The DJIA fell 31 points, Nasdaq was down 69, the S&P 500 fell 15 points and the 10 year treasury yield was down .02 to 4.23%. Lodging stocks were modestly higher. New highs were set by TNL, H and HLT.
Mizuho initiated coverage on the lodging space today. They launched with Buy ratings on Hilton, Hyatt, Marriott Vacations, Hilton Grand Vacations and Vail Resorts with Marriott International and Travel + Leisure initiated at Neutral. Price targets given were $245 for HLT, $128 for VAC, $263 for MAR, $197 for H, $55 for TNL, $63 for HGV and $256 for MTN.
STR’s global “bubble chart” update as of March 9, 2024 showed 77% of markets increased RevPAR from the comparable period in 2023. Occupancy and ADR were also steadily higher than last year. Among countries with 50,000 rooms and adequate hotel reporting levels, Singapore, the United Arab Emirates, France, Switzerland, and New Zealand led in RevPAR on actual basis. Singaporer ecorded the highest ADR at $284. New Zealand joined the leader list for the first time. The country recorded the highest occupancy rate (84.8%) toward the end of its summer season. Notably, Thailand recorded occupancy above 80%, continuing to surpass its highest occupancy of the post-pandemic period. Overall, 36 of 48 countries with hotel supply greater than 50,000 rooms recorded growth in RevPAR versus 2023. Excluding countries with fluctuating exchange rates, the leaders in year-over-year RevPAR growth were Japan, Greece, Malaysia, the Czech Republic, and Singapore. Notably, Greece and the Czech Republic recorded occupancy growth of more than 8%, while Japan experienced a slight decrease in the metric (-0.1%) but the highest ADR growth (+30%). The top five performers in RevPAR were Macau, Stuttgart, Hokkaido, Sanya, and Frankfurt. Leisure markets in China benefited from the Lunar New Year holiday, with Macauexperiencing a 17% increase in occupancy and Sanya seeing a 46% rise in ADR. While other China markets were influenced by the shifting calendar effect of Chinese New Year, most of the country’s markets experienced drops in both occupancy and ADR. Excluding China’s markets, 65% and 75% of markets saw higher occupancy and ADR, respectively, year-over-year.
Hotel Equities has been selected by Beechwood Pinnacle to operate the highly anticipated AC Hotel, situated in the historic Rialto Building in downtown Kansas City. Beechwood Pinnacle is the co-owner and developer. The estimated opening date for the 239-key AC Hotel KC Downtown is set for this June.
Land and Houses USA has purchased a 176-room, Marriott-branded hotel in Manhattan Beach, California for $68 million. The Campbell unit of Land and Houses Public Company purchased the Residence Inn Los Angeles LAX/Manhattan Beach from Washington Holdings. Twenty Four Seven Hotels will manage the property. The seller was represented by JLL.
A Marriott hotel is slated to open in Prosper, Texas. According to Prosper Economic Development Corporation, the hotel will be the first to open in the town. It will be a Residence Inn by Marriott with an estimated 126 rooms. The construction groundbreaking and opening date for the $26 million hotel are unknown at this time.
IHG Hotels & Resorts announced the opening of a newly converted and rebranded Holiday Inn Express & Suites hotel in Englewood, Colorado. Owned by Merchant Hospitality Group LLC, the Holiday Inn Express & Suites Englewood – Denver South features 94 guestrooms and a fitness center.
A hotel located in the Center City District of Philadelphia has changed its flag after less than a year in operation. The 45-room former Red Lion Inn & Suites is now operating as a Quality Inn by Choice Hotels International Inc. The hotel is owned by Chandrakant and Nirav Shah.
Method Co. announced the opening of ROOST Kelly Drive at The Driftway. The ROOST property is located within The Driftway, a new luxury rental and multi-use development located in Philadelphia’s East Falls neighborhood. The Driftway features nearly 10,000 square feet of retail space, 142 luxury residential units, and ROOST Kelly Drive, which includes 33 apartment-style accommodations.
ROOST Kelly Drive and The Driftway are also home to a vibrant mix of amenities for guests, including an outdoor pool and lounge area, game room, private workspaces, a fitness center, pet wash, e-bike rental program, a wellness room, and unique programming and events. Scheduled for later this year, Method Co. will also open a café concept on The Driftway’s ground floor.
IHG Hotels & Resorts announced the availability of new prototype options for its three suites brands, Staybridge Suites, Candlewood Suites, and Atwell Suites. The new options include the Smart Studio for Staybridge Suites; The Beacon 4.2 for Candlewood Suites; and two new lobby configurations for Atwell Suites. The new prototype options will be available by Q2 2024, with the first properties to feature them expected to open as early as 2025.
The fate of the historic Herring Hotel in downtown Amarillo, Texas is in limbo once again, as the current company that owns the building filed for bankruptcy this month. The Herring Hotel Development Company, LLC, initially filed for Chapter 7 bankruptcy on March 5. This comes after the company purchased it in 2021, with hopes of pouring $33.5 million into the building that has been vacant for decades. A public foreclosure sale had been announced in November and again for March 5, noting a deed of trust between Gulf Capital Lending, LLCand the Herring Hotel Development Company, LLC was recorded October 20, 2021, for $1.875 million.
Personnel Moves
Westgate Resorts appointed longtime company executive Jim Gissy as Chief Executive Officer. Westgate Resorts’ Founder David Siegel will remain Executive Chairman of the Board & President and will continue to lead all major decision-making of the company. As Westgate’s CEO, Gissy is responsible for overseeing all aspects of the company’s operations, sales, and marketing.
Cooper Hotels announced the retirement of David Krueger, who has served as the company’s Chief Financial Officer for the last 40 years. Succeeding Mr. Krueger as CFO is Allen Ruffin, CPA, who was promoted to the position after serving as the Cooper Hotels controller since 2000.
LuxUrban Hotels Inc. announced the appointment of Kimberly K. Schaefer, a 30-year real estate and hospitality industry veteran and the former CEO of Great Wolf Resorts, to the Company’s Board of Directors effective March 25, 2024.
Choice Hotels International, Inc. promoted Sireesha Kunduri to Chief of Product Engineering. In her new role, Kunduri will head up the software product delivery functions within Choice’s Technology Team, in support of its diverse portfolio of hotel brands, revenue management, membership rewards, and more. Kunduri joined Choice in 2016 and most recently served as Vice President, Engineering.
DiamondRock Hospitality Company announced Bill Tennis, its long-time Executive Vice President and General Counsel, will retire effective June 30, 2024. The Company has engaged Heidrick & Struggles to conduct a nationwide search for a new legal counsel.
Europe Highlights
Goldman Sachs Group’s private equity arm is exploring a sale of B&B Hotels in a potential deal that could value the European budget hotel chain at about 3.5 billion euros. Advisers at Goldman Sachs and Morgan Stanley are working to identify potential bidders for the business. B&B runs more than 770 budget-friendly hotels mainly across France, Germany, Italy, and other European countries.
Whitbread PLC and its development partner Olympian Homes have secured planning consent from Bristol City Council to redevelop the site of the Bristol City Centre (Haymarket) Premier Inn located in Bristol, UK. The consented plans will see the 20-story 1970’s building redeveloped to create two new buildings providing 132 co-living homes and 442 purpose-built student accommodation bedrooms.
