STR’s U.S. hotel commentary – December/Full Year 2023 is as follows: Top-Line Metrics (December 2023, percentage change from December 2022): Occupancy: 52.6% (-1.8%), ADR: $151.12 (+2.1%), and RevPAR: $79.42 (+0.3%). Top Line Metrics (2023, percentage change from 2022): Occupancy: 63.0% (+0.6%), ADR: $155.62 (+4.3%), and RevPAR: $97.97 (+4.9%). Key points include: RevPAR softened each quarter after Q1 due to declining occupancy and moderating ADR. Quarterly ADR was up throughout the year, but inflation-adjusted ADR fell from Q2 onwards. The Top 25 Markets outperformed all others in aggregate. Group demand was stronger than transient each month but still below 2019. Upper Upscale and Upscale chains led industry performance, boosted by recovering weekdays and group demand. December results were impacted by the New Year’s Eve calendar shift. The 2024 RevPAR growth forecasted has been maintained. Forward booking levels are up through April.
72% of Americans plan to either maintain or increase their number of hotel stays in 2024 compared to 2023, and hotels remain the top lodging choice for likely travelers, according to a survey commissioned by the American Hotel & Lodging Association and conducted by Morning Consult. Despite the positive outlook from hoteliers, the survey also showed that inflation is preventing hotels and other travel-related businesses from reaching their full potential. It found that over the next four months: 56% of respondents are less likely to stay in a hotel because of inflation. 53% are less likely to travel overnight because of inflation. 48% are less likely to travel by airplane because of inflation and 44% are less likely to rent a car because of inflation. The poll surveyed 2,202 U.S. adults from January 6-7, 2024. Other key findings include: 51% of respondents are likely to travel overnight for a family trip in the next four months, 39% of whom said they would likely stay in a hotel. 38% said they are likely to travel overnight for a romantic getaway in the next four months, 60% of whom said they would likely stay in a hotel. 32% are likely to travel overnight for Spring Break, 45% of whom would likely stay in a hotel.
Ashford Hospitality Trust, Inc. provided an update on its plan to pay off its strategic financing which has a final maturity date in January 2026. The plan includes raising sufficient capital through a combination of asset sales, mortgage debt financings, and non-traded preferred capital raising. Through the asset sales the Company intends to generate incremental proceeds which will be used: to pay down the strategic financing and to de-leverage the balance sheet, and for general corporate purposes. The Company is also working with lenders to refinance its loan secured by the Renaissance Nashville in Nashville, Tennessee; its Morgan Stanley Pool Loan with 17 hotels located in several states; its loan secured by the Marriott Gateway in Arlington, Virginia; and its loan secured by the Indigo Atlanta in Atlanta, Georgia. The Company believes there could be substantial excess proceeds from the refinancing of the Renaissance Nashville loan which can be used to pay down the Company’s strategic financing. AHT said they have 12 hotels in various stages of being available for sale including Hilton, Marriott and Hyatt branded hotels.
Hilton plans to build a Tempo by Hilton hotel on the Riverfront in Patchogue, New York according to the village’s Mayor Paul Pontieri. The six-story Long Island property will be the village’s first hotel. The facility would feature 116 guestrooms, 16 apartments, large event spaces, and a rooftop restaurant and bar with outdoor seating.
Dimension Hospitality announced the Hilton Garden Inn Nashville Downtown/Convention Center, in Nashville, Tennessee, has joined Dimension’s growing portfolio of managed hotels. The hotel boasts 214 guestrooms and suites, more than 10,000 square feet of upgraded and expanded meeting space, multiple food and beverage venues, a seasonal rooftop pool and a fitness center.
The 84-room Fairfield by Marriott in Whitestown, Indiana is now opened. The Fairfield by Marriott Inn & Suites Whitestown Indianapolis NW will operate as a Marriott franchise, managed by General Hotels Corporation, and features a fitness center and business center.
The Westin Tempe faces a potential foreclosure sale after failing to make its loan payments. The lender for the 290-room hotel filed a notice of trustee sale earlier this week, stating that the 18-story hotel, which opened in 2021, will be auctioned off to the highest bidder on April 24 at the Arizona Superior Court building in downtown Phoenix. The construction loan for the Westin Tempe was issued in 2019 by Hall Structured Finance to an entity connected to CAI Investments LLC for $86.5 million. CAI Investments, which owns the Tempe property under CAI Tempe Hotel Partners, modified its loan agreement with Hall multiple times in 2023. CAI missed a $5 million payment deadline, while also failing to pay its $600,000 modification fee and a $87,347 tax escrow payment.
IHG Hotels & Resorts, in conjunction with owner A&S Hospitality, LLC and management company Magnolia Hospitality Services, recently opened the new 80-room avid Hotel Austin NW – Lakeline in Austin, Texas.
