The DJIA was down 23 points while Nasdaq was down 88, the S&P 500 fell 8 points, and the 10-year treasury yield was down .04 to 4.27%. Lodging stocks were mixed. New highs were set by HLT, H, and PK with the latter up 5%. SONDwas down -15%.
Park Hotels and Resorts continued the trend of solid earnings reports, not only beating EBITDA estimates but also giving January data that has them coming out of the gate exceptionally strong in 2024, thanks to their Hawaii properties. PKalso upped their quarterly dividend to $0.25 a share from $0.15.
Baird reported on the details behind Hyatt’s sale of their 80% interest in Unlimited Vacation Club. H filed their 10K saying they are getting $80 million for the interest and will earn $65-$70 million of run-rate management and royalty fees annually. Baird said H will no longer report net deferrals and net financed contracts which will result in clearer reporting and earnings comparability plus the fees they earn will result in Adjusted EBITDA and EPS estimate increases.
While global hotel RevPAR remains elevated, surpassing 2019 levels by 11.7% through the first eleven months of 2023, performance has begun to normalize as some leisure travel contracts, according to JLL’s Global Real Estate Perspective. Stabilization has weighed heaviest in resort markets, predominantly in the Americas and EMEA, with Asia Pacific continuing to accelerate as intraregional travel grows following border reopenings. Global urban market performance is strengthening, propelled by a surge in international travel and the return of business and group demand. Markets like London, New York, and Tokyo are expected to lead global RevPAR performance in 2024 as travelers continue to return to cities.
STR’s global “bubble chart” updates as of February 10, 2024, show that 74% of markets increased RevPAR from the comparable period in 2023. Growth was balanced with 64% of markets showing increased occupancy and 70% achieving a higher ADR than last year. Among countries with 50,000 rooms and adequate hotel reporting levels, Singapore, France, Switzerland, the United Arab Emirates, and Saudi Arabia led in RevPAR on an actual basis. Not including in that RevPAR top five, but notable, Thailand benefited from the Lunar New Year holiday and recorded an occupancy level of 79.5%. Excluding countries with fluctuating exchange rates, the leaders in year-over-year RevPAR growth were Japan, Vietnam, Malaysia, Czech Republic, and Thailand.
For the week ended 2/24, US hotel RevPAR was down -2.9%. STR said occupancy was down -3.3% for the week. Group RevPAR was up 4.8%, all on rate.
UBS upped their price target on Hilton to $237 from $190. They maintained their Buy rating. UBS also upped their price target on Marriott to $259 from $210 while maintaining their Neutral rating.
The Hilton Anatole, in Dallas, Texas, has invested over $30 million in renovating its Tower guestrooms. The top-to-bottom renovation of the 718 Tower guestrooms encompasses all-new furnishings, carpets, and art installations. The hotel’s key count has grown from 1,606 rooms to 1,610. Hilton Anatole continues its commitment to providing an elevated guest experience with the addition of 87 new suites.
Hospitality Solutions and Hilton announced the March 15th opening of the new Embassy Suites by Hilton Gatlinburg Resort, located in Gatlinburg, Tennessee. Developed and operated by Hospitality Solutions, the property will offer 164 suites, an expansive water park featuring both indoor and outdoor pools, a lazy river, water slide, creekside hot tub, outdoor fire pits, and an activity lawn. The resort also offers multiple dining experiences and 12,800 square feet of flexible, multifunction space.
Bedford Lodging announced the opening of The Hoffman Hotel Basalt Aspen, Tapestry Collection by Hilton in Basalt, Colorado. The 122-room property is managed by 5 Senses Management and features an onsite food and beverage outlet, oversized fitness center, outdoor lounging area with hot tub/Jacuzzi, and 1,700 square feet of meeting and event space.
Shree Indra Hospitality LLC is proposing to build a Homewood Suites in Northwest Pensacola, Florida.
San Luis Obispo, California, is set to expand its hospitality offerings with the introduction of a new dual-brand hotel, encompassing both Residence Inn and SpringHill Suites. The development is part of the larger San Luis Ranch project. The four-story, 200-room hotel is slated for completion in early 2025.
Four Seasons Resort and Residences Cabo San Lucas at Cabo Del Sol is accepting reservations and will begin welcoming guests as of May 1, 2024. The Cabo San Lucas, Mexico resort offers 96 expansive guestrooms, casitas, suites, and villas plus 61 residences, villas, and estates. On-property, guests will enjoy a swimmable beach, three pools, three restaurants, and five bars, an onsite El Taller Artisan Art Studio, Tierra Mar Spa with a fitness center, locally-driven retail experiences, a clubhouse-style wedding and event facility, and access to the Cabo Del Sol golf course.
