The DJIA was up 401 points while Nasdaq was up 203, the S&P 500 rose 46 points and the 10 year treasury yield was down .02 to 4.27%. Lodging stocks were higher. HLT, MAR and TNL traded up to new highs. SOND was up 12% while SOHO rose 5% on the day.
The U.S. hotel industry reported higher performance results month over month, according to February 2024 data from CoStar. February 2024 (percentage change from February 2023): Occupancy: 58.9% (-1.8%) ADR: $158.23 (+3.9%) RevPAR: $93.19 (+2.0%). Among the Top 25 Markets, Oahu Island experienced the highest occupancy (84.%), which was up 6.6% year over year. Helped by Super Bowl LVIII, Las Vegas reported the highest ADR (+61.9% to $301.35) and RevPAR (+69.9% to $247.44) levels. Markets with the lowest occupancy for the month included Minneapolis (46.1%) and Chicago (49.4%). The Top 25 Markets showed higher occupancy and ADR than all other markets.
CoStar/STR also said US hotel RevPAR was down -3.5% year over year for the week ended 3/16. Truist pointed out the results were weighed down by Las Vegas which was down -41% year over year.
IHG Hotels & Resorts’ development momentum follows a successful 2023 that saw more than 150 openings and more than 300 signings worldwide for its midscale brands, and reflects a commitment to strategic expansion, proven expertise, and brand and enterprise investments. The 2023 introduction of conversion brand Garner hotels builds on a midscale segment portfolio that now spans six brands and more than 4,400 open or in pipeline hotels in the Americas alone. This includes iconic essentials and all-suites brands: Holiday Inn, Holiday Inn Express and Candlewood Suites; and attractive, fast-growing newer brands: avid hotels and Atwell Suites.
Commonwealth Hotels and owner Rocky Singh announced the opening of the Home2 Suites by Hilton Brownsburg in Brownsburg, Indiana. The hotel offers 91 studio and one-bedroom suites, an indoor pool, fitness center and onsite laundry. The extended-stay hotel is owned by Rocky Singh.
Hilton announced the signing of an agreement to welcome Palacio Provincial to Curio Collection by Hilton. The hotel is owned by Hostal El Convento and managed by International Hospitality Enterprises. Located within the Old San Juan Historic District in Puerto Rico, the 43-room boutique hotel features multiple food and beverage venues and versatile and stylish event spaces.
W New Orleans – French Quarter debuted the multimillion-dollar renovation of its 98 guestrooms and carriage houses. The property is home to a signature dining outpost, private meeting rooms, a courtyard and a heated pool.
Concord Hospitality announced the opening of The Westin Atlanta Gwinnett. Developed in partnership with Gwinnett Convention and Visitors Bureau, the 348-room hotel boasts over 27,000 square feet of space with 16 event facilities, a rooftop bar, signature restaurant, Starbucks, indoor saltwater pool and Westin WORKOUT Fitness Studio.
Hotel Landy, a Tribute Portfolio hotel, has officially opened in Orlando, Florida. Formerly known as Hotel Kinetic, the revitalized concept is owned by Monarch Alternative Capital and managed by HHM Hotels under its Echelon Luxury and Lifestyle division. Hotel Landy offers 400 guestrooms, three distinctive dining venues, a resort-style pool, yoga studio, gym, Kinetic Game Room, and nearly 10,000 square feet of flexible meeting space.
Moxy St. Pete at the Edge Collective in St. Petersburg, Florida announced it will officially open in June. The hotel is in the heart of the Edge district and part of the first phase of the mixed-use project from PTM Partners and DoveHill Capital Management. The first phase includes the completion of the hotel and the renovation of a historic office and commercial building. Phase two will include 350 residential units via a 20-story tower and a seven-story building. There will also be 20,000 square feet of retail space and 350 parking spaces. The 163-room hotel will be home to a multiple food and beverage outlets and 1,000 square feet of flexible meeting space.
A $16 million Marriott hotel is slated to open in Waveland, Mississippi by early 2026. Waveland Hospitality LLC plans to build the four-story hotel featuring a minimum of 110 rooms and shared amenities such as breakfast and a coffee bar. It will be a dual concept Fairfield and TownePlace Suites. Construction is scheduled to begin in spring 2024 and completion could take up to two years.
Four Seasons Resort Rancho Encantado, in Santa Fe, New Mexico, is home to the city’s newest guestrooms with the completion of a multimillion-dollar revitalization encompassing all 65 casitas at the luxury boutique resort. The resort is also home to the Adventure Center; a spacious, full-service spa; and a signature restaurant.
Hotel Equities announced a strategic partnership with Trust Hospitality. The collaboration positions Hotel Equities as the operational engine, facilitating the expansion of its portfolio in the U.S. and into new markets with heavy emphasis on the Caribbean and Latin America, while empowering Trust Hospitality’s principals to focus on cultivating their portfolio and leveraging their longstanding relationships within the CALA regions.
TMGOC Ventures announced a strategic investment and partnership agreement with Lexima Lodging, a third-party management company. The collaboration increases Lexima’s visibility and scale, infusing new capital resources to create a more efficient and powerful third-party hotel management platform that offers enhanced capabilities for the entire industry. The platform is backed by TMGOC’s capital allocation and hotel portfolio strength and bolstered by the operational excellence Lexima is known for. Lexima is led by John Cantele, David Emery, COO and Kay Auer, CFO. The new agreement will see Lexima gradually assume operational control of the majority of TMGOC properties.
