Extended Stay America Announces 20% Growth in Its Franchise Portfolio

The last couple of days of January were like the first two weeks. Today the DJIA ended down 317 points, Nasdaq was down 346, the S&P 500 fell 79 points and the 10 year treasury yield was down .09 to 3.97%. Lodging stocks were lower but AHT was the big winner, surging 24%. SLNA gave a lot of their last week’s gains, down -40%. BHR fell -6%.

Truist said they are expecting 4Q lodging earnings to come in at the mid-point to higher-end of the originally expected ranges. They do not expect any macro-surprises in 4Q that would lead to a company coming materially above or below initial expectations.

STR reported US lodging data for the week ended January 27th. RevPAR was up 4.8% with rates up 5.1%. Group RevPAR was up 18.4%.

Travel + Leisure Co. continues their brand portfolio expansion with the acquisition of Accor Vacation Club for $48.4 million. The acquisition is expected to close in the first quarter of 2024 and be immediately accretive to Travel + Leisure Co. earnings upon completion. Under the terms of the deal, Travel + Leisure Co. will acquire Accor’s vacation ownership business, Accor Vacation Club, representing 24 resorts and nearly 30,000 members. Travel + Leisure Co.also receives the exclusive rights to develop new vacation ownership clubs and products utilizing the Accor Vacation Club brand across a region including Asia Pacific, Middle East, Africa and Turkey. The acquisition will create a new line of business for Travel + Leisure Co. as Accor is added to the company’s portfolio of brand affiliations, including Wyndham, Margaritaville, and Sports Illustrated. The addition of Accor Vacation Club to the Travel + Leisure Co. international portfolio increases its membership to more than 100,000 in the Asia Pacific region and grows its club resort count by approximately 40% to 77.

Extended Stay America announced its growth outlook through franchising, following the momentum from a strong year of milestones, including 20% growth of its franchise portfolio across its family of brands: Extended Stay America Premier Suites, Extended Stay America Suites and Extended Stay America Select Suites. Highlights of 2023 brand achievements include: Franchise hotel openings increased 20% while the number of franchise owners more than doubled. The 40th Extended Stay America Premier Suites property opened in Sparks, NV. Unveiled Extended Stay America Select Suites new construction prototype design with the first ground breaking in Wildwood, FL in September 2023. Tapped into new markets through the repositioning of transient hotels into extended stay properties in areas including Cleveland, Ohio; Pittsburgh, Pennsylvania; Buffalo, New York; Chattanooga, Tennessee; Portland, Oregon; Odessa, Texas; and Omaha, Nebraska. Converted 15 Extended Stay America Suites properties to franchise ownership groups including Capital Insight Holdings, Paragon Hotel Corporation, T3 Capital, L.P., and Wayside Investment Group, maintaining brand presence in key markets.

DoubleTree Suites by Hilton Orlando-Disney Springs Area completed a multi-million dollar renovation to its 236 all-suite property located in Lake Buena Vista, Florida. The revitalization project includes updates to all aspects of the hotel from meeting space, accommodation, the Evergreen Café, Lounge, Pool Bar, Made Market, pool, splash pad, tennis court, and fitness center. The property is owned by RLJ Lodging Trust and managed by Hilton.

DKN Hotels announced the opening of Tower39 Rooftop Lounge at the SpringHill Suites by Marriott San Diego Carlsbad in Carlsbad, California. The 104-suite property also features an outdoor pool, a fitness center, and two meeting rooms with a combined 1,156 square feet of functional space.

To kick off the Easter season, the PEEPS Brand has teamed up with Home2 Suites by Hilton Easton, Pennsylvania to unveil a one-of-a-kind, fully immersive stay for fans of all ages: the PEEPS Sweet Suite! The PEEPS Sweet Suite will transport fans to an Easter wonderland filled with playful PEEPSdecoration, whimsical furnishings, and an irresistible taste of the PEEPS 2024 flavor lineup.

Simon and OTO Development announced the March opening of the AC Hotel Jacksonville St. Johns Town Center in Jacksonville, Florida. The four-story hotel features 118 modern guestrooms, a lounge, patio and outdoor pool, fitness center and flexible meeting space.

Developer Dream Team Hospitality LLC is planning a 100 guestroom Hyatt Studios hotel to be built near the Louisville Kentucky Muhammad Ali International Airport. Construction is expected to begin in spring 2025, with a planned opening in late 2026.

