The DJIA fell another 107 points Friday while Nasdaq was down 12, the S&P 500 fell 10 points and the 10 year treasury yield was down .04 to 4.44%. SOND traded down to a new all time low after their reverse split and then bounced, ending the day up 11%. AHT and SLNA both traded down to new lows, down -9% and -25% respective. SHCO was down -10% on the day.
Hyatt Hotels target price was reduced to $115 a share from $119.50 by Stifel. They maintained their Hold rating.
Pebblebrook Hotels Trust gave their monthly operating update, warning that Tropical Storm Hillary in California and Hurricane Idalia in Florida and Georgia will impact 3Q results. PEB said the storms caused cancellations, early check-outs, clean up and remediation expenses even though they did not suffer any major physical damage. PEB said same property RevPAR was down -1% in August as the storms caused over 200bps of impact.
According to new analysis for the U.S. Travel Association, a federal government shutdown is estimated to cost the U.S. travel economy as much as $140 million a day if it occurs. Other government-related travel issues, such as lengthy visitor visa interview wait times and passport and Global Entry processing delays, could further constrain travel growth and spending. During a government shutdown, the U.S. air travel system is hampered by more flight delays, longer screening lines and setbacks in air travel modernization. A new survey from Ipsos and U.S. Travel further underscores these steep negative consequences: 60% of Americans would cancel or avoid trips by air in the event of a shutdown. 81% of Americans agree government shutdowns hurt the economy, inconvenience air travelers (86%), impact businesses that depend on air travelers (83%) as well as tourist attractions like national parks, museums and local businesses (83%). Coinciding with the federal budget deadline, the Federal Aviation Administration’s authorization is set to expire on September 30. Congress has yet to pass a full FAA reauthorization bill, so they must pass a temporary extension of FAA programs. Inaction on an FAA renewal bill would further compound challenges for travelers.
The Sheraton Waikiki, in Honolulu, Hawaii, is celebrating the completion of a multi-year $200 million room renovation at its oceanfront resort along the famed Waikiki Beach. The Sheraton Waikiki has undergone a major renovation of all 1,636 rooms and suites. The property features two distinctive and unique pools including the adult-only Edge Infinity Pool with a pool bar, and a family pool.
Baywood Hotels secured a $17.6 million construction loan to build a Hilton Home2 Suites hotel near St. Pete-Clearwater International Airport in Florida. Ocean Bank provided the loan to Baywood affiliate PIE Ulmerton Hospitality LLC. Construction will begin in October on the five-story, 128-room hotel.
EVEN Hotels by IHG is celebrating its growth momentum and positive response from guests and owners following the unveiling of its re-imagined prototype and brand identity. The upscale, select-service and wellness-focused brand plans to open seven additional U.S. properties by the end of 2024, increasing its national footprint by nearly 40%. EVEN Hotels’ evolved prototype reduces costs to build and operate for owners compared with its earlier model while also accommodating travelers’ varying wellness definitions and routines. Scheduled to open in late 2025, the recently signed EVEN Hotel Charlotte will be the first to fully feature the brand’s new design prototype. Located in a mixed-use development also owned by hotel owner and manager Royal Panthera, the next-generation hotel will provide access to 131 guest rooms, nearly 1,700 square feet of meeting and event space, EVEN Hotels’ signature Athletic Studio and EVEN Kitchen & Bar. The EVEN Hotel Charlotte is just the latest milestone in the brand’s growth across the U.S. as EVEN Hotel Austin Uptown is scheduled to open before the end of 2023. A second Texas hotel, EVEN Hotel Waco – University Area is on track to open in late 2023 with 132 rooms. The brand’s third Pacific Northwest property also plans to open later this year in Beaverton, Oregon. An additional northwest hotel is Bozeman, Montana is under construction ahead of a planned 2024 opening. EVEN Hotel’s Florida presence will grow in the coming years, with recent groundbreakings in Orlando and Miami’s Sweetwater-Doral neighborhood preceding scheduled 2024 openings.
LuxUrban Hotels Inc. announced the 216-room Hotel 57 in New York City, the 35-room Condor Hotel in Brooklyn, and the 60-unit Lafayette Hotel in New Orleans have been re-branded as The Hotel 57, Trademark Collection by Wyndham; The Condor Hotel, Trademark Collection by Wyndham; and The Lafayette Hotel, Trademark Collection by Wyndham, respectively. LuxUrban also expects to open a new property in midtown Manhattan’s Flatiron District by October 15, 2023 via a 25-year Master Lease Agreement inclusive of two five-year extension options. This boutique, 76-room hotel, which is currently closed, is expected to join the Wyndham platform in connection with its planned reopening. The hotel will feature a newly renovated lobby and guest rooms.
