The DJIA was up 450 points on Friday while Nasdaq was up 315, the S&P 500rose 64 points and the 10-year treasury yield was down .07 to 4.50%. Lodging stocks were mixed. The big mover of note was XHR, up 7% following their earnings report.
DiamondRock Hospitality also reported good results, with a modest beat driven by group business offsetting weakening leisure as well as strong F&B business. DRH did not give guidance but did suggest RevPAR in 2Q will be better than in 1Q.
IHG had a bit of a confusing earnings report with good results driven by Europe, Middle East, Africa and Asia but the primary focus seemed to be on their decision to make changes to its loyalty systems fee structure. IHG is lowering its standard loyalty assessment fee that owners pay into the System Fund. They also changed some benefits, including increasing certain Reward Night reimbursements that owners receive back out of the Fund when points are redeemed which will additionally improve IHG’s overall owner offer and owner economics. As for IHG’s benefit, going forward, a portion of the revenue from the sale of certain loyalty points will be recognized by IHG within its results from reportable segments. They expect an additional $25 million in revenue. As for 1Qand capital returns, IHG said their 2024 share buyback program is 30% complete with $239 million spent repurchasing 2.3 million shares.
Xenia Hotels & Resorts reported 1Q24 results well ahead of expectations. While they noted group strength in several markets, margins also helped the big beat. XHR did not repurchase any more shares in the quarter than the $6.3 million worth they disclosed previously they bought in January. XHR tightened guidance, they did not actually raise.
Hotel Sector Stock Index Performance April 29-May 3, 2024
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.
STR said March 2024 US hotel occupancy was 63.7%, down -2.5% year over year. ADR was up 0.4% to $159.79 resulting in a RevPAR decline of -2.2% to $101.81. This was the first RevPAR decline since February 2021 but the Top 25 markets, excluding Las Vegas, outperformed the rest of the US. STR said Forward Booking levels are up through May. The decrease in March was mainly due to the Easter shift from April 2023 to March 2023.
Choice Hotels announced the relaunch of Park Inn by Radisson. CHH said Park Inn by Radisson is being strategically repositioned into the premium value conversion space. They expect it to cater to a new generation of experience-centered travelers. The first contract for the relaunched brand was signed for one in San Antonio, Texas.
Driftwood Capital announced the acquisition of the Marriott Raleigh Durham Research Triangle Park, a 225-key, full-service, upper-upscale hotel located in North Carolina’s Research Triangle area. Driftwood plans to carry out an extensive renovation project to enhance numerous features throughout the hotel. Franklin BSB Realty Trust originated a two-year, multi-million loan with three one-year extension options at what Driftwood said was a competitive interest rate. The renovation budget will be $9 million with upgrades to guest rooms, a central air system, and new amenities such as an expanded fitness center and premium M Club lounge being the result. This is Driftwood’s third acquisition in NC and second within the Research Triangle.
Hospitality Real Estate Counselors and Cushman Wakefield Commercial Real Estate Services announced the sale of the 410-room Marriott dual-branded New Orleans Courtyard and SpringHill Suites located near the Ernest N. Morial Convention Center/Arts and Warehouse District of the Central Business District. The purchase price was $73 million. Robert J. Guidry, along with Guidry Land Partners and Orlando businessman David Bansmerpurchased the properties, sold unencumbered by management and fee simple. InterMountain Management was selected as the new management company. They operate the buyer’s 232-room Residence Inn on St. Charles Avenue.
Commercial Observer reported property records show Related Companies sold the W Fort Lauderdale Hotel to Blackstone for $97.6 million. The deal included another $55 million for hotel operations. The 19 story property has 346 rooms. Related purchased the property in 2014 fro $90 million and embarked on a $55 million renovation. The Real Deal said they had put the hotel on the market back then for $275 million.
The Tempo by Hilton Louisville Downtown NuLu opened its doors on May 1st, the third property from HLT’s new contemporary lifestyle brand. The 130-room hotel includes two dining options, one on the first floor and the other on the rooftop, as well as event space on top. The hotel was developed and owned by First Investors and Weyland Ventures and operated and managed by First Hospitality.
Concord Hospitality announced the management of the DoubleTree Suites by Hilton in Plymouth, PA. The hotel offers spacious guest suites, an on-site restaurant, laundry, an indoor swimming pool, fitness center and over 8,000 square feet of flexible meeting space. Concord said the hotel will be undergoing renovation and will be converted to an Embassy Suites. Concord also announced the management of the 152-room Hyatt House Columbus OSU/Short – North. The hotel offers spacious bedrooms, living rooms and apartment style kitchens, on-site laundry, heated indoor swimming pool and a state of the art fitness center.
IHG Hotels & Resorts’ voco hotels brand announced the official opening of voco Sarasota following a recent rebrand and renovation. The 95-room hotel is managed by Aimbridge Hospitality LLC and is the second voco hotel in the state of Florida. Amenities include an outdoor pool, fitness center, and 1,190 square feet of meeting and event spaces. The hotel will introduce a new restaurant and bar concept to Sarasota – Offshore Tapas and Wine Bar.
Ted and Katie Ukrop have sold the Quirk Hotel in Charlottesville, VA to Blue Suede Hospitality Group for $24 million. Blue Suede plans to rebrand the 80-room hotel. CBRE Hotels Institutional Group advised the seller in the transaction.
Timberwolf Capital Partners of Jackson, Wyoming purchased the Mayflower Hotel on Syracuse, NY’s University Hill from Scholar Syracuse, LLC for $7.4 million. The 82 room Mayflower is adjacent to the Collegian Hotel, still owned by Scholar. For at least a year, the Mayflower will remain a hotel but after that Timberwolf will decide whether to convert it to apartments.
Cronheim Hotel Capital has secured a $41 million permanent loan on behalf of The Lam Group to refinance the existing debt on the 175-room Aloft New York Brooklyn Hotel. Cronheim said the rebound in NY’s hotel business over the past 12-18 months in both business and leisure travel allowed them to secure highly favorable terms with a great bank.
Walker & Dunlop Inc. announced the completion of a $155 million refinancing deal for The Lexington Hotel, a historic landmark in the heart of Midtown Manhattan. W&D, acting as exclusive advisor to Lexington Hotel Owner, LLC, a joint venture between MCR, Island Capital Group LLC, and Three Wall Capital, secured the financing through lender Hudson Bay Capital. The Lexington Hotel has undergone extensive renovations and conversions over the years, transforming into a Marriott Autograph Hotel in 2013. The hotel was acquired by the Sponsors in 2021. W&D’s NY Capital Markets team secured a bridge facility to refinance the hotel’s existing debt. The 28-story hotel located at the corner of Lexington and 48th has 725 rooms including six specialty suites including the Norma Jeane Suite, where Marilyn Monroe lived with Joe DiMaggio. Amenities include The Stayton Room bar and restaurant, 3,000 square feet of meeting space, Crunch Fitness and a Starbucks.
Sotherly Hotels Inc. announced they executed an extension which includes amended mortgage loan terms on its first mortgage with TD Bank, collateralized by the DoubleTree by Hilton Philadelphia Airport in Philadelphia, PA. The interest-only loan has been reduced by $3 million to $35.9 million, matures in April 2026 and carries a floating interest rate based on SOFR at 3%. SOHO also said they entered into a new 10-year franchise agreement with Hilton to relicense the hotel under the DoubleTree by Hilton flag. SOHO will undertake a renovation of the property with a cost of $11.5 million and an estimated completion date of April 2026. Renovation plans include upgrades to guest rooms, public spaces, food and beverage spaces and the exterior.
