B of A Securities Increases Target Price on Marriott 

The DJIA fell 370 points on the second day of the Fed reaction. Nasdaq was down another 245, the S&P 500 was down 72 points and the best sign of displeasure was in the 10-year yield, jumping .13 to 4.48%. Lodging stocks were lower. SOND’s reverse split is already having the expected effect, down another -10% nearly to another all-time low.

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B of A Securities upped their target price on Marriott to $225 from $215. They maintained their Buy rating.

Following seasonal patterns, the U.S. hotel industry reported lower performance results from the previous month but improved comparisons year over year, according to August 2023 hotel performance data from CoStar. August 2023 (percentage change from August 2022): Occupancy: 66.0% (-0.3%); ADR: $153.60 (+1.8%); and RevPAR: $101.35 (+1.5%). Among the Top 25 Markets, Oahu Island experienced the highest occupancy level (84.4%), which was up 3.4% year over year. Markets with the lowest occupancy for the month included New Orleans (45.7%) and Houston (56.8%). The Top 25 Markets showed higher occupancy and ADR than all other markets. 

Peachtree Group announced its credit division has closed $556 million in loan originations of the $1.1 billion the company deployed year-to-date. The remaining $526 million was deployed to acquire five hotels and undertake three new hotel development projects. The company also opened five hotels that were under construction as of September 2023. Peachtree Group’s five hotel acquisitions, with a total of 677 keys, include: Hampton Inn & Suites University Capital, Austin, Texas, 137 keys; Homewood Suites Vanderbilt, Nashville, Tennessee, 192 keys; Hilton Garden Inn Atlanta North, Johns Creek, Georgia, 122 keys; Courtyard Atlanta Kennesaw, Kennesaw, Georgia, 100 keys; and Home2 Suites by Hilton, Chandler, Arizona, 126 rooms. The three new projects, representing $293 million in aggregate value, that Peachtree Group’s development division closed on include: Embassy Suites, Gulf Shores, Alabama, 257 keys; Caption by Hyatt, Nashville, Tennessee, 210 keys; and AC by Marriott, Detroit, Michigan, 154 keys. In addition, the development team opened five hotels with a combined development cost of approximately $119 million including: Hilton Garden Inn, Florence, Kentucky, 123 keys; Hilton Garden Inn, Pensacola, Florida, 102 keys; Hampton Inn, Delray Beach, Florida, 143 keys; and Hampton and Home2 Suites, Lake Nona, Florida, 150 keys.

Dellisart LLC experienced record growth for Hotel Sales Max, Hotel Rev Max, Hotel Digital Max and their full service management company. Hotel Sales Max focuses on bringing in a dedicated sales team to assist individual properties in enhancing their sales reach remotely. Hotel Rev Max focuses on working with each individual property on their rate structure, channel management and overall revenue strategy to ensure they are getting the highest rate possible for their property type and market. Hotel Digital Max assists hoteliers to connect digitally using such tools as SEO, targeted personalized email marketing, social media, web-based advertising along with text and multimedia messages as a marketing channel.

Two new hotels for the north side of Kokomo, Indiana are in development. Mark Bowyer is seeking to develop a 4-acre lot at 1717 Faith Road into two separate hotels aimed at attracting both short-term and long-term travelers. According to Bowyer, one of the hotels would be a 122-room Woodspring Suites and the other would be a 77-room Fairfield Inn by Marriott. A construction timeline was not disclosed.

TPG Hotels & Resorts has been selected by Douglas Development to manage three upscale independent boutique properties in Buffalo, New York. The 88-room Richardson Hotel is a dramatic adaptive reuse of an 1870’s psychiatric hospital. The property sits on 40 acres adjacent to Buffalo State University and provides over 7,000 square feet of meeting space, a business center and fitness center. The 28-suite Roycroft Inn is a historic property that is part of the Roycroft Campus featuring a restaurant and beautiful gardens available for events. The 28-room Mansion on Delaware is a 19th centurymansion that transitioned into an upscale modern hotel and event center.

The long-awaited Hyatt House hotel project, in West Chester Township, Ohio, is projected to open on April 15, 2024, according to the developer. Ark Investment Partner, the sponsor of the 156-room hotel, has recently completed refinancing for the expanded project. HH Liberty Way, LLC, the entity formed for the development, used COVID-19 delays to broaden the development. 

Hotel Indigo, in Tallahassee, Florida, has a proposed expansion into the lot adjacent to the current site, along Gaines Street and Woodward Avenue. The proposal is for a five-story, mixed-use building with 88 additional hotel rooms to Hotel Indigo’s existing 143. The ground floor would include a restaurant and plans also include space for four duplexes with eight total bedrooms. The site plan indicates that 119 parking spaces would be required for the new development, but 64 of them are noted as “off-site parking”. The project is managed by Park Place Hospitality Group, who is looking to break ground in late 2024. The expanded Hotel Indigo is projected to open in early 2026.