Fairmont Hotels & Resorts and Kailas Companies announced the official kickoff of the downtown redevelopment project of 1010 Common Street, marking the return of the Fairmont brand to New Orleans, Louisiana. Slated to open summer 2025, Fairmont New Orleans will occupy 18 stories within the building, offering 250 guestrooms and suites, three food & drink venues, a pool, spa, and 20,000 square feet of function space divided between ballrooms, meeting rooms, a library and business center.

LuxUrban Hotels Inc. signed and funded a 15-year Master Lease Agreement, plus two, five-year options, to operate The James NoMad Hotel in New York City. LuxUrban expects that The James will be rebranded as The J Hotel by LuxUrban, A Wyndham Grand Hotel. The Company expects to take possession of the 353-room property and begin welcoming guests on or before March 1, 2024.

The owner of the Grand View Hotel, in York, Maine, is looking to build eight new units with modern décor. Jimmy Asprogiannis is looking for approval to tear down the Grand View’s current six-unit building and replace it with a new eight-unit model structure. It will also include a new single-unit building for the innkeeper’s residence and new asphalt for the parking area. The construction would take place after the 2024 season, with the new units ready to rent by 2025.

Pixar Place Hotel has opened, following the transformation of Disney’s Paradise Pier Hotel into the first fully Pixar-themed hotel in the United States. The 15-story hotel, overlooking Disney California Adventure Park, boasts 479 re-imagined guestrooms, a redesigned lobby, upgraded rooftop recreation areas including a pool area and play court, renovated fitness center, new dining options, STOR-E retail location, and more.

Mighty Equities received approval from the Houston Planning Commission to build a six-story, 80-room hotel in the heart of Houston, Texas’ Montrose LGBTQ nightlife district. The start of construction on the $50-$65 million Hyde Park Hotel is at least 18 months away.

Hunter Hotel Advisors announced the sale of the Homewood Suites Lafayette Airport and Home2 Suites Parc Lafayette. AVR Realty Company and affiliates of Dimension Hospitality sold the two properties to Om Shanti Om Twelve and Om Shanti Om Thirteen.

Personnel Moves

Resolute Road Hospitality announced Noall T. Silvester, MMH, CHA, has joined the leadership team as Regional Vice President of Operations. Silvesterwill be responsible for overseeing hotels in Utah, Texas, Arizona and Nevada within Resolute Road’s portfolio. Silvester’s primary focus will be supporting on-property teams as they implement strategies to drive GOP, strengthen owner service, maintain a high-level of guest satisfaction, and optimize operational leadership. Silvester most recently served as Regional Vice President of Operations at Aimbridge Hospitality.

Great Wolf Resorts, Inc. appointed Bret McLeod as the company’s next Chief Financial Officer. McLeod will play a leadership role in developing and refining financial processes, systems and infrastructure. He will also provide critical support as the company navigates a period of significant growth, with three resorts set to open within the next 18 months, as well as serve as a key advisor for future development opportunities and strategic capital decisions. Prior to joining Great Wolf Resorts, McLeod served as Chief Financial Officer for Citycon.

HRI Hospitality appointed Rylie Johnson as the Corporate Director of Business Development and Strategic Partnerships, a newly established position within HRI. Johnson will be instrumental in creating, expanding and managing strategic business relationships with key hotel owners, partners and new investors. Rylie will also play a key role in establishing effective marketing strategies and enhancing company awareness. Rylie recently served as the Studio Development Manager at Studio 11 Design.

International News

Hilton announced the opening of Hampton by Hilton London Old Street, located on the doorstep of Shoreditch. Developed by the Westcombe Group, the 109-room hotel offers a fitness center and flexible social spaces.

IHG Hotels & Resorts entered into a franchise agreement with Mogotel and development partner Revelop, to mark IHG’s re-entry into Sweden with voco Stockholm Kista. The 201-room property will be complete in late 2024 with a restaurant and lobby bar, fitness room, rooftop spa with an indoor pool, and a stunning rooftop garden.

ibis Styles Paignton has officially opened in the U.K. Located in a seafront location in Devon, the new-build hotel offers 121 guestrooms; an onsite restaurant, bar with sea views and retro ice-cream parlor and waffle bar; a meeting room; fitness center; and spa.

Accor’s Pullman brand’s first Caribbean resort is slated to open towards the end of the summer. The 102-room Pullman Royal Key will be set on Moule Bay on Guadeloupe’s island of Grande Terre. Pullman, which focuses on active, wellness-focused travelers, is part of the Accor hotel portfolio.