The DJIA jumped 408 points while Nasdaq was up 85, the S&P 500 rose 40 points, and the 10-year treasury yield was up .02 to 4.08%. Lodging stocks were modestly higher.
According to the Canada Construction Pipeline Trend Report from Lodging Econometrics, the total construction pipeline in Canada at the close of the second quarter was 275 projects/37,359 rooms. Analysts at LE report that, at the Q2 close, projects presently under construction in Canada stand at 52 projects/7,021 rooms. Projects scheduled to start construction in the next 12 months are at 88 projects/10,086 rooms, and projects in the early planning stage stand at 135 projects/20,252 rooms. The top provinces in Canada at the end of the quarter are Ontario at 159 projects/22,027 rooms, British Columbia with 52 projects/8,434 rooms, Quebec with 22 projects/2,480 rooms, Alberta with 18 projects/1,832 rooms, and Saskatchewan with 7 projects/674 rooms. The top five cities in Canada with the largest pipelines at the Q2 close are led by Toronto with 62 projects/9,166 rooms, Vancouver with 23 projects/3,634 rooms, Montreal with 15 projects/1,805 rooms, Niagara Falls with 13 projects/4,712 rooms, and Ottawa-Hull with 9 projects/1,453 rooms. The top hotel companies in Canada’s construction pipeline are Marriott International, with 75 projects/10,059 rooms; Hilton Worldwide, with 66 projects/8,119 rooms; and IHG Hotels & Resorts, with 39 projects/4,014 rooms. The largest brands in the pipeline for each of these companies are the Hampton by Hilton brand with 25 projects/2,910 rooms, Marriott’s TownePlace Suites with 19 projects/1,935 rooms, and IHG’s Holiday Inn Express with 17 projects/1,826 rooms. Other notable brands in the Canadian pipeline are Marriott’s Fairfield Inn with 19 projects/1,805 rooms and Home2 Suites by Hilton with 16 projects/1,699 rooms. In the first half of 2023, 12 new hotels/1,637 rooms opened in Canada, with an additional 16 new hotels/1,8078 rooms scheduled to open before year-end. 2024 is forecast to see 33 new hotels/3,951 rooms open, and 2025 will have 43 new hotels/4,537 rooms open.
Jeff Vinik, owner of Tampa By Lighting, is exiting Water Street. Vinik is selling his share of Strategic Property Partners, the company that developed 50 acres of downtown Tampa, Florida, into a bustling upscale neighborhood, to Cascade Investment Fund LLC. Cascade has partnered with SPP since 2014. The parties didn’t announce deal terms. Vinik initiated the deal. Water Street recently completed its first phase, which includes 12 buildings, 1,418 hotel keys, 1,335 residential units, office space, retail space, and the University of South Florida Morsani College of Medicine and Heart Institute. Vinik will remain an advisor to Cascade.
The Frontier Hospitality Group announced plans to build a new SpringHill Suites by Marriott hotel in Bettendorf, Iowa. According to a media release, the hotel will be located immediately adjacent to the new Iron Tee Golf attraction. Construction will take place in early 2024, with plans to open in early 2025. The project represents a more than $17 million investment and is FHG’s third hotel with Marriott and first project with the SpringHill Suites brand.
London Bay Development has purchased the Outrigger Beach Resort and Charley’s Boathouse Grill on Fort Myers Beach, Florida, for $38.2 million. The properties were destroyed during Hurricane Ian, and London Bay has not announced its plans for the 10-acre parcel of land.
The new Enthusiast Hotel Collection includes a selection of unique, intimate, boutique hotel properties from the California Coast to the Caribbean. The collection’s hotels include: Brewery Gulch Inn and Spa in Mendocino, California; Historic Tapoco Lodge in Robbinsville, North Carolina; Hartstone Inn in Camden, Maine; Casa Morada in Islamorada, Florida; A Stone’s Throw Away in Nassau, Bahamas; and Cap Cove in St. Lucia.
The opening of Hotel Royer in Urbana, Illinois, is officially pushed back another six months. The Urbana City Council unanimously approved another extension to allow the hotel’s owners to finish renovations. It’s the second extension the city has granted, and according to three city council members, it will be the last. The first extension moved the opening date from December 2022 to this month. The new completion date is now February 29, 2024.
The revitalization of a former downtown Reno hotel-casino is on hold. The Riverboat Hotel Apartments project has stalled amid a challenging environment for development. Fenway Capital Advisors pointed to rising development costs and rate trends nationwide for the delay. Fenway Capital Advisors’ plans include adding 15 to 30 additional units to the Riverboat’s remaining 115 rooms, the addition of a fitness room, study lounge, barbecue areas, and a raised roof.
