of approximately 75% for the second quarter of 2023 with ADR of roughly $191, resulting in RevPAR of around $144, reflecting an approximate RevPAR increase of 7% compared to the second quarter of 2022. Excluding the 19 hotels secured by loans that the company did not extend during the quarter, the company’s results for the second quarter would have been occupancy of approximately 76% with ADR of approximately $197, resulting in RevPAR of approximately $150.
Aloft El Segundo, Los Angeles Airport, in El Segundo, California, announced the completion of a full renovation of all public spaces and 249 guestrooms. The public spaces now offer dynamic and versatile areas for guests to relax, work and socialize. The lobby has been redesigned as an inviting hub with flexible seating arrangements, communal workspaces, and a stylish bar. The property also offers an updated fitness center, an outdoor deck, and a backyard with a year-round heated pool.
JW Marriott Essex House New York debuted its Central Park Suite Collection, three stunning luxury suites that pay homage to Central Park. The Central Park Suite Collection is comprised of: the Artisans Terrace Suite, named after the Artisans’ Gate – the 7th Avenue entrance to Central Park; the Meadow Terrace Suite, inspired by Elsie de Wolfe, a renowned Manhattan interior designer, and socialite; and the Delacorte Presidential Suite, honoring George T. Delacorte, founder of Dell Publishing and a quintessential NY philanthropist. The 40-story JW Marriott boasts 528 rooms and suites, versatile meeting rooms with over 14,000 square feet of flexible space, an onsite fitness center, and a spa.
RLJ Lodging Trust announced that its Nashville property is joining the Tapestry Collection by Hilton. The 124-room property will undergo a comprehensive renovation next year and relaunch as a rebranded lifestyle boutique hotel within the Tapestry Collection by Hilton, marking the Company’s third conversion in 2023. The historic Gray & Dudley Building in Downtown Nashville, Tennessee, is an Accor/Ennismore 21c Museum Hotel with 8,000 square feet of meeting and exhibition space.
A popular food and shopping district in Raleigh, North Carolina, is adding a new hotel. The former K&W Cafeteria building in the Village District is set to be demolished to make way for the new Oberlin Hotel. Quality Oil Company is the developer and management company of the seven-story, 153-room hotel, which will be part of Hilton’s Curio Collection portfolio. The project will also include a parking deck for hotel customers and visitors to the Village District. The hotel’s sixth-floor area will feature a signature high-end restaurant and a rooftop bar. Its lobby will feature a cocktail bar and a market-style café. The property will include a meeting and banquet space, a courtyard and covered patio, a stage for live music, and onsite catering. Construction begins in late July, and the hotel is slated to open in the summer of 2025.
Hyatt Hotels Corporation announced that the Dream Hotels brand, The Chatwal, The Time New York, and other properties have been integrated into the World of Hyatt reward program. Now bookable through Hyatt channels, the properties provide members and guests with new stay alternatives and lifestyle experiences.
IHG Hotels & Resorts announced the opening of the newest Holiday Inn Express & Suites in Hawaiian Gardens, California. Owned by Hawaiian 1311 LLC, the 71-room Holiday Inn Express & Suites Hawaiian Gardens offers meeting space, an outdoor pool, and a fitness center.
Galaxy Hotels Group announced the conversion of the full-service hotel in Cedar Rapids, Iowa, to the Radisson Hotels Americas brand, marking the first conversion to the Radisson brand since Radisson Hotels Americas was acquired by Choice Hotels International in 2022. The seven-story property features 220 keys, approximately 26,000 square feet of event space, an onsite restaurant with an adjacent lounge, a fitness center, a heated indoor pool, and a business center. The hotel will remain open during a comprehensive renovation. The Radisson Hotel Cedar Rapids is owned by Voyage Capital Group and operated by Galaxy Hotels Group.
Radisson Plaza Hotel and Suites in downtown Kalamazoo, Michigan, is in the middle of a major multimillion-dollar remodel. All 340 of the hotel’s guest rooms and suites are being renovated, and all 50,000 square feet of meeting and events spaces were also recently modernized. Updated guest rooms began going into service in January, and the final rooms are projected to be done by early 2024. Greenleaf Hospitality Group manages the hotel and its onsite restaurants.
