New York City Hotel Bookings Boom After Short-Term Rental Crackdown

The DJIA rose 6 points, the Nasdaq was up 2, the S&P 500 was up 3 points, and the 10-year treasury yield barely budged at 4.32%. Was it a holiday, and nobody publicly declared it? Lodging stocks were lower. The movers of note included VCSA with an 8% rise, SHCO up 5%, and BHR fell -7% on the day. 

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CNBC weighed in on the whole New York City sensible regulation of Airbnb, saying the beneficiary will be the hotels as travelers to NYC during the holidays will be findinghigher hotel prices now. Airbnb announced plans to cancel and refund bookings for stays after December 1 following the long-planned regulations aimed at curbing illegal short-term rentals going into effect on September 5. Skift, the parent company of this publication, estimates ABNB short-term listings in NYC dropped -77% from June 4 to September 10, likely sending many searching for new accommodations. JLL Hotels & Hospitality Americas‘ CEO Kevin Davis told CNBC that in the past week, they have seen the strongest booking pace for the forward six-month period than at any time since 2015. Google searches for NYC hotels are up 24% relative to the past 60-day period.

Legacy Development & Management acquired the Albuquerque Marriott Pyramid North in Albuquerque, New Mexico, from Atrium Hospitality on September 8. The purchase price of the 310-room hotel was not disclosed. The hotel will undergo a complete renovation expected to cost $22 million and span up to two years. The renovation will upgrade guest rooms, bathrooms, and the conference center. It will add new restaurant and bar concepts, a Marriott M Lounge, a new pool, a fitness center, exteriorimprovements, and updated landscaping.

On Friday, an airport board is expected to consider moving ahead with a proposed hotel at the Indianapolis International Airport that would carry Marriott International Inc.‘s Westin flag. In late 2022, the authority authorized a feasibilitystudy for an airport-connected lodging property. So far, the authority has spent nearly $3.4 million authorizing a series of contracts for the project, including the Louderback Group for hotel consulting services. Many specifics for the hotel project, including cost and buildingheight, are still being determined. Still, airport officials confirmed the hotel would be a four-star with 262 rooms and would be attached to the airport parking garage just west of the terminal. Indianapolis Airport Authority staff considered both Marriott and Hilton but ultimately selected the Westin brand. A report said Westin was selected based on its interviews and a recommendation from The Louderback Group. 

The Decatur, Georgia Planning Commission approved special exceptions for a 240-room hotel at 213 Swanton Way. The hotel will feature two different brands: Tempo and Homewood Suites, both owned by Hilton. The developers are seeking to have 100% of the parking off-site, and a hotel of this size requires a total of 181 parking spaces. The hotel plans to offer full-service valet parking along with on-street pickup and drop-off.

Jacksonville Jaguars owner Shad Khan‘s development company, Iguana Investments Florida LLC, has applied to the city of Jacksonville, FL, for permits to build the Four Seasons Hotel & Residences for $215.1 million and an office building at almost $39.2 million at the Downtown Shipyards. Work is underway at the riverfront site near EverBank Stadium. The 10-story Four Seasons Hotel & Residences comprises 170 hotel guestrooms and 26 residential units on 5.1 acres. A spa, restaurants, ballrooms, bars, pools, and other amenities will be there. A six-floor office building is part of the Shipyards development adjacent to the Four Seasons hotel. Iguana Investments Florida LLC is required to complete the project by June 30, 2026.

Leaders in Vinita, Oklahoma, said groundbreaking on a planned $2 billion theme park development is imminent, and construction jobs are already getting filled. Mansion Entertainment plans to build a Disneyland-sized theme park in the small town and already has the funding secured to pay for the park’s construction. The park, American Heartland, will take up a 1,000-acre tract of land and include roller coasters, an indoor water park, a four-star hotel, and one of the country’s largest RV parks, Three Ponies RV Park. Three Ponies RV Park will be the project’s first phase, and the company is hoping to break ground on that very soon. Work on the theme park will likely begin in the spring.

