The DJIA topped 39000 for the first time. The S&P 500 was up 2.1%. Nasdaq rose about 3%.
The earnings season for hotel companies kicked into high gear with Host Hotels and Pebblebrook becoming the first REITs to show their hand. HST gave the report we expected, a solid 4Q beat, and positive commentary on guidance led by the Group business with the Maui impact the only thing that is still a work in progress. HST bought back 1.9 million shares for $31 million in 4Q. They said January RevPAR was up 1.4%. PEB gives monthly updates but even with that, they beat expectations. PEB did surprise everyone by resuming full-year guidance but analysts were already calling it conservative as it was a bit light compared to consensus. While PEB did not buy back any stock in 4Q, they already spent $5 million this year, buying back 318,000 shares and 1 million shares of their Preferred Series H shares at $15.79.
Accor said they had record EBITDA in 2023, coming with more than 1 billion euros for the first time ever, up 49%. Accor opened 291 hotels with 41,000 rooms in the year.
Marriott Vacations Worldwide reported higher-than-expected earnings. Given the sentiment, we’d say they beat but expectations were not very high. 2024 guidance was not exactly setting the world on fire, below consensus on EBITDA even with contract sales guidance nearly double digits above consensus. VACcontinues to have issues, some self-inflicted, like their Abound launch, and others beyond their control, such as Maui.
Hilton achieved a year of exceptional growth in the Caribbean and Latin America, entering new markets and celebrating brand milestones in 2023. Last Year, Hilton opened 19 new hotels and approximately 4,000 rooms in the Caribbean and Latin America. Hilton’s CALA portfolio is comprised of more than 220 hotels and over 40,000 rooms spanning 15 brands and 29 countries and territories. The company’s pipeline in the region continues to strengthen with more than 35 new hotel deals signed in 2023. With a strong year of signings in 2023 and a robust pipeline of 110 properties, the company expects this momentum in the region to continue. Hilton’s accelerated growth in CALA spans 29 countries and territories with Mexico, Argentina, and Dominican Republic standing out as top-performing growth markets in 2023. In Mexico, Hilton has approximately 120 hotels open and in the pipeline. In Argentina, Hilton has 10 open hotels and plans to almost double its presence in the next several years. And, with six hotels in operation and more than 10 in development, Hilton plans to nearly triple its footprint in Dominican Republic. Key drivers of growth for the company include: Conversions accounting for more than 40% of the openings in 2023; new build hotels were added in strategic locations; and the all-inclusive segment continuing to be a catalyst for growth. Brand milestones include Hilton Garden Inn welcoming its 1,000th hotel; Tru by Hilton brand arriving in Mexico and 10 new deals signed in CALA in 2023; and Hilton’s flagship Hilton Hotels & Resorts brand continuing to strengthen its presence in the region. Hilton has plans to open more than 15 hotels across the Caribbean and Latin America in 2024.
Celebrating its 40th anniversary this year, Marriott El Paso announced the completion of Phase I of its total renovation that includes all guestrooms and suites. Owned and managed by Columbia Sussex, the 296-room Marriott El Paso features two concierge levels and a concierge lounge and a restaurant and bar. Phase II of the renovation will include public space, fitness center and indoor and outdoor pools. Also being completely upgraded is the hotel’s more than 13,500 square feet of meeting space. Phase II of the renovation has begun with a completion date of fall 2024.
Retreat Hotels & Resorts, the Georgia Agricultural Exposition Authority and the City of Perry, Georgia announced the start of construction of a new TownePlace Suites / Fairfield by Marriott dual-branded hotel on the Georgia National Fairgrounds & Agricenter. The hotel is expected to open in the summer of 2025. The planned 129-key hotel features 55 TownePlace Suites by Marriott keys and 63 Fairfield by Marriott keys. The property will be connected via an air-conditioned corridor to the adjacent Miller Murphy Howard Conference Center. Amenities include a large pool, fitness center, guest laundry, bar and restaurant. The project is financed by WSFS Bank.
Vision Hospitality Group is planning to build a 9-story, 169-key Moxy Hotel on land it recently purchased in Raleigh, North Carolina’s Genwood South area.
