U.S. Shows Increase in Hotel Pipeline Activity

The DJIA was up 64 points while Nasdaq was down 20, the S&P rose 10 points and the 10 year treasury yield was up another .03 to 4.66%. Lodging stocks were lower. SOND was the only mover of note, down -10%. SOHO traded down to another new low.

The Americas is the only world region showing a year-over-year increase in pipeline activity at the end of the first quarter, according to March 2024 data from CoStar. March 2024 (% change in comparison with March 2023): Europe: In construction: 172,499 rooms (-6.8%) Final planning: 99,744 rooms (-25.3%) Planning: 160,404 rooms (+3.1%) Total under contract: 432,47 room (-8.8%). Among countries in the region, Germany (28,500) led in construction activity, closely followed by the U.K. (28,423). Asia Pacific: In construction: 502,610 rooms (+5.6%) Final planning: 109,926 rooms (+5.6%) Planning: 289,041 (-11.0%) Total under contract: 901,577 rooms (-0.4%). China leads the AP region in total rooms in construction (315,145), followed by Vietnam (37,113). Middle East & Africa: In construction; 110,783 rooms (-7.3%) Final planning: 36,173 (-20.9%) Planning: 81,316 rooms (-3.3%) Total under contract: 228,272 rooms (-8.5%). Most of the region’s pipeline activity is focused in the Middle East. Saudi Arabia (42,464) and the UAE (19,045) have the most rooms in construction. Americas: In construction: 205,998 room (+4.1) Final planning: 296,374 rooms (+6.8%) Planning: 378,628 rooms (+36%) Total under contract: 881,000 rooms (+16.9%). The U.S. (156,525) holds the majority of rooms in construction in the region followed by Mexico (13,335), Canada (7,603) and Brazil (5,799).

Monarch Alternative Capital announced the March 19 soft opening of Hotel Landy in Orlando, Florida. Formerly Hotel Kinetic, the 400-room Hotel Landy is part of Marriott’s Tribute Portfolio brand. A grand opening event will follow in May for the hotel featuring three restaurants, and shopping options. Hotel Landy is managed by HHM Hotels.

The Sheraton Erie Bayfront Hotel, in Erie, Pennsylvania, has unveiled new renovations. White Lodging has been able to oversee the renovation of 200 rooms, the addition of a Starbucks, an updated bar area, and a remodeled and renamed hotel restaurant. The hotel is connected to the Convention Center and also features a 32-seat private room and the Harlequin Ballroom.

A new dual-branded hotel is slated to break ground in May at the USAA campus and master-planned Norterra community in Phoenix, Arizona. A partnership with Jackson-Shaw Co. and Holualoa Cos. is developing the 179-room AC Hotel by Marriott North Phoenix and the 95 room Element by Westin North Phoenix. The four-story hotels are expected to open sometime in late 2025. The property will also boast 8,000 square feet of flexible meeting space, two deluxe suites, two group communal rooms, a fitness center, resort-style courtyard with a saline pool, heated spa and event lawn. Construction financing is being provided by Simmons Bank.

Hospitality America announced the opening of TownePlace Suites by Marriott Raleigh-Durham Airport / Morrisville in North Carolina. The new 112-suite hotel will operate as a Marriott franchise offering a meeting room, laundry facilities, a fitness center, market and outdoor grills.

The Holiday Inn Express in Pullman, Washington, has been rebranded as a Hampton Inn by Hilton. The 128-room hotel features remodeled guestrooms and upgraded public spaces. The hotel is owned by Dr. Wenzel Leff and operated by The Hotel Group.

IHG Hotels & Resorts celebrated the opening of the new Holiday Inn Express & Suites in Oscoda, Michigan. The hotel offers 90 rooms, 1,000 square feet of meeting space, a heated indoor pool, fitness center and business center. Holiday Inn Express & Suites Oscoda is owned and managed by Amerilodge Group.

Maverick Hotels and Restaurants has added The York Beach Surf Club and The Sea Latch Inn, both located in York Beach, Maine, to its portfolio of properties managed. The new newly renovated, oceanfront York Beach Surf Club features 52 rooms, a resort style pool, and multiple dining and cocktail options. The Sea Latch Inn boasts over 2 acres of resort grounds with over 60 rooms and 20 hotel suites and classic rustic cottages; a delightful pool and immediate access to the beach.

