The DJIA was up 135 points on Friday while Nasdaq was up 267, the S&P 500rose 52 points and the 10 year treasury yield jumped .17 to 4.03%. Lodging stocks were mixed. MAR and HLT traded up to new highs again.
Duetto announced the results of its third annual Trends & Predictions survey. The Duetto Outlook & Trends 2024 Survey has shown that 51% of respondents’ primary objective when managing groups business in 2024 is increasing revenue by optimizing their pricing strategies across group and transient business. Nearly 40% intend to look for pipeline insights and complete a comprehensive analysis of their business mix, to deliver more accurate forecasts and rate recommendations. Managing cost per booking, per channel, will continue to be an area of focus for revenue leaders in 2024 with 60.7% saying this is more important now than before. 60.7% of respondents spent more in 2023 compared to 2022, and 71.4% predicted that the hotel tech spend will continue to increase over the next three years, up from 60.8% in 2023. Revenue strategy and revenue technology are the two main threads of focus for revenue professions looking ahead. The top five trends identified by survey respondents are: profitability, automation, integrated systems, TrePAR and ancillary revenue.
Canada is seeing a surge of hotel construction in major cities, with Vancouver leading the way in new building applications. There were 294 projects, a total of 38,000 rooms, in the works across the country as of the end of last year, according to Lodging Econometrics. Toronto has the largest number under construction, a total of 9,391 rooms, new approvals for hotels have slowed down significant, with only one in the two previous years and the city still processing four applications from 2019 through 2022. Vancouver is now seen as the most attractive bet by analysts because it leads the way in hotel profits and occupancy, which was almost 80% in October. There are now 23 projects and 4,317 rooms in the works, the majority of them in central Vancouver.
The Friedkin Group has entered into a strategic partnership with BDT & MSD Partners. BDT & MSD, through its affiliated hospitality investment vehicle, will make a minority investment in Auberge Resorts Collection. In addition, BDT & MSD’s hospitality vehicle intends to invest significant capital towards acquiring and developing luxury hotel and residential assets that will be branded and managed by Auberge Resorts Collection.
The 600-room Sheraton Memphis Downtown Hotel, a facility connected to the Renasant Convention Center in Memphis, Tennessee, is being marketed by Hunter Hotel Advisors for an undisclosed sum. Hotel Memphis LP, a joint venture between Starwood Capital Group and Schulte Hospitality Group acquired the property in 2017.
RAM Hotels is bringing a new development to Grandview Parkway in Birmingham, Alabama. The team is getting ready to break ground on the site, making way for a dual-branded hotel. The property will feature an 84 room Courtyard by Marriott and a 96-suite Residence Inn by Marriott. RAM Hotels will manage the property, and site work and construction are expected to take 18-24 months to complete.
The CitizenM Austin Downtown opened this week, marking the company’s first Texas project. The 17-story tower with 344 rooms was developed by Turnbridge Equities and CitizenM Hotels.
Hyatt Hotels Corporation announced the opening of Secrets Playa Blanca Costa Mujeres, the latest Inclusive Collection, part of World of Hyatt resort to open in Mexico. The 507-room resort is opening in a three-phased approach over the next six months. Guests can expect the spa, fitness center and theater to be fully operational by June of 2024. Secrets Playa Blanca Costa Mujeres offers nine dining establishments, two oceanfront infinity pools, a Preferred Club pool, 10 smaller pools for those staying in swim out suites, and 9,000+ square feet of meeting space easily configured into small breakout rooms and 11 outdoor venue options.
Demolition began on the building at 105 Bridge Street in Bradenton Beach, Florida, formerly the site of the Magnolia Inn, to make way for a 106-room hotel. Developer Shawn Kaleta and former Bradenton beach Commissioner Jacob Spooner received city commission approval for the hotel, which will include a restaurant, 5,396 square feet of retail space and 154 onsite parking spaces.
The Pfister Hotel, in Milwaukee, Wisconsin, has begun the second phase of its $20 million renovation plan. This phase follows the completion of updates to its ballrooms and event spaces. The project includes an overhaul of the hotel’s historic guestrooms and bathrooms. Future renovations will address the hotel lobby and the Rouge Ballroom.
Fontainebleau Las Vegas introduced ITO, an intimate 12-seat omakase restaurant inside the exclusive Poodle Room lifestyle and social club. The 67-story Fontainebleau Las Vegas boasts 3,644 rooms and suites, 550,000 square feet of meeting and convention space, 150,000 square feet of gaming space, a collection of restaurants, shops, pools, nightlife, and spa and wellness offerings.
The Sleep Inn, in Tempe, Arizona, has been acquired by a prominent student housing developer. The 72-room hotel has been sold to a developer who plans to demolish the existing structure and erect a 7-story student housing complex featuring 479 bedrooms. The property is located directly across from Arizona State University.
