The DJIA fell 348 points, but Nasdaq was down more than 2% (down 310), while the S&P 500 was down 63 points. The 10-year treasury yield was up .03 to 4.08%. The initial trading when Selina Hospitality completed their SPAC deal was crazy, and today’s action showed they still have a lot of that craziness in their stock. The stock was up more than 50% at one point but wound up closing below a buck, still up 15% on the day. The rest of the lodging stocks were mostly lower. BYR was down -7%, AHT was down -6%, and SOHO was down -5% on the day.
Today’s earnings include Xenia Hotels & Resorts with an in-line to a modest miss result and a narrowing of guidance. XHR repurchased $31.9 million worth of common stock in the quarter, plus an additional $10.8 million already in 3Q. Chatham Lodging Trust reported a 5% increase in RevPAR year over year and a 5% AFFO rise. CLDT said their RevPAR was still down less than -2% from 2019, but the trend to 2019 improved each month of 2023 through June. They were busy in the quarter repaying debt, and that seems to be continuing in July so far.
Ashford Hospitality Trust said comparable RevPAR for their hotels was up 6.7% during the quarter, with comparable Hotel EBITDA up 5% over the prior-year quarter. Braemar Hotels, more resort-oriented, went in the other direction with comparable RevPAR down -4.2% over the prior-year quarter.
STR reported U.S. lodging data for the week ended 7/29. U.S. hotel RevPAR rose 2.9% year over year, with Group RevPAR up 3.2%.
Omni Hotels & Resorts said it continues its dynamic growth and evolution, unveiling a new identity. Over the next five years, Omni will focus on its vision of creating unique places and spaces with plans to invest in existing properties and new products, including ground-up development and significant portfolio upgrades and re-imaginations. In 2023, Omni Tempe Hotel at ASU and Omni PGA Frisco Resort opened their doors, with Omni Fort Lauderdale currently under construction. These ground-up builds incorporate contemporary, elevated designs paying homage to the destinations around them. Other key refurbishments include the $150M+ restoration of The Omni Homestead Resort and multi-million dollar renovations at Omni Scottsdale Resort & Spa at Montelucia; Omni Charlottesville Hotel; and Omni Parker House, as well as properties in Denver, Indianapolis, Irving, Texas, and San Diego. Plans for expansions include the Omni Orlando Resort at Championsgate and Omni Mount Washington Resort. To support the brand’s story and growth trajectory, the company unveiled new branding, including a fresh logo and visual design. The brand also launched a new multi-channel marketing campaign: Experiences Matter Here, including a new website, dynamic video, and photography.
Sonesta announced 13 new hotel openings during the first half of 2023. The new hotels, with a total of more than 1,000 rooms, include: Sonesta Nouba, Aswan, Egypt; Americas Best Value Inn Laurel, Laurel, Maryland; Grand Z Hotel Casino by Red Lion Hotels, Central City, Colorado; Signature Inn Houston Galleria, Houston, Texas; Americas Best Value Inn Carlisle, Carlisle, Pennsylvania; Red Lion Inn & Suites Liberty, Liberty, Missouri; Red Lion Inn & Suites Gretna, Gretna, Nebraska; Hotel 11, MOD a Sonesta Collection, Calgary, Ontario; Z Ocean Hotel, Classico a Sonesta Collection, Miami, Florida; Americas Best Value Inn Lafayette, Lafayette, Louisiana; Red Lion Inn & Suites Philadelphia, Philadelphia, Pennsylvania; The Nautilus Sonesta Miami Beach, Miami, Florida; and Sonesta Essential Vacaville, Vacaville, California.
Crescent Hotels & Resorts announced the addition of the Embassy Suites by Hilton Washington, D.C. Chevy Chase Pavilion to its esteemed collection. The 198-key hotel provides an indoor pool, a spa tub, and a fitness center.
Columbia Sussex completed an extensive multi-million dollar renovation of its two extended stay properties, including Homewood Suites by Hilton andHampton Inn, both located in Anchorage, Alaska. Homewood Suites Anchorage’s 125-room renovation includes the hotel’s public spaces, the lobby, all corridors, and suites. The Hampton Inn’s 101-room renovation is part of the brand’s redesign that updated the exterior; public spaces, including a revamped lobby, front desk area, corridors, and meeting rooms; and new guestroom designs.
Braemar Hotels & Resorts Inc. announced the rebranding and planned conversion of its Mr. C Beverly Hills in Los Angeles, California, to the Cameo Beverly Hills. Beginning August 4, 2023, Cameo Beverly Hills will be available for booking on Hilton’s website. Following an extensive renovation, which is expected to be completed by the end of 2025, the hotel will join LXR Hotels & Resorts. The company is planning an approximate $25 million renovation, and added amenities and enhanced design elements will include upgrades to the guestrooms, guest bathrooms, restaurant, lobby, pool, fitness area, and meeting spaces. Remington will continue to manage the property after the conversion.
Hotel Equities announced the grand opening of the SpringHill Suites by Marriott Kalamazoo Portage in Michigan. The newly constructed hotel is owned by 850 Trade Centre, LLC. The property features a fitness center, a business center, and an indoor pool.
