Hilton Beefs Up Its Luxury Portfolio

The DJIA was down 53 points while the Nasdaq was up 26, the S&P 500 rose 4 points and the 10-year treasury yield was up .03 to 4.30%. Lodging stocks were mostly lower. VCSA was the big mover, down -5% today.

Jefferies lowered their target price on Wyndham Hotels & Resorts to $90 from $93.

According to STR/CoStar, U.S. May 2024 vs. May 2023 metrics are as follows: Top-Line Metrics (May 2024 vs. May 2023): Occupancy: 65.7% (+1.5%) ADR: $160.40 (+2.4%) RevPAR: $105.46 (+4.0%). Bottom-Line Metrics (May 2024 vs. May 2023): TRevPAR: $224.58 (+1.2%) GOPPAR: $83.80 (+0.3%) EDITDA PAR: $62.63 (+2.4%) LPAR: $75.00 (+3.3%). Key Points: RevPAR growth was the highest since March 2023. Bifurcated chain scale performance: The upper tier grew, and the lower tier fell. Weekday occupancy and ADR dominated. Total revenue growth was left to F&B and other operated departments. The lowest labor cost growth in the last 12 months has led to a very slight increase in GOPPAR. As they have in 16 of the past 17 months, the Top 25 Markets outperformed the rest of the country: occupancy (+2.8%), ADR (+2.1%) and RevPAR (5.0%). Growth was lower in all other markets: occupancy (+0.7%), ADR (+2.4%) and RevPAR (+3.1%). Strong performance by the Top 25 Markets was observable across many markets, particularly in six (Chicago, Houston, Minneapolis, New York, San Francisco and Seattle) where RevPAR increased by 10%. For a third consecutive month, the number of rooms under construction increased year over year. Pipeline leaders, Upscale and Upper Midscale continued their dominance and accounted for about 50% of all rooms in the final phase of the pipeline. Rooms under construction in the two segments have slowed compared to last year (+1.6% and -5.0%, respectively, while Midscale and Economy rooms in construction increased. Rooms in the planning phases continue to grow, with the final planning up 10.5% and planning increased 41.7%. More than 759,984 rooms sit in the pipeline, up 20.6% from last year.

Mumford Company has continued its strong sales performance in the first half of 2024, with multiple transactions closing in the second quarter. Some of their recent transactions include Holiday Inn Blacksburg-Christiansburg, in Christiansburg, VA; TownePlace Suites by Marriott Memphis-Southaven, in Southaven, MS; Best Western located in Murphy, NC; Clarion Pointe Greensboro Airport in Greensboro, NC; Sleep Inn/MainStay Suites located in Meridian, MS; Motel 6 Medical Center in San Antonio, TX; and Sleep Inn & Suites located in Smithfield, NC.

Hilton is dramatically expanding its portfolio of luxury hotel experiences with the addition of nearly 400 boutique properties from the Small Luxury Hotels of the World collection. Since the announcement in February, 390 SLH properties have opted to join into the partnership with more hotels expected to be added as the SLH and Hilton relationship grows.

The Hotel Group, in partnership with TE Miller Development, LLC, broke ground on the Home2 Suites by Hilton in Kalispell, Montana. The 107-room property will feature inviting communal spaces, an indoor pool, a fire pit, and a grill area, and trademark Home2 Suites amenities such as Spin2 Cycle, Home2 MKT, and the Inspired Table.

Crescent Hotels & Resorts has entered into a management agreement with an affiliate of Comstock Holding Companies, Inc., covering the JW Marriott at Reston Station. The new hotel, Virginia's first JW Marriott, will anchor the latest phase of development at Comstock's Reston Station. The JW Marriott at Reston Station is a 28-story high-rise. Above the 12-floor, 243-room hotel will be 94 JW Marriott-branded condominiums that recently opened for sale. Comstock appointed Marriott International as the condominium manager. Scheduled to open in mid-2025, the JW Marriott at Reston Station will feature a JW Club, fitness facility, fine-dining restaurant, a signature bar, and a café. The hotel will also offer 25,000 square feet of premier event space.

The Harrison Group announced the acquisition of the Holiday Inn & Suites Virginia Beach - North Beach, an oceanfront resort located on the Virginia Beach Boardwalk. The hotel has 238 guestrooms and suites, four pools, a lazy river, a hot tub, three onsite dining options, 48-seat theater and full-service event spaces.

IHG Hotels & Resorts recently celebrated the opening of a newly built Holiday Inn hotel near Zion National Park in southwestern Utah. Owned by Zion Hotel Group, LLC and managed by R&R Development, Holiday Inn La Verkin offers 117 rooms, 1,630 square feet of meeting space, a fitness center, outdoor pool and hot tub.

The Admiralty Inn & Suites, part of Red Roof's The Red Collection, has officially opened in East Falmouth, Massachusetts. The 97-room hotel offers a business center, onsite fitness facility, a heated indoor pool, and a seasonal outdoor pool. Admiralty Inn & Suites, The Red Collection - East Falmouth, MA is owned by Sai Vani Corporation and recently completed a renovation of all hotel rooms, hallways, pools, and common areas.

