The DJIA was up 184 points while Nasdaq was up 26, the S&P 500 rose 18 points, and the 10-year treasury yield was up .02 to 3.86%. Lodging stocks were lower despite the indexes being higher. The biggest mover was to the downside, with SOND falling another -9%. SLNA was up 5%.
JP Morgan said they expect relatively unimpressive 2Q23 RevPAR results and a mixed net rooms growth (and pipelines) performance with a bifurcation between chain scale exposures when results are reported. They expect the full-year 2023 outlooks to be minimal as recent trends have been less than stellar, and the 2H23 (and visibility into 2024) remains uncertain. JPM remains cautious on the lodging sector as they feel the hotel companies face still tougher year-over-year comparisons with more consistent decelerating RevPAR growth and potentially lagging effects from tightening credit conditions since 1Q23. Net-net, they view the upside as less than robust relative to a few months ago. They continue to see MAR and HLT at levels with minimal upside, given the crowded position and a preference for quality. They see value in H and WH as relative outperformers. They still see Lodging REITs as relative underperformers versus C-Corps.
A new hotel is coming to Northeast Philadelphia, Pennsylvania, near an underutilized shopping center that used to be part of the Franklin Mills complex. The 100-room hotel is under development by Sant Properties, which owns the shopping center, The Philadelphia Inquirer reported. The hotel has been on hold since late 2022 but was then described as being built for a Marriott property.
The new Marriott Residence Inn hotel, occupying the former Roost Lodge location in West Vail, is targeting a September opening. Sunridge Hotel Group is developing the 146-room hotel, which marks the company’s second Marriott hotel in Colorado. The new hotel will offer a full bar, an oversized hot tub, onsite ski and bike storage, heated cement in the hot tub area, heated underground parking, five employee housing units, outdoor grills and fire pits, and coin-operated laundry.
Strand Hospitality announced the grand opening of the Fairfield Inn & Suites Coastal Carolina Conway in Conway, South Carolina. Developed by Southern Ventures, the 98-room hotel is the first select-service Marriott-branded hotel in the area. Hotel amenities include an outdoor pool, fitness center, and meeting facilities.
Affiliates of Paceline Equity Partners, LLC have acquired the 115-room Home2 Suites by Hilton New York Long Island City in Long Island City, New York. The acquisition of the recently renovated hotel represents Paceline’s second strategic partnership with Highline Hospitality Partners.
E&M Strategic Development has halted construction on the Homewood Suites by Hilton hotel and conference center in downtown Skokie, Illinois, due to high-interest rates. Skokie trustees approved a $4.5 million, 10-year loan to the developer at their April 3 meeting. The village has not released the funds, nor will funds be released until the project obtains appropriate funding. Plans for the hotel called for 143 rooms, a 10,000 square foot indoor event space, a 5,000 square foot patio, a Sky Pub, and ground floor commercial space for restaurants and retail.
Sharma Broadmoor LLC purchased The Baymont by Wyndham hotel in Canton, Ohio, from Bhau Hotel LLC for $4.2 million.
DSH Hotel Advisors arranged the sale of the 67-room Baymont by Wyndham in Lakeland, Florida, for an undisclosed price. DSH Hotel Advisors represented the seller, Prestige Yenugonda Holdings, LLC, and the buyer, Lakeland Maruti Hotels, LLC.
Blue Water assumed management of Moon River Ranch in Texas. Moon River offers a variety of lodging options ranging from cozy cabins and elegant lodges to luxurious glamping tents. One of the property’s standout features is its event facilities, including a charming chapel and an expansive party barn.
Two Pensacola architects presented conceptual plans for a new nine-story, 159-room hotel at the corner of Palafox and Romana streets, in Pensacola, Florida, to the Pensacola Architectural Review Board. The new tower would be built over the historic corner building that currently houses a post office. The historic building would be incorporated into the new building that will feature a 161-space, seven-level parking garage. The proposed hotel would also have a rooftop pool.
A joint venture led by Hines has listed a 61-story luxury condo, hotel, and office tower project in San Francisco ahead of $80 million in loans due this fall. F4 Transbay Partners, which includes Hines, Goldman Sachs, and Urban Pacific Development, wants to sell the Transbay Parcel F property for an undisclosed amount. Seven years in the making, the approved Transbay development won an extension last month for two loans set to mature in October. JP Morgan Chase and United Overseas Bank Limited each issued notes for $40 million in 2016. F4 Transbay intends to finalize a deal by December.
Aloft Hotels announce the opening of the Aloft San Pedro Sula in Honduras. Aloft San Pedro Sula boasts 122 rooms, the WXYZ bar, Depot Restaurant, versatile meeting spaces, a fitness center, Splash pool, a grab-and-go market, Camp Aloft kids’ program, Arf (Animals R Fun) pet-friendly program, and the Live at Aloft space showcasing local musicians.
Europe Highlights
Hilton announced the opening of Hilton Garden Inn Silverstone in Silverstone, U.K. The property features 197 rooms and an onsite restaurant.
Pandox purchased the Hilton Belfast hotel for £40 million from an affiliate of Starwood Capital. The 202-room hotel, located in the Belfast city center, will be operated under a management agreement with Axiom Hospitality. The Hilton Belfast completed a £10 million refurbishment in 2022 and is expected to undergo further improvements under Pandox’s ownership.
Dorchester Collection’s soon-to-be hotels are activating in unique ways for the summer season, as well as unveiling exciting property news and updates. Following the debut of The Dorchester’s new ground floor earlier this year, the acclaimed London hotel unveils the anticipated new look of its transformed guestrooms and suites. The Dorchester Rooftop pop-up also returns for the summer 2023 season. Located in the heart of Mayfair opposite Hyde Park, 45 Park Lane debuts Sushi Kanesaka, a brand-new 13-seater omakase counter. The opening marks the first Sushi Kanesaka restaurant outside of Asia Pacific. In Paris, Le Meurice recently unveiled a renovation of 19 rooms and suites. Guests can also enjoy, for the first time, a Manufacture La Glace Alain Ducasse ice cream cart until September 30.
Radisson Hotel Group has had a strong H1 2023 with strategic growth across the portfolio in EMEA with milestone openings and signings. The Group also announced more offerings to its owners and guests with the inclusion of art-otel in its portfolio. Across EMEA, H2 2023 growth, including the addition of more than 8,000 keys through signings and openings across different brands in key destinations such as Greece, Germany, the UK, Italy, Switzerland, France, Saudi Arabia, and Nigeria. Key signings and openings include the opening of Radisson Collection Hotel Santa Sofia Milan; the signing of Radisson Blue Hotel; Rome UER; and Radisson Blue Hotel, Abuja CBD; as well as the signing of Radisson RED Edinburgh Airport; the opening of a Radisson long-stay property in Zurich with 430 rooms; the signing of a new Radisson property in Ferrara; as well as the signings of Radisson Residences Limassol in Cyprus; and Radisson Hotel Mersin in Turkey, scheduled to open in Q1 2024.
Valor Hospitality unveiled its £3m refurbishment of the Holiday Inn Gloucester in the UK. The work, which started in August 2022, includes a total re-haul of its 125 bedrooms, entrance, outdoor area, meetings, and event spaces. Valor also plans to continue to upgrade the hotel, with future refurbishments including building on its fitness center and leisure facilities such as its swimming pool.
