The DJIA rose 22 points but Nasdaq was down another 82 while the S&P 500 fell 11 points and the 10 year treasury yield resumed its upward trend, rising .06 to 4.65%. Lodging stocks were lower. The mover of note was BHR, falling -10% on the day.
Truist reported on meetings they held with hotel/casino union representatives. There are 200 hotel collective bargaining agreements in 19 cities expiring by September. Truist said they came away from their meetings maintaining moderate caution on the degree of hotel-level profit and operations impact from this year’s union contract negotiations. If the unions push the way they did in Las Vegas, it may be rough as every earnings estimate downgrade or company missing estimates there is pointing fingers at the new union contracts. Truist said Unite Here will be meeting with Marriott, Hilton and Hyatt next month. They don’t see the negotiations as tense today as it was in past years. It is still early though.
Wedbush cut their rating on Airbnb to Hold from Buy. They maintained their $160 target price.
Hilton announced the signing of Canopy by Hilton Guadalajara, the first Canopy by Hilton hotel in Guadalajara and second in Mexico. Expected to open in 2028, the new-build, 170-room hotel is owned by Trust Capital and will be managed by Hilton. The hotel will include a lively lobby bar, all-day restaurant and scenic rooftop with a pool, bar and restaurant. The hotel will also feature boutique meeting spaces of 3,700 square feet. The seven-story Canopy by Hilton Guadalajara will be part of Legend, a large mixed-use development including high-end retail, office space and residences.
MCR wants to develop two hotels with 400 keys, combined, next to its Hilton Miami Airport Blue Lagoon near Miami International Airport. The company is proposing a pair of eight-story hotels, each with 200 units, each would include a four-story, 140-space garage. The proposal is also for a new five-story, 700-space garage for the Hilton, which will remain.
Dan Gilbert’s real estate firm announced its new Hudson’s site skyscraper in downtown Detroit, Michigan will indeed contain an ultra luxury EDITION Hotel, plus 97 residential condos. The “for sale” condominiums, situated above the skyscraper’s hotel floors, will be branded The Residences at The Detroit EDITION. The $1.4 billion Hudson’s site development is two side-by-side buildings: a 12-story “office block” and a 45-floor skyscraper.
The Courtyard by Marriott Johnson City, Tennessee, celebrated the completion of its extensive renovation with a ribbon-cutting event. Courtyard Johnson Cityis owned by Flynn Properties and managed by LBA Hospitality. The rejuvenated three-story hotel features 90 guestrooms and suites, a Bistro and bar, outdoor pool and cozy fire pit.
A $110 million renovation at a Scottsdale resort involves changing the guestrooms, pool deck, restaurants, and its name. The Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch is completing the renovation in phases, which is scheduled to wrap in the fall. When finished, the hotel will rebrand with a new name: Grand Hyatt Scottsdale Resort & Spa, the first Grand Hyatt property in Arizona. In March, the hotel announced a partnership with celebrity chef Richard Blais on six restaurants at the hotel. The property offers a pool area with a new towel and pool float kiosk and updated lounge chairs and new cabanas. Other work that remains includes a refresh of the lobby area, an expansion of the resort’s meeting and event spaces and an interior redesign of Spa Avania. The property also offers nine pools, a hot tub, sand beach area and a 30-foot water slide.
Hyatt Hotels Corporation announced The Bentley Hotel Southampton has officially joined the Hyatt portfolio as an affiliate hotel, in collaboration with Bijal Hospitality, the property’s owner and operator. The hotel, which is currently in the midst of an extensive renovation, is expected to join the JdV by Hyatt brand in mid-2024, following additional property-wide upgrades. The Bentley Hotel Southampton will be the first Hyatt property in the Hamptons in Long Island, New York. The property offers 40 suites, a heated pool, outdoor green space, event spaces and three outdoor areas, each over 6,000 square feet.
The 87-room Holiday Inn Express & Suites in Schaumburg, Illinois has received its conditional occupancy permit to open. The enterprise, spearheaded by EquityRoots Holdings LLC through crowd funding, also received a Cook County Class 7C tax incentive that will last for five years. The hotel was proposed and approved in conjunction with an adjoining 95-room, full-service Holiday Inn. The developer initially wanted to open the hotels simultaneously but adjusted the plan to allow the Holiday Inn Express to be built first and help generate revenue for the other hotel’s construction.
The Four Seasons Hotel and Private Residences on Canal Street, in New Orleans, Louisiana, is facing financial struggles nearly three years after opening, forcing its owners to seek additional investor cash in an effort to avoid having to sell the property. According to documents, Carpenter & Co., the main developer of the project, is in default of a loan agreement with its mortgage lender. The developer has been instructed by its senior lender, Madison Realty Capital, to look for new funding or prepare to sell.
