The DJIA was up 84, Nasdaq was up 41, the S&P 500 was up 4 points, and the 10-year treasury yield was down 0.05 to 4.34%. Lodging stocks were mixed. RHP traded up to another new high, but SOND was down another -6% to another all-time low. SLNA and VCSA also traded down to new all-time lows, but VCSA bounced, ending up 5% for the day.
STR’s global update as of November 11, 2023, showed 79% of markets with growth in RevPAR compared to 2019. Different from the previous update, more markets outside of Europe have taken the top positions in recovery as winter approaches in the Northern Hemisphere. Among countries with 50,000 rooms, the United Arab Emirates, South Korea, Singapore, France, and Italy led in RevPAR on an actual basis. More countries in Asia are in leading spots in the measurement as most European countries approach low season. Notably, the United Arab Emirates and South Korea reached occupancy of more than 80%, while Japan was not far behind at 79%. South Korea and Japan ADR came in at US$214 and US$223, respectively. The top five countries leading in RevPAR growth compared to 2019, with monthly room supply above 50,000 rooms, included Brazil, Saudi Arabia, Colombia, the Dominican Republic, and the United Arab Emirates. Excluding provincial areas, country markets, and markets affected by fluctuating exchange rates, the top five RevPAR performers were Rio de Janeiro, Santiago, São Paulo, Edinburgh, and Hong Kong. Notably, Santiago saw a 38% increase in occupancy compared to 2019. Rio de Janeiro and Sao Paulo have entered leading positions as Brazil is embracing the start of the summer season. Edinburgh maintained the top spot as the market sustained a 55% ADRincrease versus 2019.
The latest data from CoStar shows the New York City market dominating hotel sales over the last three months. While lower-priced deals dominated the overall hotel transaction data for the third quarter, the New York City market featured some high-profile sales, showing that debt costs aren’t scaring away motivated buyers. The market leads the U.S. in sales for the last three months ending on November 13, according to CoStar data provided exclusively to Hotel Investment Today. The nine transactions for the New York City metro area total $1.35 billion in sales. The two largest sales in the New York Citymarket were the Park Lane Hotel, which was purchased by the Qatar Investment Authority for nearly $623 million and a triple-branded Hiltonhotel, which sold for $470 million. Boston was second on the list with five sales for $440.8 million. Orlando was third with 17 sales for $238.5 million. Chicago had the most sales of the top 10 markets, with 31. Chicago’s total was $140.3 million, ranking it sixth. According to the data, activity over the last 90 days reflects a decreased amount of sales activity over the same period in 2022. The total volume of disclosed hotel transactions is down significantly over the first three quarters of 2023 compared to the same period in 2022. Through the first three quarters of 2023, the transaction total was $17.9 billion, down 63.3% from the same period in 2022 ($48.8 billion).
KSL Capital Partners has completed the acquisition of Hersha Hospitality Trust for $10 a share in cash.
Oppenheimer upped their rating on RLJ Lodging Trust to Outperform from Perform. Their target price is $13.
IHG Hotels & Resorts announced the opening of the avid hotel Chattanooga South – Ringgold, located in Ringgold, Georgia. Owned by Hospitality Ringgold Investment LLC and managed by Prime Hospitality, the avid hotel Chattanooga South – Ringgold offers 79 rooms and an onsite fitness center.
ARA US Hospitality Trust has proposed to sell the Hyatt Place Pittsburgh Airport hotel at its valuation of $7.7 million. According to the managers, the move will free up capital that can be redeployed to acquire accretive, high-yield properties or pared down existing borrowings. They noted that the 127-room hotel is the smallest within ARA H-Trust’s portfolio. The managers expect to complete the divestment in Q1 2024.
Set amid the Allegheny Mountains in Pennsylvania’s Laurel Highlands, Nemacolin is a luxury resort on a 2,200-acre property. Its first lodge opened in 1968. Now, Maggie Hardy, the owner and CEO of Nemacolin, has transformed that very same lodge into a contemporary state called The Grand Lodge. The Grand Lodge offers 56 suites with butler service and multiple dining & drinking venues.
After being closed for two seasons, the iconic Inn at Stonecliffe on Mackinac Island, Michigan is planning to reopen in 2024 following a massive $30 million property-wide transformation. The 1904 Edwardian estate now offers access to a wellness center with steam showers, a sauna and yoga, two pools, a 3,074 square foot event center, private cottages for families, and fire pits on the big lawn. There are multiple dining choices, a Mercantile store, and the on-property apple orchard has been restored with 30 new fruit trees, beehives, and a community garden. Beyond the big remodel of the mansion and summerhouse, a trio of three-bedroom cottages will be built so families can vacation together in a home setting. This renovation has been underway since the Pulte Family Charitable Foundation acquired the property in 2021. Reservations for Stonecliffe will be accepted in December for springtime.
