The DJIA fell 241 points, Nasdaq was up 17, the S&P 500 was down 11 points and the 10 year treasury yield surged .12 to 4.33%. Lodging stocks were modestly lower.
Wells Fargo upped their price target on Airbnb to $127 from $107. They maintained their Underweight rating.
STR commentary on U.S. hotel performance for February 2024: Top-Line Metrics (February 2024, percentage change from 2023): Occupancy: 58.9% (-1.8%) ADR: $158.23 (+3.9%) RevPAR: $93.19 (+2.0%). February produced modest RevPAR growth, reflecting the continued return to low single-digit gains. Without Las Vegas and the Super Bowl, U.S. RevPAR would have been down. The Top 25 Markets continued to outperform all others with Las Vegas once again lifting the aggregate. Group demand and ADR maintained an edge over the Transient counterparts. The three highest chain scales (Luxury, Upper Upscale and Upscale) posted RevPAR increases, with Upper Upscale seeing the largest gain of 4.7%. The other two scales were below +1%. For the lower three chains scales (Upper Midscale, Midscale and Economy), steady demand declines continued into February, with Economy chains posting the greatest declines. Planning activity in the pipeline is growing consistently, which will result in more robust supply growth in 2025 and beyond.
The St. Regis Washington, D.C. unveiled an extensive redesign and renovation of its guestrooms, suites and select public spaces. The 182 newly renovated guestrooms and suites feature spacious layouts and modern interiors. The hotel also debuted the restoration of the iconic Astor Ballroom and the adjacent Astor Terrace. As part of the hotel’s larger renovation plan, the next phase of construction will see a new outdoor terrace at the hotel’s onsite restaurant as well as updates to the famed St. Regis Bar, with plans to revive these food & beverage venues starting in 2025.
Bosa Properties revealed that its complete redevelopment of the existing Park Inn & Suites and the Fairview Pub, on West Broadway in Vancouver, will introduce two Hilton brands to the site. There will be a combined total of 396 hotel rooms across the property, including 271 guest rooms in the 11-story west tower under the upscale Hilton Tapestry brand, and 125 guest rooms in the 15-story tower under the upscale Hilton Homewood Suites brand. Amenity spaces include lounge/restaurant uses, various meeting rooms and event spaces, an indoor pool and a large fitness gym. Three underground levels will accommodate 183 vehicle parking stalls.
Auberge Resorts has hatched a charming new riverfront resort on Johns Island in South Carolina. The Dunlin comprises 72 rooms and suites, 19 private branded residences, multiple food and beverage venues and the Aster spa.
IHG Hotels & Resorts announced the opening of avid hotel Wisconsin Dells – Lake Delton, in Baraboo, Wisconsin. The new-build property boasts 86 guestrooms, a gym and an indoor pool. avid hotel Wisconsin Dells – Lake Delton is owned by Vandelay Ventures LLC and managed by Tall Pines Hospitality.
The proposed six-story hotel project known as the Cruz Hotel in downtown Santa Cruz, California will move forward after the Santa Cruz City Council approved the project. The hotel, which is being developed by SCSF Ventures LLC, will feature ground floor retail space with 232 hotel rooms above. The hotel would also feature a conference space, restaurant, bars, café, a gym, spa and rooftop pools. The property would contain a parking structure below ground which would consist of three underground levels of parking containing 214 spaces.
Stevens Construction has started construction of Shalimar Beach Resort in Sanibel Island, Florida. The resort will feature multiple buildings offering several accommodation options, a pool, rooftop terrace, laundry facilities and a boardwalk to the Gulf of Mexico. Forced to rebuild after Hurricane Ian washed away their previous resort, Sean Niesel, Shalimar owner, reached out to Stevens Construction to build the new Shalimar Beach Resort.
OKO Group announced the Aman New York landed a buyer for its $50M full-floor condo at the Crown Building. Unit 23 at 730 Fifth Avenue was sold to an unknown trust, who paid more than $8,000 per square foot for the four bedroom, five bathroom condo. All of the apartments have either closed or are in contract, according to the developer.
