The DJIA was up 57 points Friday while Nasdaq was up 52, the S&P 500 was flat and the 10 year treasury yield was unchanged at 3.91%. Lodging stocks were mixed.
JP Morgan upped their rating on Choice Hotels to Neutral from Underweight given the stock’s pullback since announcing plans to go hostile to try to buy Wyndham. As part of their Lodging Outlook, JPM also said they believe there is less absolute/relative downside in the Lodging REITs, moving Host Hotels, Park Hotels, Ryman Hospitality and Sunstone Hotels to Neutral from Underweight. While they remain positive on Hilton and Marriott, they said the upward moves in the stocks gives them pause on putting fresh money into them but would revisit on pullbacks. No reason to sell here but also they feel no reason to add at these levels. They see more upside in Hyatt than HLT and MAR but said asset sales is likely the key. They see CHH’s effort to buy Wyndham as the primary driver for W and would not be surprised to see the two combine with a better offer than what is presently on the table.
Barclays moved to Equal Weight on Marriott Vacations, saying it is not easy to downgrade VAC at these levels given how much they have fallen but they have a lack of confidence in company-specific execution and believe Hilton Grand Vacations is the best name to own in the timeshare group.
According to CoStar, the U.S. economy is expected to slow next year while the hotel industry continues to recover and grow. Hotel demand is expected to grow 1.8% in 2024. That demand growth should translate to occupancy growth of 1%. The long term average for supply growth is 2.1%, but the 2024 forecast is 0.8%. Room rate growth of 4.2% this year and 3% next year are basically at the current level of inflation, meaning RevPAR is expected to grow 4.8% this year and 4% in 2024.
Host Hotels announced their board of directors authorized a regular 4Q dividend of $0.20 per share, up 11% from 3Q. They also announced a special dividend of $0.25 per share.
Frontier Hospitality Group announced the opening of a new Courtyard by Marriott hotel in Bettendorf, Iowa. Located where the former Lodge Hotel once stood, the hotel will feature a fitness center, pool and Bistro.
Blueprint Hospitality announced Le Meridien Fort Worth Downtown is slated to open in Fort Worth, Texas in Spring 2024. Operated by Remington Hospitality, the 14-story hotel will feature 188 guestrooms and suites, restaurant, rooftop bar, fitness center, outdoor rooftop pool, marketplace, Le Meridien’s Hub, a curated library and nearly 5,000 square feet of function space.
TownePlace Suites by Marriott celebrated its landmark 500th hotel with the opening of TownePlace Suites Richmond Colonial Heights in Virginia. The 131-room hotel offers a full-service lobby bar, a market and outdoor patio and grilling area.
The W Hotel Atlanta Downtown has been acquired by Stonebridge Hospitality Management. The company acquired the property through a deed in lieu of foreclosure. Stonebridge paid $24.8 million for the 237-key hotel, less than half the $56.75 million Ashford Hospitality paid in 2015.
BA Hospitality announced the Fairfield Inn & Suites by Marriott in Albany, Georgia has completed an extensive renovation of its guestrooms and public spaces. The 87-room hotel is owned by Flynn Holdings and managed by LBA Hospitality. The hotel features a fitness center and an outdoor pool.
LBA Hospitality announced BA Hospitality selected the company to manage three hotels in Florida for Impact Properties, adding 357 guestrooms to LBA’s inventory of over 100 properties. The three new properties are: The 132-room Hyatt Place Tampa Wesley Chapel in Lutz, Florida; the 122-room Residence Inn by Marriott Jacksonville South/Bartram Park in Jacksonville, Florida; and the 103-room Hampton Inn & Suites by Hilton Jacksonville South – Bartram Park, also located in Jacksonville, Florida.
PM Hotel Group has been selected to assume management of the Aloft Katy Mills nestled in the heart of the Katy Boardwalk District outside of Houston, Texas. The hotel has 104 accommodations, a fitness center, outdoor pool, three dining options and more than 6,000 square feet of even space across seven versatile venues.
Modus by PM Hotel Group has been selected to assume management of Waymore’s Guest House & Casual Club in East Nashville, Tennessee. The 93-room lifestyle hotel offers 93 guestrooms, suites and bungalows, an all-day café and expansive indoor and outdoor gathering spaces. The hotel is set to introduce new offerings including a rooftop bar and The Casual Club, a 4,000 square foot creative space designed for music, meetings and community engagement.
