The DJIA fell 220 points while Nasdaq was down 129, the S&P 500 fell 35 points, the 10-year treasury yield was back up .11 to 4.63% and lodging stocks were lower. The bright spot was HLT, trading up to a new high. Then we had BHR down -23% to a new low while SLNA, SVC, AINC and VAC also traded down to new lows. AHT was down -11%, VCSA was down -8% and SOHO fell -6% on the day.
Braemar Hotels and Ashford Hospitality Trust reported 3Q results. BRH missed estimates as they are resorts/leisure based. RevPAR growth was down -7.1% but occupancy was only down -1.4%. AHT results came in modestly ahead of expectations with urban assets showing strength. RevPAR growth was 4%.
Hersha Hospitality shareholders approved the $1.4 billion, all cash deal for KSL Capital Partners to acquire the hotel REIT, taking them private. HT said the deal for KSL to buy HT at $10 per share is expected to close sometime in this current quarter, before the end of the year.
JMP Securities cut their price target on Vacasa to $15 from $30. They maintained their Market Outperform rating.
The latest Global Hotel Investor Sentiment Survey by JLL revealed lodging demand has skyrocketed with global RevPAR up 10.2% relative to 2019. Key takeaways include: 81% of investors plan to be net buyers over the next 12 months. Urban markets are back in favor, 84% of investors expect to deploy the bulk of their capital into these markets with London, New York City, and Tokyo emerging as the most appealing. Investors are gravitating towards luxury and select-service hotels. 61% of investors expect hotel pricing on a per key basis to increase over the next year. While hotel investors are monitoring the RevPAR recovery profile of their hotel properties, many are also aware of the broader challenges in the market that will impact the sector’s performance, liquidity, and their ultimate ability to transact. The top three challenges investors shared in the survey are: cost of capital; rising insurance costs underpinned by growing climate risk; and deferred capex, with many brands reinstituting PIPs.
A recent increase in U.S. hotel labor costs reflects a normalizing business mix and significant gains in group demand, according to September year-to-date P&L data from CoStar. September 2023 YTD per-available-room metrics (% change from September 2022 YTD): GOPPAR: $75.74 (+6.2%); TRevPAR: $208.34 (+8.6%); EDITDA PAR: $52.95 (+5.1%); and LPAR: $69.36 (+13.1%). Overall, 13 of the Top 25 markets posted double-digit growth in GOPPAR through September, led by New York City and Oahu.
Covivio and AccorInvest entered into exclusive negotiations to consolidate their hotel properties and business assets. The consolidation operations would be an exchange of business assets, currently held by AccorInvest, for hotel premises owned by Covivio subsidiary Covivio Hotels. Following the transaction, Covivio Hotels would own 24 hotel operating properties and AccorInvest would own 10. The agreed value of the properties transferred to AccorInvest represents around €210 million, while that of the business assets acquired by Covivio Hotels is around €260 million.
Hilton is looking ahead at the year of travel in 2024 with a bevy of new properties lined up to debut, setting records, marking milestones and creating memorable stays. A sample of new properties travelers can look forward to across Hilton’s portfolio of brands in 2024 include: The 976-room Signia by Hilton Atlanta expected to open in January 2024. The 130-key Tempo by Hilton Louisville Downtown NuLu makes its brand debut in Louisville in March 2024. The first Tempo by Hilton Nashville Downtown is slated to be the brand’s second open property in Q1 2024. The Embassy Suites by Hilton Gatlinburg Resort is anticipated to open in Q1 2024 with 8,000 square feet of flexible meeting space. Hilton continues its Nashville expansion with the 152-room Homewood Suites by Hilton Nashville Downtown the Gulch in Q3 2024. The 181-room Canopy by Hilton Nashville Downtown The Gulch, the first Canopy by Hilton to open in Nashville, is also anticipated to open in Q3 2024. In Q4 2024, the Dominican Republic will welcome its first All-Inclusive Curio Collection by Hilton Property with the brand-new 502-room Zemi Miches All-Inclusive Resort, Curio Collection by Hilton. Anticipated to open in Q2 2024 is the Motto by Hilton Bentonville, a debut for the Motto brand in both Arkansas and the Southeast U.S. The 245-room Cloudland Lookout Mountain, Curio Collection by Hilton is slated to open in Georgia in Q1 2024. Anticipated to open in Q3 2024, the 111-room Bermudiana Beach Resort, Tapestry Collection by Hilton will be the first Hilton property in Bermuda. The Waldorf Astoria will debut in Seychelles with Waldorf Astoria Seychelles Platte Island in Q1 2024. The Curio Collection by Hilton is set to debut in Florence’s City Centre with Anglo American Hotel Florence, Curio Collection by Hilton in Q1 2024. Hilton will welcome its first Canopy by Hilton Resort property worldwide with the 120-room Canopy by Hilton Seychelles in Q1 2024. In Q1 2024, Hilton will open its first fully residential luxury development for Conrad in the Middle East, Conrad Bahrain Financial Harbour. Hilton will debut in Burgundy, in Q2 2024, with the opening of Sainte-Anne Hotel Dijon, Curio Collection by Hilton. Europe’s largest Hampton by Hilton is slated to open in Vienna with 358 guestrooms in Q3 2024 while the brand will debut in Africa with the opening of Hampton by Hilton Grayston Sandton in Q4 2024.
