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North America

Canadian Hotels Enjoy Record Average Daily Rates

Alan Woinski and Kim Woinski
August 24th, 2023 at 4:46 PM EDT

Skift Take

  • DJIA, Nasdaq down; S&P 500 fell; 10-year treasury yield up.
  • Hotel Trends: Global RevPAR growth; Canada’s record ADR and RevPAR; mixed occupancy rates.
  • Developments: Hotel expansions, renovations; Hyatt Vacation Club launch; new CEOs, brand in Croatia.

The DJIA fell 374 while the Nasdaq was down 257, the S&P 500 fell 60 points, and the 10-year treasury yield was up .04 to 4.24%. Lodging stocks were lower, but the biggest mover was to the upside, with SOHO bouncing back 7%. VCSA traded down to yet another all-time low.

Deutsche Bank updated their models and price targets on some hotel REITs. They were clearly not updating them to the upside. Still, they did highlight Summit Hotel Properties as a stock that has an undemanding valuation and should perform well from a RevPAR perspective in most macroeconomic scenarios. The biggest cut to price target was Ashford Hospitality, with a drop to $9 from $26. They also slashed their target on Braemar Hotels to $12 from $15. DB switched back to an EV/EBITDA methodology for AHT from a per-room-based valuation because DB does not think AHT will be selling a large number of hotels. They also cut price targets on SHO, INN, and DRH, each to $10 from $11; RLJ to $14 from $15; and HT to $8 from $9.

STR’s global bubble chart update through August 12, 2023, shows 88% of markets experiencing growth in RevPAR compared to 2019, slightly lower than the 90% seen during the previous update. Among all countries with a total supply of more than 50,000 rooms, Israel, France, Greece, Singapore, and Croatia led in RevPAR on an actual basis. The countries that recorded occupancy above 80% were the same as the last update, including Greece, Singapore, and the U.K. At the same time, each of the three experienced a decline in the indicator, ranging between 2% and 9%. Notably, Irelandposted a 1% increase from 2019, comparable to 89%, marking the fourth consecutive 28-day period in which the country has recorded an occupancy rate above 80%. Greece, Italy, and Colombia retained the top spots in RevPAR growth compared to 2019 and were joined by Hungary and Brazil. Countries that are behind 2019 RevPAR have remained consistent, with Vietnam being the only country showing both occupancy and ADR behind the comparable period of 2019. Excluding provincial, country-level, and markets with fluctuating exchange rates, the top five RevPAR performers among city-level markets were Rio de Janeiro, Sanya, Brisbane, Milan, and Rome. Rio de Janeiro saw exceptional growth in both ADR (+72%) and occupancy (+19%). Last month’s update highlighted positive momentum in China’s markets, with 85% of its market surpassing its 2019-level RevPAR. The same percentage of markets in China also experienced a recovery in this indicator. However, major cities are not following the recovery trend as Beijing, Guangzhou, and Shenzhen have seen their performance fall behind 2019 levels, with Shenzhen experiencing the most significant decline at -24%. 

Canada’s hotel industry reported its highest ADR and RevPAR for any month on record, according to CoStar’s July 2023 data. July 2023 (percentage change from July 2022): Occupancy: 75.6% (+0.1%); ADR: CAD232.13 (+7.7%); and RevPAR: CAD175.42 (+7.8%). In addition to the monthly ADR and RevPAR levels, Canada’s occupancy level was its highest since August 2022. Among the provinces and territories, Newfoundland and Labrador recorded the highest July occupancy level (87.9%), 5.0% above 2022. Among the major markets, Vancouver saw the highest occupancy (87.0%), 2.4% ahead of July 2022. The lowest occupancy among provinces was reported in Saskatchewan (63.1%), down 1.8% against 2022. At the market level, the lowest occupancy was reported in Edmonton (-2.9% to 58.8%).

Delta Hotels by Marriott Riviera Nayarit, An All-Inclusive Resort, situated in the Cruz de Huanacaxtle, Nayarit, Mexico, unveiled the Aqua Jungle & River experience and an additional rooms and suites tower, both part of the resort’s planned expansion. The Aqua Jungle & River experience offers five Jacuzzis for adults, seven pools, an elongated lazy river, and two kid’s areas with waterslides and splash amenities. Delta Hotels by Marriott Riviera Nayarit, An All-Inclusive Resort, is the first Delta-branded hotel in the Caribbean and Latin American region and the first Delta to be an all-inclusive property. It boasts three restaurants, three pools, and a dedicated beach club just 15 minutes from the resort and the Tzicuri Spa. 

The developer of a new first-class hotel in Bedford, Virginia, on land close to the National D-Day Memorial, announced a Hampton Inn by Hilton is the hotel brand locating there. DDay Omstay LLC said the hotel will include a large meeting room that is a major need for the town. Bedford Town Council unanimously approved rezoning to allow the project, which the developer said is expected to start in January 2024.