Q Group Hospitality is launching an LGBTQ+ boutique hotel, restaurant, gaming lounge, and nightclub next month in Las Vegas, Nevada. Queen Las Vegas, a mid-century modern-style hotel and entertainment property, is expected to open its bar and nightclub in September. Q Group Hospitality will open an art-deco-inspired paradise featuring a restaurant and bar with drag performances and a giant disco ball DJ booth. Queen Las Vegas’ hotel will have 28-themed rooms and communal areas, renovating some of the rooms in the building that currently houses the Thunderbird Hotel. Thunderbird will continue to operate its hotel with the 72 remaining rooms.
Blue Diamond Resorts announced substantial upgrades to its Diamond Club and Star Classroom categories. These upgrades are currently offered across the Royalton Luxury Resorts and Planet Hollywood Beach Resortsportfolios and will be available to guests with bookings on or after October 1, 2023. Highlights of the upgrades include the expansion of Blue Diamond Resorts’ butler services. Blue Diamond Resorts is broadening the selection of premium top-tier drinks and liquors available at all Diamond Club and Star Class bars throughout the resorts, and the culinary options will also be extended and enhanced.
Peter Strebel, former Chairman and CEO of Omni Hotels, has been appointed as the new President of the Americas to lead RateGain Travel Technologies Limited’s DaaS, Distribution, and Martech offerings for the region.
International News
Total hotel asset sales in the UK during the first six months of 2023 fell 49% year-on-year. According to CoStar, there was a significant 49% decrease in total sales YoY, with deals largely being led by buyers at the lower end of the price spectrum, sub £20 million, and often needing little to no debt as interest rates climbed. London hotels remained on investors’ radar. Even though the capital saw less activity than historical trends, 19 hotels changed hands. However, none of these transactions exceeded the £60 million mark, further highlighting constraints in debt funding. Despite challenging conditions and overall market uncertainty, there are promising signs of revival. Several large deals have been brought to market or are in the process of being put up for sale. CoStar notes that this activity reflects a robust appetite for the UK hotel sector. Demand has held steady, with RevPAR showing double-digit growth year-to-June across the UK, and Blackstone raised funds to focus on alternative sectors such as hospitality.
DeMar Holdings and Whitbread announced the opening of the first hub by Premier Inn hotel in the very heart of Camden Town in London, England. The new 80-bedroom Premier Inn London Camden hotel offers a contemporary accommodation style with technology-enabled compact bedrooms and a through-the-day Lounge F&B offering. Hot on the heels of the new Camden hotel, a new hub by Premier Inn hotels is scheduled to open later this year in Marylebone and at Paddington Station in spring 2024, with further locations planned at Farringdon, Moorgate, Putney, and on the Strand.
Travelodge has sold its Wellingborough hotel to Cooper Estates. As part of the multimillion-pound deal, Cooper Estates has also agreed to a new lease with Travelodge for the site on the west side of Enstone Court. Taking over the lease from Ibis, the hotel chain plans to reopen the venue ahead of the British leg of the Formula One Grand Prix in 2024.
Hotelier Costes announced the September 2023 opening of One Sloanefollowing an extensive six-year remodel of the 300-year-old Cadogan Estate in Chelsea, London, England. Comprising 30 bedrooms and suites, One Sloane will house a top-floor restaurant, lobby, and a downstairs bar. One Sloan will be managed by a joint venture comprising Costes Etudes Projets and Hamilton Pyramid Europe.
Oetker Collection announced the opening of Hotel La Palma, the first Oetker Collection hotel property across Italy. Oetker Collection has transformed Hotel La Palma, Capri’s first hotel, into what will be one of the country’s foremost hotel destinations. The renovation took over two ½ years to complete and saw the hotel decrease from 80 rooms to 50, including 18 suites.
A hotel in Strathpeffer, Scotland, with more than 100 years of history, has been put up for sale. Highland Hotel, listed for £2 million, is being marketed by Christie & Co. The four-story hotel offers 134 bedrooms, two restaurants, and two guest lounges.
The first Radisson RED hotel in Eastern Europe has arrived in Tbilisi, Georgia. Situated in a 100-year-old former post office building, the 4-story Radisson RED Tbilisi offers 111 rooms, three fully equipped meeting rooms, and a restaurant and bar.