IHG Hotels & Resorts, in collaboration with owner, Trinity Bluff Hospitality LLC, announced the opening of avid hotel Fort Worth Downtown in Fort Worth, Texas. The new-build property offers 104 rooms, a gym and indoor pool.
Red Roof announced the opening of the dual-branded 65-room HomeTowne Studios Auburn Hills and 53-room Red Roof Inn Auburn Hills in Auburn, Michigan, and the dual-branded 50-room HomeTowne Studios Flint and 41-room Red Roof Inn Flint, in Flint, Michigan. The properties are owned by Akram Namou and subsidiaries, who invested about $1.8 million in the renovation of the Auburn Hills properties and about $1.75 million in the renovation of the Flint properties.
The Breakers Palm Beach in Florida has renovated its hotel within a hotel. As part of an exclusive boutique hotel enclave on the top two floors of The Breakers, the resort’s Flagler Club has reopened after a full-scale renovation. Since its redesign debut, demand has been brisk for the club’s rooms and suites comprising a boutique hotel within a hotel on the private-access floors with their own staff and extra perks. To enlarge club spaces and add a second bathroom to four suites, the number of club rooms was trimmed to 21 from 25. The Breakers offers 534 guestrooms, golf, tennis, pool and beach complex, restaurants, a spa and fitness center.
The idea of putting up a sprawling resort, complete with a helipad, isn’t landing well with all the residents of one upstate New York community. R House Hotel Group is proposing to build a 91,000 square foot lodge with a restaurant, spa, 87 cabins, 287 parking spaces and one especially controversial helipad. The plan would clear 11 acres of forest on a 102-acre parcel in Round Top, a hamlet of the town of Cairo. The site was previously home to Blackhead Mountain Lodge. The project would include a wastewater treatment plant and tennis courts. Some of the 127 units would be condos, while the rest would be managed by a hotel brand. The hotel would also manage the condos when their owners are renting them out. Rumors are that Six Senses is involved.
A new apartment-style hotel featuring 76 rooms has opened in West Ocala, Florida. Amenities at the stayAPT Suites include an outdoor courtyard with a built-in grill station, onsite guest laundry facilities, and a fitness center. The company plans to continue its expansion in the Sunshine State with additional hotels in Pensacola and Tallahassee opening later this spring.
Cronheim Hotel Capital secured financing on behalf of PEG Companies for the acquisition of the Residence Inn Salt Lake City Cottonwood Heights, a 144-key extended stay hotel in Salt Lake City, Utah.
Club Med released new data showing the company has reached a fresh milestone by achieving more than $2 billion in international Business Volume for the first time ever. In North America, specifically, Club Med is seeing a remarkable sure of 50% in guest stays compared to 2019’s pre-pandemic levels. Key 2023 data compiled by Club Med reveals Business Volume soared to $2.156 billion, marking an impressive 17% increase compared to 2022. Notably, more than 1.5 million guests indulged in Club Med’s all-inclusive vacations in 2023, reflecting a 16% increase compared to 2022. At Club Med’s mountain resorts, Business Volume saw a 33% surge when compared with the previous year, amounting to $569 million. The Exclusive Collection reported a Business Volume of $320 million, up 18%. The ADR for the Exclusive Collection reached $343, marking a 40% increase. Looking ahead, the bookings for the first half of 2024 show a promising trend, with a 14% increase compared to the same period in 2023. Europe is seeing a 7% rise, while Asia is witnessing a 51% surge. In North America, the momentum also continued with a 17% increase in the number of customers compared to 2022. The region’s Business Volume amounted to $350.5 million, denoting an 11% increase compared to 2022. Canada emerged as a strategic market, bolstered by the successful 2021 launch of Club Med’s first mountain resort, Quebec Charlevoix. This year, the company is set to launch four new Premium resorts in France and China. And, on the horizon are a new mountain resort in North America, and the new Club Med South Africa Beach & Safari, both scheduled to debut by 2026.
Personnel News
First Hospitality announced the appointment of Jason Kreul as Chief Operating Officer. Kreul will lead the operations, commercial strategy, and the people & talent groups at First Hospitality and play a pivotal role in further expanding their hotel portfolio. Prior to joining First Hospitality, Kreul most recently served as President, Central US and West Coast Divisions at Highgate.
Vision Hospitality Group appointed Mason Thornburg as its new Chief Financial Officer. His experience includes notable roles such as CFO at Patriot Family Homes, and VP of Partnerships and Finance-Accounting at Signal Energy, LLC.
Spire Hospitality has appointed Jamelia Lehn, CPA as Chief Financial Officer. In her new role, Lehn will be responsible for all matters related to financial management and will also play a critical role in developing new operating efficiencies, responding to owner and investor needs, maximizing results, and supporting new business development and company growth. Most recently, Lehn served as the CFO for Roots Management Company.
Mandarin Oriental announced the appointment of Alex Schellenberger as Senior Vice President, Brand to support the strategic vision of Mandarin Oriental to elevate its brand presence and to increase its desirability as a luxury hospitality brand. Most recently, Alex held the position of Global Chief Marketing Officer for Accor.
Outrigger Hospitality Group named Darin Matsuda as Director of Operations. Matsuda will manage, plan, implement and administer various projects/analysis that support operations in The Americas. Most recently, Matsuda served as Complex Director of Rooms at Highgate Hospitality.
