The DJIA fell 99 points while Nasdaq was up 56, the S&P 500 was up 4 points and the 10 year treasury yield was up .04 to 4.18%. Lodging stocks were mixed. MAR traded up to a new high, VCSA was up 8% but AHT was down -5% on the day.
STR said US lodging RevPAR for the week ended January 20th was down -2.2%. Rates were up 1.6% but occupancy was down -3.8%. Group RevPAR was up 5.9%.
According to the Q4 2023 U.S. Construction Pipeline Trend Report by Lodging Econometrics, Dallas emerged as a powerhouse, leading the nation. Here are the tables that tell the full story:
U.S. Construction Total Pipeline by City in Q4 2023
| City | Total Projects | Total Rooms |
|---|---|---|
| Dallas | 193 | 22,291 |
| Atlanta | 151 | 18,730 |
| Nashville | 123 | 16,148 |
| Phoenix | 122 | 15,977 |
| Inland Empire | 116 | 11,649 |
U.S. Pipeline Under Construction by City in Q4 2023
| City | Projects | Rooms |
|---|---|---|
| New York City | 44 | 7,338 |
| Dallas | 28 | 3,607 |
| Atlanta | 25 | 4,279 |
| Phoenix | 24 | 4,247 |
| Inland Empire | 22 | 2,275 |
Atlanta takes the lead in new projects announced in Q4 with 16 projects/1,572 rooms, followed closely by Phoenix with 15 projects/1,832 rooms, then Dallas with 14 projects/1,706 rooms, Austin with 11 projects/1,007 rooms, and Fort Worth/Arlington with 10 projects/1,506 rooms.
U.S. Pipeline New Projects by City in Q4 2023
| City | New Projects | Rooms |
|---|---|---|
| Atlanta | 16 | 1,572 |
| Phoenix | 15 | 1,832 |
| Dallas | 14 | 1,706 |
| Austin | 11 | 1,007 |
| Fort Worth/Arlington | 10 | 1,506 |
Forty-three of the top 50 markets in the U.S. currently have 10 or more hotels undergoing renovation or conversion at the end of the quarter. Atlanta leads with a combined total of 33 projects and 3,903 rooms. Las Vegas, Dallas, Chicago, New York City, and Houston also contribute to this trend, reflecting an industry focus on revitalizing existing structures.
U.S. New Openings by City in 2023
| City | Hotels Opened | Rooms |
|---|---|---|
| New York City | 19 | 4,308 |
| Atlanta | 13 | 1,279 |
| Inland Empire | 11 | 1,032 |
| Phoenix | 10 | 1,339 |
| Houston | 10 | 1,327 |
U.S. Projected Hotel Openings in 2024
| City | Projected Openings | Rooms |
|---|---|---|
| New York City | 28 | 3,050 |
| Dallas | 18 | 2,333 |
| Phoenix | 17 | 3,070 |
| Atlanta | 15 | 2,808 |
| Inland Empire | 15 | 1,559 |
In 2025, LE analysts expect the Inland Empire to open the most new hotels with 22 projects and 2,074 rooms, followed by Dallas and Atlanta, each with 21 projects.
JLL’s Hotels & Hospitality Group has released their flagship Global Hotel Investment Outlook. Key themes in the report include: The resurgence of urban market performance and renewed investor interest. The evolution and power of hotel brands for consumers and investors, and the rise of sustainable hotel investment and regenerative tourism. Key takeaways in the report include: Global RevPAR reached a full recovery in 2023, exceeding 2019 by 12%. Expecting further growth in 2024 as consumers continue to prioritize spending on travel above all else. Global hotel transaction volume sunk to $44.5 billion, a 10-year low (excluding 2020) underpinned by widespread capital market dislocation and high debt costs. Expecting transaction volume to accelerate in 2024, exceeding 2023 by 15% to 25% catalyzed by impending loan maturities, deferred capex, and private equity fund-life expirations. Americas and EMEA to lead growth.
