Speculation Blooms After Hersha Hospitality/KSL Deal
Skift Take
- DJIA, Nasdaq, and S&P 500 all experienced gains, while 10-year treasury yield decreased. Lodging stocks surged, led by lodging REITs AINC and ABNB, potentially narrowing the gap between NAV and stock prices.
- Lodging Dynamics Hospitality Group takes over management of Hilton Garden Inn and Homewood Suites in Los Angeles. Manhattan's Park Lane Hotel sold to Qatar's sovereign wealth fund. Wingate by Wyndham near LAX sold to Greens Group. IHG announces new Crowne Plaza in Saint John, New Brunswick.
- Kintetsu Group plans new hotel in Plano, Texas. Choice Hotels breaks ground on Cambria Hotel in East Tampa, Florida. Evans' Tempo by Hilton project falls apart. Philadelphia's former Family Court building to be transformed into a boutique hotel with an African American Museum nearby. East Bay Resort rebrands as Salterra Resort and Spa in Turks and Caicos after major renovation.
The DJIA was up 293 points, the Nasdaq rose 239, the S&P 500 rose 64 points, and the 10-year treasury yield was down .09 to 4.12%. Lodging stocks were higher again, with the lodging REITs leading the way. The biggest gainers were AINC, up 6%, and ABNB, up 5%. As for the REITs, the big debate now is whether the Hersha Hospitality/KSL deal means more deals are in the pipeline. The amazing thing about this is that it won't take much for Wall Street to narrow the gap between NAV and the current stock prices, making transactions less attractive to private equity firms.
Lodging Dynamics Hospitality Group has been appointed to manage the 174-room Hilton Garden Inn and the 184-suite Homewood Suites by Hilton Los Angeles/Redondo Beach. The hotels are developed and owned by Mogul Capital, two of several Southern California hotels they own and have developed. The Hilton Garden Inn and Homewood Suites sit
