The DJIA was down 397 points while Nasdaq was down 156, the S&P 500 fell 38 points and the 10-year treasury yield went up another .04 to 4.37%. Lodging stocks were lower, in fact, if it was not for Ashford Inc. (AINC), it would have been nearly across the board. AINC surged 114% on the news below. SLNA, on the other hand, traded down to another new low and is almost a dime, closing at $0.11. VCSA was down -5% on the day.
Ashford Inc. said a Special Committee of independent and disinterested directors recommended, and the Board of Directors approved, a plan to terminate the registration of the Company’s common stock following the completion of a proposed reverse stock split transaction and then a forward stock split transaction. Let us break this down in a way most can understand. AINC will do a 1 for 10,000 reverse stock split. By getting rid of all shareholders that hold under 10,000 shares, they will not have enough shareholders to remain listed on the NYSE American. The reason why the stock surged is that while it is a reverse stock split to get rid of most shareholders, AINC is giving them $5 a share pre-reverse split. The stock closed yesterday at $2.22 a share. We are assuming there are few, except for insiders, that own more than 10,000 shares but whoever does will then wind up with the shares they have today as the remaining shareholders would be subject to a 10,000 for 1 reverse split. Between cashing out the under 10,000 a share shareholders and expenses, it will cost AINC $6.7 million. They expect to save more than $2.5 million a year not being a registered, listed public company.
Wyndham Hotels & Resorts is expanding into the upscale extended stay segment, launching a strategic relationship with WaterWalk. The deal adds 11 hotels and over 1,500 rooms to the Wyndham ecosystem, rebranding them under the newly created WaterWalk Extended Stay by Wyndham brand. Located in key markets such as Tucson, Jacksonville, and Wichita, WaterWalk marks Wyndham’s third extended stay brand.
NCG Hospitality announced the opening of the Moxy Madison Downtown hotel in Madison, Wisconsin, the brand’s first hotel in The Badger State. The property features 151 guestrooms, a second-story lounge, a top-floor restaurant opening this summer, a lobby filled with games, Bar Moxy, a fitness center, and an 898-square-foot event room.
Legacy Hospitality plans to break ground on a new hotel next month at Legacy Pointe in Springfield, Illinois. The new, 91-room Fairfield Inn & Suites by Marriott will open in the summer of 2025.
DoubleTree by Hilton Hotel Tulsa Downtown, comprising 411 guestrooms and suites connected by sky bridge to the Cox Business Convention Center, announced the completion of an extensive $7 million renovation. The new revitalization debuts a relaxing aesthetic to its accommodations, restoration of common areas and restaurants including the expansive lobby, fitness center upgrades and new gift shop with barista bar at Made Market. Additionally, the Tulsa, Oklahoma hotel offers an indoor heated pool with a whirlpool and an elevated business center with a lounge area featuring a television and several communal workstations. Led by a group of local investors in partnership with Uptown Hospitality and Robinson Park and managed by Hilton Corporation, DoubleTree by Hilton Hotel Tulsa Downtown boasts 411 guestrooms and suites and 23,957 square feet of meeting space across 18 meeting rooms.
Virk Hospitality purchased the 150-room Hilton Garden Inn Seattle Renton, in Renton, Washington, for $18 million from a subsidiary of Blackstone. With the sale, BRE Select Hotels has one remaining property in Washington state.
Hyatt Hotels announced the launch of the adults-only Hyatt Vivid brand with the opening of Hyatt Vivid Grand Island in Cancun, Mexico. Located adjacent to Dreams Grand Island, which is scheduled to open later this year, the high-rise resort offers The Vantage Club, eleven dining options and six bars, a fitness center, three pools, and Ennea Beach Club.
Proper Hospitality announced management and operations of Montauk Yacht Club, the historic 107-key luxury seaside resort and marina in The Hamptons owned by Safe Harbor Marinas. Jointing The Collective – Proper Hospitality’sroster of independent hotels, Montauk Yacht Club will also debut a multimillion-dollar renovation introducing refreshed facilities and a brand new dining experience upon the season opening this May. Montauk Yacht Club is home to the largest marina in The Hamptons with more than 200 wet slips. Further property updates debuting early this summer are a refreshed fitness center and spa offerings; an all-day to-go-café and indoor and outdoor bars; three pools; and tennis, pickleball, volleyball, and bocce courts.
The Meritage Resort and Spa, in Napa Valley, California, unveiled its $25 million renovation presenting 322 transformed guest rooms alongside its existing 145 guest rooms and suites, now boasting a total of 467 modern guest accommodations. The extensive renovation also encompasses a new lobby and expanded bar area; refreshed ballrooms, pre-function and meeting rooms; an updated bowling lounge; a re-imagined café and grab-and-go outlets; added a premier steakhouse and a Champagne lounge. In the adjacent vineyard, a new chef’s vegetable and herb garden, a dining terrace, and a brand-new coop for the resident chickens have also been added. The campus features six elevated dining options, two pools and wellness centers, Spa Terra and 80,000 combined square feet of venue space. The multi-million dollar investment was made possible by the Busch Family and Pacific Hospitality Group.
Pyramid Global Hospitality announced a strong start to 2024 with the addition of nine properties to its U.S. portfolio. In Florida, property additions include Naples Grande Beach Resort, Saddlebrook Resort Tampa, and Hotel Flor, a Tapestry Collection Hotel by Hilton. Iconic boutique resorts to join the collection include Black Rock Mountain Resort in Utah, Wayfinder Waikiki in Hawaii, and Wayfinder Bishop Creekside Inn in California. Pyramid Global has also assumed management of Rand Tower Hotel, a Tribute Hotel in Minnesota, Marriott San Antonio Northwest in Texas, and The Crotonville Conference Center in New York.
JLL’s Hotels & Hospitality group arranged the sale of the 154-room Hampton Inn & Suites National Harbor/Alexandria Area in Maryland. JLL worked on behalf of the seller and procured the buyer. The 11-story hotel boasts a business center, fitness center, an indoor pool, and meeting space.
JLL’s Hotels & Hospitality group also arranged the sale of SpringHill Suites by Marriott Voorhees Mt. Laurel/Cherry Hill in New Jersey. JLL represented the seller and procured the buyer. The hotel is a four-story, 117-suite, select-service hotel featuring a fitness center, heated indoor pool, a business center, and 375 square feet of flexible meeting space.
Personnel Moves
Hunter Hotels Advisors announced the expansion of its newly established Capital Markets team with the appointment of Adeel Amin. Amin joins Hunteras senior vice president and will play a pivotal role in all aspects of debt and equity placement for the firm’s listings, including underwriting and sourcing banking relationships for sponsors and GP/LP equity raises. Before joining Hunter, Amin served as Managing Director at Paramount Capital Advisors.
Noble Investment Group announced the addition of James Stewart as Director of Treasury. Stewart joins Noble from Carter’s.
Vail Resorts, Inc. announced that Courtney Goldstein has been appointed executive vice president and chief marketing officer, effective April 29, 2024. Goldstein joins the company with more than two decades of experience at Comcast and American Express. Goldstein will lead the company’s Epic Pass business, data and analytics, and digital experience as well as marketing for its portfolio of world-class mountain destinations, the company’s new My Epic Gear membership business, and its rental, retail, and ski and ride school businesses.