Choice Hotels International, Inc. is taking the brands within its upscale and upper upscale portfolio to the next level with a series of upgrades, starting with Radisson Blu. Capitalizing on its portfolio of upscale hotels to 400, opening 19 new hotels as part of the Ascend Hotel Collection and 9 new Cambria hotels, and driving a more than 8% year-over-year increase in RevPar for the Radisson brand, Choice is doubling down on its success to restyle the look and enhance the on-property experiences of its upscale and upper upscale brands. Over the year, starting with Radisson Blue, Choice will redefine five of the eight brands across its upscale and upper upscale portfolio, including Cambria Hotels, Ascend Hotel Collection, Radisson, and Radisson Individuals to drive more value for owners and repeat stays from guests.
Marriott International, Inc. announced plans to further expand its new Apartments by Marriott Bonvoy brand offering with signed agreements in the United States, Italy, and the Kingdom of Saudi Arabia. Marriott recently announced a signed agreement with Roxbury Group for an Apartments by Marriott Bonvoy in Detroit, Michigan. Anticipated to open Q3 2024, the property will have approximately 92 units, a fitness center, and sits atop two restaurant outlets. Marriott is also announcing a new project with Midas Hospitality for an Apartments by Marriott Bonvoy in St. Louis, Missouri. The 50-unit property will be co-located with a new Sheraton in downtown St. Louis. In Courmayeur, Aosta Valley, Italy, Marriott signed an agreement with Castello Sgr to open Le Geant, an Apartments by Marriott Bonvoy property with 47 units. The company also signed an agreement with NEOM to bring Apartments by Marriott Bonvoy to the luxury island destination Sindalah on the northwest coast of Saudi Arabia. Anticipated to open in 2024, the property will feature 218 units, a gym, and pool.
Ritz-Carlton has planted its second flag in Dallas-Fort Worth with the rebranding of the former Four Seasons Resort at Las Colinas through a joint venture between Trinity Investments and Partners Group. The new owners are spending $55 million to overhaul the landmark 400-acre hotel and resort. Work to upgrade the property is expected to continue through May. The remodeling will add a new lobby bar and upgraded meeting and ballroom facilities. The 427 guestrooms will also be updated, and the salon and spa will be renovated with a resort pool including luxury cabanas, seating, and a new poolside bar. A March opening is scheduled for the new restaurant concept, and a second-floor Ritz-Carlton Club is expected to open in February.
A four-story hotel announced more than a year ago for Downtown Nexton is moving ahead. Baywood Hotels finalized its purchase of the 2.5-acre site within the 100-acre mixed-use commercial hub, in Summerville, South Carolina, for a 117-room AC Hotel by Marriott. Construction on the hotel is estimated to begin later this year, with an anticipated 18-month completion time. Amenities will include an outdoor pool, courtyard, indoor kitchen, lounge area, fitness room, and meeting space. It will be part of the latest phase of the $300+ million Downtown Nexton project that will include restaurants, retail stores, office space, and apartments.
Turnberry announced it will develop and operate The St. Regis Nashville and The Residences at The St. Regis Nashville. Preliminary plans call for a 39-story building offering 177 hotel guestrooms and 111 residences. The development will have a fine dining restaurant, a lobby bar, a three-meal restaurant, full-service spa, and two amenity decks, one for hotel guests and one for residents. The project is anticipated to break ground in 2025. The location is adjacent to the JW Marriott Nashville which is also developed, owned, and operated by Turnberry.
Blackstone Inc. struck a deal to sell the 705 room Arizona Biltmore hotel, in Phoenix, to Henderson Park for $705 million. Blackstone purchased the hotel in 2018 from GIC for $403 million and spent more than $150 million on renovations. The hotel is part of the Waldorf Astoria Hotels and Resorts Collection.