B&B Hotels, the fastest-growing and second-largest hotel chain in Europe, has completed its second US deal for a hotel in Jacksonville, Florida. The B&B Hotel Jacksonville comprises 156 rooms and is set to open in the first quarter of 2025 following a comprehensive renovation. B&B Hotels previously opened its first US hotel in Orlando, Florida, just four months ago. The brand's inaugural US hotel comprises 218 rooms and is located near Universal Studios. B&B Hotelscollaborated with real estate partner Batipart to deliver the project, and the hotel underwent a comprehensive renovation.

My Place Hotels of America has opened My Place Hotel-Mitchell, SD. Mitchell Holdings LLC developed the hotel, which is managed by Venerts Hotel Management, Inc. The 63-key property is outfitted with standard My Placeamenities, including a My Store market, laundry facilities, a business center and a grilling pavilion.

Hunter Hotel Advisors announced the sale of the Hyatt Place Las Vegas. Greens Development purchased the property. Hunter represented the institutional seller. The Hyatt Place Las Vegas offers 202 keys, a fitness center, outdoor pool and three onsite dining experiences.

JLL Capital Markets arranged a $430 million refinancing for Fairmont Austin, a 37-story hotel in downtown Austin, Texas. JLL Capital Markets represented Manchester Financial Group in securing the five-year, interest-only, fixed-rate SASB CMBS loan, with Goldman Sachs acting as a lead manager and sole bookrunner. The all-mortgage financing package was used to replace a $300MM senior loan and $125MM of mezzanine debt. Developed by Manchester Financial Group, Fairmont Austin features 1,048 guestrooms and suites, nearly 140,000 square feet of meeting space, a full-service spa, five food and beverage outlets, an outdoor resort-style pool deck and a grand pedestrian walkway providing direct access to the Austin Convention Center.

Sotherly Hotels Inc. has executed a secured loan with Fifth Third Bank, collateralized by the DoubleTree by Hilton Jacksonville Riverfront Hotel in Jacksonville, Florida. The loan, which carries a floating interest rate based on SOFR plus 3.0%, has an initial principal balance of approximately $26.25 million, with an additional $9.49 million available to fund a product improvement plan. The company also announced it entered into a new 10-year franchise agreement with Hilton Worldwide to re-license the hotel as a soft-branded DoubleTree by Hilton under the name Hotel Bellamy. As part of its relaunch efforts for the hotel, the company will undertake a completed renovation of the property, with a cost of approximately $14.6 million and an estimated completion date of January 2027. Renovation plans for the property include a complete re-imagining of its guestrooms, public spaces, building exterior, pool and sun deck, existing food and beverage offerings, as well as the addition of a new riverfront dining concept.

Personnel Moves

Minor Hotels Europe & Americas, formerly NH Hoteles, has appointed Ana Munoz Sanchez as CFO. Munoz was the senior vice president of corporate reporting and financial information at the hotel chain. The new CFO will be in charge of defining and implementing the corporate financial strategy in more than 30 countries in Europe and America, where the company operates, and will be a member of the board of directors.

Arch Amenities Group announced the appointment of travel and hospitality veteran Michael Leahy as Chief Financial Officer. Leahy previously was Senior Vice President and head of finance, accounting, HR and IT for Kost Inc./Go New York Tours Inc.

Hospitality Ventures Management Group announced that Ron Fader has been named Senior Vice President, Finance and Accounting. In his new role, Faderwill ensure excellence in the hotel's day-to-day financial accounting, financial reporting, cash flow planning, and management activities while bolstering the accounting and finance team to help support future growth. Fader was most recently Senior Vice President of Finance & Accounting with Atrium Hospitality.

Brittain Resorts & Hotels announced the appointment of Brittney Jones as Chief Development Officer. In her new role, Jones will oversee the expansion of BRH'sportfolio through strategic third-party management contracts, leveraging her extensive experience in business development and sales and her established industry relationships. Prior to assuming a position in development, Jones most recently was Vice President of Strategic Partnerships with the Raines Company.

Europe Highlights

Hilton announced the opening of DoubleTree by Hilton Nice Centre Iconic in Nice, France. Nestled on the French Riviera, the hotel boasts 105 guestrooms, a fitness center, and event space. A bar and a restaurant. The hotel is the third Hiltonproperty to open on the French Riviera since the brand debuted in the region last year.

Virgin Hotels announced its first London hotel to open on August 1 in the heart of Shoreditch. The 120-bedroom hotel will form part of a long-term agreement between Virgin Hotels and Reuben Brothers.

Scandic signed a long-term lease agreement for two new Scandic Go hotels in Gothenburg and Umea, Sweden. The hotels are expected to open in 2026 with a total of 276 rooms. Scandic will add 176 hotel rooms to the Lilla Bommen district in Gothenburg, where existing office space will be converted into a Scandic Go. In Umea, an entire office building will be converted into a Scandic Go with 100 rooms. The long-term agreement for this hotel was signed with property owner Dios.

Bob W has exchanged contracts to launch a 67-unit serviced apartment building in Vienna, making its first opening in Austria. The operator has signed a long-term lease agreement with Peter Pilz & Partners Projektentwicklungs GmbH for a 2,000-square-meter building. Construction has already started and the property is scheduled to welcome its first guests in 2025.