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North America

Acapulco Hotel Owners Vow to Reopen After Hurricane

Alan Woinski and Kim Woinski
November 8th, 2023 at 5:37 PM EST

Skift Take

  • Apple Hospitality REIT reported a modest beat in 3Q results but lowered 4Q guidance due to higher expenses, offsetting improved RevPAR guidance.
  • STR reported that for the week ending November 4, US RevPAR was down by -2.1%, with a -4% decrease in occupancy, and a -7.4% drop in Group RevPAR.
  • Latin America’s hotel construction pipeline shows growth with 579 projects and 95,144 rooms in Q3 2023, up 6% in projects and 5% in rooms year-over-year, with Mexico leading the way.

The DJIA was down 40 points but Nasdaq was up 11, the S&P 500 rose 4 points and the 10-year treasury yield was down .05 to 4.52%. Lodging stocks were mixed. HLT traded up to a new high but VCSA’s earnings, despite beating and raising, failed to impress with the stock down -14%. SOND was down -11%, AHT was down -6% and APLE fell -5% on the day. Get more information on public company performance, below.

Apple Hospitality REIT reported a very modest beat on 3Q results.Continuing the trend, they slightly lowered 4Q guidance citing higher expenses, offsetting higher RevPAR guidance.

Service Properties Trust believes they are in a strong position to refinance their $2.3 billion in debt they have maturing in 2024 and 2025. That being said, they will continue to evaluate acquisition opportunities but they said they are unlikely to buy anything the rest of this calendar year. 2024 maturities include $350 million in March 2024 and $825 million in October.

STR reported US lodging data for the week ended November 4. RevPAR was down -2.1% as occupancy was down -4%. Group RevPAR was down -7.4%.

In the Latin America Construction Pipeline Trend Report from Lodging Econometrics, analysts report the total construction pipeline stands at 579 projects/95,144 rooms at the close of Q3 2023, up 6% year-over-year by projects and 5% YOY by rooms. At the Q3 close, there were 93 new project announcements, accounting for 415,416 rooms.

Through the close of the third quarter, 43 new hotels with 7,366 rooms have opened in Latin America. The LE forecast for the remainder of the year expects another 29 new hotels with 5,650 rooms to open. LE analysts forecast new hotel openings in Latin America to rise to 107 hotels with 16,273 rooms in 2024 and increase again in 2025 to 117 new hotels with 18,990 rooms.

Latin American Hotel Pipeline by Status Q3 2023

StatusProjectsRooms
Constructions starts54 9,433
Under construction245 43,004
Scheduled to start in next 12 mos.171 27,737
Early planning163 24,403

Latin American Hotel Pipeline by Hotel Type Q3 2023

TypeProjectsRooms
Luxury100 19,389
Upper upscale108 22,598

Latin American Hotel Pipeline by Country Q3 2023

CountryProjectsRooms
Mexico226 35,572
Brazil85 14,304
Dominican Republic42 10,060
Peru25 3,141
Argentina18 1,945

Latin American Hotel Pipeline by City Q3 2023

Mexico City, Mexico23 2,582
Riviera Maya, Mexico15 2,016
Lima, Peru13 1,875
Georgetown, Guyana12 1,558
Sao Paulo, Brazil11 2,687

According to Mexican President Andres Manuel Lopez Obrador, a number of Acapulco hotel owners have committed to reopening in the beach resort town devastated by Hurricane Otis. The government is aiming to have 35 hotels operations by April, when a tourism fair will be held in the town.

Continental Real Estate Cos. purchased the Courtyard Louisville Airport for $15.2 million from Ashford Louisville LP. The property recently renovated its lobby, indoor pool area and public spaces. There is now 1,350 square feet of meeting space. The hotel is managed by Musselman Hotels.

Omni Fort Lauderdale Hotel is now accepting group booking requests for 2026 and beyond. Set to open in late 2025, the new 29-story hotel will be connected directly to the Broward County Convention Center, which is currently undergoing a major expansion and renovation. The property will offer 801 guestrooms and suites, multiple restaurants, a rooftop bar, pool, spa and fitness center. The hotel will also have over 120,000 square feet of indoor and outdoor meeting and even space, including a grand ballroom, junior ballroom, 25 breakout rooms and pre-function meeting space. The Broward County Convention Center expansion will include an additional 525,000+ square feet for a total of 1,200,000 square feet of overall meeting space.

