The DJIA rose 511 points, Nasdaq rose 146, the S&P 500 jumped 49 points and the 10-year treasury yield was up .03 to 4.88%. It was nice to see the bounce back in the overall market and lodging stocks rose but one day does not make a trend. SLNA led the lodging stocks with a 9% gain, although that was only up $0.0257 per share. AHT was up 7% while BHR and VCSA both rose 6% on the day.
According to the third quarter United States Construction Pipeline Trend Report from Lodging Econometrics, the renovation and conversion pipeline activity remains strong in the U.S. at Q3 with 1,912 hotels/285,568 rooms presently under renovation or conversion. Forty of the top 50 markets in the U.S. currently have 10 or more hotels undergoing renovation or conversion at the end of the quarter. Atlanta has the greatest number of renovation or conversion projects in the pipeline with a combined total of 40 projects and 4,307 rooms. In the first three quarters of 2023, the U.S. opened 345 new hotels with 41,115 rooms.
U.S. Markets by Hotel Construction Pipelines Q3 2023
| Market | Hotels | Rooms |
|---|---|---|
| Dallas | 189 | 21,840 |
| Atlanta | 140 | 17,775 |
| Nashville | 122 | 16,046 |
| Phoenix | 119 | 16,455 |
| Inland Empire | 117 | 11,784 |
U.S. Markets With Greatest Number of Projects Under Construction Q3 2023
| Market | Hotels | Rooms |
|---|---|---|
| New York City | 46 | 8,386 |
| Phoenix | 26 | 5,353 |
| Atlanta | 26 | 4,354 |
| Dallas | 25 | 3,178 |
| Inland Empire | 23 | 2,386 |
U.S. Projects Scheduled to Start in Next 12 Months
| Market | Hotels | Rooms |
|---|---|---|
| Dallas | 80 | 9,021 |
| Atlanta | 60 | 7,311 |
| Austin | 47 | 5,683 |
| Inland Empire | 47 | 4,668 |
| Los Angeles | 46 | 7,113 |
U.S. Markets by Projects in the Early Planning Stage at End of Q3 2023
| Market | Hotels | Rooms |
|---|---|---|
| Dallas | 84 | 9,641 |
| Nashville | 59 | 7,176 |
| Atlanta | 54 | 6,110 |
| Los Angeles | 53 | 8,699 |
| Phoenix | 51 | 6,425 |
Highest Number of Projects Announced into the Pipeline Q3 2023
| Market | Hotels | Rooms |
|---|---|---|
| Orlando | 10 | 2,217 |
| Phoenix | 9 | 1,457 |
| Dallas | 9 | 1,003 |
| Nashville | 8 | 900 |
| Atlanta | 8 | 782 |
U.S. Markets With the Highest Number of New Openings Through Q3 2023
| Market | Hotels | Rooms |
|---|---|---|
| New York City | 14 | 2,407 |
| Atlanta | 11 | 1,108 |
| Detroit | 10 | 1,292 |
| Houston | 8 | 1,154 |
| Austin | 8 | 1,001 |
U.S. Markets With Greatest Number of New Hotels in 2023
| Market | Hotels | Rooms |
|---|---|---|
| New York City | 30 | 5,706 |
| Houston | 13 | 1,660 |
| Atlanta | 13 | 1,279 |
| Inland Empire | 13 | 1,141 |
| Dallas | 11 | 1,775 |
For the past three years, New York City has opened the most hotels per year and is forecast to do the same through year-end 2024. In 2025, LE analysts expect Atlanta to surpass NYC and have the greatest number of new hotel openings with 24 new hotels/2,874 rooms forecast to open by year-end.
JDH Developers announced the grand opening of the Candlewood Extended Stay Suites in Kennesaw, Georgia. The five-story, 98-room hotel offers a business center, fitness center and complimentary laundry facilities.
