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It was a big day in the market with the Fed signaling they were already discussing rate cuts. The DJIA was up 513 points, Nasdaq was up 201, the S&P 500 rose 63 points. The big news was the 10-year treasury yield, down 0.17 to 4.02%. Lodging stocks were higher with HLT and MAR both trading up to new highs.
Our editor is spending time getting to know his first grandson, so there will be no Daily Lodging Report on Thursday, December 13th.
STR reported US lodging data for the week ended 12/9. US Hotel RevPAR was up 3.3%, led by a 4.5% rise in ADR. Group RevPAR was up 5.1%.
Deutsche Bank gave their 2024 outlook for the hotel industry. DB said that as we approach year four of the lodging recovery in 2024, they see a more balanced risk reward, as the easy part of the lodging recovery has played out and we now enter the late innings, with more nuanced bull/bear cases. They believe the bull case is being driven by a continued group recovery leading to an increase in compression nights and ADRs, as current group pacing is up approximately mid-teens; still relatively easy 1Q24 international comparisons driven by the APAC region; mid-single-digit NUG and continued programmatic capital returns to shareholders. The bear case is driven by continued pressure on domestic leisure demand from the exhaustion of pent-up demand, combined with a deterioration in household savings and rising credit card delinquencies; potential for a corporate travel downturn, NUG more dependent on highly competitive conversions and industry ADRs continuing to lag inflation as we exit 2023. DB said they are more cautious on the lodging group over the next 12 months with more downside risk than upside potential to current core forecasts for MAR/HLT/H, combined with a bull case they feel is largely priced in.
Keybanc cut their price target on Xenia Hotels & Resorts to $15 from $17. They maintained their Overweight rating.
Truist said they don’t see the same thing as a competitive firm, relating to their views on Airbnb. While the recent downgrade of ABNB by Barclays pointed to demand rolling over, Truist said they are not seeing that. That being said they don’t see 4Q growth rates improving over 3Q’s either. 1Q24 looks stronger to them and 2H23 due primarily to holiday shifts. Truist said 4Q23 demand is clearly negative on a same-store basis but when you add in a 17% year over year increase in supply, it is clearly up.
A strong U.S. dollar is one of the main reasons why many leisure travelers went overseas, particularly to European destinations, in 2023 without a corresponding influx of foreign inbound travelers, but according to Lodging Analytics Research & Consulting, that phenomenon is set up to flip in 2024. A weakening U.S. dollar and normalizing travel environment means major gateway cities across the country can expect to see more inbound international travel in 2024.
Continental Assets Management announced the grand opening of the AC Hotel by Marriott Honolulu, in Downtown Honolulu, Hawaii. Formerly the site of Remington College, the new hotel is being operated by Highgate. The hotel, which is the first of the AC Hotel brand on Oahu, features 2,500 square feet of indoor and outdoor meeting and event space, AC Kitchen, AC Lounge, as well as a hidden speakeasy bar.
LBA Hospitality announced the Courtyard by Marriott Lakeland hotel in Lakeland, Florida, has completed major interior renovations. The 78-room hotel completed updates to the furniture and finishes throughout the guestrooms, public spaces, and meeting rooms. Amenities at the Courtyard by Marriott Lakelandinclude an outdoor pool, fitness center, two event rooms with a combined 1,053 square feet of functional meeting space, a Market, and the Bistro restaurant. The hotel is owned by Flynn Holdings and managed by LBA Hospitality.
Maine Course Hospitality Group broke ground on a new TownePlace Suites by Marriott in the town of Williston, Vermont. This venture is a result of a collaborative effort between Maine Course Hospitality and Redstone VT Property Management, the property’s owner and developer. The hotel will feature a fitness center, expanded guest laundry, and a relaxing outdoor space. Financing is being provided by Mascoma Bank. The project is expected to be completed by Spring of 2025.
6PM Hospitality Partners and ACRE Holdings announced the purchase of the Avid Hotel in Zeeland, Michigan. The 92-room hotel features an indoor pool and fitness center.
Activate Hospitality, led by Sagar Desai, is acquiring the 199-key Holiday Inn West Palm Beach out of bankruptcy for $23.8M. The property will undergo a renovation and rebranding into a Delta by Marriott. The deal includes an adjacent 2.5-acre land fully entitled for a 120-key hotel, brand to be determined. The deal was financed by BridgeInvest.
IHG Hotels & Resorts celebrated the reopening of a newly converted and rebranded Holiday Inn hotel in Zapopan, Jalisco, Mexico. The Holiday Inn Guadalajara Patria-Universidad features 199 guestrooms and more than 1,800 square feet of meeting space. The hotel is owned by Inmobiliaria HNF S de RL de CV and managed by Aimbridge Hospitality.
SGG Hotels announced the acquisition of two prominent Hyatt properties in Warrenville, Illinois. The newly acquired Hyatt Place Chicago/Naperville/Warrenville and Hyatt House Chicago/Naperville/Warrenville boast convenient locations, meeting space, on-property bar/restaurants, fitness center, and business center.
The Loews Arlington Hotel and Convention Center in Arlington, Texas is nearing completion, with hotel bookings available in February. The $550 million hotel is part of nearly $1 billion in new development in Arlington’s entertainment district. The 888-room Loews Arlington Hotel will be connected to the convention center, also opening in 2024. The facility will include 250,000 square feet of meeting space, two resort-style pools, a beach, five additional food and beverage options, and a water slide. The hotel will also feature an oversized events lawn and a 1,550-space parking garage.
