San Francisco Hotels May Defy the Pessimists in 2024

The DJIA fell 195 points, while the Nasdaq was down 10, the S&P 500 was down 18 points, and the 10-year treasury yield was up 0.68 to 4.258%. Lodging stocks were mixed, but Airbnb stock received a big lift with the announcement of its inclusion in the S&P 500.

Truist reported on its visit to San Francisco for the Visit Impact Summit. The good news is that the fall 2023 events are showing improvement. The bad news is that the 2024 convention pace so far remains soft; 2025-2029, for now, remains far below the 800K+ annual room nights Truist views as needed for hotel sellouts/pricing power/profits. Truist is still cautious about the SF tourism recovery through at least 2024 but believes market performance may improve faster than consensus expectations. Asia Pacific international airlift may also help with non-group business.

Newbond Holdings announced the acquisition of the Aloft Tampa Downtown Hotel. Located on the Riverwalk in Downtown Tampa, Florida, the 130-key hotel offers abundant indoor and outdoor amenity space, including a waterfront pool and gym, corporate meeting and event space, and a bar and lounge. Newbond is planning a comprehensive hotel renovation to include all guestrooms, public areas, and the pool deck. JLL's Hotels & Hospitality Group arranged the acquisition financing for Newbond. The Plasencia Group brokered the sale of the hotel on behalf of the seller.

An affiliate of KAC Enterprises Inc. purchased The Courtyard by Marriott Louisville East for $12 million from Marcourt Investments Inc. According to LTS Hospitality, the 151-room hotel in Louisville, Kentucky, will undergo an approximate $3.5 million renovation of all guestrooms, the Bistro, courtyard, fitness center, and meeting space. LTS is hoping construction will begin as soon as possible on the 18-month project. 

Atlantic Beach Resort LLC filed plans with the city of Daytona Beach, Florida, to build a new AC Hotel by Marriott on its beachfront property on N. Atlantic Avenue. According to documents, the hotel would include conference space, a restaurant, and/or bar/lounge areas.

Marriott International announced the completion of a recent redesign and renovation to the 146-room Courtyard by Marriott Denver Central Park in Denver, Colorado. The transformation includes renovations to the guestrooms, exterior, lobby, fitness center, courtyard, and Bistro. Additional amenities at the three-story hotel include an indoor pool and two meeting rooms with 1,274 square feet of functional meeting space. The hotel, owned by Clarion Partners and managed by Marriott International, Inc., will celebrate its grand reopening on September 18. 

In San Antonio, Texas, the signs at the Sheraton Gunter Hotel were switched out, shedding the Sheraton name. The change signals a massive renovation project that is supposed to kick off at the beginning of 2024. Evolution Hospitality is investing more than $30 million into a complete interior and exterior facelift. The goal is to join the Marriott Tribute line of boutique hotels. Every guestroom, lobby, and common area, as well as the exterior, will be overhauled. The existing fitness center will double in size, and the firm plans to install a Top Golf suite. Renovations are expected to be finished in November 2024.

First Hospitality assumed management and operations of the Lively Hotel in Oklahoma City, Oklahoma. The 132-room boutique hotel will join OAK, a 20-acre mixed-use development district of restaurants, bars, and retail shops in the heart of Oklahoma City. In addition to 13,500 square feet of retail space, the property also features a bar and restaurant, an outdoor bar and pool area, a fitness center, and over 2,600 square feet of meeting space. The property will serve as the first Oklahoma property for First Hospitality, the first Tapestry Collection by Hilton in the state, and the 30th Hilton property managed by First Hospitality. With development underway, the property will open in summer 2024. 

Hilton is now accepting online reservations for December 26 and beyond for the under-construction Hotel Royer in Urbana, Illinois. Technically, Marquis Ventures/Icon Hospitality now has until February 19, 2024, to complete the extreme makeover of the 131-room, century-old hotel after Aldermen agreed to grant a third extension from the previous August 31, 2023. 