IHG Hotels & Resorts announced Garner hotels reached exciting growth milestones with two new U.S. openings in Macon, Georgia and Oklahoma City, Oklahoma, as well as plans for global expansion now underway. Garner opened its first property last December in the Seattle suburb of Auburn, Washington. Since then, franchising availability has been announced for Mexico and Canadawill be available by the end of March. Plans to expand across the EMEAA region are also underway with a recent LOI signing in Japan between IHG and Axe Management Partners to convert three hotels to the Garner brand in Osaka. Garner’s recent milestone openings and signings include: the 63-room Garner Hotel Macon West operating under first-time IHG owner Sapphire 2021 LLC. Garner Hotel Oklahoma City – Quail Springs, operating under longtime owner Champion Hotels, features 68 guestrooms. Garner also is quickly catching the eye of new and existing IHG owners, with recent signings in Topeka, Kansas; Provo, Utah; Brenham, Texas; Mahwah, NJ; Dowell, Illinois; Gillette, Wyoming; and Clarksville, Tennessee.
Cicero Construction Group announced the Holiday Inn Express & Suites Green Bay East, in Green Bay, Wisconsin, will get a total interior makeover this spring. Demolition work at the property is now underway, with completion of the renovation set for June 2024. The renovation will include the hotel’s 80 guestrooms, the lobby area, business center, shop market, the indoor pool and spa, the breakfast bar and the fitness center. Cicero will also revamp the hotel’s public bathrooms, back-of-house laundry operations, meeting rooms, stairwells, corridors, offices, vestibule and elevator lobbies.
Andaz Maui at Wailea Resort, in Wailea, Maui, Hawaii, announced the completion of its enhanced room product. Marking the resort’s 10th anniversary, the refresh includes a tasteful redesign of key components within the resort’s 320 guestrooms. Located on 15 acres of beachfront property, Andaz Maui at Wailea Resort includes three outdoor infinity pools, Awili spa and salon, and six distinct culinary offerings.
After a four-year closure and numerous renovations, The Four Seasons Resort The Biltmore Santa Barbara is planning to partially reopen on May 31 in Santa Barbara, California. In what is called a soft opening, The Biltmore’s main buildings will be open and operational as well as 55 guestrooms. The resort’s main buildings – A and B, which house the resort’s main lobby, retail space, a restaurant, a bar, a banquet hall and a newly added theater, are all expected to be operational for phase one. Some guest rooms are being converted into retail space, and the total number of guestrooms is being reduced to 192. The resort is also working on plans to add two pools to the property.
Best Western Hotels & Resorts announced the opening of the Best Western North Side Inn in Wichita Falls, Texas. The hotel is owned by Nitin Chanana and features 94 guestrooms. The property recently underwent a complete renovation and offers updated amenities throughout the guestrooms and common areas. Amenities include a large fitness center, a meeting room and a business center. Coming in Spring 2024, the hotel will offer an outdoor lounge and barbecue area for guests to enjoy.
The newly refurbished Hotel Cleveland is set to open in April 2024 in Cleveland, Ohio. The hotel will have 491 guestrooms and just over 60,000 square feet of meeting space.
RobertDouglas advised Lixi Group on the sale of the 99-key Staybridge Suites Philadelphia/Mt. Laurel to Delco Development for $13.2 million. Sprawling across over four acres in Mount Laurel, New Jersey, the hotel includes an onsite business center, a marketplace, fitness center, indoor pool, outdoor multi-purpose sports court and complimentary guest laundry machines.
Marriott International announced the opening of the Courtyard by Marriott Santo Domingo Piantini, the second for the brand in Santa Domingo. The 160-room hotel will operate as a Marriott franchise, owned by hotel operating company Real Hotels and Resorts. Courtyard by Marriott Santo Domingo Piantini features the brand’s latest lobby design, three redefined meeting rooms, a restaurant, Bistro Bar, rooftop bar, fitness center, guest laundry, and an inviting pool.
Personnel Move
LivAway Suites taps hospitality veteran Lori DeLeon to spearhead growth and innovate the extended-stay market. With a career spanning over 35 years in sales and marketing within the hospitality industry, DeLeon’s strategic appointment aims to propel LivAway Suites into a new era of growth, focusing on enhancing its unique SellAway program. The SellAway program is a platform designed to foster collaboration between LivAway Suites and its management teams to optimize occupancy rates and enhance guest experiences across locations.
Europe Highlight
Radisson RED Belgrade marks the debut of the Radisson RED brand in Southeast Europe. Following an extensive refurbishment and rebranding of the existing hotel building, Radisson RED Belgrade features 88 units, including three apartments, a modern restaurant, bar, rooftop bar, co-working spaces, meeting rooms and a fitness center.
