The DJIA fell 291 points while Nasdaq was down 158, the S&P 500 fell 34 points, and the 10-year treasury yield was up another .05 to 4.31%. Lodging stocks were lower. SLNA traded down to an all-time low, down -12%. Also hitting another new low was BHR.
Truist held a conference call with JP Ford of Lodging Econometrics. They see steady year-over-year growth in supply in the US through 2025, with Marriott having the largest pipeline of rooms in the US. Hyatt has seen the largest year-over-year increase. LE said the US supply is expected to grow 1.4% y/y in 2023, 1.4% in 2024, and 1.5% in 2025. Luxury room growth is projected to be 2% in 2023 and 2024, slowing to 0.9% in 2025, with Upscale and Upper Midscale projected to grow 2% through 2025. Globally Asia Pacific continues to dominate supply growth, with 1.08 million rooms in the total pipeline versus 600K for the US. LE expects the sluggish transaction environment YTD to continue throughout the remainder of the year, given current interest rates with REITs net sellers as opposed to being net buyers last year. Public C-corps have been net buyers as opposed to net sellers in 2022.
CBRE Hotels reduced its forecast for hotel performance this year as weaker-than-expected summer demand resulted in a shortfall in Q2 2023 RevPAR. CBRE revised its forecast for 2023 RevPAR to $96.64, up 4.6% year over year, down $1.25 from its forecast from May. The revision is predicated on a 70 basis point decrease in expected occupancy compared with the earlier forecast. ADR is expected to increase by 3.6% in 2023, down 10bps from the previous forecast. They see a strong correlation between GDP and RevPAR growth, so any changes in the economic outlook will directly impact the lodging industry’s performance. CBRE said record numbers of Americans are traveling abroad this summer, while inbound international travelers to the US are still 27% below pre-pandemic levels. They expect to see an uptick in international inbound travel as long-haul flights from Asia are added back and visa delays ease. CBRE forecasts that hotel supply will increase at a 1% compound annual growth rate over the next five years, below the industry’s 1.6% long-term historical average.
The Westin Atlanta Perimeter North announced the completion of a multi-million renovation that touched on all aspects of the hotel, including public spaces, guest rooms/suites, and a new café and marketplace called Perimeter Provisions. The improvements also added cabanas with firepits for dining alfresco to the hotel’s Savor Patio. The hotel is operated by HEI Hotels & Resorts. Guestrooms and suites received all new soft goods and bathroom amenities, and two new Perimeter Suites were introduced. The largest Bi-Level suite now provides two bedrooms. The lobby was also opened to allow more natural lighting.
The Hotel Group, an affiliate of Hotel Equities, along with Hogback Development, will celebrate the topping off of the 74-room Tru by Hilton Yakima, WA. The hotel is next to the Home2 Suites in Rainier Square, which Hogback Development has transformed over the years into a vibrant mix of restaurants, retail and commercial businesses. THG and Hogback co-own the four-story Tru by Hilton hotel, projected to open in spring 2024. The property will feature an outdoor patio with grills, complimentary breakfast at the “Top It’ bar, an “Eat & Sip” market, an expansive fitness center, and a 640-square-foot collaboration room.
Hotel Vision Hospitality Group has submitted plans for a 241-room hotel in Decatur, Georgia. The project would redevelop a collection of low-rise commercial buildings that sit a couple blocks west of Decatur Square in Metro Atlanta. The hotel would feature two Hilton flags under one roof: Homewood Suites by Hilton and Tempo by Hilton.
IHG Hotels & Resorts announced the opening of the newly rebranded voco Fiorello – LaGuardia East hotel near NY City’s LaGuardia Airport. The hotel has 114 rooms, various Asian-inspired restaurant concepts, and a scenic rooftop restaurant. The hotel operates under the ownership of AC Point Hotel Partners LLC and the management of Aimbridge Hospitality.
Hard Rock International is a step closer to building its guitar-shaped hotel on the LV Strip where the Mirage is. The Clark County Zoning Commission approved a step that gives a green light for construction development. The Hard Rock Hotel is planned to stand at 600 feet. Developers are planning 660 hotel suites in the guitar-shaped hotel, along with 49,000 square feet of gaming area and 96,000 square feet of retail and restaurants. Guests will have access to a pool, spa, fitness center, and salon.
The Wingate by Wyndham Matthews in Charlotte, North Carolina, has opened. The hotel features an on-site fitness center, pool area, meeting space, RV parking, and more.
Choice Hotels International announced the groundbreaking of Everhome Suites Fayetteville – Fort Liberty in Fayetteville, NC. The four-story, 114-room property is expected to open in the summer of 2024, developed in collaboration with HighSide Companies, BRR Architecture, and general contractor Path Construction Northeast. The hotel will feature spacious apartment-style rooms with fully equipped kitchens and spa-style bathrooms. Other amenities include a fitness center, guest laundry facilities, multipurpose lobby areas, and Homebase Market.
Avi Brosh’s Palisociety will open its Palihouse boutique hotel brand in Hyde Park Village this autumn. The 36-room hotel will be the company’s first in Florida, done in partnership with WS Development of Boston. The hotel in Tampa will include a lobby lounge with a café and bar, well-sized guest rooms, kitchenettes with Smeg mini-fridges, library seating in most rooms, and more. Palihouse Hyde Park Village will be Palisociety’s 19th property.
A plan to bring a 180-room hotel and banquet facility to Seaside Heights, NJ, is going before the Seaside Heights planning board later this month. The plan is to demolish the existing Sunrise Motel and Glendale Motel, as well as the site of the Surfside Motel, to make way for this 180-room hotel complex.
Best Western Hotels & Resorts announced the opening of the new Best Western Plus Executive Residency Carlsbad Hotel in Carlsbad, New Mexico. Raj Bhakta owns the hotel, and features 78 rooms, including four suites. The newly built, dual-branded property includes an Executive Residency side to cater to long-term stays. The hotel’s amenities include an indoor pool, fitness center, guest laundry facilities, a 700-square-foot meeting room, and complimentary breakfast.
A divided Los Angeles City Council called for a halt to the hotly debated hotel project in Benedict Canyon. The council voted 8-6 to support the motion by Councilwoman Katy Yaroslavsky to halt the proposed Bulgari Resorts project in Beverly Hills. The Bulgari project included plans to build a 59-room hotel and eight single-family homes on a 32-acre property in Beverly Hills. The Councilwoman said the proposed project would pose significant environmental threats and increase potential hazards to the residents in the canyon. The city planning director will reconsider initiating a General Plan amendment that was previously approved.
Hunter Hotel Advisors announced the sale of the 85-room Tru by Hilton Harbison Columbia in Columbia, SC. Sycamore Investment Group sold the property to APS Wheeler for an undisclosed amount. Hunter arranged the sale on behalf of the seller.
Marcus & Millichap announced the sale of Holiday Inn Express & Suites Jacksonville Southeast Medical Center Area and Hampton Inn Jacksonville/Ponte Vedra Beach-Mayo Clinic area. Both hotels are in the Jacksonville, FL metropolitan area. The Holiday Inn is a 104-room hotel located less than five miles from the 117-room Hampton Inn property, just east of the Mayo Clinic. Marcus & Millichap had the exclusive listing to market the property on behalf of the seller. The buyer, AON Hospitality Group, is a vertically integrated full-service hotel owner, operator, and developer with a strong presence in North Florida and New England.
Holiday Inn Club Vacations Incorporated said Linda Beltran joined the company as VP of Corporate Communications. Beth Womersley joined as VP of Internal Audit, and Sven Scheffler has been promoted to VP of Financial Planning and Analysis.