Hotel 1000 Seattle, LXR Hotels & Resorts unveiled Rosebay, a craft cocktail bar, and The Nineteenth, powered by Topgolf Swing Suites, as part of a multi-million dollar renovation project. The transformation also includes enhancements to The Spa at Hotel 1000 Seattle and a renovated lobby with NFT displays.

In Arizona, The Chandler City Council approved a development agreement for the construction of a minimum four-story expansion to the Hilton Garden Inn Chandler Downtown. The project will add 69 hotel rooms, or 67 if double-sized suites are added. In addition to the hotel expansion, the project will include an Italian restaurant on the bottom level.

Hyatt Vacation Club launched across 22 branded resorts and with vacation options around the globe. Hyatt Vacation Club, a brand operated by an affiliate of MVW, connects former Hyatt Residence Club properties, the former Welk Resort properties, and different vacation ownership programs under a common brand. The refreshed Hyatt Vacation Club experience provides owners and guests with carefully curated portfolios of resorts, amenities, and travel offerings, including the ability to redeem World of Hyatt points. Hyatt Vacation Club will offer enhanced guest experiences, including the new Inspired Activities and Experiences program across resorts located in destinations including: Hyatt Vacation Club at Hacienda del Mar, Dorado; Hyatt Vacation Club at The Ranahan, Breckenridge; Hyatt Vacation Club at The Welk, San Diego Area; and Hyatt Vacation Club at Northstar Lodge, Lake Tahoe. Hyatt Vacation Club is part of Hyatt Vacation Ownership (HVO), which develops, markets, and manages shared ownership resort properties and is a business unit of Marriott Vacations Worldwide Corporation (MVW).

Montage Deer Valley, in Park City, Utah, has completed an extensive renovation of its 154 guestrooms, suites, and four dining outlets across the 16-acre resort.  

Bowie House, Auberge Resorts Collection, a new luxury urban retreat in Fort Worth, Texas, is now accepting reservations. Anchoring a 30-block promenade of acclaimed museums and restaurants, the hotel boasts 88 studios, 12 lofts, and 6 suites; a verdant pool terrace; convivial gathering spaces; three dining and drinking venues; the Ash spa; and over 10,000 square feet of indoor and outdoor space over seven distinct venues.

HHM Hotels added Hotel Madera to its managed portfolio, which will join its Echelon Luxury & Lifestyle Division. This independent hotel, owned by Roch Capital, is two blocks from Washington D.C.’s Dupont Circle and features 81 guestrooms, a gym, flexible event space, and a restaurant and bar. 

18 Main has filed a $75 million new construction permit with the Memphis and Shelby County Division of Planning and Development as it moves toward breaking ground on its Dream Hotel at 112 S. Main Street in Downtown Memphis, Tennessee. 

Detroit, Michigan’s newest boutique hotel is now open. Located in CorktownThe Godfrey Hotel Detroit has 227 rooms, a grand ballroom, and a rooftop bar and lounge with a retractable glass ceiling. Later this fall, the hotel also will house a new bar and restaurant. Co-developed by Hunter Pasteur Homes and Oxford Capital Group, the hotel is the fifth location for the Godfrey Hotel brand.

Margaritaville Hotel San Diego Gaslamp Quarter is now open in downtown San Diego, California, marking the brand’s first city-center location on the West Coast. Following a nearly $30 million property-wide reexamination, the property is now home to San Diego’s largest rooftop pool deck, 235 vibrant and beachy accommodations, three dining and entertainment destinations, 13,000 square feet of flexible, indoor and outdoor meetings and events spaces, and thoughtful amenities. 

Personnel Moves

Savoy Signature announced the appointment of Roberto Santa Clara as its new Chief Executive Officer. This move reflects Savoy Signature’s commitment to its projected expansion strategy and reinforces its position as a pioneer in the hospitality sector. Santa Clara was formerly the Director of Madeira Airports. 

Europe Headlines

AC Hotels by Marriott announced its brand debut in Croatia with the opening of AC Hotel by Marriott Split. Housed on the high floors of the Westgate Tower in Split, Croatia, the 214-room hotel features the AC Lounge, a restaurant, bar, 178 SPA, a 325 square meter meeting space, and a gym.

Alan Woinski and Kim Woinski
August 24th, 2023 at 4:46 PM EDT

Companies: AC Hotels by Marriott, Ashford Hospitality Trust, Braemar Hotels & Resorts Inc., Delta Hotels & Resorts, DiamondRock Hospitality Company, Dream Hotels, Hampton by Hilton, Hersha Hospitality Trust, HHM Hospitality, Hilton Hotels & Resorts, Hyatt Hotels Corporation, LXR Hotels & Resorts, Margaritaville Hotels & Resorts, Margaritaville Island Reserve All Inclusive Resorts, Marriott International, RLJ Lodging Trust, Roch Capital, Soho House and Co Inc., Sotherly Hotels Inc., Summit Hotels, Vacasa

Locations: Croatia, Detroit, Edmonton, Memphis, Newfoundland, Park City, Rio de Janeiro, Riviera Nayarit, San Diego, Saskatchewan, Vancouver, Washington DC

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