The Margaritaville Lake Tahoe Resort is eyeing a December 14 opening, just in time for ski season and Christmas. Located in Lake Tahoe, California, the 399-room resort will feature luxury suites, heated indoor pools, 14,000 square feet of event space, and several restaurants.
The Parque, a more than $1 billion, 32-acre mixed-use development at the site of the former CrackerJax amusement park in Scottsdale, Arizona, was recently approved by the Scottsdale City Council. Plans for the site call for a variety of mixed-use structures that will encompass a 2-acre central park green space that will be open to the community. Structures will include more than 250,000 square feet of commercial space and hotel and residential components with up to 1,322 residential units and hotel rooms combined. It is anticipated that the project will be built in multiple phases.
JLL’s Hotels & Hospitality group arranged the sale of Bayside Resort Hotel, a 128-room hotel located on Cape Cod in West Yarmouth, Massachusetts. JLL worked on behalf of the seller in the sale to Bayside Yarmouth LLC. The hotel will be managed by Jamsan Hotel Management. Bayside Resort Hotelfeatures amenities including an indoor and outdoor pool, fitness center, family fun center, and over 2,300 square feet of meeting space.
Hunter Hotel Advisors announced the sale of Courtyard West Palm Beach. MHG Hotels, LLC acquired the property from Whitestone Companies. Hunter’s Miami office executed the deal on behalf of the seller. The Courtyard West Palm Beach provides 103 keys, an onsite restaurant, fitness center, outdoor pool, and 1,155 square feet of meeting space.
Six Senses announced the May 2024 debut, in the Caribbean, with the opening of Six Senses La Sagesse in Grenada. The property offers 56 pool suites, 15 villas, restaurants, water sports, and the Six Senses Spa.
Europe Highlights
Scandic Hotels signed a long-term agreement with landlord Exilion to extend the agreement and rebrand the 174-room Holiday Inn City Centre in downtown Helsinki. From 2025, the hotel will be operated under the Scandicbrand. As part of the extension agreement, the landlord has undertaken to completely renovate the hotel. Renovation work is expected to begin in September 2024.
Located in the tallest building in Stuttgart, Germany, the new Radisson Blue Hotel at Porsche Design Tower Stuttgart is the latest flagship addition to the upper-upscale Radisson Blue brand. Radisson Blue Hotel at Porsche Design Tower Stuttgart offers 168 rooms and suites on the top 12-23 floors of the iconic building, multiple gastronomic delights, and exceptional meeting facilities with seven meeting rooms and two boardrooms.
The Zleep Hotels brand continues its international growth in Europe with the opening of the 166-room Zleep Hotel Prague. Prague is the Zleep Hotelsbrand’s third location outside Denmark. Zleep Hotel Prague is operated by Deutsche Hospitality in its capacity as leaseholder. The project was managed by Penta Real Estate.
Sunset Hospitality Group is expanding its hotel business with the launch of Sunset Hotels & Resorts, an integrated global business that will encompass the different hotel brands of SHG. The company currently operates 4 hotels in Turkey, Spain, and Lebanon, and plans to add more locations over the next few years reaching a portfolio of more than 20 hotels and resorts, in exclusive locations around the world by 2026. The last quarter of 2023 marks a monumental expansion phase of SHG with the launch of Sunset Hotels & Resorts, which will be operating 5 new hotels in Indonesia, 2 of which will open in the next 6 months. An exciting pipeline of additional hotels is currently in negotiations, with developments in Italy, UK, Bahrain, Indonesia, Montenegro, Spain, Morocco, UAE, and Vietnam. To champion this new venture, SHG announced the appointment of Jaime Buxo Clos, as CEO of Sunset Hotels & Resorts. Bringing more than 30 years of experience to the role, Jaime and his dedicated global hotel team will spearhead Sunset Hotels & Resorts, and the business will undergo major growth under their leadership.
W Hotels announced the W Edinburgh hotel, in Edinburgh, UK, will open tomorrow. The luxury 12-story hotel will feature multiple restaurants and bars, a 12th Floor W Deck, W Lounge, and terraces everywhere with fire pits and outdoor seating. The hotel’s fifth floor features a recording studio, Sound Suites, and the Away Spa.