AIC Hotel Group announced the launch of AVA, an elevated resort brand owned by RCD Hotels, that establishes a new category of all-inclusive travel in the global marketplace. The first property under the AVA brand, AVA Resort Cancun, will open in Summer 2024. The 1,743-oceanfront room property will feature over 17 dining concepts; 22,000 square feet of wellness facilities inclusive of an expansive spa, elite fitness space, pickleball courts, and beauty amenities; a variety of nightlife venues; kids and teen clubs and more. AIC Hotel Group is exclusively contracted by RCD Hotels to spearhead the sales and marketing efforts for luxury hotel properties in the U.S.
Texas City, Texas will be home to one of the nation’s first Sports Illustrated Resorts, next to the 12-acre Crystal Lagoon in Land Tejas’ master-planned community Lago Mar. A joint venture between Lagoon Development Co. and Sports Illustrated hotel and resort licensee Sports Hospitality Ventures LLCis developing the resort. The six-story resort will have 200 guestrooms, a restaurants, public Beach Club with beachside cabanas, resort services, and a swim-up island bar. The hotel will be managed by American Resort Management, which has a strategic partnership with SI Resorts.
A developer is temporarily shelving and adjusting plans to build a Sports Illustrated-themed hotel, condo building and conference center on city-owned land in downtown Ann Arbor, Michigan after opposition from some residents to the location and others to the entire concept. Sports Illustrated Resorts, the project’s developer, are no longer pursuing the city-owned parking lot location, but still wish to build in Ann Arbor and are considering two or three alternative sites.
The Chatwal Lodge, located in White Lake, New York, and part of The Unbound Collection by Hyatt, announced the opening of three state-of-the-art Treehouses, offering guests a private and elevated escape immersed in nature. Located on the grounds of the historic Chapin Estate, the three Treehouses are a groundbreaking addition to the lodge’s 11 existing suites and cottages. The elegant structures hover 15 feet above the ground with oversized windows that allow for maximum natural light.
Choice Hotels International, Inc. continues sustained growth across the Southwest with six groundbreakings in Texas and Arizona. The hotels are being developed in conjunction with HighSide Companies and include: the 122-room Everhome Suites in Waco Texas, expected to open in December 2024. Everhome Suites Amarillo, Texas, 114-rooms; Everhome Suites Bastrop, Texas, 114-rooms; 122-room Everhome Suites Brownsville, Texas; 122-room Everhome Suites El Paso, Texas; and Everhome Suites Yuma, Arizona, all slated to open in the first quarter of 2025.
Curator Hotel & Resort Collection is expanding its portfolio with the addition of seven new properties in Merced, California, Baltimore, Maryland, and Key West, Florida. The new members include the 114-room El Capitan Hotel in Merced; Hotel Revival in Baltimore with 107 restored guestrooms; and Key West Historic Inns including Ella’s Cottages, Fitch Lodge, Lighthouse Hotel, Ridley House, and Winslow’s Bungalows.
Margaritaville announced the debut of Margaritaville Resort Cape Cod, slated to open in Summer 2024. Managed by Linchris, the property will be the brand’s first lodging location in New England. Following a $30 million re-imagination, Margaritaville Resort Cape Cod, presently operating as the Cape Codder Resort & Spa will feature 272 guestrooms, an indoor water park, outdoor pool, spa, various entertainment options, and Margaritaville-inspired restaurants and bars.
Hotel Heron, set to open in spring 2024 in the heart of Old Town Alexandria, Virginia, is now accepting reservations. The hotel boasts 134 guestrooms, 3,500 square feet of indoor meeting and events space and flexible outdoor options, a collection of food and beverage offerings, a library and a fitness center.
KT Urban’s plans to build a hotel next to San Jose California’s largest mall are moving forward. The seven-story hotel would contain 176 guestrooms. Construction is planned to begin late 2024 and take 21 months to be completed.
DKN Hotels appointed Ana Almada to be the Company’s Chief Executive Officer. DKN Hotels has entered a new phase in its evolution and will now become two separate companies, DKN Hotels and DKN Ventures. Almada, previously the VP of Operations, will lead DKN Hotels, which will incorporate all aspects of hotel management and operations for the portfolio, while DKN Ventures will be led by CEO Kiran Dahya and charged with acquiring, divesting and developing hotels.
Personnel Moves
Noble Investment Group announced the addition of Bradley Nelson as Senior Director of Facilities. In his new role, he will lead the strategic oversight of product quality across the firm’s portfolio and direct the capital expense program. Nelson joins Noble from Spire Hospitality, where he was the Corporate Director of Facilities.
Ramsfield Hospitality Finance announced the promotions of Andrew Gruseke to the position of Vice President and Anuraag Lamichhane to the position of Associate. Gruseke, who has been with Ramsfield since 2020, will take a more active role in oversight of key investments and the closing of new loan originations. Lamichhane joined Ramsfield at the beginning of 2022 and will now step up his underwriting and asset management efforts at the Company.
New data shows, London hotel occupancy topped pre-pandemic levels for the first time in December. The RSM Hotels Tracker shows hotels in the capital hit an 80% occupancy rate in the month, up from 78.3% in December 2019.
International News
London’s occupancy rate was well ahead of the 70.1% in the rest of the country. The ADR rose slightly as well to £234.47, which is also ahead of pre-pandemic levels.