Rachel Meng, who most recently served as the director of investments at Pebblebrook Hotel Trust, has launched Hotel Bambinee, a brand aiming to alleviate the hassles of traveling with young children. She has also created Club Bambinee as a way to work within existing hotel properties, to maximize underutilized space or floors.
Cobblestone Hotels plans to construct a four-story, 62 guestroom hotel in Sturgeon Bay, Wisconsin. The project is estimated to cost $11,166,000.
The Lowline Hotel will be replacing what is currently The Alley, a bowling alley and entertainment hub, in the city of Charleston, South Carolina. Plans show the hotel will feature 175 rooms, a bar and dining room, and 125 parking spaces.
A portion of the Renton, Washington property where Topgolf is located has sold to a hotel chain for $3.1 million. An entity linked to LivAway Suites is the buyer of the 1.67-acre lot. The seller is connected to RealtyLink, which acquired the Topgolf property in 2019 and then subdivided the site for development. In addition to The Topgolf and future hotel, a retail center is planned for the northeast portion of the site. City records show plans for a four-story hotel with 125 rooms. Developer West77 Partners is also attached to the project. Construction is estimated at about $12 million.
La Quinta in Verona, New York has closed and Benchmark Development is finalizing the purchase of the Willow Place property. The hotel is situated on Oneida Indian Nation Land. The Oneida Nation will lease the property to Benchmark. Benchmark will start renovating the 97-room property immediately after closing, with a Comfort Inn & Suites expected to open around late summer.
Holiday Inn Chicago hotel, located near Midway International Airport, has hit the market for $20.5 million. Owned by InterContinental Hotels Group PLC, the five-story, 158-room hotel is being marketed by Marcus & Millichap.
JLL’s Hotels & Hospitality group arranged the sale of the 127-room Hyatt Place Pittsburgh Airport / Robinson Mall in Pittsburgh, Pennsylvania. JLL worked on behalf of the seller and procured the buyer for the property that features an indoor pool, fitness center and onsite dining.
Personnel Moves
Hilton Grand Vacations Inc. announced the promotion of Dan Mathewes to the position of president while maintaining his role as chief financial officer. Additionally, Dusty Tonkin has been appointed as the new executive vice president, chief sales & marketing officer.
Virgin Hotels Collection, the parent company encompassing luxury hospitality brands Virgin Hotels and Virgin Limited Edition, announced Naomi Moreno-Melger in the new role of Global Director of Communications, responsible for overseeing the communications teams across all markets globally for both iconic brands. Moreno-Melger joined Virgin Limited Edition in 2019, as Group Head of PR.
Selina Hospitality PLC announced recent updates to its executive leadership team. Gadi Hassin has been promoted to Chief Operating Officer, where he oversees the operations, commercial and financial performance of Selina’s hotel portfolio. Rafael del Castillo has been appointed as Selina’s first Chief Revenue Officer, where he will be responsible for driving increased revenue performance at Selina’s hotel portfolio. Emilio Garcia was appointed as Chief People Officer of Selina. Garcia will oversee Selina’s more than 2,000 employee-base, training programs, compensation and benefits, and recruiting of corporate and hotel level roles. In addition to welcoming new leadership team members, Selina extends its sincere thanks to Lena Katz, former Chief Technology Officer, and Sam Khazary, former Executive Vice President and Global Head of Corporate Development, for their valuable contributions to Selina. The existing leadership team will assume these roles and responsibilities.
Europe Highlights
Having secured planning permission recently for the development of a 30-room hostel with 198 bed spaces at 13 Trinity Street in Dublin, Ireland, Grand Coast Capital is seeking a buyer for the property. Number 13 is available for sale through Cushman & Wakefield at a guide price of €4 million. The property comprises a part-two-story, part-four-story building. Planning permission was granted by Dublin City council for the development. The permission allows for a refurbishment of the existing four-story building with the addition of a new eight-story over basement building to the rear of this site. The permission also provides for a standalone bar and restaurant area with seating for 63 customers.
Archer Hotel Capital bought the Shelbourne Hotel in Dublin city center for an estimated €260m. The firm has been rumored as the purchaser of the property from Kennedy Wilson, but declined to confirm if it was involved.
