The DJIA rose 116 points, Nasdaq was up 108, the S&P 500 rose 25 points and the 10-year treasury yield was down .03 to 4.60%. Lodging stocks were higher. SOND was up 12%, AHT was up 11% while PK and BHR both rose 5% on the day.
Barclays said they are expecting another soft quarter for the lodging REITs given the STR data, preannouncements and weather events in 3Q23. They lowered their price target on Host Hotels to $21 from $22 while maintaining their Overweight rating; lowered their PT on RLJ to $13 from $14 while maintaining their Equal Weight rating and Sunstone Hotels to $9 from $10 while maintaining their Underweight rating.
Wolfe Research initiated coverage on Ryman Hospitality Properties with an Outperform rating and $98 price target. They also stated Apple Hospitality and Pebblebrook Hotel Trust with Peer Perform ratings.
Sunridge Hotel Group announced the opening of the 146-suite Residence Inn by Marriott Vail, in Vail, Colorado. The four-story property is owned by Vail Hospitality Group, LLC and features 850 square feet of meeting space, a fitness center, hot tub on a heated deck, outdoor patio with fire pit and barbeque grills, a bar and a food and beverage market.
A TownePlace Suites is under construction on Vaughan Lane in Pell City, Alabama. Owned by Shivaay Hospitality LLC, the $12 million property is slated to be complete and open by 2025. The 89-room hotel will be the first Marriott brand in St. Clair County.
Construction is nearing completion at the Signia by Hilton Atlanta hotel in downtown Atlanta, Georgia. Once finished, the 42-floor, 976-room destination will be the tallest building on Atlanta’s Westside and boasts the largest hotel ballroom in the entire state, measuring approximately 40,000 square feet. Owned by the Georgia World Congress Center Authority, the hotel will offer easy access to the convention center, connecting to the facility from the inside on two separate floors. The first five floors of the hotel will feature high-end restaurants, a sports bar, spa facilities, a pool terrace, fitness center, and Club Signia. Signia by Hilton Atlanta is currently accepting reservations for large groups starting on January 12. The hotel will open to the rest of the public on February 2.
Maverick Hotels and Restaurants announced the addition of another hotel in the metropolitan Chicago market. The 148-room Hilton Chicago Northbrook features walking and running trails right outside the door, a restaurant, an indoor pool, whirlpool, sauna, and fitness center. The hotel also houses a business center and 20,000 square feet of flexible conference and banquet facility space.
Omni Scottsdale Resort & Spa at Montelucia, in Scottsdale, Arizona, announced the completion of its multimillion dollar renovation. The extensive renovation has transformed the resort’s 293 guestrooms and 38 luxury suites into havens of beauty and the resort now boasts over 100,000 square feet of indoor and outdoor meeting and event spaces.
Pendry Hotels & Resorts announced the grand opening of Pendry Newport Beach, marking the brand’s eighth property in the collection and third opening in Southern California. Pendry Newport Beach features 295 guestrooms including 114 suites, multiple food and beverage concepts, Spa Pendry, a fitness center, kids club and over 58,000 square feet of indoor and outdoor meeting and event spaces. Located within its own private wing of the resort, The Elwood Club is the inaugural and flagship modern members club. The Elwood Club celebrates exceptional experiences in music, art, travel, fashion, food, drink, wellness and sport through a calendar of programming and events. The Elwood Club offers private, members-only spaces and offerings including two restaurants and The Cabaret, a venue and nightlife space.
Minor Hotels has chosen Mexico as its point of arrival to begin the expansion of its Avani hotel brand in Latin America. The company has a portfolio of 530 hotels under 8 different brands, located in 56 countries, but with Avani, it had no operations in the Latin region. Thus, after the inauguration of the facilities in Cancun, Minor Hotels has its sights set on different states for possible expansion. Riviera Nayarit, Riviera Maya and Los Cabos are the 3 main regions the company is targeting.
City leaders are considering rezoning property in Aiken, South Carolina, for town homes and a hotel to be developed. The plan includes a 125-room hotel, 52 town homes, and potential mixed-use buildings along with 150 parking spots.
Sonesta International Hotels Corporation announced the grand opening of Sonesta Essential IAH Airport JFK Boulevard in Houston. The 57-room, upper-midscale hotel is the first Sonesta Essential branded hotel in the state of Texas.
Hyatt Hotels Corporation announced plans for a new short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that will feature private homes and remote hideaways in the United States. When the offering launches, which is expected in the coming weeks, World of Hyatt members will have direct booking access to a unique collection of short-term private home rentals. Leading up to the launch of Homes & Hideaways by World of Hyatt, Hyatt has identified a highly qualified company, Lowe, that, through an affiliate, will purchase and operate the existing vacation rental management business that is currently branded Destination Residences Management. In the near future, the Homes & Hideaways by World of Hyatt platform is expected to feature key existing DRM properties in top U.S. leisure destinations as part of offering members direct booking access to a collection of private homes featuring beachfront escapes, mountainside ski chalets, expansive villas, country chateaus, cozy cottages, modern townhouses, apartments, flats, penthouses and much more.
