The DJIA rose 26 points but Nasdaq was down 245, and the S&P 500 fell 27 points on the first trading day of 2024. The 10-year Treasury Yield was up 0.08 to 3.95%. Lodging stocks were kind of all over the place. Timeshare stocks had a good day, MAR hit a new high before getting hit with some profit-taking, AINC was up 5%, but SHCO was down -6%.
Jefferies made some changes to their hotel and timeshare company ratings. They upgraded Park Hotels to Buy from Hold on the removal of their San Francisco assets while downgraded Choice Hotels to Underperform from Hold on concerns over their pursuit of an acquisition of Wyndham Hotels. On the timeshare side, they upgraded Hilton Grand Vacations and Travel + Leisure to Buy from Hold. PK’s price target was upped to $21 from $14. CHH’s PT was slashed to $96 from $119. Their new targets on the timeshare companies are $50, $57, and $92 for HGV, TNL, and VAC. On the hotel side, Jefferies upped their price target on XHR to $14 from $13, HST to $24 from $21, MAR to $227 from $205, HLT to $182 from $157, and $127 from $104 for H.
Apple Hospitality REIT, Inc. announced the acquisition of the 299-room Springhill Suites by Marriott Las Vegas Convention Center for approximately $75 million. Located in Las Vegas, Nevada, adjacent to the newly expanded LVCC, the hotel features more than 10,000 square feet of flexible indoor and outdoor meeting space, a rooftop pool, seven-story parking garage, and surface lot with a combined total of 244 spaces. As previously announced, the Company continues to have two additional hotels under contract for purchase: an Embassy Suites by Hilton currently under development in downtown Madison, Wisconsin and a Motto by Hilton to be developed in downtown Nashville, Tennessee.
PEG Companies announced the opening of The Moxy in the historic Luhrs Building in downtown Phoenix, Arizona. The 164-room property is under the management of PEG Hospitality Group. The hotel’s first floor functions as an inviting lobby, bar, and game room while floors two through nine house the hotel rooms. The property features a 24/7 food and beverage program, luggage lockers, a luxury gym, and a business center.
Bradford Allen Hospitality has acquired two adjacent hotel properties in Riverhead, New York, on Long Island, a 131-suite Residence Inn by Marriott and a 114-key Hilton Garden Inn. The Residence Inn Long Island East End features a fitness center, indoor and outdoor pools, whirlpools, and expansive wedding and banquet facilities. The Hilton Garden Inn Riverhead features a patio with a whirlpool and fire pit, an indoor pool, and fitness center. The property is expected to undergo a transformative multi-million dollar renovation over the next year. New Castle Hotels and Resorts will retain management of both hotels.
Fortune International Group and Oak Capital obtained a $259 million construction loan to move forward with the Ritz-Carlton Condo Hotel & Residences in Pompano Beach, Florida. Bank OZK provided the mortgage to the developers for the two-tower project. The Ritz-Carlton Residences, Pompano Beach will feature a 32-story tower along the beach with 117 condos and a 14-story tower on the Intracoastal Waterway with 88 condos. Amenities include pools, sports courts, a beach club, marina, and resident-only restaurants. The project will be completed in 2025.
Hawkeye Hotels broke ground on a Fairfield Inn & Suites in downtown Spartanburg, South Carolina. The group is planning a spring 2025 opening for the five-story, 136-room hotel.
Holladay Properties announced a new hotel project, the Tempo by Hilton, coming to the Farm Brew LIVE! Campus in Manassas, Virginia. In a strategic joint partnership with Villagio Hospitality Group, Holladay will develop the hotel, scheduled to open in mid-2025. The 92-room Tempo by Hilton will feature an open lobby design, multi-functional spaces, and premium food and beverage outlets.
Hotel developer Jaswinder Dhami of NV Hospitality is planning to build a Home2 Suites by Hilton hotel in Carson City, Nevada. The four-story, 92-guestroom project will cost approximately $20 million.
It looks like there may be yet another extension on the way for the developers of the Hotel Royer in Urbana, Illinois. Hilton’s booking site now lists June 30, 2024, as the first date reservations can be made for the 131-room hotel. That is four months later than the agreed-upon completion deadline in the fourth extension the Urbana City Council granted the developer, Marquis Ventures/Icon Hospitality, following a July meeting.
Epelboim Development Group sold the Even Hotel Miami, located near the Miami International Airport, for $29 million. The seven-story, 190-room hotel was purchased by George M. Nediyakalayil, of Gas Depot Oil Company, who took out an $18.6 million mortgage from the State Bank of Texas.
Choice Hotels International, Inc. announced the groundbreaking of Everhome Suites Cheyenne, slated to open in Cheyenne, Wyoming, by the end of 2024. The four-story, 114-room property is being developed by HighSide Companies and will feature a 24/7 self-serve Homebase Market, a fitness center, and guest laundry facilities.
Ennismore outlined plans to unveil 18 new hotels in 2024, adding more than 5,600 rooms to its portfolio. Forthcoming openings include 25hours Hotel The Oddbird, Jakarta; The Hoxton, Vienna; 25hours Hotel Paper Island in Copenhagen; Mama Shelter Nice; SLS Barcelona; Mama Shelter Dubai Business Bay; JO&JOE Budapest; Hyde Perth; Hyde Bodrum; Rixos Golden Horn, Istanbul; and Rixos Obhur, Jeddah. The group is also set to open two new properties in London and Edinburgh early this year: the 11-room Hyde London City and the 211-room The Hoxton, Edinburgh.