Peachtree Hospitality Management, a division of Peachtree Group, has assumed management of the 105-suite SpringHill Suites Dallas Rockwall inTexas. The assignment is part of PHM’s agreement with TEKMAK Development Company to provide third-party management services for a portion of its hotel portfolio. PHM also has agreed to operate two under-construction hotels: a dual-branded TownePlace Suites by Marriott andFairfield by Marriott in Paris, Texas; and a TownePlace Suites by Marriott in Forney, Texas.
Braintree Group announced the acquisition of three properties, adding more than 330 rooms to their hospitality portfolio. Resolute Road Hospitality will manage all three assets. The properties include Courtyard by Marriott Lehi at Thanksgiving Point and the SpringHill Suites by Marriott Lehi at Thanksgiving Point, both in Lehi, Utah, and the Hilton Garden Inn Las Vegas/Henderson, in Henderson, Nevada. The four-story, 97-room Courtyard by Marriott Lehi at Thanksgiving Point features an indoor pool, hot tub, fitness center, business center, and bistro. The four-story, 94-room SpringHill Suites by Marriott Thanksgiving Point features an indoor pool, hot tub, fitness center, business center, meeting rooms, guest laundry, and an outdoor BBQ area. The three-story, 139-key Hilton Garden Inn Las Vegas/Henderson features an outdoor pool, business center, fitness center, meeting rooms, and the Garden Grille & Bar.
Elise Capital acquired the Holiday Inn Express & Suites Picayune-Stennis Spa Center in Picayune, Mississippi, marking the firm’s third acquisition in the last two years. The three-story, 67-room hotel features an indoor pool, fitness center, and over 1,200 square feet of meeting space. Synergy Hospitality Group will manage the property.
TPG Hotels & Resorts has been selected to manage The Blennerhassett Hotel, located in Parkersburg, West Virginia. The historic, 8o4-room property features a signature restaurant, lounge, spa, and over 8,000 square feet of meeting space in eight distinct spaces. R&W Hotels own the property.
New Rochelle Hotel Associates, LLC announced they had rebranded their existing New Rochelle, New York, property as Hotel NoMa, Trademark Collection by Wyndham, marking the brand’s first boutique property in Lower Westchester. Formerly the Radisson Hotel, Hotel NoMa is equipped with newly renovated rooms and suites, meeting and catering spaces, and a restaurant and lounge.
DiamondRock Hospitality Company announced the rebranding and debut of The Dagny, an independent lifestyle hotel in Boston, Massachusetts. The 403-room boutique hotel rebranding included a $32 million comprehensive investment to create an all-new, immersive lobby experience, luxury guest rooms and bathrooms, enhanced meeting facilities, and a fitness center.
DiamondRock also announced it had acquired the fee-simple interest in the Chico Hot Springs Resort in Paradise Valley, Montana. The purchase price for the Resort and adjacent ranch is $33 million. Chico was acquired from an individual owner-operator and is an independent resort, completely unencumbered by brand and management agreements. The four-season, 153-acre Resort features 117 guestrooms, two open-air natural mineral hot springs, and three dining outlets. The Resort and adjacent ranch, in total, comprise 748 acres of land.
Hyatt Hotels Corporation announced that Fordson Hotel in Oklahoma City, Oklahoma, officially joined the Hyatt portfolio as an affiliated hotel in collaboration with Hall Capital and Avion Hospitality, the hotel’s owner and operator, respectively. Formerly known as 21c Museum Hotel Oklahoma City, the property is expected to join The Unbound Collection by Hyatt brand in late 2023. The Fordson Hotel is home to 135 guestrooms and suites, welcoming public spaces, and 14,000 square feet of meeting and event spaces, including 1 large ballroom, a spa, and a fitness center.
Ashford Hospitality Trust, Inc. announced the sale of 79 owned units and the public space at the WorldQuest Resort in Orlando, Florida, for $14.8 million. The property was unencumbered by debt, and the net proceeds from the sale will be used to pay down the company’s corporate financing.
One of the iconic hotels in Miami’s South Beach is getting a full facelift, and once completed, The Raleigh will become part of Rosewood Hotels & Resorts. The property’s owner, SHVO, has secured $190 million in new financing provided by BH3 Debt Opportunity Fund II, L.P., led by BH3 Management through its opportunistic credit platform and facilitated by Walker & Dunlop’s New York Capital Markets team. Now, with a total investment of approximately $1 billion, the restoration and expansion of the hotel, in partnership with Deutsche Finance America and a group of German institutional pension funds, represents one of the single largest investments in Miami Beach. The design will feature a 60-suite, full-service hotel managed by Rosewood Hotels & Resorts, a separate 17-story oceanfront tower with 42 Rosewood-branded residences, and a private member’s club with high-end dining concepts.
Baywood Hotels broke ground on a Home2 Suites by Hilton hotel along Interstate 75 in Davie, Florida, after obtaining a $22.93 million construction loan from Popular Bank.