The Opal Collection shared renovation updates, new restaurants, and other news for several properties within its portfolio of beachfront Florida hotels and resorts. Situated oceanfront on Hutchinson Island, The Lucie has joined the Opal Collection after an extensive room renovation. Located in Jupiter, Jupiter Beach Resort & Spa recently completed a transformation of all accommodations. The nine-story resort also features a heated oceanfront pool and whirlpool spa, an outdoor lounge area, fire pit, fitness center and lighted tennis and pickleball courts. In the heart of Delray, the Opal Grand Resort & Spa recently transformed several guest amenities including revived guest bathrooms in the south tower, resurfaced pool with new cabana/day bed, and a rooftop event space set to open in early 2024. The nearby Atlantic Suites on the Ave has also completed a total renovation of guest accommodations. Located on Lido Beach in Sarasota, Lido Beach Resort has opened the Tiki Bar. There’s also a stage for live music, fire pits, and a new Sunset Sand Garden for events or private functions. The Resort at Longboat Key Club’s accommodations have opened after a top-to-bottom renovation. The resort features a golf course, full-service spa and tennis and pickleball courts. At Zoto Beach Resort in Longboat Key, guests will enjoy new resort accommodations and spaces, a zero-entry pool, additional space for pre-function events, a fitness center and new menu and expanded hours at the restaurant and bar. In Naples, the Edgewater Beach Hotel features more than 100 accommodations, a completely enhanced pool with water features and more. Completely re-imagined in 2023, The Capri Inn is a boutique property in Naples. A boutique waterfront hotel in Key West, The Capitana now has all-new beachside cabanas.

BWH Hotels announced the latest property to join its Glo brand, Glo Best Western Pooler - Savannah Airport hotel in Savannah, Georgia. The newly constructed hotel features 83 guestrooms, a business center and a fitness center.

BWH Hotels also announced the opening of its newest Aiden hotel in Flagstaff, Arizona. This Aiden hotel boasts 96 guestrooms; a public deck, including a hot tub, heated pool, fireplaces; lobby cocktail lounge, café, a Sundry Shop and an elevated fitness center.

Developers are moving forward with plans for a downtown Phoenix, Arizona hotel called The Edith. The 17-story, $140 million mixed-use building will feature 236 rooms with 23,000 square feet of flexible meeting space. It will include a ground-floor restaurant, rooftop pool and bar, café, full-service spa and a fitness center. The group developing the new hotel includes Sunbelt Holdings, BB Hotels & Resorts and Pacific Hospitality Group.

More than $100 million has been invested into the renovation of the British Colonia, which is gearing up for its reopening in Nassau, Bahamas. The complete renovation includes a brand new lobby, five new restaurants, brand new meeting space and completely renovated guestrooms and hallways. There will also be new landscaping, two new pools and a renovated beach area. The British Colonia Hilton closed its doors on February 15, 2022. At the time of its closure, the hotel’s owners had indicated to the government that the agreement to carry the Hilton brand at the property had come to an end. The hotel is owned by China Construction America. 

Europe Highlights

Hilton signed a franchise agreement with Annexum to develop two hotels totaling 480 rooms in Rotterdam. Mainport Hotel Rotterdam, Curio Collection by Hilton and DoubleTree by Hilton Rotterdam Centre are due to open in 2024 following renovations, during which both hotels will remain operational and will be trading as Hilton affiliate hotels. The first Curio Collection by Hilton property in the city, Mainport Hotel Rotterdam offers 215 guestrooms, an onsite bar and restaurant and 600 square meters of conference and events space set across 10 meeting rooms. Occupying the adjacent building, DoubleTree by Hilton Rotterdam Centre boasts 265 guestrooms, a bar and restaurant, spa facilities and a pool, with many of these facilities available to guests at both hotels. The hotel also offers meeting spaces on the 15th and 16th floors. Both hotels will feature private parking, including electric vehicle charging stations. 

Avani Hotels & Resorts, the upscale lifestyle brand of Minor Hotels, celebrated its Venetian debut with the launch of Avani Rio Novo in Venice, Italy. The 144-key Avani Rio Novo Venice offers a cinematic-themed restaurant, a workout rooms, grab-and-go dining options, and dedicated meeting spaces. 

Dalata has agreed with Zien Group to acquire the entire issued share capital of American Hotel Exploitatie, in The Netherlands, which holds the operation lease of the Hard Rock Hotel Amsterdam American. The deal is expected to be complete in early October and the property will immediately start operating the hotel as the Clayton Hotel Amsterdam American. The hotel consists of 173 bedrooms, a ground floor lobby, a Café and a bar. The hotel will be Dalata’s first hotel in The Netherlands and its second hotel in continental Europe.

Club Med revealed plans to open its first South Africa resort after achieving a record-breaking first half of the year. The operator’s business volume grew to €1.06 billion between January 1 and August 6, representing an increase of 32% compared to the same period last year and an increase of 20% compared to that of 2019. Club Med Tinley, is set to open in South Africa in summer 2026 with construction starting early next year. The resort in the KwaZulu-Natal province will offer safari excursions and will feature a surf-lifestyle concept. Club Med will open four new resorts by the end of 2023, including Exclusive Collection Space in the French Alps and Club Med Kiroro Grand in Hokkaido, Japan.