Presidio Companies announced the reopening of Hyatt Centric Downtown Sacramento, located adjacent to the Golden 1 Center in Sacramento, California. The hotel had briefly closed to repair damage caused by a water main break on the roof. The eleven-story Hyatt Centric Downtown Sacramento boasts 172 guestrooms and suites, 2,000 square feet of meeting space, a rooftop lounge, and a bar and restaurant.

A groundbreaking was held for a new hotel in Fresno, California. The first Hyatt House in the city will be located on Fresno State grounds and marks the final phase of the Campus Pointe mixed-use development project. Construction is starting, and the hotel is expected to be completed in two years.

Hyatt is set to debut its newest all-inclusive Secrets resort in the Caribbean next month. The new Secrets Tulum Resort and Beach Club has announced an October 12, 2023 opening date. The new resort will include 300 suites and one luxury villa in the heart of the mangroves of Tulum on the Caribbean coast of Mexico. The resort will feature 15 dining concepts, Secrets Spa by Pevonia, and a Preferred Club. 

Hyatt Studios is exploring the development of a hotel at Village Crossing Drive in the Southside Quarter of Jacksonville, Florida. According to Hyatt Hotels Corp., the company signed letters of interest in development agreements from multiple developers for more than 100 Hyatt Studios hotels, with construction expected to begin in 2023 and the first hotel expected to open in 2024. The hospitalitynet.org website says two have been identified to open in late 2024 in Mobile, Alabama, and in 2025 in Marysville, California.

Paladin Equity Capital is planning a four-story Everhome Suites hotel in the Hospitality Lane corridor in San Bernardino, California. The 114-room extended-stay hotel will offer a multi-purpose lobby, a public laundry facility, and a fitness center. The goal is to open the hotel in about a year.

Amanda Tucker and Rick Goldberg, owners of the former Silver Saddle Motel in Santa Fe, Mexico, have transformed the property into The Mystic. They acquired the Silver Saddle for $2.5 million and invested $1 million into transforming the property. The hotel has all-new interiors, 23 newly outfitted rooms, and a newly created lobby and public and café areas. Tucker and Goldberg remodeled four rooms at a time and remained open the entire time. On August 2, they opened the final element, the High Desert Café, Cocktails and Curios, a restaurant open for breakfast, dinner, and a bar.

Following the passing of Jimmy Buffett, TPI Hospitality is forging ahead on two Southwest Florida Margaritaville properties. TPI teamed up with Margaritaville Holdings to build a fancier Margaritaville Resort on Fort Myers Beach and a more subdued Margaritaville Hotel in Naples. 

Turner Construction Company and Great Wolf Resorts Inc. announced that vertical construction of the $200 million Great Wolf Lodge Gulf Coast inWebster, Texas, is complete. The companies marked the milestone with a topping-out ceremony that included the placement of an 8-foot support beam on the roof of the indoor water resort and a timeline for booking opportunities ahead of its November 2024 opening. Great Wolf Lodge, Gulf Coast, Texas, is the first in the Houston region and will be anchored by a 95,000-square-foot indoor water park. The project will also include an adventure park. More than 500 family-friendly suites will be located within a retail and restaurant corridor.

A boutique hotel is planned for the former site of the 162-year-old Penn Home in Philadelphia's Fishtown neighborhood. Hotel Anna & Bel, the former home of the Penn Asylum for Indigent Widows and Single Women, will offer amenities including a restaurant, fitness space, a courtyard with an outdoor heated pool, a sauna, a day-tine café, and a restaurant. Anna & Bel LLC acquired the property from Penn Asylum in October 2021 for $3,000,100. 

