The DJIA was down 191 points on Friday while Nasdaq was down 155 and the S&P 500 was down 33 points. The 10 year treasury yield was flat at 4.30%.
SHCO and SOND were the biggest losers, down -14% and -7% respectively. One released results that were weak but went on the offensive against short sellers saying SHCO is a WeWork clone, the other, SOND, delayed their results because of accounting errors. AINC was down -6% while BHR traded down to a new low.
There will be no Daily Lodging Report on Monday, March 18th.
Deutsche Bank made changes to price targets for some lodging REITs. They lowered their target on Ashford Hospitality Trust to $6 from $8, Braemar to $9 from $11, RLJ to $15 from $14 and Sunstone to $11 from $10. They believe the hotel subsector is continuing to gain favor among REIT dedicated investors.
Barclays upped their price target on Host Hotels to $25 from $23. They view HST’s improved portfolio, potential acquisition activity and a strong group calendar as possibly leading to further positive re-rating this year.
The Baird/STR Hotel Stock Index was up 6.3% in February from January. The brand sub index was up 6.5% while the REIT sub index was up 5.8%.
B of A Securities upped their price target on Airbnb to $168 from $155. They maintained their Neutral rating.
Truist upped their price target on Hilton Grand Vacations to $70 from $66. They maintained their Buy rating.
Following the big news of Hilton buying the Graduate Hotels brand, Hilton will look to keep the momentum going with their Investor Day on March 19th. Baird said they expect a bullish outlook and positive commentary while Truist feels they will be focusing on Net Unit Growth. They also believe there is a good chance HLT raises their 1Q24 and/or full year 2024 guide.
The Westin Los Angeles Airport unveiled an extensive $45 million renovation. The centerpiece of this renovation is the re-imagined lobby and lounge area. With the finishing touches nearing completion, the renovation includes a new Topgolf Swing Suites, 45 newly installed EV chagrining stations in the parking lot, and updated and enhanced meeting and theater space.
A re-imagined beach escape, The Singer Oceanfront Resort, in Singer Island, Florida, will debut this spring following a transformative, multi-million-dollar renovation and rebrand. With its grand opening, The Singer transitions to Curio Collection by Hilton, operated by Davidson Resorts. The resort features 223 well-appointed guestrooms and suites, a newly renovated lobby, two new dining concepts, a grab-and-go concept, Singer Island’s only beachfront bar, and a more than 10,000 square feet of indoor and outdoor function space.
Falcone Group has proposed a 53-story, mixed-use tower as the latest project in the 27-acre Miami Worldcenter. Under the proposal, the project would total 726,408 square feet with 280 hotels rooms, 351 luxury condos, retail and restaurant space and 331 parking spaces. Additionally there would be a pool deck on the 10th floor for residents, and a pool deck and restaurant for the hotel on the 25thfloor. Amenities would include a gym, a spa and meeting rooms. The developer has yet to name a hotel brand.
A luxury 201-room boutique hotel in downtown West Palm Beach, Florida is poised to begin construction. The hotel is part of the Nora District being developed by BD Hotels, NDT Development, Place Projects and Wheelock Street Capital with Moss Construction. The five-story hotel will anchor 150,000 square feet of highly curated commercial, restaurant, retail, office and wellness spaces. Amenities within the hotel include a rooftop pool deck complete with a restaurant, two bars, lounge area, and poolside cabanas. The ground level features a spa and gym, a restaurant, lobby bar and outdoor garden. The hotel will break ground in Summer of 2024 and be complete in Spring of 2026.
Best Western Hotels & Resorts announced the reopening of the Best Western Texas City I-45 in Texas City, Texas. The former SureStay Hotels property completed a major refresh including guestrooms, a design-forward lobby, fitness center, renovated dining area, an outdoor pool, laundry services and refreshed meeting and event spaces.
Placemakr announced the launch of its newest hospitality living property in Washington DC, Placemakr NoMa. Placemakr is partnering with MMg Development to bring this 62-unit, 6-story apartment building to the NoMa neighborhood. The vacation units feature fully furnished apartments, chef-ready kitchens, individual washer-dryers, stainless steel appliances, a fitness room, and more. The property will have 24/7 onsite staff and will be open for bookings in March for short-term and extended-stay guests.
