The DJIA rose 39 points on Friday, but the Nasdaq was down 167, and the S&P 500 was down 22 points, so it was a down day across most stocks, lodging included. The 10-year treasury yield fell .08 to 4.63%. The only mover of note in lodging stocks was SOND, down -9%.
Baird gave a hotel check-in on recent conversations and investor sentiment. They sense a bigger picture fundamental focus among investors on 2024 RevPAR growth expectations and building blocks for the Hotel brands, similar to the Hotel REITs. They are seeing a lot of dispersion existing among investors’ questions. Following Marriott’s Investor Day and with growth rates normalizing, Baird sees investors focused on companies’ growth algorithms and net unit growth outlooks.
Baird is a bit surprised at Buy-Side RevPAR growth expectations of only 1.5% to 2.5%, particularly given the likely upside in 2024 from cross-border travel, solid group ADR/bookings, and China/Asia Pacific tailwinds. Their view on Buy-Side expectations for near-term estimate revisions on the brands are Positive for MAR, HLT, and CHH, Flat for WH, and Negative for H. On the REIT side, Baird sees sentiment skewed negatively but has gotten less bearish recently.
Taylor Hospitality and Morgantown Hospitality announced an extensive multi-million dollar renovation of the Hilton Garden Inn Morgantown in Morgantown, West Virginia. The project will include updates to the exterior and interior of the hotel, which are set to begin in November and will be completed by early 2024. According to the plans, the interior of the five-story, 118-room Hilton Garden Inn will be redone from top to bottom, including new and improved guestrooms and meeting spaces. The hotel will remain open during the project, estimated to cost around $4 million.
Indus Hospitality Group held a grand opening event for the four-story, 80-room Hampton Inn by Hilton Hornell, located in Hornell, New York. The hotel, which features outdoor seating, a conference room, a fitness center, and a heated pool, quietly opened in August.
The former International Palms Resorts in Cocoa Beach, Florida, is being torn down to make way for a new Westin Resort from Marriott. The new $300 million property will have more than 500 rooms.
The Howard Hughes Corp plans to build a Ritz Carlton Residences on a Lake Woodlands, Texas residential site. Located on 8 acres, the Ritz Carlton Residences will feature onsite dining and a range of amenities. No timeline has been set for the project.
Hyatt Hotels Corporation announced the opening of Secrets Tulum Resort & Beach Club, the newest addition to the Inclusive Collection. The 300-suite and private villa adults-only resort’s opening marks the expansion of the Inclusive Collection’s presence in Mexico to 44 total resorts and the 12th Secrets Resort & Spa branded property in the country. Secrets Tulum Resort & Beach Club offers eight dining options, four bars and lounges, Secrets Spa by Pevonia, and Secrets Tulum Beach Club, just minutes from the main resort.
Coast Hotels Limited, a fully owned subsidiary of APA Hotel Canada, Inc., announced that Coast Victoria Hotel & Marina by APA unveiled its plans for guestroom renovations, set to begin in December this year with an estimated completion in the spring of 2024. The guest room renovation project will include updates to every room and suite, including new furnishings, bedding, fixtures, and full bathroom renovations.
LuxUrban Hotels Inc. announced the openings of three previously announced hotels in New York City acquired under long-term Master Lease Agreements. Two hotels are in Times Square, and the third is in the Flatiron District. These hotels, comprised of an aggregate 368 rooms, will join the Wyndham Hotels & Resorts brand family as “by LuxUrban, Trademark Collection by Wyndham. The company also announced that it expects to add, under long-term MLA, seven additional properties comprised of 1,604 rooms during the fourth quarter of 2023. These properties include: a 725-room hotel in Midtown (East Side), a 168-room hotel in Bryant Park, a 200-room hotel in Times Square, a 145-room hotel on the Upper West Side of Manhattan; and an 86-room hotel in Midtown (West Side), all in New York City. An 84-room hotel on Collins Avenue in Miami Beach, Florida, and a 196-room hotel in the French Quarter of New Orleans, Louisiana.
Noble House Hotels & Resorts is moving forward with a hotel resort proposal for the Charles Krug Winery site in St. Helena, California. The Peter Sr. Mondavi Family owns the winery.
An investor group wanting to build a hotel along the Bricktown Canal in Oklahoma City, Oklahoma, is in talks to buy Brickopolis, including its miniature golf course, and with owners of the Kingman Building to build a parking garage jointly. The unnamed investor group is trying to get approval from the Bricktown Design Review Committee to demolish a two-story warehouse on the site and build an eight-story, 60-room hotel in its place. Plans for the Gem Hotel also propose an opening to connect with the Kingman Building, where the investor group hopes to lease a floor for event space.
Galaxy Commercial Holdings filed an application with the Los Angeles California Department of City Planning seeking approvals for a larger mixed-use complex at 6800 Sunset Boulevard. The proposed project is described as a two-building development highlighted by a new 42-story tower featuring 298 apartments and 115 hotel rooms, as well as ground-floor commercial space. Plans also call for a 12-story building with 80 affordable housing units for seniors.
The town of Beauford Board of Commissioners voted to support the request for an 18-month extension for the Compass Hotel. According to the developer, Blue Treasure LLC, construction on the Beauford, North Carolina hotel is expected to start on February 6, 2024, and is slated to open on October 7, 2023.
JLL’s Hotels & Hospitality Group announced on behalf of Constellation Hotels Holdings that the firm has arranged the sale of SLS Brickell, a 124-room hotel in Miami’s Brickell submarket. The Kastrati Group acquired the hotel for $53.5 million.
Kimpton announced the opening of Kimpton Grand Roatan Resort & Spa on West Bay Beach of Roatan Island in Honduras. The Caribbean retreat offers 119 guestrooms, suites, bungalows, four restaurants and bars, and nearly 6,000 square feet of meeting and event spaces. Kimpton Grand Roatan Resort & Spa is owned and developed by Vista Capital.
Personnel Moves
Concord Hospitality announced the promotions of both Andy Burch and Ben Haller to Senior Vice President of Operations to assist and oversee the company’s expanding portfolio.
First Hospitality announced the appointment of Larry Costakis as vice president of construction and development. Costakis will lead the First Hospitality Construction and Development Division. His responsibilities include project management, quality assurance, strategic planning, and fostering owner and partner relationships.
Europe Highlights
Travelodge announced it has acquired its first Ibis hotel. The 78-room hotel is the group’s second hotel in Wellingborough and its tenth hotel in Northamptonshire, United Kingdom. Wellingborough Travelodge features 78 guestrooms, an onsite restaurant, and a car park. The former Ibis hotel has been upgraded to the new Travelodge look and feel design. The previous landlord and the tenant, AccorInvest, decided to terminate the lease jointly, and the property was sold to Cooper Estates based on the simultaneous grant of a new, 25-year lease to Travelodge Hotels Limited.
IHG Hotels & Resorts will debut the Kimpton brand in Portugal by signing Kimpton Algarve Sao Rafael Atlantico. Signed under a franchise agreement with Highgate Portugal, the hotel is expected to open in 2025, offering 149 guest rooms, more than 1,300 square meters of meeting space, multiple restaurants and bars, indoor and outdoor pools, a gym, and a full-service spa.