The Riverbend Hotel, a new 43-room boutique hotel under construction in Ashtabula, Ohio, is expecting to open by late fall. The property, which will be part of the Trademark Collection by Wyndham, will include an enclosed rooftop bar and event room. Todd Canter partnered with local investors Larry Laurello of Laurello Vineyards and Pete Huggins, with Iten Industries, on the $11 million project.
A La Quinta hotel with 73 rooms is planned for Colton, California. The property will have a fitness center, a meeting room, and a pool.
The Arizona Grand Resort & Spa in Phoenix, Arizona, has plans to add up to 460 new rooms as part of a major renovation and expansion of the property. Grossman Company Properties, the owner of the Arizona Grand, submitted plans to expand the hotel. The plans call for up to 49,500 square feet of conference space plus 25,300 square feet of event lawns and 7,300 square feet of outdoor terraces, new restaurants, a food hall, and apartments.
A ground-breaking ceremony was held for the Indiana Convention Center’s sixth expansion, the 800-room Signia Hotel. The hotel will be built near Pan Am Tower, and when complete, the project will allow Indianapolis to host two citywide conventions simultaneously. The hotel is part of a larger Pan Am Plaza redevelopment project that includes an expansion of the Indian Convention Center.
In Sacramento, California, plans are underway to build four new hotels on a vacant piece of land across from Sacramento International Airport. Planning documents show the new hotels would be built in phases, starting with a 92-room Candlewood Suites, then a 112-room SpringHill Suites, followed by two more hotels, creating more than 380 new rooms. The developer hopes to get construction approval by the end of the year and have the first hotel open by 2025.
Sonder has partnered with Kalimian Equities to manage and operate the newly constructed The Merchant Hotel in New York City. The new hotel is scheduled to open in the fall with 98 guestrooms, a fitness center, and a guest lounge.
Selina Hospitality may have found the secret to shareholders liking them again, at least a few minutes. SLNA launched Selina Members Club, a shareholder benefit program. Depending on their membership tier, shareholders can get accommodation and food and beverage discounts, room upgrades, complimentary breakfasts, access to co-working spaces, and exclusive event invitations. All you have to do is verify that you’re a shareholder from a US-based brokerage account, and they give you your membership tier. It certainly worked today, with the stock up over 50% at one point to $1.62, only to plunge again to under $1.
Braemar Hotels & Resorts Inc. entered into a new $200 million corporate financing. The financing has an initial three-year term and includes a senior secured term loan facility with an initial principal amount of $150 million and a senior secured revolving credit facility with an initial principal amount of $50 million. The financing includes the opportunity to expand the borrowing capacity up to an aggregate size of $400 million, and there is a one-year extension option subject to the satisfaction of certain conditions. The financing is fully pre-payable without penalty, and the interest rate is based upon a pricing grid related to the Company’s Net Debt to EBITDA that provides for a range of SOFR +2.35% to 3.10%. The company anticipates that the initial interest rate will be SOFR +2.85%. Bank of America, N.A. acted as administrative agent and lead arranger on the transaction. The use of proceeds for the financing was to repay the mortgage debt associated with the Ritz-Carlton Sarasota, the Bardessono Hotel and Spa, and the Hotel Yountville, which will serve as the borrowing base for the financing.
Cronheim Hotel Capital secured $85,000,000 for the refinance of the Grand Beach Hotel, a 424 all-suite luxury hotel in Miami Beach, FL. Cronheim secured the financing from one of the company’s correspondent life insurance companies, which provided a five-year fixed-rate loan on an interest-only basis. The 21-story, full-service hotel is in the midst of a substantial renovation, including upgrades to the lobby, lobby bar, coffee shop, boutique restaurant, spa, and guestrooms. Select property amenities include three outdoor pools, four whirlpools, a fitness center, three bars/lounges, 1,700 square feet of meeting space, and a business center.
HVS Brokerage & Advisory announced the sale of the 52-key Quality Suites North Houston located in Houston, Texas. Om Sai Rudra purchased the property from Shree Rajprabhu.
DSH Hotel Advisors arranged the sale of the 48-room Econo Lodge in North Fort Myers, Florida, for an undisclosed price. The DSH Hotel Advisors team held the exclusive listing with the seller, Laxmi Investments LLC, and also represented the buyer, Shiva 13301, LLC.
We heard from the American Gaming Association regarding their real views on the Hotel Fees Transparency Act, considering they were quoted in that NBC News story as well. The AGA said they have no position on the bill.
Zel, the lifestyle hotel brand resulting from a partnership between Rafa Nadal and the Melia Hotels International group, just signed an agreement for its first Mexican hotel. Located in the state of Nayarit, the newly-built 145-room Zel Sayulita is set to open in 2025. Alongside Zel Sayulita, Melia Hotels International also announced that an M.E. by Melia hotel has been added to its portfolio in Sayulita, marking the third lifestyle brand hotel in Mexico, joining M.E. Cabo and the future M.E. Guadalajara. The newly-built hotel will feature 125 rooms and villas, three restaurants, a pool, gym, spa, and a rooftop bar with its own pool and an extraordinary beach club.