Next month, Auberge will reveal its signature brand of luxury hospitality to Fort Worth, Texas, with the opening of Bowie House, Auberge Resorts Collection, marking its second in the state. Slated to open in December 1, Bowie House’s first-rate amenities include a comprehensive spa and wellness area with a steam room, infrared sauna and fitness studio, an outdoor pool; a signature steak restaurant and multiple lounges and bars.

The InterContinental Bellevue at the Avenue, part of the $1 billion+ Avenue Bellevue project, in Bellevue, Washington, is now set to open early next year. The 208-room hotel, from IHG Hotels & Resorts, is offering reservations starting January 30. The property will feature 12,000 square feet of event space and multiple restaurants. The two-tower project also houses 365 condos. Benchmark Hospitality is set to manage the new hotel. Fortress Development Group LLC is the developer of the project. 

IHG Hotels & Resorts announced the opening of a new Staybridge Suites hotel in Port Elgin, Ontario. The 73-room, new-build Staybridge Suites Port Elgin is owned by Summerside Hospitality Group Ltd.

Best Western Hotels & Resorts announced the opening of the Best Western Plus Sugar Land/Stafford in Sugar Land, Texas. The hotel is owned by Ketan Patel and features 91 rooms and 20 suites. The property recently completed a full renovation and rebrand that includes updated amenities and a refreshed design. Best Western Plus Sugar Land/Stafford features multiple venues for meetings and events, business services, a fitness center and an outdoor pool. 

Arch Amenities Group announced its expansion into Canada with the acquisition of Personal Best Health and Performance, Inc., a Canadian leader in corporate wellness services. 

Paramount Lodging Advisors executed the sale of a Marriott-branded Renaissance Hotel situated minutes from Chicago O’Hare International Airport. PLA represented the seller in the transaction. The 362-key Renaissance Hotel features over 9,000 square feet of meeting space and an onsite restaurant. 

Remington Hospitality is expanding into the Caribbean, partnering to manage the 166-room Croc’s Resort & Casino in Costa Rica. Remington Hospitality will further expand its presence in the Caribbean by signing three additional management agreements including the Autograph Sarchi in Costa Rica, as well as the Royal Sonesta and James hotels in Larimar City. It is also developing a luxury ecotourism project in Monte Verde, Costa Rica. The company also believes there are additional growth opportunities in Mexico, Puerto Rico, Grand Cayman, the U.S. Virgin Islands, Panama, the Bahamas and South America.

International Highlights

Accor signed a contract for a new venture in Sorriso, Mato Grosso, Brazil. This will be the ibis Style brand’s first hotel in the city, scheduled to open in 2027. ibis Styles Sorriso will have 120 apartments, a restaurant, gym, meeting rooms and WOJO co-working spaces. The hotel consolidates Accor’s partnership with Pedra do Reino Investimentos and Dotz Empreendimentos, which already have 10 contracts signed with the Group.

CapMan Hotels II fund has signed an agreement to acquire KOY Oulun Kuvernoori in Finland with plans to convert the existing 5-story office building into an extension of Lapland Hotels Oulu. CapMan Real Estate plans to convert the building into a hotel leased on a long-term basis to Lapland Hotels Oulu, adding 95 rooms to the hotel’s capacity. The renovation will connect the adjacent buildings, creating a larger hotel with 250 rooms, along with an expanded range of restaurants and meeting spaces. This acquisition is expected to be completed and the redevelopment will begin within one year once the necessary authorizations have been obtained. 

Maya Capital is finalizing its entry into the Spanish market with the purchase of the Mayorazgo hotel in Madrid. The offer was officially presented in August and valued the 200-room asset at 60 million euros. The property is managed through Salazar Hermanos.

Accommodations Sector Stock Index Performance Year-to-Date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental sector performance.

Read the full methodology behind the Skift Travel 200.

Alan Woinski and Kim Woinski
November 8th, 2023 at 5:37 PM EST

Companies: Accor, Apple Hospitality REIT, Arch Amenities Group, Auberge Resorts Collection, Best Western Hotels & Resorts, Best Western Plus, Courtyard by Marriott, Hilton Hotels & Resorts, ibis Styles, IHG Hotels & Resorts, InterContinental, Marriott International, Maya Hotels, Omni Hotels & Resorts, Paramount Lodging, Remington Hotels, Renaissance Hotels, Service Properties Trust, Sonder Holdings Inc., Staybridge Suites, Vacasa

Locations: Acapulco, Chicago, Costa Rica, Dallas, Dominican Republic, Finland, Guyana, Kentucky, Lima, Madrid, Mexico City, Miami, Ontario, Peru, Sao Paulo, Seattle, Tulum

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