Cloudland at McLemore Resort, in Rising Fawn, Georgia, announced February 29, 2024 as its official opening date. The Curio Collection by Hilton property will offer 245 guestrooms and suites, 20,000 square feet of meeting and event space, two restaurants, infinity pool, sky bar, spa and two exceptional golf courses. A third golf course, is currently under construction and is set to open later in 2024.
KARM Hospitality is planning to open a new, four-story, 78-room Tru by Hilton in Brockton, Massachusetts. The hotel is being built at Westgate Mall and is slated to open by late summer with an outdoor pool and business center.
A Hilton hotel will be constructed at TruePointe in Hilliard. Home2 Suites by Hilton will be the eighth such location in Central Ohio when it is completed. Construction will begin in late spring 2024, and the hotel is expected to open in late 2025. The four-story Home2 at TruePointe will offer 115 guestrooms, a fitness facility, indoor pool, common areas, outdoor patio spaces and a grab-n-go station. Equity is the developer behind the $250 million TruePointe mixed-use project.
A proposed Hilton hotel and conference center in Virginia’s Chesterfield County is moving from Stonebridge to the Springline mixed-use development across the street. Shamin Hotels reached an agreement with the Chesterfield Economic Development Authority to relocate the Hilton site. The $75 million, 12-story hotel is expected to include 260 guestrooms, 20,000 feet of conference space, a second-floor outdoor terrace and a rooftop bar.
Balfour Beatty announced the topping out of Broward County Convention Center’s East Expansion and Hotel. The stand-alone East Expansion Building features ballrooms, exhibit space and a kitchen that will service the entire convention center. Additionally, a 29-story, 801-room Omni Fort Lauderdale hotel will be delivered with additional meeting and ballroom space, multiple restaurant options, amenity deck, rooftop bar and an array of luxury amenities. Construction is ongoing for the convention center’s Eat Expansion and Omni Hotel. The second phase of the project is scheduled for completion in late 2025.
Extended Stay America announced the opening of the 40th Extended Stay America Premier Suites located in the city of Sparks, Nevada. Sandpiper Hospitality developed and will manage the property. The four-story, 144-room, newly-constructed hotel features a fitness room, onsite guest laundry and outside grilling area.
Noble Investment Group bought the Holiday Inn Express hotel in Nashville, Tennessee for $81.76 million; a significant loss for the seller, Highland Capital Management, who paid $117.5 million for the 287-room property in 2019.
IHG Hotels & Resorts announced the opening of a new Holiday Inn Express & Suites hotel in Manor, Texas. The hotel features 78 guestrooms, 675 square feet of meeting space, onsite business center, fitness center and outdoor pool. The Holiday Inn Express & Suites Austin – Manor is owned by Sai Geeta, LLLC.
IHG Hotels & Resorts, in conjunction with owner Cosmo Ventures Cobb, LLCand management company Sandpiper Hospitality, recently opened a new Candlewood Suites hotel in suburban Atlanta. Featuring 93 suites,
Candlewood Suites Atlanta – Smyrna offers an onsite business center, and an outdoor gazebo grill.
Spot X Tampa Bay, part of Red Roof’s The Red Collection, officially opened in Wesley Chapel, Florida. The hotel features 77 guestrooms, a pool, snack center and guest laundry. Owned by QDI USA Developments LLC, the hotel is slated to start of nearly $1.2 million renovation in December.
Choice Hotels International, Inc. completed the integration of the Radisson Hotels Americas business, transitioning nearly 600 hotels to Choice’s franchise success system and digital platforms, just 16 months after Choice acquired the Radisson Hotels Americas brands in August 2022. Migrating hundreds of Radisson Americas hotels onto choiceADVANTAGE and ChoiceMAX, the company’s proprietary cloud-based systems, was the final step in the integration process.
Heritage Hotels and Resorts sold The Lodge at Santa Fe, in Santa Fe, New Mexico, to Bullwhip Capital Partners. Heritage did not share the purchase price for the 128-room hotel.
Best Western Hotels & Resorts announced the opening of the Best Western Carlisle South in Carlisle, Pennsylvania. The hotel is owned by Vimal Pateland features 68 guestrooms in addition to 20 suites. The hotel recently underwent a refresh of guestrooms and its 45-person meeting room. Hotel amenities include an outdoor pool, fitness center, market, parking and electric vehicle charging stations.