Red Roof announced the opening of the HomeTowne Studios by Red Roof Cortland, NY. Owner Central NY Hospitality LLC completed $4.5 million of renovations to the property including enhancing the entry façade, updating guestroom bathrooms, new paint, lighting, flooring and furniture throughout the hotel. The HomeTowne Studios Cortland is located adjacent to the 50-room Red Roof Inn Cortland.

Red Roof also announced the opening of the dual-branded Red Roof Inn Richmond, VA - W Broad Street and HomeTowne Studios by Red Roof Richmond, VA - W Broad Street. The Red Roof Inn offers 59 guestrooms while the HomeTowne Suites offers 49 guestrooms. Jay Sahajanad, LLC, the owner, completed a number of renovations to the properties as part of their conversion to Red Roof properties, including updating guestroom bathrooms and the guest laundry facility; installing new lobby and guestroom furniture; and adding new bedding, lighting and paint throughout.

A historic church in the Oregon District is set to become one of the newest attractions in downtown Dayton, Ohio. The former St. Paul Evangelical Lutheran Church and Parish Hall are getting revamped and converted into a new hotel, restaurant and event space. The $22 million project, titled St. Paul Hotel, will encompass three different parts: the church, which will house a restaurant and could be used as event space also; the Parish Hall will host hotel rooms on the lower level and first floor, with the upper level reserved for event spaces; and a new 18,600 square foot building housing nearly 50 hotel rooms. The project, by Weyland Ventures, is set to begin in August, with construction wrapping up by the end of 2025.

Mumford Company completed the sale of the TownePlace Suites Southaven, Mississippi. Mumford Company represented the Seller, Peachtree Group. The purchaser was Southaven Hotel Investment Group, LLC, an affiliate of ARK Development.

Access Point Financial announced the closing of a $90M investment in Citibank’s recent $631.5M CMBS SASB Hotel portfolio refinance. The transaction, which Citi arranged for a joint venture between MCR Hotels and Building and Land Technology, included APF acquiring two bond tranches of the capital stack, totaling $90M. The portfolio is comprised of 53 limited- and select-service hotels, including 33 Marriott-branded and 20 Hilton-branded properties. The properties are located in 14 states, primarily in the Sunbelt region.

Partners Group acquired a strategic minority stake in Trinity Investments to support its future growth. Partners Group will initially target a U.S. $500 million investment with Trinity and will also have the opportunity to commit further capital to Trinity’s North American, European, and special situations investment platforms. JLL’s M&A and Corporate Advisory Group and Jones Lang LaSalle Securities, LLC served as financial advisor to Trinity Investments in connection with the Partners Group transaction.

Lone Star PACE facilitated an $11.3 million C-PACE loan for a 17-story, dual-branded hotel planned for downtown Houston. The 275-room Holiday Inn Express/Staybridge Suites will replace a parking lot at 1319 Texas Avenue. The property will include 391 square feet of meeting space, 2,000 square feet of ground-level retail and a host of luxury amenities. Lone Star PACE worked with the project’s sponsor, Neway Hospitality to secure the loan. Proceeds will fund a number of sustainable upgrades.

Wyndham Alltra announced the opening of its newest resort on the coast of the Dominican Republic’s Samana Peninsula, Wyndham Alltra Samana, marking the brand’s first resort in Dominican Republic, where it is expected to be joined later this year by the newly signed Wyndham Alltra Punta Cana, both managed by Playa Hotels & Resorts. Wyndham Alltra Samana boasts 400 guestrooms and suites, a variety of restaurants and lounges, four pools and endless activities. Wyndham Alltra Punta Cana will offer 620 suites, a pool, spa, fitness center and nearly a dozen dining options.

