IHG Expands Portfolio in Mexico

The DJIA fell 330 points while Nasdaq was down 184, the S&P 500 was down 31 points and the 10-year treasury yield was down .07 to 4.55%. Despite the indexes being in the red, lodging stocks were modestly higher. VCSA was the big mover, up 21%.

Truist Securities updated estimates and price targets on some lodging names following the 1Q earnings season. They upped ABNB’s price target to $134 from $131, the only one they raised. CHH went to $144 from $146, HST to $23 from $24, H to $168 from $172, PEN to $15 from $16, PK to $20 from $21, RHP to $130 from $135 and SHO to $12 from $13.

Truist also gave their forward-looking views on mid and high-end U.S. hotels. They see the greatest degree of RevPAR growth for the rest of the year driven by the Group segment. Truist said summer leisure demand and pricing trends continue to look relatively mediocre. They expect summer 2024 to be another year of affluent Americans taking advantage of a strong dollar to travel abroad. They remain conservative on RevPAR performance in higher-rated US resort destinations. Net-net, they anticipate low single-digit RevPAR growth for US leisure this summer. With inflation continuing to rage, they see value plays such as cruising, all-inclusive resorts and Vacation Ownership as alternatives. With individual business travel, they are seeing flattish year-over-year demand, with corporate room rate growth strong at mid to high single digits. Trust lowered their US RevPAR forecast for USmid and higher-end hotels by 50 bps to +2-4% year over year. They see Groups finishing at or above the higher end of the ranges, individual business at least at the midpoint and leisure towards the low end. Stock-wise, they see Wyndham as the stand-out value name in the group.

STR reported U.S. lodging data for the week ended 5/25. STR said U.S. hotel RevPAR was up 3.9% for the week year over year. Group RevPAR was up 10.7%.

Crescent Hotels & Resorts announced management of the development of the dual-branded AC Hotel by Marriott Symphony Park and Element By Westin Symphony Park in Las Vegas, Nevada. Developed by Jackson-Shaw, the property is slated to open in late 2025. The five-story development offers a combined 441 guestrooms and will provide over 18,000 square feet of adaptable ballroom and meeting space, along with seven entertainment suites.

The Sheraton San Key Resort in Clearwater Beach, Florida, announced the completion of its extensive renovation in celebration of its 50th anniversary. The revitalized resort boasts 384 guestrooms and suites and a 13-acre private beach.

Stakeholders in Bally’s Kansas City Casino are preparing to rework master lease terms to support the construction of a new hotel in the Berkley Riverfront area. The Port Authority of Kansas City shared new details on the hotel that is being discussed by Bally’s Corp and True North Hotel Group. The parties are now contemplating a SpringHill Suites by Marriott hotel, just west of the casino, with 125 to 150 rooms.

Fairfield Inn & Suites Sioux Falls Airport, in Sioux Falls, South Dakota, has completed a full renovation. The property now features brand-new mattresses, carpet and seating. The lobby and breakfast areas also received updates. Brandt Hospitality Group’s in-house development team, BrandtHG Development, completed the hotel refresh. The property features an indoor pool, whirlpool, fitness center and more.

The Hotel Group, an affiliate of Hotel Equities, in partnership with Hogback Development, announced the opening of Tru by Hilton Yakima, in the heart of Yakima, Washington. The property features a 640-square-foot collaboration room, an outdoor patio with grills, a market and a fitness center.

Chatham Lodging Trust acquired the recently opened 148-room Home2 Suites by Hilton Phoenix Downtown for $43.3 million. The six-story hotel includes the historic Fuller Paint Company Building that houses the hotel’s customized public spaces, including a signature food & beverage outlet. Chatham funded the purchase using proceeds from the sale of the Denver Tech hotel in the first quarter and available cash. The hotel will be managed by Island Hospitality Management. CBRE Hotels Institutional Group advised the seller, owner & developer Anish Hotels Group.

IHG Hotels & Resorts highlighted the continued expansion of its luxury and lifestyle portfolio within Mexico, Latin America and the Caribbean. With five openings to date in 2024 and another 32 properties currently in the regional pipeline, IHG is on track to more than double the MLAC presence of its six luxury and lifestyle brands in the coming years. Upcoming openings in the MLAC region include Six Senses Grand Bahama and Six Senses Xala, both expected to open by 2026. IHG will open the InterContinental Presidente Monterrey in Mexico in the second half of 2024, and the InterContinental Grenada Resort is projected to open in 2025.

Kimpton Hotels & Resorts continues its growth in MLAC, with the Kimpton Las Mercedes slated to open early this summer in the Dominican Republic and the Kimpton Tres Rios Riviera Maya before year’s end. IHG’s newest luxury and lifestyle brand, Vignette Collection, celebrated the brand’s first signing in Mexico and within the Americas with El Gran Encomendero in the Yucatan Peninsula, expected to open in 2025. Hotel Indigo expects to open Hotel Indigo Tijuana in Baja California, Mexico later this year. Further demonstrating IHG’s strategic focus and investment in luxury and lifestyle in the region, three milestone signings were recently announced in Turks & Caicos for InterContinental, Kimpton and Hotel Indigo, all poised to open by 2027.