Roger Development Group is preparing to break ground on the Avenue Hotels & Residences in Coral Gables, Florida after obtaining a $25 million construction loan from Inmocap 2 LLC. The eight-story building will feature 48 residential condos as well as the hotel. Amenities include a pool deck, summer kitchen and a family dining area. Roger expects to complete the project in the first quarter of 2025.
A group of hospitality industry veterans announced the opening date for Hotel Lucine in Galveston, Texas. Guests are now able to book stays beginning Friday, November 10. Originally the Treasure Isle Motel, the 61-room, two story hotel features multiple food and beverage venues along with multipurpose dining and event space. Hotel Lucine partners include Dave Jacoby, Robert Marcus, Keath Jacoby, Shawn Ullman and Jeffrey Solomon.
Fort and Home announced the reopening of The Hotel Melrose in Grand Junction, Colorado following a complete remodel. In its new life, the Hotel Melrose offers 16 suites of varying sizes and the Melrose Spirit Co.
Minute Suites announced the opening of its first location in Utah’s Salt Lake City International Airport. The new site is in Concourse A and features 7 suites. With this new opening, Minute Suites now has 15 operational locations across 10 U.S. airports.
Bermuda’s Home Affairs Minister, Walter Roban, has sanctioned a Special Development Order for the Fairmont Southampton Hotel. This decision forms a critical part of the hotel’s redevelopment plan, setting the stage for what is forecasted to be the largest construction project in the island nation’s history. The SDO paves the way for the construction of up to 250 tourism and residential units. Westend Properties, the owners of the site, are the financial muscle behind the project. The exact timeline for the reopening remains undisclosed.
Personnel Move
Expotel Hospitality hired Brent Baudier to serve as the company’s Vice President of Food & Beverage and Hospitality. Most recently, Baudier served as the PGA of America’s Golf Properties F&B expert.
Europe Highlights
Hilton announced plans to open its first property in the city of Lille, France. The Hilton Lille will continue to welcome guests and trade as a Hilton affiliated hotel before fully rebranding under Hilton Hotels & Resorts in 2024, following a multimillion-euro renovation. Hilton Lille will offer 124 stylish guestrooms, a restaurant, bar, fitness center and a new executive lounge. The property will also boast 360 square meters of meeting space set across seven meeting rooms.
Radisson Hotel Group announced the opening of its first Radisson RED in Finland. The eight-story Radisson RED Helsinki includes 195 rooms and suites and RED Bar and Kitchen.
Aurelius Growth Capital acquired the Lindemann Hotels Group for an undisclosed amount. The hotel group includes four boutique hotels in Berlin. The corporate group consists of four boutique hotels – Calma Berlin Mitte, fjord hotel berlin, Lindemann’s, Anna 1908, and the central service company Lindemann Hotels Management GmbH.
The Public Investment Fund of Saudi Arabia purchased a 49% stake in Rocco Forte Hotels. The 49% stake in the hotel company which manages luxury hotels and resorts, most of which are in Italy, is said to have been sold in a deal that values Rocco Forte Hotels at €1.5 billion, after several months of negotiation. Sir Rocco Forte will remain control of the majority 51% stake.
Landlab Development secured planning permission from Liverpool City Council to convert the former George Henry Lee department store into a 175-room hotel. Landlab’s proposal is to convert the nine-story building into a hotel with a ground-floor bar and restaurant, a seventh-floor terrace, and a sixth-floor sky bar and restaurant. The hotel will be operated by Accor under its Mama Shelter brand.
Polski Holding Hotelowy is launching its own hotel brand Halo and the first hotels under this band have been opened in Szczyrk, Hel, Torun and Szczecin in Poland with further hotels to open in such locations as Wisla, Miedzyzdroje, Krynica, Kolobrzeg or Zakopane. PHH has also presented its operating for the first three quarters of 2023, in which period the operating revenue totaled PLN193m, compared to PLN153m in the year-earlier period, with the net profit in the amount of PLN64m, up by PLN22m compared to January-September 2022.
