Marriott International Expands Canadian Pipeline

The DJIA was up 331 points while Nasdaq was up 44, the S&P 500 rose 26 points, and the 10-year treasury yield was down .04 to 4.45%. Lodging stocks were higher. ABNB took a hit on their earnings report, down -7%, but BHR was up 5%. VCSA fell -7% on the day.

Normally towards the end of the second week of May, we are talking about how earnings season has slowed down but not this season. The Clunker of the Day was Airbnb. While their 1Q results were in line to slightly above, they gave a very tepid 2Q guide and the stock was crushed. Hyatt Hotels, on the other hand, missed by a little in 1Q but left their full-year guidance unchanged, they reiterated they are on pace for $2 billion of asset dispositions by the end of the year, they bought back $76 million of Class A shares and $312 million of Class B shares and the stock went up. Braemar Hotels & Resorts had some magic of their own, beating on better margins while reiterating their goal to increase shareholder value, to the chagrin of Blackwells. Hilton Grand Vacations reported Adjusted EBITDA well ahead of expectations but left their full-year guide unchanged, but the stock rose anyway as they repurchased $99 million worth of stock in 1Q, which is 2% of the shares outstanding.

Marriott International’s presence in the Canada market has strengthened, as the company celebrated a 36% year over year increase in hotel-level leisure revenue in 2023. With 274 hotels currently open and 90 in the pipeline, several factors, including a dedicated focus on lifestyle, upper midscale, and extended stay brands continue to drive the company’s success in Canada. Marriott recently enhanced its leisure offerings in Canada with the introduction of Moxy Hotels, launching its first two properties with the opening of Moxy Halifax Downtown in January 2024 and Moxy Banff this spring. Moxy Hotels are also planned for various gateway cities throughout Canada including Montreal, Vancouver, and Ottawa over the next three years. The company is well-positioned to address underserved segments in the Canadian hotel market, including extended stay, upper midscale, and midscale properties. Two of the marquee brands in these segments, Fairfield by Marriott (31 hotels open in Canada) and TownePlace Suites by Marriott (21 hotels open in Canada), are amongst the fastest-growing brands in the country with 24 and 25 properties in Marriott’s pipeline, respectively. The Company is expecting leisure demand in Canada to remain strong throughout 2024, particularly in destinations like Vancouver Island, the Okanagan Valley, Atlantic Canada, and the Niagara Region.

Marriott International, Inc. announced the completion of a comprehensive event space renovation at the JW Marriott Chicago. The 12-story, 610-room hotel is owned by Rialto Capital Advisers and managed by Marriott International, Inc. The newly designed event spaces include the 8,008 square foot Grand Ballroom, The Burnham Ballroom, and 37 distinct breakout rooms. Additional hotel amenities include an indoor pool and whirlpool spa, fitness center, The Spa at JW Chicago, and multiple food and beverage venues.

Vision Hospitality Group, Inc. broke ground on a dual-brand Home2 Suites and Tru by Hilton in Cleveland, Tennessee. The forthcoming development will feature a combined total of 140 keys spanning five stories. Construction is projected to be complete in mid to late 2025.

Plamondon Hospitality Partners is planning to build a hotel and conference center in downtown Frederick, Maryland. The proposed five-story, 208-room, full-service Marriott hotel would have more than 22,000 square feet of public meeting, restaurant, and bar/lounge space and a 250-space below-ground parking garage.

Firefall Ranch has opened near Yosemite’s northwest entrance offering a variety of cottages and villas. The ranch also offers hiking trails, a verdant natural pond and scenic vistas, a restaurant, tavern, and General Store.

ARA US Hospitality Trust has proposed selling two Hyatt House hotels to GHM Properties, for a total consideration of $31 million, slightly below the total valuation. ARA H-Trust has entered into two conditional purchase and sale agreements, through its wholly-owned subsidiary ARA USH Chicago. Both properties are extended-stay hotels on freehold land located in Connecticut and Pennsylvania.

The Postcard Inn, in St. Pete Beach, Florida, is eyeing major renovations to its property. According to the preliminary site plan, the proposed expansion would add 87 more rooms in three levels, a covered walkway between buildings and more than a two-story parking garage. The Postcard Inn expansion proposal is expected to be presented to St. Pete Beach commissioners for approval in August.

The Indigo Road Hospitality Group has opened The George Hotel, a 56-key boutique property in historic Georgetown, South Carolina. The hotel was developed by Winyah Properties and is operated by The Indigo Road. The George’s amenities include a seafood restaurant and raw bar, an outdoor bar, onsite-event space, and a lawn that overlooks the bay.

Lark Hotels announced the re-opening of flagship Portsmouth, New Hampshire property, The Hotel Portsmouth. Originally built in 1881, the complete reinvention breathes new life into the storied property. The 32-room property offers a subterranean bar area and multiple indoor and outdoor gathering spaces.

It’s one step closer to 5 o’clock at the $150 million Margaritaville hotel in Kansas City, Kansas. Sunflower Development Group is developing the hotel in partnership with Homefield KC and the Margaritaville brand. The 229-room hotel sits at the center of the $848 million Homefield development. Developers anticipate the island-themed hotel will be ready to welcome guests by midsummer of 2025. The property will include a fitness center, two-story LandShark Bar & Grill, indoor pool, family entertainment center, arcade, and resort-style outdoor pool. VICI Properties Inc. will provide up to $105 million in construction financing to support the Margaritaville development.

In Glenwood Springs, Colorado, renovations to the Maxwell Anderson Hotel, formally known as The Denver Hotel, are almost complete. Renovations include changes to every guest room including new furniture, new bathrooms, and linens. The hotel also added 17 new hotel rooms, replaced three elevators, and replaced the fire alarm system throughout the entire building.