Jack Matthews Development, led by Matt Pfund, Pfund Construction, and Fireside Financial, plan to convert a 96-acre portion of the Bayer campus in Creve Coeur, Missouri, into a new mixed-use development. The plans for the site call for creating new commercial buildings, restaurants, mixed-use buildings with ground-floor retail, hotels, apartments, office and research office buildings, single-family houses, attached townhouses, and a grocery store. The first businesses at the site are set to open in mid-to-late 2025.

The Wanderstay Boutique Hotel in downtown Houston, marketed as the only Black-owned hotel in the area, celebrated its grand opening on August 28. The 10-room hotel offers themed rooms and a conference room. Deidre Mathis, owner and founder of the Wanderstay Hybrid Hospitality Group, owns the property.

Cushman & Wakefield Global Hospitality arranged the sale of the Hilton Raleigh North Hills in Raleigh, North Carolina. The 333-guestroom property offers 30,000+ square feet of meeting space, a restaurant, a bar, a fitness center, a business center, and an indoor pool. The asset was acquired by a private investor who plans to unlock significant value from a comprehensive renovation and explosive sub-market growth.  

Personnel News

Pyramid Global Hospitality has named James Messinger as corporate director of culinary. In his new position, Messinger focuses on creating opportunities for operating efficiency while sustaining high levels of culinary quality across Pyramid Global Hospitality's diverse portfolio. He will also grow Pyramid Global Hospitality through various efforts, including asset evaluation, ownership collaboration, and talent acquisition. Before joining the company, Messinger served as corporate chef for The Kraft Heinz Company.

Melia Hotels International appointed Angel Luis Rodriguez Mendizabal as the new CFO. Recently appointed CFO Sonia Jerez Burdeus is stepping down from her role due to personal reasons. 

Marcus Hotels & Resorts announced the appointment of Tiffany Leadbetter Donato as its first chief investment officer. Donato will oversee all transactional activities designed to fuel growth, including acquisitions, co-investments, and new third-party management contracts. Donato comes to Marcus Hotels & Resorts from Hyatt Hotels Corporation, where she most recently served as senior vice president of capital strategy and real estate. 

Hospitality Ventures Management Group announced strategic promotions and new leadership additions, expanding and fortifying its leadership team as the company surges ahead, powered by its industry-leading market share growth and impressive financial performance. In her new role as Executive Vice President and Chief Strategy and Administrative Officer, Sue Sandersworks with company leaders to define strategies to extend and defend the company in the short term, build emerging capabilities in the medium term, and create viable options for the long term. She oversees accounting, finance, human resources, talent, corporate public relations, and marketing communications. Sanders joined HVMG in 2010 as vice president of strategic planning and human resources. As Senior Vice President of Accounting and Finance, Angie Cook will oversee the total accounting function for the organization, expanding her role to oversee the management company's financials, risk management, and information systems. Cook joined HVMG in October 2015 as the vice president of accounting and finance. Suzanne Saunders, Senior Vice President of Design and Construction, is responsible for the team leading the execution of HVMG's many renovations and development projects, as well as project management and CapEx processes, working closely with owners, the HVMG business development team, external consultants and the company's investor and brand partners. Most recently, Saunders served as senior vice president of construction for First Hospitality. As Senior Vice President of Human Resources, Wilson Turner is responsible for sourcing and developing talent, executing the TACOE and XLR8 programs, and supporting core human resources and services. Among other things, Turner oversees associate relations, HR compliance, human resources leader development, benefits programs, and associate engagement. Turner began working with HVMG through a professional employer organization partnership in 2017 and officially joined the HVMG team in 2020. As Vice President of Operations, Bob Kisker supports HVMG's hotels in delivering the premium performance that creates value for owners. He joined HVMG in 2019 as general manager.

Deepak Ohri has announced his departure as CEO of Lebua Hotels and Resorts, the brand he founded and established as a luxury leader in Southeast Asia. Under his leadership, lebua now has five properties in India, Thailand, and New Zealand. Ohri said his next move is a luxury "hybrid" hospitality brand he will launch in the United States.