Newport Hotel Associates, a joint venture partnership between North American Properties, Stormont Hospitality Group and High Street Real Estate Partners, plans to create a new $133.6 million Margaritaville Hotel Resort at Newport on the Levee in Newport, Kentucky. The Margaritaville resort will offer 264 rooms, multiple dining options, a pool, meeting and event spaces and retail space.
The Comfort Inn & Suites Mundelein-Vernon Hills, in Mundelein, Illinois, celebrated its grand opening. Formerly a Baymont Inn, the newly renovated, 84-room hotel offers meeting spaces, a fitness center, seasonal outdoor pool and more.
According to Volusia County Property Appraiser’s website, the Best Western Castillo Del Sol in Ormond Beach, Florida was sold to Magna, doing business as SouthAtlantic VIII LLC. The seller, doing business as Embassy Investments XV LLC, was Elite Hospitality. Marcus & Millichap brokered the $16.5 million sale.
Plans to rebrand and redevelop the All In Motel in Denver, Colorado are moving forward, but the project will no longer feature a new building that was meant to be an amenity to the community. The City Council voted to amend the 3015 East Colfax Urban Redevelopment Area, which encompasses the motel, to remove an additional building that was supposed to include 27 more hotel rooms and affordable commercial space for community members. The hotel is owned by Brian Toerber, who has had his ups and downs with the property. The firm expected to originally help finance the project backed out. After a prolonged search, Toerber found a lender, but it did not consider the additional building and retail options as financially viable. Renovations will be done to the 54 rooms and there will be a ground floor restaurant.
MHROC Property Owners LLC is seeking site plan approval for an 11-story, oceanfront hotel between 13th and 14th streets in Ocean City, Maryland. The 230-room hotel would include retail space on the ground floor, amenities on the second floor, a sixth floor activity deck and a rooftop pool and bar. While the developer desires to bring the Margaritaville brand to the property, they don’t feel this version will quality as one as the structure may not meet Margaritaville’s specific requirements.
JLL secured Avenue One in Omaha, Nebraska, as part of the mixed-use development and management strategic partnership with Poag Development Group. Avenue One, owned by Jasper Stone Partners, is 200 acres of mixed-use development and will be the first ground-up development under JLL and Poag Development Group since announcing their strategic partnership. For Avenue One, JLL’s Retail Property Management specialized leasing team will be the leasing agency and Poag will provide the development services. The development will feature a business park, shops, restaurants, hotels, apartments and 6 miles of walking trails.
Hyatt is planning to open a new hotel in Saint Lucia next year. The new Cas en Bas Beach Resort will be the first-ever Destination by Hyatt-branded resort in the Caribbean. The property will also have a residential component, part of the Cas en Bas luxury development. Amenities will include a pools, spa and wellness center, along with nightly entertainment and a range of dining options.
Personnel Move
Innisfree Hotels announced the promotion of Jason Nicholson to Senior Vice President of Development and Asset Management from his prior role as Vice President of Operations. Operating from Innisfree’s Gulf Breeze headquarters, Nicholson will focus on the cultivation of new opportunities, targeted acquisitions, and the enrichment of business assets and alliances.
Europe Hightlights
Place III Hotels announced the grand opening of its first luxury hotel, The BoTree. Located in London’s Marylebone neighborhood, the hotel comprises 199 rooms, including 30 suites, as well as a destination restaurant and bar. Tao Group Hospitality will oversee all of the dining and bars in the hotel, including LAVO. The next stage of The BoTree’s opening will see addition developments including a unique event space, a private bar, a wellness space and a rooftop boasting panoramic views across London. The BoTree is a member of Preferred Hotels & Resort’s Legend Collection.
The historic Westminster Fire Station has been transformed into a premium accommodation option for visitors to London by property management company ALTIDO. ALTIDO, part of DoveVivo, secured a 10-year lease for the building which previously offered residential apartments for sale and is now developed into 19 units including a mix of one, two and three-bed apartments. Under ALTIDO’s management, Westminster Fire Station will provide accommodation for days, weeks or months with a concierge service on hand. This is ALTIDO’s flagship property in London.
Born out of a collaboration between the Cadogan Estate and Costes, One Sloane opens this month in London. One Sloane comprises 30 guestrooms, a top floor restaurant, a lobby lounge and a downstairs speakeasy bar. One Sloane is managed by a joint venture comprising Costes Etudes Projets and Hamilton Pyramid Europe.
