The DJIA rose 152 points while Nasdaq was up 204, the S&P 500 was up 48 points and the 10 year treasury yield was down .04 to 4.27%. Lodging stocks were mostly higher on the day. RHP traded up to a new high. SLNA was down -5%.
Airbnb’s 4Q earnings report had something for the bulls and bears. 4Q EBITDA came in ahead of expectations, as did their 1Q revenue guide. The bears seized on the 2024 margin outlook as being negative. If the stock had not had a good run into earnings, the bulls probably would have won out, after all they bought back 1% of their market cap, $750 million worth of shares in 4Q. With tough comps, margin concerns and talk of AI being the future, there was some profit taking.
STR reported US lodging data for the week ended 2/10. US hotel RevPAR was up 3.9% with ADR up 7%. RevPAR in Las Vegas was up 140% year over year thanks to the Super Bowl.
Hotel rates, and the costs of travel in general, are higher. But so are the costs of operating hotels and providing travel experiences, according to an Excerpt from CoStar. The theme of this year’s Hotel Investment Conference, Central and Eastern Europe, dubbed this “The End of Cheap”. At a panel on the topics of resorts, health and luxury, speakers said as costs go up on everything from financing to staffing a hotel, so do prices that are passed on to guests. Hotel average daily rates have increased for many months, even with occupancies in some hotel markets around the world only now recovering to 2019 levels. Flight prices also have risen, even for low-cost airlines. For the vast majority of hoteliers, RevPAR is growing. In Central and Eastern Europe, occupancy is not fully back and a little lower than it is in the Mediterranean, which is not 100% back either. Panelists said pricier vacations have resulted in guests looking for other destinations in Europe that not long ago might have been considered unfashionable.
Marriott International will purchase the Sheraton Grand Chicago, located in the Streeterville neighborhood of Chicago, for $300 million and plans to pay an additional $200 million for the land, in accordance with the terms of a settlement agreement with the property’s owner. A venture controlled by Tishman Realtythat owns the 1,218-room hotel has exercised its option to require Marriott to purchase the hotel, which was granted to Tishman as part of a 2017 settlement. The deal is expected to close in the fourth quarter of 2024.
In Oregon, the Astoria City Council advanced a development agreement with Hollander Hospitality, paving the way for the company to begin work on a waterfront hotel six years after it first announced the plan. Hollander Hospitality plans to construct a three-story, 60-room Fairfield Inn & Suites, a compromise from the company’s initial plan for a four-story, 66-room hotel.
The Cambria Hotel Southlake has been renamed The Southlake Hotel. The name will be temporary as the hotel will undergo renovations in 2024 and will become The Elmore Hotel in 2025. The property was acquired by NewcrestImage Capital Advisors in June 2022. The new owners are transitioning from being part of Choice Hotels to being part of Marriott’s White Label luxury hotels. The hotel features 175 rooms, an outdoor pool and game area, a fitness center, business center, convenience store, a casual lounge and a fine-dining restaurant. The hotel will undergo renovations this fall, adding restaurant space, relocating the bar and upgrading rooms. When completed, the hotel will be a Tribute Portfolio Collection hotel. The property is managed by Coury Hospitality.
Hill Hospitality is planning to build an 89-guestroom Home2 Suites by Hiltonhotel in Waterville, Maine. Plans call for a four-story building with an indoor pool, a fitness center and 95 parking spaces. The developer plans to begin construction this year.
Marcus Hotels & Resorts formed a joint venture with Hempel Real Estate and Robinson Park Investments to acquire the 251-key Loews Minneapolis Hotel located in downtown Minneapolis, Minnesota. The price and terms of the deal were not disclosed. The new owners plan to rebrand the hotel after the deal closes, which is expected to happen in early March 2024. Marcus Hotels will assume management of the hotel which has more than 12,500 square feet of meeting space, a full-service restaurant and a lobby bar.
IHG Hotels & Resorts recently reopened a newly converted and re-branded Staybridge Suites in Columbia, Maryland. The 117-suite property features an onsite fitness center and an outdoor pool. The Staybridge Suites Columbia – Baltimore is owned by VSLV Hotels LLC and managed by Laurel Lodging.
Rita Patel and Marcus Munse, the owners of the Hotel Trundle in downtown Columbia, South Carolina, welcomed the first guests through the doors of the Flutter Wing, a new five-room semi-private section of the hotel.
LivAway Suites broke ground on their newest location in Dewitt, New York near Syracuse Hancock International Airport. Since launching last spring, LivAway Suites now has five locations under construction and expects to break ground on 10 additional properties in 2024. LivAway Suites is on track to open its first locations this summer.
Arya Group, Inc. is planning a mid-rise hotel development in Inglewood, California. The proposed project calls for razing a low-rise commercial building to make way for a new 15-story building featuring a 174-room hotel, 3,255 square feet of offices, hotel restaurant space, lounge space, a private club and a spa. Other components of the project include nearly 33,000 square feet of outdoor terraces and amenity spaces, including a roof deck and a pool. Parking for 269 vehicles would be provided for hotel guests in a subterranean level and in a two-story podium. Construction of the hotel tower is expected to take approximately 27 months. The notice points to a schedule commencing as early as April 2024 and concluding by June 2026.
Altree Developments launched sales at their newest development, Vie L’Ven, a luxury resort and residences with 280 units in St. Maarten, which is slated for completion in 2028. Amenities will include three pools, three restaurants, 24/7 concierge services, a kid’s center, event spaces, a fitness center and a spa with an outdoor experiential bathing garden and treatment spaces.
Hyatt Hotels Corporation, in collaboration with Grupo Hotelero Santa Fe, S.A.B. de C.V., announced that their affiliates have entered into an agreement to expand Hyatt’s Inclusive Collection portfolio in Mexico with plans for a Breathless Resort & Spa branded property in Puerto Vallarta. Breathless Puerto Vallarta Resort & Spa is set to open in 2025 as part of the Inclusive Collection. The adults-only resort will feature more than 450 accommodations; four pools; a scenic rooftop; a variety of culinary options comprised of seven al la carte gourmet restaurants, two cafes, and two snack areas; five bars; a world-class spa; and more than 10,000 square feet of dedicated meeting and function space.
Personnel Moves
The IHG Owners Association announced the appointment of Nellie Dhanji as the Chair of its Global Board of Directors for 2024, and the first woman to take on the role. Dhanji currently serves as Vice President of Operations and Legal Counsel for Stanley Park Investment Ltd., based in Calgary, Alberta, Canada. Dhanji’s tenure within the Association spans several years, during which she has made significant contributions to various committees and task forces, including Digital & Distribution and Loyalty Committees and Emerging Leaders Network.
Hotel Investor Apps announced the addition of Matthew Polk, MBA, as Director of Customer Onboarding. In this role, Polk will spearhead the customer onboarding process, helping companies transition to HIA’s ERP & Accountingsoftware, and managing the implementation timeline. Polk’s focus will be on streamlining communications and processes to make the transition as seamless as possible. Most recently, Polk was Vice President of Finance at Tourists Welcome and Main Street Hospitality.