Loews Hotels is moving forward with a third hotel in the entertainment district of Arlington, Texas. The Arlington City Council this week approved the company’s plan to build a $410 million, 500-room hotel north of Choctaw Stadium. The property will include 25,000 square feet of event space and a city-owned 735-space parking garage. The new Loews hotel will replace the existing Sheraton Hotel near the eSports Stadium Arlington, which will be demolished by September 2025. The hotel’s parking garage will connect to the stadium.
citizenM is expanding its presence in the U.S. with three planned openings in Austin, Boston and Miami, bringing its total number of hotels to 36 across Europe, North America and Asia. citizenM Austin Downtown will open in early 2024 in partnership with Turnbridge Equities. The 17-story tower will house a 344-room hotel with a rooftop pool and bar, a canteenM and a gym. citizenM Boston Back Bay will open in summer 2024 and will mark the largest property in the brand’s portfolio. The 399-room hotel will be Boston’s second citizenMproperty and the city’s first all-electric hotel. Next summer will also see the arrival of the brand’s third hotel in Miami, in the South Beach area. The 168-key citizenM Miami South Beach will include a rooftop infinity pool, a hidden bar and an outdoor terrace.
Hodges Ward Elliott announced the closing of the 196-key Hilton Brooklyn New York and the accompany retail at 71 Smith Street.
Paramount Lodging Advisors announced the sale of the Red Roof HomeTowne Studios Chicago Waukegan. PLA has also announced the sale of 2.85 acres under the newly renovated 388-key Hilton Appleton Paper Valley in Appleton, Wisconsin. Paramount Lodging Advisors also announced the sale of the 154-room La Quinta Inn located in Gretna, New Orleans.
Personnel Moves
CoralTree Hospitality announced Mike Everett joined the company as executive vice president. Everett will lead the business development, design and development services, information technology and innovations team, openings and transitions as well as the engineering, security and sustainability functions for the company. Everett previously worked with the CoralTree leadership team while at Lowe Hospitality Group.
Remington Hospitality welcomes Shazmah Hakim as Chief Legal Officer. As CLO, Hakim will oversee all efforts across the legal department. Hakim will continue to foster trust and collaboration within the legal department and across the organization as a whole, contributing to the company’s ongoing success. Hakim previously worked at Marriott International and Kingdom Hotels Limited.
My Place Hotels of America announced the passing of hotel industry icon Ron Rivett, the company’s co-founder and chairman. He leaves a remarkable 50-year legacy dedicated to nurturing a culture that profoundly values people, treating business partners with the warmth of friendship and employees with the closeness of family. Rivett is renowned for co-founding Super 8 Motels with friend Dennis Brown in 1974.
Seminole Hard Rock appointed Elena Alvarez as the new Senior Vice President of Marketing and Brand Partnerships for Seminole Gaming and Hard Rock International. In this new role, the company veteran will be responsible for the development of brand activations and integrating assets across Hotels, Cafes, Retail and Casinos including overseeing the development of new revenue-generating platforms. Alvarez will also continue to oversee the global marketing of the Café division of Hard Rock International.
Jonas Hospitality welcomes Robyn Fieghen to the Property Systems team as Strategic Accounts Director. Robyn will work closely with the Property Systems brands, including Jonas Chorum, SpaSoft, Springer-Miller Systems, and Jonas Unify. In her new role, Robyn will oversee customers’ relationships, strategies and needs.
Marriott Vacations Worldwide Corporation announced a new organizational structure aimed at driving long-term, sustainable growth across its vacation ownership business, exchange and third-party management segment. With the previously announced 2024 retirement of Jeanette Marbert, President, Exchange and Third-Party Management, two executive roles have been created as part of MVW’s senior leadership team to best support the Company’s growth strategies to deliver consistent performance. Lori Gustafson will expand her responsibilities as Executive Vice President and Chief Membership & Commercial Services Officer as the Company aligns membership, travel services and brand and digital teams under one organization to support the Company’s future growth strategies. Gustafson has been serving as Chief Brand & Digital Officer for the past three years. In the Company’s Exchange business, Marcos Agostini has been appointed Executive Vice President, Managing Director, Interval International. Agostini joined Interval in 1993 in the Latin America operations area and has held increasing roles in both operations and sales and leading worldwide resort sales and service as well as business development initiatives. These executive appointments will be effective January 1, 2024.