Kimco Realty Corp. has formally asked for a three-year extension to build a five-story, 185-room boutique hotel in Cupertino, California due to the rough economic climate and rising construction costs. In addition to the upscale hotel, the project also envisioned a new restaurant and bar on the ground floor, a rooftop lounge and bar and conference meeting rooms.
Hodges Ward Elliott completed the sales of the eighth, ninth and tenth properties from the MidSouth Portfolio throughout the fourth quarter of 2023. The HWE team arranged the transactions on behalf of the seller. To date, HWE has completed the sale of the following properties from the portfolio: Courtyard Dallas Addison; Courtyard Austin University; Fairfield Inn & Suites Austin University; Courtyard Grand Rapids; Courtyard Detroit Southfield; Fairfield Inn & Suites Indianapolis Airport; Residence Inn Indianapolis Airport; Courtyard Atlanta Peachtree Corners; Courtyard Cleveland Beachwood; and Courtyard Atlanta Windy Hill.
Personnel Move
Aimbridge Hospitality announced Keryn McNamara as the newly appointed Chief Information Officer, effective April 8, 2024. Previously the company’s SVP of Hotel Technology, McNamara will lead Aimbridge’s IT team as they seek to further enhance the industry leader’s technology offering and identify breakthrough solutions that help drive operations excellence, improve the guest experience, generate value to the top- and bottom-line, and enable associates to perform at their best.
International Highlights
Hilton announced the opening of the DoubleTree by Hilton Lima San Isidro, developed by Grupo Aramburu Matriz in the financial and economic district of the Peruvian capital. The property received an investment of more than US$17 million from Peruvian and Spanish partners. The hotel has 117 guestrooms, three meeting rooms, a restaurant, lobby bar, pastry shop, as well as a gym, pool and rest area on the rooftop.
Wigan, UK council has signed a deal to bring a 144-bedroom hotel to the former Galleries shopping center as part of a £135m redevelopment of the town centre. The authority has signed a franchise agreement for a six-story Hampton by Hilton Hotel with a gym, reception area, dining space and secure parking. Leaf Hospitality is the manager and operator of the property.
Schroders Capital secured an initial £100 million commitment for a dedicated UK Operating Hotels strategy. Following its Schroders Capital European Operating Hotels Fund, which closed above its fundraising target of €525 million in 2021, the new Schroders Capital UK Operating Hotels strategy will extend the firm’s presence in the UK market.
Europe hostel chain A&O is set to invest €500 million to aid its expansion across Europe. The company is seeking to expand its presence in locations such as London, Paris, Rome, Madrid, Lisbon, Berlin, Munich, Prague and Amsterdam, with its strategy to include the conversion of existing office and retail properties into hostel accommodation. A&O’s portfolio currently comprises 38 hostels in 25 cities across nine European countries.
art’otel, the contemporary lifestyle hotel brand owned by PPHE Hotel Group announced art’otel Rome Piazza Sallustio, its flagship European hotel, is set to open in the first half of 2024. The hotel features 99 guestrooms and suites, a destination restaurant and bar with a large terrace, a fitness center with sauna, and a creative meeting room.
Scandic signed a long-term lease agreement with property developer SRV for a new 144-room Scandic Go in Oulu, Finland. The hotel will be centrally located in northern Finland’s largest city and is expected to open during the second half of 2025.
NUMA is set to open a new hotel in London, marking its entry into the UK hotel market. Located in Bloomsbury, the new 86-key NUMA Bloom will take over the former Bedford Corner Hotel. The deal was advised by the Knight Frank hotel brokerage team.
Hacienda del Conde Melia Collection, an exclusive adults-only hotel in Tenerife, has been included in the collection of Small Luxury Hotels of the World. The hotel boasts 117 rooms and suites, an extraordinary 18-hole golf course, YHI spa, a gym, multiple food and beverage venues, and 4 perfectly equipped rooms for events and celebrations.
DoubleDragon, the property developer owned by Injap Sia and Tony Caktiong, broke ground on its 680-room Hotel101-Madrid. Full-scale construction is scheduled to begin in April of this year and be fully completed by Q4/25, just in time for the Madrid F1 Grand Prix.