Compass Landing by Margaritaville resort, planned for a 4.6-acre riverfront site in Melbourne, Florida, is still a go, according to the town’s Mayor, Paul Alfrey. Work began again in September but stalled again shortly after. Alfrey blames the delays on rising interest rates that have inflated costs from a projected $50 million up to between $100 to $120 million. It is unclear exactly when construction might resume. The project is being spearheaded by developer Harry Mirpuri. Plans for the tropical-themed Melbourne Margaritaville include a seven-story hotel with a two-story restaurant building with 400 seats, a 221-slip marina, a 14,000 square foot lawn with stage for concerts and events, a four-level parking garage, and a public boardwalk.
In Ada, Michigan, construction is nearing completion for a boutique hotel with a modern spin on the original Ada Hotel. AHC Hospitality shared details of what guests can expect this summer into the fall for the opening of Ada Hotel. The 36-room hotel expects to start taking reservations in May for the fall of 2024. The property will offer multiple restaurants including The Post and The Rix, expected to open in the summer of 2024.
A new extended-stay hotel & apartment building is under construction in Seattle, Washington. The project previously went by MOD Studios but is now called Nuovo 601. The project includes 253 fully furnished hotel guestrooms and corporate housing. PFHC Investment LLC is developing the project.
Hilton Grand Vacations Inc. announced a partnership with Great Wolf Lodge to help expand family travel options for guests/members of both companies. The partnership will allow HGV members to exchange club points for stays at 19 Great Wolf Lodge locations across the U.S., while also introducing interested guests of the indoor water park resort to the benefits of vacation ownership. With an anticipated summer 2024 start date, HGV members will be able to book vacations at Great Wolf Lodge resorts using their club points. In addition, Great Wolf Lodge guests will have the opportunity to receive curated offers to explore HGV’s network of properties.
Personnel Moves
Davidson Hospitality Group announced promotions of several leaders across the Company as part of Davidson’s long-term growth plan. Steve Margol, Davidson’s Chief Investment Officer, will transition to Executive Chairman, effective January 1, 2025, coinciding with the transition of Davidson’s current Executive Chairman and former CEO, John Belden, to Chairman Emeritus at the end of 2024. Jason Rabidoux, previously Senior Vice President within the Acquisitions and Business Development team, has been promoted to Executive Vice President of Acquisitions and Business Development. Josie Strang, previously a financial analyst on the Acquisitions and Business Development team, has been promoted to Vice President. Paul Eckert, who joined as Senior Vice President of Operations, has been promoted to Executive Vice President of Operations. Lucas Laidlaw, previously Regional Director of Operations, has been promoted to Regional Vice President of Operations. Thomas Fraher, formerly Area Vice President of Operations for the Florida region within Davidson Resorts, has been promoted to Regional Vice President of Operations and will oversee the eastern region within Davidson Resorts.
International News
Hyatt Hotels Corporation and El Pardo Hospitality announced plans for The Legend Paracas Resort in Paracas, Peru to join the Destination by Hyatt brand, marking the introduction of the brands in South America. Expected to join the Destination by Hyatt brand in June 2024, the hotel is currently undergoing a phased enhancement project to elevate guestrooms, offer new culinary options, and redesign public areas. Enhancements will be done over the next 24 months in an effort to avoid impacting the guest experience. The Legend Paracas Resort comprises 124 suites, a fitness center, ocean-facing pool with a swim-up bar, a spa and a range of curated experiences.
Rocco Forte Hotels signed a hotel in Dubai and is eyeing expansion opportunities in Spain, the United States and the Middle East, following an injection of funds from Saudi Arabia’s Public Investment Fund. PIF bought a 49% stake in the luxury hotel group last year. As part of the deal, Italian sovereign wealth fund CDP Equity sold its entire 23% stake. PIF’s investment is set to accelerate the group’s expansion in both existing and new global markets, with plans to double the size of the Rocco Forte hotel portfolio over the next five years. This includes plans to open three new hotels this year and next, including the Carlton Hotel in Milan. The group already signed a management agreement with fashion company Capri Group, with whom it is set to launch its first hotel, Palazzo Sirignano, in Naples in 2027.
YOTEL is preparing to open two new properties in Europe by June 2024 including YOTEL Geneva Lake and YOTELPAD London Stratford. The openings mark a significant milestone for the brand, particularly as it introduces its first YOTELPADto the European market. Conveniently located in the Lake Geneva area, YOTEL Geneva Lake comprises two interconnected glass buildings with 237 guestrooms, a one-of-a-kind dining and event destination, HYGGE Place. Created in partnership with Caviar House Airport Premium-Switzerland and covering over 2,000 square meters, HYGGE Place will feature a restaurant; rooftop, cutting-edge meeting facilities; and an auditorium for events for up to 200 people. Making the debut of YOTELPAD in Europe, and YOTEL’s seventh property in the UK, YOTEL London Stratford offers 62 PADs; YOTEL’ssignature mission control check-in area, Go Snack Station as well as retail space. The building incorporates green roofs to absorb rainfall, reducing runoff, along with bird and bat boxes to support biodiversity efforts in the area.