Noble Investment Group celebrated the groundbreaking of the Tempo by Hilton Savannah Historic District. The property is anticipated to open in early 2025 with 153 tech-enabled guestrooms and Peloton Suites.
LBA Hospitality announced the 97-room Hilton Garden Inn Montgomery East and the 91-suite Homewood Suites by Hilton Montgomery, in Montgomery, Alabama, have completed renovations. All guestrooms and public spaces at the hotels were upgraded. The Homewood Suites by Hilton Montgomery offers flexible meeting space, a convenience store, outdoor pool and sport court. The Hilton Garden Inn Montgomery features two meeting rooms with a combined 1,200 square feet of meeting space, a business center, fitness center, outdoor pool and an onsite restaurant. The hotels are owned by Flynn Properties.
Developers are planning a new Home2 Suites hotel in Sacramento, California. The four-story, 132 guestroom property offers a fitness center, outdoor pool, small market and 129 parking stalls.
White Lodging Services Corp. revealed plans for a 35-story luxury hotel tower in the SoBro neighborhood in Nashville, Tennessee. The company is seeking final site approval for a 789-room Marriott Autograph Collection hotel with 12,300 square feet of retail space including a ground-level restaurant with an oyster bar; a rooftop amenity area with a pool, terrace, cabana; VIP area and multiple bars.
Daly Seven announced the completion of extensive renovations at two of its properties in Roanoke, Virginia – the Fairfield Inn & Suites by Marriott Roanoke Hollins/I-81 and the Hilton Garden Inn Roanoke. Upgrades at the Fairfield Inn & Suites include newly transformed guestrooms and suites, a revitalized lobby area, and a modern fitness center and refreshed outdoor spaces. The Hilton Garden Inn features refreshed guestrooms and suites, modernized lobby and public areas, a redesigned restaurant and bar area, and renovated meeting and event spaces.
Highgate announced Romer Hell’s Kitchen, a neighborhood hotel that promises the true New York City experience. The 295-room property features a Corner Store; public spaces including a living room, library, communal tables and a fireplace; and The Neighborhood Café. In early 2024, Romer Hell’s Kitchen will be home to a speakeasy-inspired piano bar with live performances. Also managed by Highgate, Romer Hell’s Kitchen joins Romer Waikiki at The Ambassador. The 368-room hotel debuts lively dining and entertainment at Waikiki Swim & Social Club and easy access to the island’s legendary outdoor activities.
The Sutton Place Hotels and its parent company, Northland Properties announced the latest addition to their portfolio, The Sutton Place Hotel Toronto, will be housed in the historic Westinghouse building. Formerly known as the King Blue Hotel, the new Sutton Place Hotel Toronto will house 118 guestrooms and suites and onsite dining.
IHG Hotels & Resorts announced the signing of a new Crowne Plaza hotel in New York City’s Times Square. Al Rayyan Tourism and Investment Company W.L.L. signed a franchisee agreement to rebrand its Manhattan Times Square property to Crowne Plaza. The hotel’s current operator, Highgate, will continue to oversee the property while it undergoes an extensive, phased two-year renovation.
Weekend announced the launch of two new, renovated hotel property launches in the Adirondack Mountains region of Upstate New York. Town House Lodge in Lake Placid, New York and Trailhead in Tupper Lake, New York. The brand announced the acquisition of these properties last summer, and has spent the last year renovating and re-imagining the two concepts. Town House Lodge, formerly Shaheen’s Adirondack Inn, offers 27 guestrooms, a heated saltwater pool and a grilling area. Trailhead is Weekender’s largest property with 33 rooms.
Marcus & Millichap announced the sale of Best Western in Tampa, Florida to a partnership based primarily in Maryland and California. The three-story, 54-room hotel offers a fitness and business center and a pool.
Paramount Lodging Advisors announced the sale of a 3.5-acre hotel development site in Ann Arbor, Michigan. The site is entitled and approved for a development of a 111-key Residence Inn by Marriott hotel.
KSL Resorts announced the addition of Frank Rodgers as its newest global sales director. Rodgers will oversee leisure sales, including the retail travel agent market, as well as the wholesale market, consortia and tour groups, and will be a brand ambassador for the leisure market, playing a pivotal role in the company’s overall sales strategy. Rodgers was most recently associate director of Waldorf Astoria’s Grand Wailea Maui resort and was also leisure sales manager for the Arizona Biltmore, another Waldorf Astoria property.
The AHLA Foundation announced Jessica Janis, Director and Practice Leader, Hospitality at Corning Optical Communications LLC, has been selected to serve on the Foundation Board of Trustees as an honorary member.