The DJIA was up 38 points, the Nasdaq was up 76, the S&P 500 was up 17 points, and the 10-year treasury yield was unchanged at 4.12%. Lodging stocks were modestly lower on the day.
In the Q2 ’23 Global Construction Pipeline Trend Report from Lodging Econometrics, analysts state that the global construction pipeline is 14,572 projects/2,310,238. Worldwide, at the close of the second quarter, there are 6,154 projects/1,108,498 rooms under construction, 3,679 projects/506,760 rooms scheduled to start within the next 12 months, and 4,739 projects/694,980 rooms in the early planning stage.
Global Construction Development Activity by Type Ending Q2 2023
Global Construction Pipeline by Country Ending Q2 2023
Global Construction Pipeline by City Ending Q2 2023
Global Construction Pipeline by Company Ending Q2 2023
|IHG Hotels & Resorts
Global Construction Pipeline by Brand Ending Q2 2023
|Holiday Inn Express
According to CoStar, hotels in urban markets have yet to fully recover to pre-pandemic levels of group occupancy and rates, while resorts and suburban hotels have surged ahead. The dataset by CoStar Group compared trailing 12-month performance through June 2023 to the same period in 2017, which is an exact calendar match to 2023 in terms of how holidays fell. Of note, group occupancy appears to be fairly consistent Tuesday through Sunday for hotels with 25,000 square feet of meeting space or less. But in hotels with greater than 25,000 square feet of meeting space, Tuesdays and Wednesdays had higher group occupancy than the other days of the week. Regardless of hotel size, group occupancy on Sundays was down the most. Average daily rates for group demand were high, even with lower occupancy in the segment on Sunday nights. Hoteliers have learned that dropping rates doesn’t necessarily induce demand; therefore, rates should be kept where they are, and operating expenses should be lowered at times of lower occupancy, at least according to the CoStar report.
STR reported on US lodging data for the week ended 8/26. US hotel RevPAR was up 2.1% for the week. Group RevPAR was up 7.1%.
Hilton‘s Hampton by Hilton announced the opening of its newest property, The Hampton Inn & Suites San Mateo-San Francisco in San Mateo, California. Owned and developed by Founders Investment Corporation and managed by Johnson Hospitality, the 181-room hotel features an open-designed lobby, a fitness center, and a charming outdoor courtyard.
The Oread Hotel in Lawrence, Kansas, has joined the Tapestry Collection by Hilton. The 102-room hotel is owned by Mission Hill and managed by Concord Hospitality. The Oread Hotel boasts 15,000 square feet of meeting space, a full-service, three-meal restaurant, bar, retail space, two large outdoor terraces, and a fitness center.
IHG Hotels & Resorts announced the opening of a new-build Holiday Inn Express hotel in San Antonio, Texas. The 70-room hotel offers 797 square feet of meeting space, a business center, a fitness center, and an outdoor pool.
The Holiday Inn Express San Antonio East – I-10 is owned by SYPM Investment Partners, LLC, and managed by Magnolia Hospitality.
Remington Hospitality announced an agreement to manage operations at Senna House, marking the company’s first property in Scottsdale and fourth in Arizona. This is Remington‘s second partnership with hotel ownership OpWest Partners. The property boasts 169 rooms, a restaurant, and the Sonora Swim Club, featuring a rooftop pool, cabanas, lounge chairs, and an outdoor bar.
A Hilton-brand hotel to be located at the Spring Hill Towne Crossing multi-use development located in Spring Hill, Tennessee, is now seeking approval by the Municipal Planning Commission to increase its capacity from 120 to 159 rooms, as well as decreasing the parking requirements from 1.5 spaces per room to about one space per room.
A Hilton-brand hotel to be located at the Spring Hill Towne Crossing multi-use development located in Spring Hill, Tennessee, is now seeking approval by the Municipal Planning Commission to increase its capacity from 120 to 159 rooms, as well as decreasing the parking requirements from 1.5 spaces per room to about one space per room. The Spring Hill Towne Crossing development will also include grocery space, gas/station convenience store, standalone restaurant space, drive-thru restaurant space, retail space, office space, and 334 multi-family apartments.
The Hyatt Centric and The 203 Residences on Jarvis, a project by Magna Hotels, reached a key milestone this month with the removal of the construction crane. The 32-story development will welcome a mix of 240 hotel and 179 market-rate rental suites to Toronto’s Garden District.
