The DJIA was down 375 points, getting back half of what it was down this morning, while Nasdaq was down 101, the S&P 500 fell 23 points, and the 10-year treasury yield was up another .05 to 4.71%. Lodging stocks were lower. WH was up 5% on their earnings report, but AHT was down -7% to a new all-time low.
Those who described Wyndham Hotels & Resorts’ 1Q results as “better than feared” probably had the correct label, as there was a lot of concern going into the print that WH, along with Choice Hotels who has yet to report, would show a lot of weakness. Instead, it was a traditional WH earnings report, with WH modestly beating expectations, buying back stock, and increasing the buyback authorization by $400 million. WH probably would have bought back more than $57 million of stock during the quarter if it were not for the Choice Hotels hostile bid. First, the stock was up on the news, and they spent a lot of money fighting off CHH. More important was that WH’s pipeline is still at record levels with the 15th consecutive quarter of increases. There had been concern that the CHH battle would have potential or current franchisees from holding off to see who won the war.
Mizuho upped their rating on Airbnb to Buy from Neutral. They raised their price target to $200 from $150.
STR’s global “bubble chart” update for the four weeks ending April 6, 2024, shows 60% of markets with year-over-year growth in RevPAR. That volume was noticeably less than the 77% of markets with growth in the last update, showing more of the world has reached a normalization period. China contributed the most to the decline against 2023 levels, with 90% of its markets experiencing lower performance compared to last year. When excluding China, 67% of global markets recorded higher RevPAR YoY. Among countries with 50,000 rooms and adequate hotel reporting levels, Singapore, Saudi Arabia, France, Switzerland, and Japan led in RevPAR on an actual basis. Japan joined the leaders in RevPAR for the first time as the country recorded the highest occupancy (80%) and its highest ADR at $175. The country-level leaders in YoY RevPAR growth were Japan, Vietnam, Saudi Arabia, the Czech Republic, and Norway. Despite being the slowest recovering market in 2023, Vietnam joined the leader board for the first time with RevPAR 20% higher than the comparable period in 2023. Some of the leading European countries from 2023 showed signs of slowing down, with Switzerland experiencing a 13% decrease in RevPAR compared to the same period last year. Excluding provincial areas and country markets, the top RevPARperformers were dominated by Japan, with four of the top five being: Tokyo, Hokkaido, Kyoto, and Osaka.
Valor Hospitality Partners announced the recent management acquisition of the DoubleTree Suites by Hilton Hotel Huntsville South in Huntsville, Alabama. This transition takes place at a pivotal time for the property as it undergoes an extensive renovation process involving updates to the external building design and remodeling projects involving new landscaping alongside courtyard and pool improvements, all set to be completed in time for peak summer travel season. Following the external refresh, interior renovations will commence, providing improvements for guestrooms and shared spaces including the property’s onsite restaurant, indoor fitness center, and more. The 149-room property holds 4,239 square feet of total event space composed of five meeting rooms.
The Residence Inn by Marriott Fayetteville Cross Creek, North Carolina, has completed an extensive renovation. Owned by Flynn Properties, Inc, the renovated hotel boasts four stories and 92 suites, an indoor heated pool, and a sports court.
A plan for a 152-room Aloft hotel has been filed with DC’s Historic Preservation Office for 5th Street NW in downtown DC. The hotel will rise 11 stories and incorporate the historic façade of the Director’s Deli building.
Hyatt Hotels Corporation announced that World of Hyatt is offering members new access to earn and redeem at a collection of more than 700 boutique and luxury hotels and villas around the globe with Mr & Mrs Smith, the luxury travel platform Hyatt acquired in 2023, now available for booking today. The participating properties from the Mr & Mrs Smith portfolio add more than 20 new, sought-after countries to World of Hyatt such as Namibia, Fiji, and the British Virgin Islands, including the remote tented hideouts of Zannier Hotels Sonop in Namibia to sustainability-focused retreats at Hotel Aguas Claras in Costa Rica, or lofty lodgings at Arctic TreeHouse Hotel in Finland.
AKA announced the opening of Hotel AKA Washington Circle. The 151-room property is the newest addition to the AKA after undergoing a full interior design transformation. Located in the Foggy Bottom/West End neighborhood in downtown Washington, D.C, the hotel offers an array of amenities including a chic lobby lounge, Technogym Fitness Center, and Executive Conference Room, a private a.cinema and debuting in late spring, a landscaped terrace and brand-new restaurant from Ellen Yin. High Street Hospitality group will operate the dining experience at a.kitchen+bar, marking the third exciting partnership between AKA and the renowned restaurateur. Hotel AKA Washington Circle is AKA’s third property in the DMV and the brand’s sixteenth property.
Canadian hotelier, Sukhdev Toor, announced the first TOOR Hotel: a distinct lifestyle hotel and residences located in downtown Toronto. The 33-story, boutique property will offer 232 guestrooms and suites, as well as 181 premium residential rental units on the top 15 floors of the building. The project will feature a bistro and bar set over two floors, valet parking, a fitness center and yoga studio, a 3,000 square foot terrace, and an additional 1,100 square feet of meeting and event space. TOOR Hotel will open in 2024 and will be the first of four boutique TOOR Hotel Collection properties scheduled to open in downtown Toronto locations over the next five years.
The Montgomery County Convention Facilities Authority is proposing to build a new full-service hotel at the site adjacent to the Dayton, Ohio Convention Center. The hotel is estimated to cost between $60 million and $80 million with plans to break ground in 2025. Preliminary site plans call for a 12-story hotel with 200 guest rooms as well as a restaurant, 5,200 square feet of entertainment, retail & civic space, a fitness center, terrace, and rooftop bar.
Prime Investment Properties, LLC arranged the sale of the Historic Virginian Hotel located in Medicine Bow, Wyoming. The Virginian Hotel has been acquired by JET Hospitality for an undisclosed price.
International News
Red Carnation Hotels announced the opening of its latest masterpiece and first property in Scotland, 100 Princes Street. Formerly the headquarters of the Royal Overseas League, the Tollman family has focused on protecting the architectural heritage of the building and lovingly restored its original features while a wealth of twenty-first-century luxuries have been added for its discerning guests, delivering every creature comfort. 100 Princes Street offers 30 rooms and suites and multiple dining options.
A date has been set for the opening of a new hotel in south Wales this year. The new venture in Newport is being opened by the Celtic Collection, which owns a host of popular hotels in the area. The new hotel, which will be known as Ty Newport, will open on May 31, 2024, with 146 guestrooms, a restaurant and bar, an “activi-ty suite,” and two meeting rooms.