Caesars Entertainment, Inc. and Nobu Hospitality announced that Nobu Hotel Caesars Atlantic City began accepting reservations with the first bookings available January 2, 2024. Nobu Hotel Atlantic City will complement the existing Nobu restaurant and these two projects are integral components of Caesars Atlantic City’s $240 million resort transformation, which also features a stunning new arrival experience, hotel lobby, and The Pool at Caesars, a rooftop pool above the Boardwalk. A boutique hotel within a hotel at Caesars Atlantic City, Nobu Hotel will feature 85 rooms and suites on the top three floors of the Centurion Tower.
Grand Sierra Resort in Reno, Nevada plans to infuse approximately $1 billion into the existing 140-acre property over the next decade. The centerpiece of this project is a cutting-edge arena, designed to host concerts, special events, basketball games and other sports, with a capacity exceeding 10,000 seats. GSR owner Alex Meruelo and University of Nevada, Reno also announced the exploration of a partnership with the Nevada men’s basketball team, which could make the arena their home upon completion of construction. Beyond the arena, plans encompass a comprehensive beautification of Grand Bay, including the creation of an active golf facility and entertainment destination, a water show and approximately 300 affordable riverfront residential units. Plans are also in place for an 800-room hotel tower along with one or more parking garages. Grand Sierra Resort is a casino-resort with nearly 2,000 newly renovated guest rooms and suites, 200,000 square feet of meeting and convention space, 1,400 slot machines, 45 table games, multiple food and beverage venues and much more.
Harry Stinson, the owner of the Buffalo Grand Hotel, in Buffalo, New York, gave an update on the reopening of the hotel after seeing a crane outside the hotel. A fire, ruled as arson, broke out at the hotel on December 30, 2021, destroying the hotel’s ballroom and kitchen. Stinson stated the hotel is expected to open again, but it is all about the insurance settlement.
Sandals Resorts International is opening its newest Sandals in the Caribbean next year, with the debut of the new Sandals St Vincent. St. Vincent and the Grenadines will be Sandal’s ninth destination in the Caribbean; the property will be the eighteenth Sandals resort in the region. Set at the former Buccament Bay Resort, the new adults-only, all-inclusive resort will be opening its doors on March 27, 2024, with reservations now open. The 50-acre resort will have 301 rooms and a collection of overwater villas called Vincy Overwater Two-Story Villas, multiple dining venues and a Red Lane Spa.
Personnel Moves
Sonder Holdings Inc. announced changes to the company’s Board of Directors, including the appointments of Tom Buoy and Simon Turner, effective October 1, 2023. Buoy has over 30 years of experience in the hospitality sector and is currently President and Chief Executive Officer of his own consulting and advisory business. Prior to that, Buoy was previously Interim Chief Executive Officer and Board Director for Radisson Hotel Group Americas. Turner has over 35 years of experience in the hospitality and real estate sectors, having held senior executive roles and board seats in both public and private enterprises. He formed Alpha Lodging Partners in 2017 to make selective investments and provide transactional advisory services. Before that he was President, Global Development of Starwood Hotels & Resorts. SOND also said Gilda Perez-Alvarado will be stepping down from Sonder’s Board of Directors. Perez-Alvarado was previously Global Chief Executive Officer of JLL for the Hotels & Hospitality industry and is resigning from the Sonder Board to focus on her recently announced new professional opportunity.
The American Hotel & Lodging Association announced two promotionsamong its leadership team. Haleigh Hildebrand was promoted to vice president, campaigns & political strategy. In her new role, Hildeband will guide AHLA’s efforts to build grassroots and grass tops programs that support a healthy and growing hotel industry. Prior to her promotion, Hildebrand was AHLA’s senior director of government & political affairs. Ashley McNeil was promoted to vice president, federal affairs. In this position, McNeil will oversee AHLA’s efforts to maintain and grow AHLA’s senior connections to federal policymakers on behalf of hoteliers across the country. McNeil previously served as AHLA’s senior director of federal affairs.
European Highlight
Mandarin Oriental is looking to open its first property in Zurich in early 2024. The city’s historic Savoy Bauer en Ville hotel has been closed since 2022 for renovations and will reopen as the Mandarin Oriental Savoy, Zurich, with bookings now being taken for stays from March 1, 2024. When it reopens the hotel will offer 44 rooms and 36 suites, multiple eateries, a rooftop bar, and 800 square meters of meeting and events space including the restored grand ballroom and historic guild hall.
