The DJIA was up 38 points but Nasdaq fell 88, the S&P 500 was down 10 points and the 10 year treasury yield was up .04 to 4.19%. Lodging stocks were mixed. MAR and HLT traded up to new highs. AINC was down -7% but SOND was up 8% on the day.
Key Takeaways from CBRE U.S. Hotels’ State of the Union March 2024 Edition include: While unemployment remains below 4%, employment growth has been slowing. Hotel job openings have also slowed. Wage growth outpaced inflation, but RevPAR contracted again in January. January hotel CMBS borrowing rates were 6.9%, up slightly from 6.8% a year ago, and spreads were 280 bps, down from 325 bps last year. Hotel demand fell 2.0% in January, while short-term rental demand rose 1.3%. The spread narrowed between inbound and outbound international travel. Outbound international travel was 112% of 2019’s level in January compared to inbound visitation of 83%. TSA throughput reached 110% of 2019 in February, an increase of 5.7% year over year. CBRE Hotels Research reiterated RevPAR growth of 3.0% for 2024. 2024 would mark the 4th consecutive year of positive RevPAR growth this cycle with RevPAR forecast to reach 113.2% of 2019’s level on a nominal basis. GOP margins declined in December as total revenue growth slowed to 0.9%, causing a 2.4% decrease in GOP dollars as labor costs from rising wages continued to pressure operating profit. January RevPAR growth was relatively flat, down 0.1% A 2.7% increase in ADR almost totally offset a 2.7% decrease in Occupancy. RevPAR growth for upper-price tier and Upscale hotels was positive. Urban and airport hotels posted RevPAR gains during the month, up 5.0% and 2.2%, respectively.
Mumford Company had a strong start in 2024, with multiple transactions closing in the first quarter of 2024. Some of these transactions include: Holiday Inn Express & Suites Forest, Forest, MS; Best Western Lake Cumberland Inn, Monticello, KY; Best Western Historic Area Inn, Williamsburg, VA; Best Western Chincoteague Island, Chincoteague, VA; Days Inn by Wyndham Huntington, Huntington, VA; La Quinta Inn by Wyndham Moss Point-Pascagoula, Moss Point, MS; Holiday Inn Express & Suites Farmville and Hampton Inn Farmville, both located in Farmville, VA.
STR reported US lodging data for the week ended 3/9. US hotel RevPAR was down 2.8% year over year. This was the first year over year decline in ADR since 2023.
Shamin Hotels is planning a 12-story, 299-room hotel in the Scott’s Addition neighborhood of Richmond, Virginia. The new structure would carry two Marriott brands, Residence Inn and AC Hotels. The dual-branded property will have dining areas both on the ground floor and on the roof with a lounge and bar. Event spaces will include a 10,000 square foot ballroom and on the rooftop. A seven-floor, 370-space above-ground parking deck is also planned as part of the project.
Adam Slovis of 100 N. Main LLC confirmed the 100 N. Main redevelopment in Downtown Memphis will be Marriott Autograph Collection hotel. The 37-story building is undergoing a $282 million renovation, which includes 200 residential units and a 160-room hotel component. Winston Hotels will manage the hospitality portion of the project. 100 N. Main LLC is a new entity consisting of the original 100 N. Main Development Partners and Block Real Estate Services.
HEI Hotels & Resorts has added the Doubletree by Hilton Atlanta-Roswell and DoubleTree by Hilton Atlanta-Alpharetta to its portfolio, bringing the total number of hotels managed in the metropolitan Atlanta market to 14. The 174-key DoubleTree by Hilton Atlanta Roswell offers an outdoor pool, fitness center, lobby bar and lounge and 10,000 square feet of meeting space. The 80-key DoubleTree by Hilton Atlanta-Alpharetta features an outdoor pool, fitness center, restaurant, lobby bar and 747 square feet of meeting space. Both properties also recently completed multi-million dollar renovations. With the addition of these hotels, HEI Hotels & Resorts continues to grow their relationship with The RADCO Companies.
A new lifestyle hotel is coming to the SoBro neighborhood in Nashville. Mortenson Development has purchased the site, closed on its construction financing, and will start construction later this month. This is the first Motto by Hilton in the Nashville area. Amenities include a full-service restaurant, multiple bars, fitness center, flexible meeting space and common space with an outdoor patio.
Tru by Hilton announced the expansion of the brand to New York City with the grand opening of its newest property, the 101-room Tru by Hilton Brooklyn.
As the Hilton Garden Inn Pascagoula, Mississippi, celebrates its 10-year anniversary, Expotel Hospitality has begun a $1.2 million renovation to the 119-room property. The 6-month project includes updates to hotel rooms, lobby and restaurant areas, fitness room, patio area, grand ballroom and hallways. Owned and managed by Expotel Hospitality, the Hilton Garden Inn Pascagoula offers a restaurant and bar, a 6,000 square foot convention center, a saltwater pool, fitness center and lobby convenience store.
MMI Hotel Group has assumed management of two hotels in February of 2024. The 84-key Holiday Inn in Santee, South Carolina and the 78-key Fairfield Inn & Suites in Lafayette, Louisiana. Both hotels will benefit from respective renovations for which plans are underway.
Atwell Suites, part of IHG Hotels & Resorts announced the opening of its first Texas property in Austin and the third U.S. opening for the brand. The 80-room Atwell Suites Austin Airport is the brand’s first conversion property and offers the brand’s signature hallmarks such as: flexible and enriching spaces, a self-serve Refreshment Stand, a bar and TV lounge, while games and puzzles are placed throughout public areas and theme events bring guests together. Hiren Patel is the owner of Atwell Suites Austin Airport.