IHG Hotels & Resorts announced the opening of its newest Staybridge Suites hotel in Southfield, Michigan. Featuring 112 suites and more than 650 square feet of meeting space, Staybridge Suites Southfield – Detroit is owned by Oakland Commons Midwest, LLC and managed by Emerald Hospitality.

A hotel near the Magnificent Mile in Chicago, IL, has traded for less than the previous owners’ debt years after it fell into financial distress due to the pandemic. According to CoStar, Formation Capital bought the 174-key Holiday Inn Express Chicago Magnificent Mile for $16.4 million. The previous owners, a joint venture of Oxford Hotels & Resorts and Gettys Group, owed nearly $21 million on a CMBS loan that matured in January. Special servicer LNR Partners took control of the property in December 2022. The sale includes the retention of the Holiday Inn Express brand and a long-term license agreement with IHG.

Pensacola News Journal reported that a five-story Holiday Inn Express hotel recently finished construction on North Davis Highway in Pensacola, Florida, and opened last week.

Sonesta International Hotels Corporation executed a deal for what will be the Costa Sur Resort – Classico, A Sonesta Collection hotel in Puerto Vallarta, Mexico. The 206-room oceanfront resort will undergo a renovation and be rebranded with the Classico brand, joining the Sonesta portfolio later this year. The upscale Costa Sur Resort & Spa is an all-suite resort featuring a private beach and ocean lagoon, two pools, a bar and a restaurant with ocean views.

SkyView Partners and Tegethoff Development broke ground in Osage Beach, Missouri, the site for the new Oasis at Lakeport family resort and entertainment district in Missouri’s Lake of the Ozarks. Oasis at Lakeport’s first phase, which includes the construction of amusement rides and attractions, restaurants and a 200-slip marina, plans to open in Summer 2025. The second phase of Oasis at Lakeport will include the construction of the 402-room Marriott Resort and Conference Center and indoor waterpark, planned for Fall 2026.

Vol for Life Company is planning a new hotel with restaurant, retail and event center in downtown Wheeling, West Virginia. Plans for the $63 million project include a restaurant and coffee shop on the first floor. Other floors will feature dedicated retail space, a 2,600-square-foot event center, 122 guestrooms, eight condominiums, and a rooftop bar and entertainment area. Work is slated to begin in December of 2024 and be completed in April of 2026.

Garn Development announced the opening of The Lodge at Zion Country in Springdale, Utah. The 132-room property is managed by Azul Hospitality Group. Hotel amenities include a seasonal outdoor pool and hot tub, a full-service business center and a fitness center. Coming soon is its signature restaurant, Scout Kitchen and Grill.

George Nediyakalayil, in partnership with NexGen Hotels, has purchased the Hotel Versey in Chicago’s Lakeview neighborhood, for $24 million. The previous owner is an affiliate of Garrison Investment Group. The hotel was managed by Oxford Hotels & Resorts. CBRE represented the seller in the sale.

Jellystone Park, in partnership with Warner Bros. Discovery Global Themed Entertainment, announced the opening of Yogi Bear’s Jellystone Park Camp-Resort Zion in Hurricane, Utah. The expansive luxury camping and glamping RV resort brings a new level of outdoor fun to the region. The all-new, 53-acre resort features glamping cabins and a water zone featuring two pools, multiple giant water slides, a splash ground with kiddie slides and a lazy river.

Gale Hospitality Group announced the grand opening of Gale Miami Hotel & Residences in Downtown Miami, Florida. Gale Miami features multiple food and beverage venues, and the Gale Miami Conference Center boasts more than 20,000 square feet of crafted space, including multiple conference rooms, breakout rooms and a grand ballroom. The property will also have three designated floors of exhibition space, each with a floor plate of 40,000 square feet. The hotel will offer a Gale Wellness program featuring amenities such as a co-ed hammam, steam room and sauna, fitness facility, yoga lounge, terrace and treatment rooms.

Earlier this month, the development permit panel approved Landa Global Properties’ proposal to redevelop a 3.5-acre site on Elmbridge Way in Richmond, BC, Canada. Replacing existing warehouse buildings, there will be three buildings up to 15 stories, with the primary use being residential, with a total of 376 homes. Additionally, there will be a hotel with 214 guestrooms and 15,000 square feet of ground-level retail and restaurant space. There will be over 8,000 square feet of indoor amenity spaces and about 34,000 square feet of landscaped outdoor amenity space on the base podium’s vast rooftop, including various shared areas between residents and hotel guests, featuring an outdoor pool and other separate areas just for residents. The complex will also host 675 vehicle parking stalls and 782 bike parking spaces.

JLL’s Hotels & Hospitality group arranged the sale of the Hampton Inn & Suites Columbus Easton, a 145-room, select-service hotel in Columbus, Ohio.

Driftwood Capital provided $34.8 million in mezzanine financing for the refinancing of Miami Airport Marriott Connection, a Marriott-branded complex with three hotels near Miami International Airport. Through its lending fund, Driftwood Lending Partners, LP, the firm provided financing to an affiliate of Cerberus Capital Management and Highgate. Driftwood originated a two-year loan with three-one-year extension options at a competitive interest rate. The loan collateral is comprised of a 371-key full-service Marriott, a 301-key Courtyard by Marriott and a 164-key Residence Inn by Marriott in Miami, Florida.