The DJIA fell 285 points, Nasdaq was down 174, the S&P 500 fell 38 points, and the 10-year treasury yield was down nearly .10 to 3.91%. Let’s hope the first two trading days do not represent the rest of the year. Lodging stocks were modestly lower. AHT traded down to a new low.
A discussion headed to Miami Beach, FL’s Land Use and Sustainability Committee will weigh the repeal of floor area ratio incentives for hotel developments, a cap on hotel rooms based on zoning districts, and a recently enacted New York City model for addressing the limits on approval for hotels. The market study research was approved by the city commission in December 2021. There are 21,000 hotel rooms in Miami Beach with a little over 2,000 more in the pipeline. Could there be a hotel building moratorium in one of the most popular areas of Southern Florida?
STR’s commentary on U.S. performance for November 2023: Top-Line Metrics (percentage change from November 2022): Occupancy: 58.4% (-1.2%); ADR: $151.23 (+3.6%); RevPAR: $88.36 (+2.4%). Key points include: RevPAR grew as strong ADR growth offset an occupancy decline. With an extra lift from Las Vegas, national ADR growth surpassed CPI for the first month since May 2023. Excluding Las Vegas, U.S. ADR would have increased 2.5%. Upper Upscale and Upscale chains lead in year-to-date performance growth. Group and transient demand grew at the same rate. New Year’s Eve bookings in the Top 25 Markets are just shy of 2022 levels. Q1 bookings are ahead of pace. The number of rooms under construction was flat as compared to October, which saw a large month-to-month increase. Pipeline leaders, Upscale and Upper Midscale, showed under construction rooms advance month over month as did nearly all chain scales except Upper Upscale and unaffiliated projects. Overall, more than 713,000 rooms (6,000 hotels) sit in the pipeline with rooms up 17.1% from last year.
STR’s global “bubble chart” update through December 16, 2023 showed 75% of markets with growth in RevPAR compared to 2019. Among countries with 50,000 rooms and adequate hotel reporting levels, the United Arab Emirates, South Korea, Singapore, France, and Switzerland led in RevPAR on an actual basis. The top five countries for RevPAR growth against 2019 were Brazil, the UAE, Colombia, Saudi Arabia, and Hungary. Middle East performance was boosted by a series of big events including COP28, The Grand Prix, Dubai Rugby 7s,and more. Excluding provincial areas, country markets, and those affected by fluctuating exchange rates, the top RevPAR performers were Rio de Janeiro, Hong Kong, Dubai, Goa, and the Balearic Islands.
Hilton announced the December 28th opening of the Tru Hotel in North Augusta, South Carolina. The hotel has 98 rooms, a fitness center, pool table, business center, and charging stations for electric vehicles. The North Augusta Tru Hotel is the most recent development in the larger Walnut Village mixed-use project.
SSG Hotels has taken over the proposed hotel and conference center development in downtown Kokomo, Indiana. SSG Hotels is the fourth developer in five years to take over the project. The six-story, 123-room Hilton Garden Inn will be owned and operated privately, the two-story conference center will be owned and operated publicly, offer conference rooms space and be the new home for the Kokomo Automotive Museum and the Alliance.
Kautilya East Harford Hotel LLC plans to reopen a long-defunct hotel building adjacent to Interstate 84 in East Hartford, Connecticut, as a Fairfield Inn & TownePlace Suites by Marriott. Formerly a Ramada Inn, the hotel will have five floors and 145 rooms, with the Fairfield Inn portion comprised of 65 standard-style rooms and the TownePlace Suites by Marriott portion comprised of 80 extended-stay rooms. The hotel will also have a guest laundry area, a fitness center, pool, bar, shared office space, an outdoor patio with grill, a market, and a parking lot with electric vehicle charging stations. To top it off, the hotel property will include a Starbucks, the first in East Hartford.
Construction of the Fairfield Inn by Marriott in downtown Decatur, Alabama is complete, and preparations have begun for an early 2024 opening. Fite Building Co., PHD Hotels, and H.M. Nowlin developed the four-story, 80-room hotel.
White Lodging recently topped out the first Kimpton Hotel in San Antonio. It broke ground on the 10-story hotel last October and is slated to open soon. The 347-room hotel will include a steakhouse, whiskey bar, rooftop bar, and a courtyard bar. It will also have 11,000 square feet of meeting space and 16 luxury guest suites.
Satori Collective announced the sale of the 124-suite Holiday Inn Express & Suites Alpharetta-Windward Parkway to Bukhari Group Hospitality. The Alpharetta, Georgia hotel offers an outdoor pool, business center, fitness room, and meeting space for up to 40.
IHG Hotels & Resorts celebrated the opening of a new-build Holiday Inn Express & Suites hotel in Prince Albert, Saskatchewan. The 121-room hotel offers an indoor pool with a connecting water slide and a sauna. The Holiday Inn Express & Suites Prince Albert – South is owned and managed by Western Star Group of Hotels.
Premier Commercial announced the Provincetown Inn in Provincetown, Massachusetts has been sold to Linchris Capital Partners for 21,642.022. The inn, located on more than six acres, boasts 102 guestrooms, two restaurants, a pool, private beach, six function and banquet rooms, and 125 parking spots. The property will undergo a $3.5 million facelift over the next two years.
Hunt Realty Investments plans to redevelop 20 acres around the Reunion Tower in downtown Dallas, Texas at a cost of $5 billion. The project is located next to the Kay Bailey Hutchinson Convention Center that the city plans to begin building next year. Hunt’s plan calls for constructing a dozen new high-rise residential and commercial buildings with up to 3,000 apartment units, a hotel with 600 to 1,000 rooms, retail space, and office space. The first phase of construction will include hotel, retail, dining, and entertainment to support the convention center and affordable apartments.
Nemacolin, the renowned resort in Farmington, Pennsylvania, announced the opening of The Grand Lodge. The re-imagined luxury hotel has been completely transformed with 56 luxe suites and new dining venues. At Nemacolin, guests can look forward to exciting accommodations, dining options, and more debuting in 2024. Summer will bring the new incarnation of The Chateau, Nemacolin’s showcase luxury hotel, with a redesigned palette, upgraded furnishings, and guest services that go far beyond the expected. Also on the way is an Italian restaurant and a new late-night cabaret opening in the summer. The Casino at Nemacolin is a local institution that is being re-imagined as a Nemacolin destination with an updated, refined interior. Gaming options include 26 table games and nearly 600 slot, keno, and video poker machines, while the culinary staff will introduce all-new casino dining.
The SureStay Plus by Best Western Montrose is now open in Montrose, Colorado. The hotel features 45 guestrooms, including two dedicated suites. After recently undergoing a refresh, the hotel debuts brand-new carpets and paint throughout the property, a refreshed indoor pool and hot tub, and a full-service business center.
HREC Investment Advisors arranged the sale of the 90-room Hampton Inn Huntsville-Arsenal/South Parkway located in southeast Huntsville, Alabama. Radiant Hotels acquired the property which marks the first Hampton Inn in its portfolio. Yedla Management Company operated the property for the previous owner and will continue operating the property for Radiant Hotels. HREC Investment Advisors exclusively represented the seller, Huntsville Hotel Company II, LLC, on this transaction.
Kew Green Hotels announced plans to re-flag two existing properties in Leicester and Manchester under IHG’s voco brand. The group has acquired Hotel Brooklyn Leicester and Hotel Brooklyn Manchester and has signed a franchise agreement with IHG to rebrand them as voco properties by mid-2024. Until now, the 189-room Hotel Brooklyn Manchester and the 191-room Hotel Brooklyn Leicester have been part of Bespoke Hotels Group.