The Dreams Curacao Resort is opening a new resort-within-a-resort with a unique design consisting of modular units right on the sand. The adults-only enclave, which opens June 1, will consist of 52 direct beachfront tiny home-sized modular units accompanied by a new bar, restaurant and infinity pool. Following this 52-unit expansion, Dreams Curacao Resort, Spa and Casino would have 249 guestrooms. Travelers would still have access to the rest of Dreams’ family-friendly resort including three complimentary eateries, three a la carte restaurants, three pools, four bars, and activities like tennis and kayaks. Guests at Dreams’ new adult’s-only expansion also have access to Zoetry, which features a pool, upcharge restaurants and bars.

Europe Highlights

IHG Hotels & Resorts and NOVUM Hospitality announced an agreement that will double IHG’s presence in Germany to more than 200 hotels in almost 100 cities through a Holiday Inn - the niu brand collaboration and European debuts for IHG’s Garner and Candlewood Suites brands. The agreement with NOVUM Hospitality includes the following key elements: Up to 108 NOVUM Hospitality open hotels and 11 hotels under development are expected to join IHG’s system between 2024 and 2028. A total of 52 open and pipeline hotels will join IHG through a distinctive collaboration between Holiday Inn and the niu brand. NOVUM Hospitality’s other brands, Yggotel, Select and Novum, with 56 open and pipeline hotels will convert to IHG’s Garner, and the acora Living the City brand with 11 open and pipeline hotels will convert to IHG’s Candlewood Suites. Under the agreement, IHG will receive franchise fees after the phased conversion of existing properties and upon the opening of the hotels under development. The agreement includes an exclusivity arrangement for future NOVUM Hospitality hotels to join IHG’s leading brands and enterprise system, with an ambition to jointly develop further hotels over the time. The agreement has a term of 30 years and the option to renew for additional terms. A total of 111 NOVUM Hospitality properties are in Germany, with the remaining eight in Austria, the Netherlands and the UK.

Marriott International Inc. plans to add nearly 100 properties and over 12,000 rooms to its portfolio in Europe through hotel conversions and adaptive reuse projects, the conversion of existing buildings into a hotel, by the end of 2026. The anticipated hotels represent more than 40% of the company’s European development pipeline. Marriott is seeing momentum for hotel conversions and adaptive reuse projects in countries such as Italy, United Kingdom, Spain and Turkiye, and across all brand segments. Marriott’s new midscale-brand Four Points Express by Sheraton has spurred conversion opportunities in the region since its launch in 2023. Following the recent opening of Four Points Express by Sheraton Bursa (Turkiye), the brand is slated to add five properties across the United Kingdom and Turkiye by the end of 2025. In the select segment, Moxy Hotels, AC Hotels by Marriott, Four Points by Sheraton and Residence Inn by Marriott represent more than 25% of the company’s anticipated additions through conversions and adaptive reuse projects in Europe by the end of 2026. Across the premium segment, Tribute Portfolio and Autograph Collection make up over 20% of the expected additions in Europe through the same period. The company is also seeing an increase in conversion and adaptive reuse opportunities in the luxury segment in Europe, with The Luxury Collection, W Hotels, The Ritz-Carlton and St. Regis Hotels & Resorts representing more than 10% of the anticipated additions in the region by the end of 2026.

Wyndham Hotels & Resorts continues to make impressive gains across Europe, Middle East, Eurasia and Africa, unveiling full-year results for the region for 2023. Among the highlights: the Company introduced 9 brands into new countries, signed 107 franchise agreements, opened 87 hotels, and added 9,500 rooms. Inclusive of last year’s additions, the Company now has 639 hotels throughout EMEA, 12 of which are managed, representing over 88,000 rooms across 15 brands with a pipeline of over 150 hotels.

Hyatt Hotels Corporation announced plans for scaled growth in the leisure space in Europe, Africa, and the Middle East underscored by a record year of deal signings in 2023. After opening Grand Hyatt Barcelona in early April, Hyatt is expecting Zoetry Halkidiki Resort & Spa and Park Hyatt London River Thames to join the portfolio as the region’s most anticipated openings for 2024. The company is poised to continue its growth momentum in capital and primary cities with additions like Andaz Doha, Park Hyatt Johannesburg or Thompson Rome and is thoughtfully expanding its focus to resort destinations with projects like Dreams Madeira Resort Spa & Marina, Alua Soul Costa Adeje or Miraval The Red Sea leading the pipeline.