Auberge Resorts Collection and Sanctum announced an exclusive partnership that will bring the transformative wellbeing experience from Europe to the U.S. for the first time with a year-long series of wellness retreats at four of Auberge Resorts’ properties. Debuting in January 2024, the new program will take place at Stanly Ranch, Auberge Resorts Collection; Austin’s legendary landmark mansion, Commodore Perry Estate, Auberge Resorts Collection; Connecticut’s wellness sanctuary, Mayflower Inn & Spa, Auberge Resorts Collection; and Telluride’s mountainside adventure haven, Madeline Hotel & Residences, Auberge Resorts Collection.
Rhino Capital Advisors LLC purchased an office building at 110 Canal Street, in Boston, for $14.6 million. Rhino plans to convert the property into an 81-room hotel. The property’s new owners are also planning to revive the ground-floor space, formerly home to Boston BeerWorks, into a food and beverage concept.
McCombs Enterprises has bought out the ground lease for a downtown San Antonio hotel that is being used as a homeless shelter. San Antonio Metropolitan Ministries Inc. operates a shelter at the 313-room hotel. McCombs Enterprises executives have not discussed whether to continue the lease, which ends on October 31, 2025, and they do not yet have plans for the property.
RREAF Holdings LLC announced its partnership with Innisfree Hotels to develop a brand-new Margaritaville resort in Galveston, Texas. The deal totals just over $250 million and once complete will occupy 300,000 square feet. The property will feature 334 rooms, a 2.5 acre elevated water park overlooking the beach, four restaurants, a ballroom, direct beach access, and more. The resort will also feature pickleball courts, a family entertainment center, and a lazy river along with an adult pool. RREAF Holdings has secured all the required approvals from the City of Galveston and will break ground in early 2024.
After opening as an independent hotel in October 2023, Asheville, North Carolina property, Zelda Dearest, has been named to the newest in Lark Hotel’sgrowing collection. The property offers 20 room spread between three restored turn-of-the-century mansions. Zelda Dearest is Lark Hotels’ second Asheville property.
Dual Development LLC announced the grand opening of the Cambria Hotel in Lake Placid, New York. The $35 million investment includes 185 guestrooms, a restaurant, event space, and a waterfront gathering area.
Coury Hospitality will expand its Texas footprint with the fall 2024 opening of HALL Park Hotel, the first Autograph Collection lifestyle hotel in Frisco. Managed by Coury and owned by Hall Group, the property offers 224 rooms including 60 suites, a three-meal restaurant, chic lobby wine bar, cabana-lined rooftop pool, a fitness center, manicured rooftop gardens, and a spacious terrace patio. The property will also offer over 8,500 square feet of event space, including a 4,000 square foot ballroom and four meeting rooms. Coury is also expanding its Vin Hotel Collection brand with Hotel Vin Rogers, anticipated to open in Rogers, Arkansas early 2026. Also part of the Marriott Autograph Collection, the 125-room lifestyle hotel will feature an expansive patio and outdoor dining space, a rooftop bar, and a dynamic restaurant.
Paramount Lodging Advisors announced the sale of the La Quinta Inn Detroit/Utica, Michigan. The 103-room hotel is adjacent to the expansive Detroit Defense Corridor. PLA also announced the institutionally owned and managed Sonesta Simply Suites Knoxville, Tennessee. The hotel is located near several prominent institutions of higher education.
Paramount Capital Advisors announced the financing of a $4,000,000 loan for the acquisition of a 122-key Extended Stay America Hotel in Lansing, Illinois. The loan was funded within 40 days through an SBA 7a execution at a rate of Prime plus 50 basis points or 9%. PCA also announced the financing of a $4,277,000 loan for the acquisition of an 86-key Extended Stay America Hotel in Webster, Texas. The loan was funded within 45 days through an SBA 7a execution at a rate of Prime+ ½ or 9%.
Personnel News
Outrigger Hospitality Group announced Justin Kam corporate director of insurance with oversight of the insurance placement and enterprise risk management for its owned and managed properties, including global properties and affiliated entities within the company structure. Kam most recently served as manager, risk management at Hawaiian Electric Company, Inc.
