The DJIA surged 565 points, Nasdaq jumped 233, the S&P 500 as up 80 points and the 10-year treasury yield was down .12 to 4.67%. Lodging stocks jumped, led by earnings, led by the market, possibly short covering. AHT and PK were the big winners, up 18% and 12% respectively while INN was up 11%. SHCO and VCSA were both up 8% while CLDT was up 7%. DRH and XHR were both up 6%. As for the big lower, SLNA was down -11%.
The one thing we can say about a good amount of companies all reporting earnings in a 24 hour period is at least we get the majority of the earnings reports over in a short period of time because it clearly is not our favorite time of the quarter. Let’s start off with the results that did not go over well. Marriott International’s results were deemed to have more questions than answers by some, not good enough to push shares higher by others. They came in right around expectations, their development pipeline rose to 557,000 rooms, everyone already knew the MGM deal was pushed back, impacting their near term NUG and they bought back 4.8 million shares for $950 million. Clearly that was not good enough for investors. Hyatt had a slight miss with some lower guidance and the realization that ALG (leisure) results would be a bit lower, not just from unfavorable FX. They bought back $144 million worth of stock. It was not good enough for some investors.
Marriott Vacations Worldwide is looking like they are seeing a downward spiral in their business faster than anyone else. Expectations had already been lowered and they still missed them. VOI sales, rental revenue and tours also seemed lower than what was expected. Airbnb is becoming a villain on Wall Street. Q3 was solid but their outlook for the final quarter of the year was weaker than expected. We actually think the stock performance was not bad at all today particularly given the knee jerk reaction in after hours yesterday.
As for those reports the Street liked, Park Hotels had a beat and raise and also announced a special cash dividend of $0.77 a share. They bought back $75 million worth of stock in the quarter. Chatham Lodging Trust said their 3Q results were better than consensus estimates They also said their results strengthened as they got deeper into the quarter. They repaid maturing debt of $60 million and with cash on hand and their unsecured credit facility, can repay all debt due through 2025. Host Hotels reported a big 3Q beat, in line without the future insurance proceeds, and upped full year guidance. EBITDA guidance was raised even before the impact from insurance proceeds and Maui. RLJ Lodging Trust beat expectations even after a September outlook update. 4Q guidance was in line. They bought back 1.5 million shares in 3Q for $14.4 million and another 300,000 shares for $2.7 million so far in 4Q. Finally, Summit Hotel Properties reported better than expected 3Q results and increased full year guidance.
Ashford Hospitality Trust, Inc. announced preliminary third quarter 2023 results. The company expects to report Occupancy of approximately 72% with ADR of approximately $182 resulting in RevPAR of approximately $132. This Comparable RevPAR reflects an approximate increase of 4% compared to the third quarter of 2022. Additionally, for the month of July 2023, Comparable RevPAR increased approximately 3% versus July 2022. August 2023 Comparable RevPAR increased approximately 5% versus August 2022 and for the month of September 2023, Comparable RevPAR increased approximately 4% versus September 2022.
With nearly 20 hotels currently open in Canada, Hyatt Hotels expects to have an additional 23 hotels open and operating by the end of 2026, doubling Hyatt’s Canadian brand footprint. Notable upcoming properties include: Hyatt Centric Winnipeg Downtown, 2025; Hyatt Centric Victoria – Old Town, 2026; Hyatt House Port Elgin, 2026; and Hyatt Place Whitehorse, 2025. New airport locations are planned coast to coast including: Hyatt Place Montreal – Trudeau International Airport, 2025; Hyatt Place Toronto International Airport, 2025; Hyatt House Toronto International Airport, 2026; Hyatt Place Mississauga – Airport Corporate Centre, 2024; Hyatt Mississauga – Airport Corporate Centre, 2024; Hyatt Place Vancouver International Airport, 2026; and Hyatt House Vancouver International Airport, 2026.
Whitestone Companies announced its latest acquisition, the 116-room TownePlace Suites by Marriott in Urbandale, Iowa. This is the company’s sixth hotel purchase in 2023.
The new Artisan Hotel and Tuscan Kitchen in Salem, New Hampshire, celebrated its grand opening. The first Marriott Tribute Portfolio hotel in the state, the 165-room Artisan Hotel boasts a 12,000 square foot banquet and event space, a rooftop bar, full fitness facility and a luxury pool.
The $75 million, 193-room Trilith Guesthouse hotel in Fayetteville, Georgia will open in December featuring 36 suites, four private apartments and meeting spaces. The hotel is developed and owned by Development Ventures Group, Inc., Mainsail Lodging & Development and Trilith Development. Mainsail will manage the Tribute Portfolio property.