Red Roof Inn announced the opening of the Red Roof Inn in Copiague, New York. Formerly a Days Inn, the 37-room hotel completed renovations, including updating the guest bathrooms, the breakfast area, adding new bedding, and updating landscaping. The new hotel features a snack center and free parking.
Foley Entertainment Group acquired the MacArthur Place Hotel & Spa in Sonoma from Lat33 Capital. FEG will be taking over the day-to-day management of MacArthur Place which is located in the heart of California Wine Country. The upscale 69-room boutique has completed a multi-year transformation, including a renewed spa and fitness center, revamped outdoor pool space, re-imagined food and beverage program, and the addition of five new guestrooms, including the brand-new Artists Cottage.
Pebblebrook Hotel Trust completed the sale of the Marina City retail space and two parking facilities adjacent to its Hotel Chicago Downtown, Autograph Collection, in Chicago, Illinois, for $30 million to a third party. The sales transaction includes approximately 146,000 square feet of retail space and two parking facilities offering 900 spaces.
Black Creek Mexico announced that affiliates of Alojica, a BCM-sponsored investment platform, have completed the acquisition of the Royal Islander Cancun. Alojica plans to completely transform the property over the coming years as a leading all-inclusive resort in the Mexican Caribbean. The Royal Islanderfeatures 369 guestrooms and suites and a wide variety of culinary and entertainment offerings.
Reuben Brothers and Oetker Collection announced the autumn opening of The Vineta Hotel in Palm Beach, California. The chic, pale-pink landmark building will be restored and reborn as The Vineta Hotel following a top-to-toe renovation back to its original splendor. The Vineta Hotels’ dining and social spaces will offer an eclectic mix of four distinct environments.
After a meticulous $19 million restoration effort, The Hotel Chalet at The Choo Choo in Chattanooga is now open. The iconic landmark hotel offers 127 guestrooms, several new event spaces, an Alpine pool, and a bistro. Twenty-five rooms are in restored 1920s and 1960s era Pullman train carriages.
Harris Real Estate announced Sal Lupoli purchased the Mainsail Motel and Cottages, in Hampton, New Hampshire, for $7.35 million from Dave and Kara Hartnett. The property consists of 40 hotel rooms and 19 cottages.
A massive hotel has been proposed for downtown Detroit, Michigan, next to the Huntington Place convention center. The 25-story, 600-room hotel will connect to the convention center. According to the new hotel’s developer, The Sterling Group, construction could start as soon as the second quarter of 2024. The hotel would be along the riverfront and have 20 floors of guestrooms atop five “podium” floors containing a restaurant, lobby bar, two ballrooms, a pool, and 50,000 square feet of meeting rooms.
Urban Network Capital Group and Vertical Developments have secured a $24.5 million construction loan from Rok Lending for a boutique condo-hotel development in the Brickell district of Miami, Florida. Named the Visions at Brickell Station, the eight-story project will include 111 units, a spa, gym, event space, and a rooftop pool. Construction on the development, which is estimated to cost $45 million, is scheduled to be completed in 2025.
J Street Space announced the acquisition of Tower 180, an office/retail building on Broadway in downtown San Diego, California. Terms were not disclosed. Tower 180 includes a 25-story tower and eight-story mid-rise annex with a standalone nine-story parking garage. J Street plans to convert the buildings, creating a combination of hotel, retail, and residential units, with a targeted completion date in mid-2026.
Hunter Hotel Advisors announced the sale of the Hilton Garden Inn Tampa Northwest Oldsmar and the Hilton Garden Inn Tampa North. Hunter represented the institutional seller. Embarc, LLC acquired the 87-key Hilton Garden Inn Tampa Northwest Oldsmar and IRAS Group acquired the 148-key Hilton Garden Inn Tampa North. The new owners will renovate the hotels to current brand standards.
HVS Brokerage & Advisory announced the sale of the 51-key Quality Suites South Austin in Austin, Texas. The property was purchased by Celestial Dreams, LLC from Door Capital Partners.
International News
Mandarin Oriental International Limited, the parent company of Mandarin Oriental Hotel Group, signed an option to sell its interests in Mandarin Oriental, Paris to SLH Hotels Srl for €205 million. The proceeds will be applied towards the Group’s general development strategy. The Group will retain a long-term management agreement to manage and brand the hotel.
“The Mills” precinct expansion in Mount Gambier, Australia is set to undergo a transformation with the addition of a boutique hotel. The proposed $10 million hotel, featuring 20 rooms, will be the result of converting two buildings into one. The construction is scheduled to commence in Q4 of 2024.
Personnel News
The Indigo Road Hospitality Group and Larry Spelts, president of the company’s Lodging & Lifestyle Adventures division, will mutually part ways after successfully expanding the hospitality company into the hotel industry nearly four years ago. Effective immediately, The Indigo Road has elevated Gabriel Perez to COO of Lodging & Lifestyle Adventures. Perez previously held the position of senior director of lodging operations.
