Braemar and Blackwells Come to an Agreement

The DJIA fell 24 points on a holiday shortened session. Nasdaq was up 160, the S&P 500 was up 28 points and the 10 year treasury yield was dropping .09 to 4.35%. Lodging stocks were modestly higher. AHT was up 10%, getting the rally BHR probably should have had on the Blackwells news. SOND was down -5%. On the day.

In a surprise move, Braemar Hotels and Blackwells Capital have buried the hatchet, coming to an agreement that will end the proxy battle. BHR announced a cooperation agreement between the two where Blackwells will withdraw its direction nomination notice and proposals and vote in favor of all BHR directors and proposals at the 2024 Annual Meeting of Stockholders. Agreements were also reached to release all legal claims. Blackwells also committed to purchase 3.5 million more shares of BHR in the open market, financed in part by BHR. BHR will also add an additional independent director to its Board of Directors and will consider Blackwells’ input in this selection. Blackwells said they look forward to becoming one of BHR’s largest shareholders.

STR reported US hotel data for the week ended June 29. US hotel RevPAR jumped 6.9% with rates and occupancy up 3.6% and 3.2% respectively. Group RevPAR was up 26.4% year on year. The gains in group RevPAR was attributed to Pride parades across the country.

Certares and HHM Hotels have acquired the Carte Hotel San Diego Downtown Curio Collection by Hilton. Nestled in the heart of San Diego’s bustling Little Italy neighborhood, the Carte Hotel features 246 oversized guestrooms, an expansive rooftop bar/lounge, an outdoor pool deck, a lobby restaurant and a 25,000-square-foot athletic club. Certares and HHM worked directly with the seller, Carte Hotel Partners, on a successful transaction. Carte Hotel Partners will reinvest in the new ownership entity, positioning themselves for the next stage of growth at the property. Please disregard yesterday’s story on Certares and HHM Hotels teaming up on a Courtyard San Diego property as that was a previous story. The Carte Hotel San Diego Downtown, Curio Collection property is the new one the two teamed up on.

510 Hospitality LLC is planning a new Hilton-branded Homewood Suites Hotel at the Hilltop area of Richmond, California. The five-story hotel will feature 103 guestrooms, an outdoor seating area, fitness room, conference room and bicycle storage lockers.

IHG Hotels & Resorts, in collaboration with owner YOG Hospitality, LLC, announced the opening of a new-build Holiday Inn Express & Suites hotel in Pensacola, Florida. The Holiday Inn Express & Suites Pensacola Airportfeatures 114 guestrooms, an indoor heated pool and a fitness center.

The Grange Dundee Hills, a new farmhouse-inspired Grange Winery, and the owner’s residence, Grange Estate, has officially opened in the heart of Willamette Valley, Oregon, as the newest addition to Foley Entertainment Group’s growing hospitality portfolio. Available exclusively to members of the Foley Food & Wine Society, Grange Estate features nine guestrooms, onsite dining, and a wellness studio.

A $175 million upscale hotel project calls for a new 27-story tower in downtown Louisville, Kentucky. Zyyo confirmed its plans to build the tower at 2nd and Market Streets, taking over the site of the former EMW Women’s Surgical Centernext to the Kentucky International Convention Center. The project, called One Forty West, calls for a 300-room hotel with a rooftop bar and a pool. A restaurant is planned for the first floor and more than 12,000 square feet of ballroom and meeting space are planned for the second floor. Groundbreaking is scheduled for 2026, with the project set to open in 2028.

A developer plans to build an apartment complex and hotel in the Scott’s Addition neighborhood of Richmond, Virginia. Capital Square aims to raise $77 million in equity from investors. The plan is to build 220 traditional apartment units and 100 furnished luxury apartment hotel rooms in a six-story building with ground-floor retail.

Personnel Moves

Corendon Hotels & Resorts announced the appointment of two seasoned industry executives to key leadership positions. Atacan Uslu has been promoted to managing director and will work alongside Niels Brugman, who joined the team as sales director. Atacan Uslu is now responsible for all brand operations, including financial management and overseeing Corendon’s general manager team. He will also place a special focus on strategic initiatives, such as enhancing sustainability efforts across the hotels and expanding the brand’s portfolio in Europe. His previous responsibilities for the brand included providing leadership oversight, managing budgets, and building a healthy workforce. Niels Brugman will lead the sales team across the meetings and events, corporate transient, leisure, apartments and extended stay segments. He is responsible for developing proactive and reactive sales strategies, as well as implementing strategic pricing programs. Brugman also is now responsible for leading the brand’s marketing team, including the development and management of integrated marketing, PR, and social media strategies. Brugman brings extensive experience to his role, having served as regional director of sales at Maritim Hotelgesellschaft GmbH, director of sales at Hotel van Oranje, and sales manager at WestCord Hotels.

Civeo Corporation announced the appointment of Andrew S. Fraser as President, Canada, effective August 19, 2024. He succeeds Al Schoening, Senior Vice President, Canada, who will retire after serving 13 years at Civeo. Mr. Schoeningwill work closely with Mr. Fraser to ensure a smooth transition and is expected to remain a consultant for the company for a period after his retirement. Mr. Fraser most recently served as CEO and Executive Chair of the Board of Directors of NCSG Crane and Heavy Haul and, prior to that, was CEO of Camex Equipment Sales and Rentals.

Coury Hospitality announced the promotion of Jennifer Burgess-Wright to Senior Vice President of Marketing & Digital Strategy. Known as the brand’s first Experience Curator, Burgess-Wright’s promotion finds her shaping the brand’s marketing and digital strategy to spark brand engagement and create a cohesive, impactful presence for Coury Hospitality as a trailblazer within the hospitality industry. Burgess-Wright was promoted from Vice President, Marketing & Digital Strategy.

Europe Highlights

CapitaLand Investment’s lodging business unit, Ascott, has formed a strategic alliance with S Hotels & Resorts, a subsidiary of Thailand-listed real estate company Singha Estate. The companies say the partnership will strengthen their portfolios in the UK while also enabling Ascott’s expansion in Europe. The partnership is expected to help the company achieve its target of THB11 billion ($405 million) in total full-year revenue this year. The partnership will enhance its presence in the UK through international management for hotels located in strategic locations.

Kaya Holdings has purchased the Great Northern Hotel in Kings Cross, London. The 88-key hotel was bought from a private equity investor and is branded under Marriott International’s Tribute Portfolio. Cushman & Wakefield acted for the seller. Kaya Holdings was advised by BlackGate and Fladgate LLP.