The old Lahaina Inn Resort on Estero Boulevard in Fort Myers Beach, Florida, is again on the market. Selling for $30 million, the 2.6 acres includes 360 feet of Gulf of Mexico frontage, according to broker LSI Cos.

Fiesta Americana Travelty, formerly known as La Coleccion Resorts by Fiesta Americana and part of Posadas‘ umbrella brand, in collaboration with Grupo Xtra, have broken ground on the $300 million Mayan Riviera: Live Aqua Riviera Cancun and Grand Fiesta Americana Riviera Cancun All Inclusive Resort & Spa. These projects will add 1,052 new hotel rooms to Posadas‘ regional hotel capacity. The hotels are expected to open in late Q1 2025 and early 2026. 

Peachtree Group announced a refreshed corporate brand position to showcase better the company’s fully integrated investment and service platforms. Accompanying the new brand position is a powerful new tagline, “Guided by Intuition, Grounded by Expertise .” This expression captures the essence of Peachtree Group’s approach to investment strategies. The company has consolidated all affiliated brands under the Peachtree Group umbrella. This change unifies the company’s diverse portfolio of brands, including Stonehill and Peachtree Hospitality Management, into Peachtree Group Credit and Peachtree Group Hospitality Management, respectively.

CIM Group announced its CIM Real Estate Debt Solutions business closed on behalf of a CIM-managed fund a $34.97 million senior loan to a joint venture between Monarch Alternative Capital and HHM Hotels secured by the dual-branded Aloft/Element hotel in Orlando, Florida, and a $28.9 million whole loan to Newbond Holdings secured by the Aloft in Tampa, Florida. The dual-branded Marriott hotel combines the 144-key Aloft and 140-key Elementbrands. Aloft Tampa Downtown is a 130-key hotel.

In the next few months, Marriott will be debuting its first-ever Edition in the Caribbean, with the new Riviera Maya Edition at Kanai. The new Mexican Caribbean resort is already taking December bookings and could open even earlier than that. The new beachfront Edition will be part of the luxe Kanai Development and will feature 182 rooms and suites, five dining concepts, a pool bar, a beach club, a large outdoor event deck, a fitness center, and a pool.

Personnel Moves

Hilton named Anne-Marie D’Angelo as executive vice president and general counsel, effective September 15, 2023. D’Angelo also serves as a member of the executive committee. She most recently served as chief legal government affairs officer at Molson Coors Beverage Company. D’Angelo succeeds general counsel Kristin Campbell, who, as previously announced, retires this month after a distinguished 12-year career at Hilton.

Europe Highlights

S Hotels and Resorts PCL announced the latest phase of its “3P” (profit, portfolio, planet) strategy in the United Kingdom, with significant renovations at several hotels in key cities, including Mercure Manchester Piccadilly Hotel, Mount Royal Hotel Edinburgh, and The Grand Hotel Leicester, plus extensive upgrades at another eight hotels. The UK is S Hotels & Resorts’ largest market, accounting for 65% of the rooms in its global portfolio. The company has 27 hotels comprising 2,940 keys nationwide, operating under world-renowned brands, including Mercure and Holiday Inn.

A major renovation has commenced at the 280-key Mercure Manchester Picadilly Hotel, including upgrades to its guestrooms, corridors, and lobby area. The 169-key Mount Royal Edinburgh City renovation will encompass the hotel’s guestrooms, lobby, corridors, façade, and restaurant. The renovation project that will be undertaken at the 104-key Grand Hotel Leicester encompasses the hotel’s guest rooms and public areas. S Hotels & Resorts also recently completed the leasehold acquisition of the 91-room Mercure Glasgow City Hotel for GBP 7.5 million. This will be followed by renovating the rooms and public areas in 2024. In parallel with the upgrades being made to its assets, S Hotels & Resorts has invested in improving the IT infrastructure of its UK portfolio.

Mandarin Oriental is gearing up to unveil its second London property in the city’s Mayfair district this autumn. The group also recently announced plans for a third hotel in the UK capital for the 2.2-hectare mixed-use Bankside Yards development.