My Place Hotel held a grand opening for a new hotel on the southside of Tucson, Arizona. The hotel has 86 hotel rooms for short-term and extended stays.
The Ace Hotel in downtown Los Angeles, California will be closing soon. The owners of the building that houses Ace Hotel Downtown Los Angeles, as well as The Theatre at Ace DTLA, have recently elected to convert the property to a limited-service, rooms-only operation, managed by a tech platform. The Ace Hotel’s last day in the building will be January 31, 2024.
The newly re-imagined Manasota Key Resort has officially opened in Manasota Key, Florida. The resort is newly managed by Gulph Creek Hotels, which we incorrectly spelled in yesterday’s issue.
Kerzner International Holdings Limited signed a new One&Only resort and community of Private Homes to be developed in Antigua. The latest addition to the exclusive One&Only collection is slated to open in 2027. The resort will be located at Half Moon Bay on the southeast side of the island.
Accor revealed the portfolio growth and development momentum of its ibis Styles brand in Europe, with 20 hotels opened and 16 hotels signed under the ibis Styles brand in 2023 to date. Due to this year’s signings, more than 1,200 rooms in total were added to the pipeline between 2023-2026 across 8 countries in Europe. The brand strengthens its presence with five hotel signings in France, three in Romania, two in Spain, and two in Poland, along with hotels announced in Estonia and the UK. The ibis Styles will see the further expansion aiming to enter a new market in the Nordics region. A first ibis Styles will also open in Clujin April 2025, a second destination for the brand in Romania. A new ibis Styleshotel is under construction in Burton-Upon-Trent, UK and is expected to open in the second half of 2024. Accor’s brand will also expand into the Mediterranean, set to open in Benidorm, Spain in 2025. In 2023, Accor opened 20 ibis Stylesacross Europe including the ibis Styles Rotterdam Ahoy in The Netherlandsand its first foray into the Nordics with an opening of ibis Styles Copenhagen Ærestad, the first Accor property in Denmark. Flagship openings in Franceinclude ibis Styles Porto Vecchio, the brand’s second hotel on the Isle of Beauty. The brand portfolio grew this year with openings in Germany: ibis Styles Singen and ibis Styles Bielefeld. In addition, the flagship properties of the brand were introduced in the Eastern European destinations: ibis Styles Pitesti Arges in Romania, ibis Styles Kaunas Centre in Lithuania, along with airport locations at Warsaw Airport and Bucharest Airport. The latest signings will bring the ibis Styles brand portfolio in Europe to almost 450 hotels.
Melia Hotels International announced the ambitious global expansion of its luxury brands, with one in three of its pipeline openings within its luxury portfolio. The global growth of Gran Melia Hotels & Resorts will continue its expansion into Europe and Southeast Asia with hotels in Albania, Spain, Italy, and Vietnam including Palazzo Cordusio Gran Melia opening in the historic heart of Milan in December 2023. The luxury band has also increased its presence in Spain with Torre Melina A Gran Melia Hotel. The brand also entered Southeast Asia with its first opening in Vietnam: Gran Melia Nha Trang.
A revamped historic hotel has been launched as part of a portfolio of properties in Scotland. The newly-refurbished Dunkeld House Hotel, located in Perthshire, is owned by Fairtree, the UK-based group which acquired Crerar Hotels earlier this year. The 100-bed hotel is set within a 280-acre estate of the banks of the River Tay.
Cliste Hospitality purchased the Radisson Blue hotel in Belfast in partnership with Warren Private. Located in the Gasworks district of Belfast, the hotel comprises 120 bedrooms, a bar, restaurant, and conference facilities. It will be rebranded temporarily as The Gasworks Hotel and will undergo a £3.5 million refurbishment over the next nine months, which will include a refresh of the hotel receptions, bar and restaurant, conference facilities, and guestrooms. This marks Cliste’s expansion outside of its debut market of the Republic of Ireland and could signify the operator’s intention to continue to grow in Northern Ireland and throughout the UK.
The Azur Selection announced the acquisition of two new hotels in the city of Volos and on the island of Meganisi, both in Greece. The acquisition will be made through the issue of 1,296,335 new shares of the Company to the seller and main shareholder of the Company, Mr. Giorgios Arvanitakis. Acquired at 100%, the hotel located in the center of Volos near the port, and after renovation, will operate as a 4-star hotel with 49-rooms. The total cost of renovation was estimated at 1,500,000 EUR and has been paid in equity. Acquired at 100%, the hotel located on the island of Meganisi, in the Ionian Islands, offers 18 luxurious suites. The complex also includes a bar-restaurant, spa, and a fitness center. The hotel will be operated by the Company.
Criterion Capital has purchased Haymarket House in Soho for £135 million. Located in Piccadilly Circus, the building comprises a “Happy” restaurant and comedy club on the ground floor and office space on the upper floors. Criterion Capital plans to convert the office space into a hotel for £400 million, leaving the restaurant and comedy club on the ground floor serving the same purpose.
The contracts have been signed, and the transformation of a former office building into the new MEININGER hotel in Edinburgh is set to begin. The hotel will feature 157 rooms with a total of 549 beds. Following openings in Venice, Cologne, and Krakow this year, with further planned openings in Barcelona, MEININGER Hotels announced its next expansion into the Scottish market.