Hart Family Hotels is building a new Holiday Inn Express & Suites in East Marion, Iowa. The hotel’s construction is due to be completed by the end of the year. Once complete, the 93-unit hotel will offer a variety of room types, a pool and a fitness room.
Slowey Management Co. announced The Rocksino by Hard Rock Deadwoodunveiled 22 completely renovated, luxurious rooms and suites. The first boutique hotel/casino of its kind in the Hard Rock International portfolio, the property features a casino with 85 slot machines, a full-service restaurant and bar, authentic music memorabilia, and The Rock Shop.
The Great Wolf Lodge announced its October 18th opening in Webster, Texas. The resort is a $200 million project with a water park spanning 92,000 square feet, 60,000 square feet of interactive attractions, and 532 rooms and themed suites. Great Wolf Lodge Water Park Webster will include 13 water slides, a mini golf course, a bowling alley, MagiQuest, and 10 food and beverage vendors. It will be the second Great Wolf Lodge resort to open in Texas.
Hotel Polaris will open later this year in Colorado Springs, Colorado. The 375-room resort-style hotel is in the new TrueNorth Commons mixed-use development located at the North Entrance of the U.S. Air Force Academy. The hotel offers six food and beverage outlets, an outdoor pool and sun deck, full-service spa and fitness center, in-hotel flight simulators and more than 26,000 square feet of expansive indoor meeting space. Hotel Polaris is owned by Provident Resources Group, managed by CoralTree Hospitality Group and developed by Matthews Southwest Hospitality.
Arriba Capital arranged financing for a $35.75 million, ground-up construction loan for an oceanfront Residence Inn by Marriott property in Ormond Beach, Florida. The property is being developed by Contender Development. The hotel will feature 137 extended-stay guestrooms, a lobby pool bar, meeting space, breakfast area, guest-laundry and a sundry shop. The hotel is expected to open in the fourth quarter of 2025.
The Six Senses Grand Bahama Development Team, consisting of Weller Development Partners and Pegasus Capital Advisors, announced the launch of sales for the branded residences of the Six Senses Grand Bahama development, the first of its kind in Grand Bahama. The development is a resort village including 28 branded residences, 64 resort villas, a wellness center, Six Senses Spa, multiple restaurants, event space, beach club and oceanfront pool. Sales of the Six Senses Residences Grand Bahama are scheduled to begin in Q1 2024 with the resort slated to open in 2026.
Marriott International Caribbean and Latin America announced its latest addition to its All-Inclusive by Marriott Bonvoy portfolio with the signing of Marriott Miches Beach, An All-Inclusive Resort, currently the Sunrise Miches Beach Resort in Dominican Republic. Set to undergo a conversion process commencing in the second quarter of 2024, the resort is slated to open under the Marriott Hotels brand in the first quarter of 2025. The resort boasts nearly 1,000 feet of pristine beachfront, 498 guestrooms, a spa with more than 10 treatment rooms, a retail area, three expansive pools with poolside bars, six restaurants, three pop-up venues, stylish bars, a Jacuzzi lounge, approximately 8,600 square feet of indoor meeting space, a discotheque and a gym.
Personnel Moves
OTH Hotels Resorts appointed James Hansen as the company’s new Chief Development officer. Hansen will work directly with CEO Todd Felsen to power the company’s aggressive growth strategy and long-term domestic and international expansion plans. Most recently, Hansen served as Executive Vice President of Business Development for Hotel Equities.
Meyer Jabara Hotels announced Chas Henry joined the company as Senior VP of Business Development and Acquisitions. Henry is tasked with growing the company’s third-party management contracts. Prior to joining Meyer Jabara Hotels, Henry served as Vice President of Business Development and Acquisitions for GF Hotels & Resorts.
JLL’s Hotels & Hospitality group announced the addition of James Escarzega as a Managing Director in its San Francisco office. Escarzega will focus on hospitality investment sales and advisory in the western U.S. Escarzega previously worked at a global private equity firm and HFF.
Europe Hightlights
The Lindian Village Beach Resort Rhodes, Curio Collection by Hilton is set to welcome guests again from April 2024. The resort is the first Curio Collection by Hilton property in Rhodes, Greece and features 188 spacious rooms and suites, eight dining options, a Waves Kids Club, gym, Calli Spa, two pools complete with sunbeds and a variety of sports facilities, including a tennis court.
Mandarin Oriental, Costa Navarino, the first Mandarin Oriental in Greece, announced the reopening of the resort from April 1. This season, the property introduces two new villas, a five-bedroom Royal Villa and a three-bedroom Villa. Mandarin Oriental, Costa Navarino also offers an elevated Spa & Wellnessfacility with seven treatment rooms, an indoor-outdoor pool, and a selection of heat and water facilities. Additional amenities include a fitness center, 18-hole golf course, multiple eateries and a brand-new Kids’ Club.
Virgin Hotel Glasgow closed after only a few months in operation when Lloyds Developments Limited, the building’s owner, fell into administration. The Herald revealed in December that the U.K. hotel had closed its doors, after just opening in August. Savills has brought to market the heritable (freehold) interest of the hotel. The 17-story building has 165 completed bedrooms, a ground floor restaurant and bar, a mezzanine bar and lounge, a flexible terrace area and conference space for up to 60 people. The hotel also provides potential for further development, with the opportunity to complete the remaining 77 bedrooms, with public spaces such as a proposed gym, function suites, whiskey bar and coffee shop. Virgin Group tried to find solutions, including offering to purchase the hotel, to keep the hotel open, keep the team in employment, and ensure the completion of the development of the hotel. Unfortunately, the lenders have not accepted Virgin’s offers and intend to pursue a sales process with the hotel closed.