The $52 million project to preserve and combine two of Wildwood Crest, New Jersey’s 1960’s-era, doo-wop style motels, turning them into a single resort, is now finished ahead of a grand opening on May 16. Madison Resorts has completed renovations at the former Oceanview Motel and Royal Hawaiian Motel. Between both buildings, Madison Resorts Wildwood Crest has more than 200 guestrooms, three restaurants, and two pools. Other amenities include a beachfront wedding venue, fitness centers, conference rooms, and rooftop event spaces.

The Riu Palace Aquarelle, RIU Hotels & Resorts first establishment in Falmouth, Jamaica, is now open. The new 5-star, 24-hour all-inclusive hotel has a total of 753 rooms, six restaurants, four pools in addition to direct access to the White Bay Beach, and the Renova Spa. The new Riu Palace Aquarelle also has a children’s pool with slides and the Splash Water World water park. The property is the chain’s first hotel in the Caribbean to use solar energy and the chain has plans to implement this initiative in other destinations in the region.

The latest Latin America Construction Pipeline Trend Report by Lodging Econometrics reveals robust growth in the region’s hotel construction sector. At the close of Q1 2024, the total hotel construction pipeline in Latin America stands at 604 projects and 100,990 rooms, marking an 11% increase in projects and a 12% increase in rooms year over year. At the end of the first quarter, there are 249 projects/47,393 rooms under construction in Latin America. Additionally, projects scheduled to start construction in the next 12 months stand at 189 projects/28,740 rooms, while those in early planning stand at 166 projects/24,857 rooms. Noteworthy chain scale segments in Latin America at the Q1 close include the upscale segment with 129 projects/18,314 rooms and the luxury chain scale, which reached record project counts of 106 projects with 22,051 rooms at the close. The upper upscale chain scale closed the quarter with 103 projects/21,403 rooms. Countries in Latin America with the largest number of projects in the pipeline at Q1 are Mexico with 226 projects/35,691 rooms, Brazil with 91 projects/13,670 rooms, and the Dominican Republic with record-high counts of 51 projects/13,118 rooms. Key cities in Latin America with the largest construction pipelines include Mexico City, with 21 projects/2,353 rooms; Georgetown, Guyana with 13 projects/1,689 rooms; and Lima, Peru with 12 projects/1,914 rooms. Riviera Maya, Mexico follows with 12 projects/1,421 rooms; and Sao Paulo, Brazil with 11 projects/2,438 rooms. Renovation and conversion activity remained strong in Latin America at the end of Q1 2024, accounting for 146 projects/29,191 rooms. Upper midscale hotels lead the renovation and conversion activity in the region. The first quarter of 2024 had 20 new hotels/3,330 rooms open throughout Latin America. The LE new hotel openings forecast for the remainder of the year expects an additional 81 new hotels with 15,051 rooms to open by year-end. Looking ahead, LE analysts expect new hotel openings in Latin America to increase slightly in 2025 with 108 new hotels/18,744 rooms forecast to open.

Latin American Pipeline by Construction Phase

Latin American Pipeline by Chain Scale Segments

Latin American Countries with Largest Pipeline

Latin American Cities with Largest Construction Pipelines

Latin American New Hotel Openings Forecast

IHG Hotels & Resorts, in partnership with Dart, announced the opening of Hotel Indigo Grand Cayman in the Cayman Islands. The 288-room lifestyle hotel is the second collaboration between IHG Hotels & Resorts and Dart, following the Kimpton Seafire Resort + Spa. Hotel Indigo Grand Cayman offers diverse dining options, a Pool Deck with two infinity pools, 7,500 square feet of customizable space, and bespoke catering services for events.

Personnel News

R&R Real Estate Investment Trust announced Michael Klingher, President and CEO, is stepping down from his role, effective today, to pursue other endeavors. The REIT also announced the appointment of Irfan Lakha, a current trustee and former CFO of the REIT, to the role of President and CEO of the REIT, effective immediately.

Sage Hospitality Group announced Justin Fowler will be stepping into the role of Chief Operating Officer for Sage Restaurant Concepts, overseeing operations of Sage’s growing list of more than 50 restaurants, bars, cafes, and venues in the SRC portfolio, effective June 1. Fowler will leverage the vast resources across Sage Hospitality’s Centers of Excellence in People and Culture, Commercial, Finance, and IT, and will provide guidance and support to property teams whilst implementing strategies that deliver inspiring results, improve productivity, and increase guest advocacy. A tenured restaurateur, Fowler joins Sage from SBE Lifestyle Hospitality, where he held the role of COO.

Europe Highlights

Ares Management Corp., with funds from Ares Real Estate, has acquired the entire U.K. hotel portfolio and operating platform from Landsec for £400 million. The release said £350 million has been paid to Landsec already, with the final £50 million - plus 6% interest - payable within 24 months. Landsec said the net proceeds of the sale will initially be used to repay debt. The hotel portfolio is made up of economy and midscale properties, with the majority of value in Central London and the remaining assets primarily coated in major United Kingdom city centers, including Edinburgh, Manchester, and Birmingham. Ares’ partner on the Landsec hotel portfolio acquisition is EQ Group.

KKR and Amante Capital have acquired the Park Grand London Kensington Hotel from Bartek Holdings. The hotel, which comprises 132 bedrooms, will undergo an extensive refurbishment program to be repositioned as a boutique lifestyle hotel operated by Amante Capital under Marriott International’s Tribute Portfolio brand. The transaction marks the first acquisition by KKR and Amante since the launch of the vertically integrated hotel platform in 2022. Colliers advised KKR and Amante on the acquisition.

Hotel and Lodging Performance

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