CL Real Estate updated the Hillsdale City Council with the status of renovations for the historic Keefer House Hotel, in Hillsdale, Michigan, with a new anticipated opening date projected for the spring of 2024. According to CL Real Estate, an unanticipated water issue in the basement caused a significant delay and added cost. Waterproofing the basement of the historic building is complete, and work included tuck-pointing foundation walls, installing a waterproof membrane, and installing drain tile. The city’s Tax Increment Finance Authority purchased the Dawn Theater and Keefer House Hotel years ago intending to redevelop the once-vacant properties. Since then, renovations of the Dawn Theater have been completed, and the property is under management by CL Real Estate. Ideally, once the hotel is opened again, the company work will pair entertainment at the Dawn Theater with hotel accommodations at the Keefer House Hotel, including a restaurant and 34 rooms for guests.
American Heartland announced American Heartland Theme Park and Resort, a more than $2 billion entertainment destination development in Vinita, Oklahoma. The development will be built in phases, starting with a large-scale RV Park with cabins scheduled to open phase one in spring 2025 and a theme park and resort scheduled to open in 2026. The Three Ponies RV Park and Campground will be the largest campground in the central US, with 750 RV spaces and 300 cabins plus amenities. The development will also include a top-tier 300-room hotel and a modern indoor water park.
LOGE camps announced their latest hotel in the foothills of the San Juan Mountains of southwestern Colorado. Located in the South Fork, CO community, LOGE Wolf Creek boasts 50 rooms with full amenities and gear. The property features a communal fire pit, hot tubs, and a full-service café and bar. LOGE Wolf Creek is also developing van hookups and EV charging stations.
Idol Wolf will open on July 25 inside the upcoming 21c Museum Hotel St. Louis, Missouri, as one of the hotel’s two food and beverage concepts. The other concept, a café called Good Press, is expected to open alongside the hotel itself on August 8. 21c Museum Hotel has been working to renovate the former YMCA building into a nearly 200-room hotel since 2018.
Aspirant Development plans to begin constructing a mixed-use development in Phoenix, Arizona. Called Astra, the $575 million project will include one tower with 45 floors and a second 36-story tower. Beginning in the second quarter of 2024, the project will be built in two phases to include 697 apartment units, a 229-room hotel, commercial space, office space, and 1,156 parking spaces.
Avison Young closed the transaction on the last Hilton hotel in a 10-property portfolio sale. The portfolio was all Hilton and Marriott assets located in Maryland and Pennsylvania and consisted of four Home2 Suites, two Homewood Suites, two Hampton Inn & Suites, one Fairfield Inn, and one Tru by Hilton.
Personnel Moves
Eastdil Secured, LLC announced that Jeffrey Davis will join Eastdil Secured as Managing Director. In this role, Davis will be part of the leadership of the firm’s global hospitality group, where he will be responsible for supporting clients and growing the firm’s hospitality business with a particular focus on the Eastern U.S. Davis joins Eastdil Secured from JLL, where he served as Senior Managing Director and head of the US Hotels Investment Sales Capital Markets team.
International Headlines
Eastdil Secured, LLC announced that Jeffrey Davis will join Eastdil Securedas Managing Director. In this role, Davis will be part of the leadership of the firm’s global hospitality group, where he will be responsible for supporting clients and growing the firm’s hospitality business with a particular focus on the Eastern U.S. Davis joins Eastdil Secured from JLL, where he served as Senior Managing Director and head of the US Hotels Investment Sales Capital Markets team.
Melia will be in charge of managing Barcelona Project’s hotel complex Juan Carlos I of Barcelona. The property will be renamed Gran Melia Mirande de Pedralbes. This is a consequence of the Mercantile Court endorsing the early termination of the contract between Barcelona Projects and Fairmont Hotels & Resort, whose management contract was until 2039. Furthermore, Barcelona Project will not have to pay compensation to Fairmont Hotels & Resorts, which on the contrary, will have to assume the costs of the process. The Juan Carlos I Hotel closed in March 2020 due to the pandemic.
Selina Hospitality PLC announced the opening of its newest hotel in Dakhla, Morocco. The newly opened hotel offers guests a unique and immersive experience in the stunning coastal city. The hotel boasts 376 bed spaces in various accommodations, a pool, wellness center, onsite restaurant, and co-working spaces.
Pandox acquired a hotel in the UK for approximately MGBP 40. The seller is a controlled affiliate of Starwood Capital Group.