IHG Hotels & Resorts announced the signing of a new build Crowne Plaza hotel along Mexico City’s famed Avenida de los Insurgentes. Scheduled to break ground in early 2024 ahead of a planned 2026 opening, Crowne Plaza Mexico City Insurgentes will offer 230 guestrooms, adaptive meeting areas and private soundproof booths in the hotel’s public area, a rooftop bar and a restaurant concept.
Pendry Hotels & Resorts and Two Roads Development celebrated the groundbreaking of Pendry Tampa and Pendry Residences Tampa featuring 200 guestrooms and a 39-story tower featuring 207 Pendry Residences along Tampa’s famed Riverwalk. Pendry Tampa will feature three signature food and beverage offerings, Spa Pendry, a fitness center, rooftop pool, Paintbox Kids Club and 11,000 square feet of meeting and event space and a myriad of Riverwalk fronting retail and restaurants. Pendry Residences will include 207 luxury homes, a private lobby, elevator and rooftop pool.
Sonesta International Hotels Corporate announced the grand openings of the 53-room Red Lion Inn & Suites Pontoon Beach, located in Pontoon Beach, Illinois and the 55-room Red Lion Inn & Suites Caseyville, located in Caseyville, Illinois.
EOS Investors is embarking on a renovation of the L’Ermitage Beverly Hills hotel, in Beverly Hills, California. The $15 million project would focus its efforts on the hotel rooftop area with a new bar and restaurant for both the public and hotel patrons. The eight-story building and 119 guest rooms would be retained, as would existing subterranean parking accommodations for 129 vehicles.
Resolute Road Hospitality announced the addition of two hotels, owned by Evergreen Hospitality, to its third-party managed portfolio. The Hampton Inn & Suites Portland Tigard, in Tigard, Oregon features 152 guestrooms, an indoor pool, hot tub, and a fitness center. In Sherwood, Oregon, the Hampton Inn & Suites Sherwood Portland features 73 guest rooms nestled amidst the Oregon wine country.
Concord Hospitality is looking to build a 124-room WoodSpring Suites hotel at 2050 Watchorn St. in Durham, North Carolina.
Charlestowne Hotels announced the opening of Little Mod Hotel in Charlottesville, Virginia. Located adjacent to the University of Virginia grounds, the revitalized building is now home to the 20-room hotel embracing nostalgia through groovy furnishings, whimsical F&B offerings and a hip vibe.
In August 2023, Collective Retreats introduced The Conservatory, a unique collection of design-forward and experience-centered properties for nature enthusiasts. Today, The Conservatory announced the first two properties to be managed by Collective Retreats; the iconic El Cosmico in Marfa, Texas an the Tumbling River Ranch in the Colorado Rockies. Both properties will undergo a transformative renovation.
Claridge Homes has proposed a luxury hotel a block west of the ocean in Pompano Beach, Florida. Under the proposal the 18-story hotel will have 252 rooms, 7,329 square feet of ballroom/meeting space, a fitness center, a restaurant, pool, and 236-space parking garage.
A new hotel that is set to begin construction in spring 2024 will transform downtown Brookings, South Dakota and give new life to the historic Armory Building on Main Street. The city selected Linchpin Development to spearhead the project. Linchpin’s proposal for The Armory creates an event space for weddings, corporate events, conferences, and a basement restaurant bar and lounge. Linchpin also proposed a hotel to be built with 73 rooms, a fitness center, and a business center. The fourth floor of the hotel will have small event spaces and a cocktail lounge with a rooftop patio.
Paramount Lodging Advisors announced the successful sale of the Comfort Suites Johnson Creek in Johnson Creek, Wisconsin. PLA represented the seller in this transaction. The all-suite hotel offers 100 guestrooms and 10 meeting and event rooms totaling over 12,000 square feet of space.
Paramount Lodging Advisors also announced the successful receivership-sale of the 224-room Hotel Topeka at City Center, located adjacent to the Maner Conference Center in Topeka, Kansas. PLA represented the seller in this transaction.
Selina Hospitality’s latest SEC filing said their “path to profitability” initiative includes engaging Miller Buckfire, a Stifel Company, as financial advisor to assist with strategic alternatives. They have been exploring ways to restructure their debt. While they have been in negotiations with a committee representing 26% of their $147.5 million outstanding 6% convertible senior notes due 2026, they told them they would not be making the next interest payment that had been due on November 1. The payment SLNA missed was for $4,425,000.