JLL Capital Markets arranged a total of $67.1 million in construction financing for the development of the 215-key, dual-branded hotel, Marriott Courtyard/Residence Inn in Sand City, California. JLL represented the borrower, EKN Development Group and Garn Development, and secured the first mortgage loan of $39 million from HALL Structure Finance, and Nuveen Green Capital provided a CPACE loan of $28.1 million. The Courtyard by Marriott includes 127 guestrooms while the Residence Inn by Marriott will have 88 guestrooms. The development will feature 3,133 square feet of flexible meeting space, a courtyard with a resort style pool, luxurious cabanas, and an independently branded restaurant and bar.
JLL Capital Markets arranged $25.4 million in financing for the 149-key Courtyard by Marriott in Cotton Heights, Utah. JLL worked on behalf of the borrower, an affiliate of Huntington Hotel Group, and secured a floating-rate, interest-only loan from NYL Investors with a term of up to four years inclusive of extension option. Loan proceeds were utilized to repay existing bank loan in addition to providing substantial cash-out, which was used towards partnership buyout. Courtyard Salt Lake City Cottonwood features meeting and event space, a business center, fitness center, outdoor heated pool with spa, onsite dining and a rooftop terrace.
Cronheim Hotel Capital secured a permanent loan on behalf of The Lam Group to refinance the existing note on the 321-room Sheraton Brooklyn New York Hotel. The fixed rate, non-recourse, loan was executed with Deutsche Bank.
HREC Investment Advisors arranged the sale of the 186-room Hilton Garden Inn Jackson Downtown in Jackson, Mississippi, from an affiliate of HRI Properties, LLC to Desai Companies, LLC.
Hay Creek Hotels and Restaurants announced the appointment of Tommy Phoas the VP of Development for Western US operations. In his new role, Pho will be instrumental in overseeing and executing the strategic development initiatives for Hay Creek Hotels across the Western US region. Prior to joining Hay Creek Hotels and Restaurants, Pho held key leadership positions at renowned hotel brands.
Marriott announced the signing of the former East Bay Resort in South Caicos, which rebranded to Salterra last summer and will next year become part of the company’s Luxury Collection. The new Salterra, a Luxury Collection Resort and Spa, Turks and Caicos is slated to open in early 2025. Salterra will debut with 100 guestrooms and suites, a signature spa and six different food and beverage concepts.
Personnel Moves
Mainsail Lodging & Development announced the strategic expansion of its executive leadership team with the appoint of Lisa Conner as CFO, alongside four other executives in pivotal roles. The recent appointments include Ben Miele as Director of Accounting; Lori Nelson as Paralegal; Bria Jones as Corporate Recruiter; and Netta Katz as Reservation Manager. Conner will oversee Mainsail’s finances, project accounting and hotel operational accounting. In his most recent role, Ben Miele served as Director of Accounting for a large global accounting and consulting firm. Miele’s focus will be on reviewing and analyzing financial information, improving controls, and establishing accounting policies and procedures across all of Mainsail’s properties. Certified Senior Paralegal Lori Nelson joins Mainsail from Shumaker, Loop & Kendrick, LLP, where she worked as a Senior Paralegal and most recently a Litigation Support Specialist. Nelson’s expertise will be instrumental in navigating legal complexities and ensuring compliance across all Mainsail properties. Bria Jones joins Mainsail from Cross Creek Rand and Nielsen Media. Netta Katz will play a crucial role in managing reservations and enhancing the guest experience across Mainsail’sextensive portfolio. Katz began her career with Mainsail back in 2019.
Rosewood Hotel Group promoted Trish Luyckx to Chief Design and Project Services Officer. In this new role, Trish will continue to lead hotel design projects for the Group’s current portfolio and pipeline of new hotels and residences, executing the seamless integration of the brand’s vision into every aspect of its properties, driving excellence in design and innovation.
Rosewood Hotel Group has promoted Vicki Hall to Vice President, Project Services, Global. Joining Rosewood Hotel Group in 2016, Vicki will provide crucial guidance on all projects and renovations, ensuring the brand integrity and standards remain at the forefront of design and quality control.
Europe Highlights
As part of an agreement with Greenwood Developments and JSM, Hilton will debut its new brand Motto by Hilton, in Liverpool’s Cavern Quarter. The hotel, which is due to open in 2025, will feature 283 rooms, and communal spaces.
Plans for a Hilton Garden Inn, led by Propiteer Capital Plc, in Plymouth, UK, are moving forward. The landmark site on Plymouth Hoe is the site of the former Quality Hotel. The proposed Hilton Garden Inn will feature 150 rooms and a skybar.
IHG Hotels and Resorts has declared its significant expansion in the UK and Ireland by signing nine new hotels, adding over 1,000 rooms to its existing over 350 hotels in the region. This development features the launch of the fist vocohotel in Belfast, Northern Ireland, slated to open within the year. Additional hotels under the voco brand are also expected to launch in 2024 and 2025. The expansion further includes a new Hotel Indigo in Gloucester. In addition, the company is fortifying its Holiday Inn brand with three new properties in Wrexham, Reading, and Bournemouth. This development also involves the reflagging of two existing Hotel Brooklyn properties located in Leicester and Manchester under the voco brand, and the introduction of the Vignette Collection to the UK with the opening of The Halyard at Ropewalks in Liverpool’s Ropewalks district.