WoodSpring Suites is looking to build a three-story, 123-room hotel at 5550 Tuttle Crossing Blvd. in southwest Dublin, Ohio. The WoodSpring Suites would be built on 2.8 acres of vacant land and would include a gym and laundry area for guests, along with 124 parking spaces.
The Kahler Grand Hotel in Rochester, Minnesota, aims to replicate the three-faced sign to preserve a significant part of Rochester’s history. The project will cost approximately $500,000 to build the sign by the end of October. Kahler Hospitality told KIMT News 3 that the only significant difference with the new sign is using LED instead of neon lights. The LED lights will shine red, just like the original, and can change colors to celebrate special city events. The sign isn’t the only update Kahler Hospitality has completed at the hotel, as the group recently renovated the 600-room hotel and added new conference space.
SiLa Developments has begun construction on an eight-story, 168-room Holiday Inn Express Hotel in Nashville, Tennessee.
RIU Hotels & Resorts completed a transformation at the Riu Caribe. In addition to some impressive changes in the lobby, 506 guestrooms, restaurants, and common areas that will surprise guests, the new Riu Caribe will now be the first in the area to host RIU Party events, which will be open to all RIU guests in Cancun. The exclusive adults-only RIY Pool Parties are accompanied by another new feature: 74 RIU Party rooms. The hotel has also added two family pools to the property and a new RIU Fit sports area.
Jay Patel and 901 Dick Road Hotel LLC bought the hotel in Buffalo, New York for $2.5 million from DIP Hospitality LLC. The site, which previously operated as Comfort Suites Buffalo and Airport Inn and Suites Buffalo by Fairbridge, could reopen as soon as mid-September. Patel plans to invest $900,000 in the 100-unit all-suite property, including cosmetic renovations and rebranding, between now and the end of the year.
Carmel Partners secured construction financing for its 900-unit redevelopment of a massive historic hotel in Northwest D.C.’s Woodley Park. The developer plans to demolish the existing hotel and replace it with two 90-foot residential buildings surrounding a central courtyard. The firm secured $360M in construction financing from Wells Fargo Bank to redevelop the Washington Marriott Wardman Park.
Mumford Company announced that Carter P. Willcox from the firm’s Newport News, Virginia Headquarters, and GR Patel from the firm’s Dallas, Texas office had been promoted within the firm effective August 16, 2023. Carter Willcox was recently promoted to Vice President with Mumford Company, while GR Patel was recently promoted to Senior Associate.
Choice Hotels International, Inc. announced key executive appointments that positioned the company for continued growth following its acquisition of Radisson Hotels Americas and the successful integration of its nine brands onto Choice’s world-class central reservation system. Dominic Dragisich, who joined the company as Chief Financial Officer in 2019, will be promoted to Executive Vice President, Operations and Chief Global Brand Officer. Dragisich will oversee all of Choice’s brand segments, brand development, segment services, and corporate development. Scott Oaksmith will be promoted from Senior Vice President and Deputy Chief Financial Officer to Chief Financial Officer. In this role, Oaksmith will lead Choice’s overall financial strategy and corporate growth initiatives to drive ongoing expansion across major markets and maximize shareholder value. Raul Ramirez will be promoted from Chief Strategy and International Operations Officer to Chief Segment and International Operations Officer. He’ll be responsible for Choice’s upscale, extended stay, core midscale and economy brands, and its international division. Anna Scozzafava will be promoted from Senior Vice President and General Manager Extended Stay Brands to Chief Strategy Officer and Senior Vice President, Technology, overseeing Choice’s corporate strategy, business analytics, and technology functions.
Sonder Holdings Inc. announced the appointment of Chad Fletcher as Vice President of Sales. Fletcher is responsible for Sonder’s corporate travel strategy, which includes leading the global B2B sales organization, forging strategic external partnerships, and growing both new and existing customer verticals. Fletcher was previously Vice President, Global Sales at Choice Hotels International, Inc.
Broadwick Soho, a boutique hotel with 57 rooms in the heart of London’s West End, is expected to debut in November. Two floors have been added to the top of the original structure, giving the hotel a sizable rooftop bar. The hotel offers four dining concepts.