IHG Hotels & Resorts announced the signing of a new resort, spa, and residential community for its Six Senses luxury & lifestyle brand along coastal South Carolina. Projected to open in 2026, Six Senses South Carolina will span Hilton Head Island, Daufuskie Island, and Bay Point Island. The hotel management agreement is between Whitestone, Redrock Portfolio, Inc., and Six Senses, marking the next chapter in a working partnership extending several years. The 460-acre Six Senses South Carolina Islands will include a limited number of branded guest residences, Six Senses Spa, an all-day restaurant, specialty eatery and bar, beach club, pool grill, and pop-up programming.
Tristan Schukraft is looking to redefine the landscape of luxury travel for the LGBTQ+ community with Tryst Hotels. The flagship, The Tryst Puerto Vallarta, is set in the heart of Zona Romantica in Puerto Vallarta, Mexico. The property will start taking reservations in a few weeks. The 55-room sanctuary features a rooftop pool and bar and a gourmet restaurant. As The Tryst Puerto Vallartaprepares to welcome its first guests in the spring of 2024, the brand looks ahead to its next venture, The Tryst San Juan in Puerto Rico. Later this year, Tryst Hotels will begin a multi-million-dollar renovation to transform the former Atlantic Beach Hotel into a five-star beachfront resort. Once the renovations are complete in 2025, the property will feature 33 rooms with expanded balconies and terrace suites, a beach club with an infinity pool, beachfront restaurant and bar, and a rooftop bar. Tryst Hotels plans to announce a third luxury resort later this year.
Sandos Hotels & Resorts announced the completion of 336 nature-inspired and family-focused rooms at its Sandos Caracol Eco Resort. Additionally, as part of this phase of renovation of this innovative 941-key property, two re-imagined culinary concepts have been introduced at the Playa del Carmen all-inclusive. This is the latest accomplishment in a $20 million phased renovation and expansion project at Sandos Caracol including its kid-centric pools and 29-slide waterpark. The resort is also excited to announce the return of its iconic onsite food truck.
Personnel News
Aimbridge Hospitality announced Craig S. Smith, most recently Group President and Managing Director – International at Marriott International, was appointed Chief Executive Officer, effective March 18, 2024. Smith is expected to leverage decades of deep operational experience and proven leadership to solidify Aimbridge’s position as the frontrunner in comprehensive, performance-backed hotel operations. Steve Joyce was elevated to Executive Chairman, effective immediately, assuming the top position as Glenn Murphy, Chairman since 2019, transitions to a board seat. Michael Barnello, former CEO and President of LaSalle Hotel Properties and founder and managing partner of Badlands Hotel Capital, joins Aimbridge’s board.
International News
The Basingstoke and Deane Borough Council has agreed an in-principle deal which opens the door for Great Wolf Resorts to build an indoor water park resort next to a leisure park, after the company identified an interest in bringing one of its family attractions to Basingstoke, England. The proposed resort which would complement the facilities at the Aquadrome, could feature a 500-bedroom hotel, indoor waterpark, conference facilities, and leisure offerings including mini-golf, mini-bowling, ropes course, games arcade, and a selection of restaurants, cafes, and bars. Great Wolf Resorts also has planning permission to build a UK resort near Bicester in Oxfordshire.
Grupo Pomo announced the opening of the $30 million Courtyard by Marriott Santo Domingo Piantini in the bustling heart of Santo Domingo, Dominican Republic. The Courtyard by Marriott Santo Domingo Piantini features 160 rooms, a rooftop bar alongside an infinity pool on the 18th floor, a restaurant, versatile event spaces, conference rooms, a gym, and underground parking for 100 vehicles. This establishment marks the third venture by Grupo Pomas’shotel division in the Dominican Republic and the 22nd for Real Hotels and Resorts.
BLG Capital announced the sale of Amanruya Bodrum, an exclusive, 36-key Aman resort in Bodrum, Turkey, to a Turkish asset management firm. The resort’s extensive amenity collection comprises six food and beverage venues; a signature Turkish spa; a fitness center and yoga studio; a tennis court; three-story library and meeting room; and a 50-meter infinity pool.
Hilton Molino Stucky Venice announced 24 new suites at the hotel are due to open in April 2024. The new suites will span three categories and will enhance the existing suite inventory, resulting in the hotel offering guests 45 suites to choose from. Formerly a flour mill factory on the peaceful island of Giudecca, Hilton Molino Stucky Venice boasts 379 rooms and suites, eForea Spa, and a collection of bars and restaurants.
