Corporate Travel Managers Expect Spending to Increase

The DJIA plunged 533 points, Nasdaq was down 126, the S&P 500 fell 44 points and the 10-year treasury yield was up .04 to 4.19%. Lodging stocks were lower. SOND was down -8% while BHR, VCSA, CLDT and HST were each down -5% on the day.

Hyatt Hotels Corporation is in advanced talks to acquire boutique hotel operator Standard International. Hyatt’s only comment to Bloomberg was that they remain committed to asset-light growth through both organic growth and strategic acquisitions. Standard International, developed by Andre Balazs, revealed its expansion plans last year, including opening 14 new hotels within the next five years. Currently, the company includes a collection of hotels in locations such as London, Ibiza, the Maldives, and Melbourne, among others.

According to Deloitte’s 2024 Corporate Travel Report, 73% of travel managers surveyed expect their companies’ travel spending to climb in 2024 amid rising prices and increasing trip frequency, and 58% expect it to increase in 2025, with those projecting gains expecting an average rise of 14-15% each year. Other key takeaways from the report include the following: Live events are among the top growth drivers for corporate travel, as 6 in 10 business travelers surveyed expect to attend a conference, trade show or exhibition this year. Client-related travel remains a top driver of trip frequency, as 1 in 5 frequent travelers say they travel for sales or project work more than once a month. Companies may look to mitigate costs through compliance tools. Travel managers surveyed report significant progress on the sustainability front. Return to work still influences travel as companies continue identifying opportunities for in-person interaction.

Two hotels in downtown Oakland, California are at risk of foreclosure just one year after they opened. The AC Hotel and Residence Inn by Marriott Downtown Oakland have allegedly defaulted on their loan payments and are not generating enough revenue to make future payments, according to a lawsuit filed in Alameda County Superior Court. Cook Children’s Health Care System filed the suit, seeking to foreclose on the property and appoint a receiver. Cook purchased the $101 million loan on the property in 2023 from Goldman Sachs. Hawkins Way Capital finished construction on the new 18-story dual-brand hotel last year and opened in May 2023. The suit alleges Hawkins failed to provide required financial reports and information for months.

Public spaces on the main floor of The Westin Houston Downtown Hotel will undergo a $3 million renovation. Owned by Tilman Fertitta, the hotel will begin the remodel in late September of this year and complete the work by March 2025. The project will include improvements to the lobby, office spaces and the fitness center on the first floor.

AC Hotel is close to opening a 239-room hotel in the historic Rialto building in downtown Kansas City, Missouri. The hotel franchise hopes to open in September and will be the second AC Hotel in the Kansas City area.

Braemar Hotels & Resorts Inc. has closed on the previously announced sale of the Hilton La Jolla Torrey Pines in La Jolla, CA for $165 million. The Company continues to evaluate the sale of two more hotels, subject to market conditions, to be completed in 2024 and 2025, respectively. The hotel was purchased by JRK Property Holdings through their $350 million Hospitality Fund.

The Hilton Sandestin Beach Golf Resort & Spa in Miramar Beach, Florida, announced the completion of its extensive $35M property-wide renovation, coinciding with the resort’s 40th anniversary. The first phase of the renovation introduced a complete redesign of all 590 rooms and suites across the resort’s two towers. The second and third phases of the renovation focused on revitalizing the resort’s six on-site dining outlets, three pools, beachfront deck space and the Serenity by the sea Spa. The resort’s meeting spaces have also undergone significant upgrades.

Aperture Hotels announced the successful re-opening of the 120-room Hilton Garden Inn Columbus in Georgia following a multi-million renovation. The newly refreshed hotel now boasts upgraded public spaces, guestrooms, fitness center and 3,500 square feet of flexible meeting space along with parking enhancements including EV charging stations.

Kimpton Hotels & Restaurants announced the opening of the Kimpton Claret Hotel in the Belleview Station area of South Denver. The newly-built, 19-story hotel features 190 guestrooms, a ground-floor restaurant and a bar, a rooftop bar, and 10,000 square feet of meeting space including two ballrooms, a boardroom, pre-function space and an outdoor terrace.

Thomas Zambetis is looking to build a four-story, 78-guestroom Microtel Inn & Suites by Wyndham Hotel in Berlin, Maryland.

Boxcar Development LLC submitted a proposal to redevelop the site of the former CSX building in downtown Indianapolis. The proposal envisions a new multi-use development that includes a Shinola Hotel, a music venue operated by Live Nation, new retail space and a spacious pedestrian sky bridge over Pennsylvania Street into Gainbridge Fieldhouse. Demolition of the $300 million project is expected to begin in the fourth quarter of 2024, and construction will be completed in 2027. Boxcar signed a letter of intent with Bedrock Manufacturing, which owns the Shinola brand, and Sage Hospitality Group, which manages the Shinola Hotel in Detroit. The Shinola Hotel will be housed in the new 13-story tower while offering a mix of 170 deluxe rooms and suites; indoor and outdoor terrace banquet, meeting and event spaces; a fitness center; upscale restaurant; bar; and Shinola retail store. Also planned for the project is a two-level below-grade parking garage.

TAFER Hotels & Resorts announced the launch of its hospitality management services. TAFER’s management services span all dimensions of hospitality, from architectural design, concept design, and resort management to residential and timeshare management, full-service marketing, and destination travel agency services. This significant milestone is marked by the signing and forthcoming assumption of management for three properties: Palmar Azul Beach in Mexico’s Riviera Maya, as well as Garza Blanca Resort & Spa Miches and Kairi Club Miches in the Dominican Republic. TAFER provides exceptional guest and owner experiences at modern, five-star resorts in premier beachfront locations throughout Mexico and the Caribbean. TAFER will re-open Palmar Azul Beach Resort Riviera Maya by TAFER, formerly Azul Beach Resort Riviera Cancun, in January 2025 in the heart of Mexico’s Quintana Roo, following an extensive renovation. Garza Blanca Resort & Spa Miches by TAFER, in the Dominican Republic, is a newly built hotel opening late in 2026. Kairi Club Miches by TAFER, an exciting new adults-only concept, will also debut in late 2026 in the Dominican Republic.

B&B Hotels has chosen Jacksonville, Florida as the second location in its U.S.expansion. Batipart, a global property development company, purchased the Diamond Inn Motel on June 6. B&B Hotels isn’t a franchising company and manages properties leased from a real estate investor like Batipart in the case of the West Jacksonville hotel and the group’s first open hotel in Orlando. Presently, the motel is closed and will be completely renovated. Following the completion of the renovation, the new hotel is expected to open in the beginning of 2025.

Ajay Dhar and Hardeep Anand have listed the 135-room Roaring Brook Ranch Resort in Lake George, New York, for sale, along with 240 acres that can be developed. The nearly 280-acre property is for sale at $10.5 million. Currently closed, the resort features one of the largest banquet spaces in the Adirondacks, a large restaurant, indoor and outdoor pools, horseback riding and hiking trails.

Smith Hill Capital, along with Bain Capital Special Situations, have announced their joint venture’s origination and execution of a $72 million first mortgage loan to KSL Capital Partners. The loan is designated to refinance the historic Hotel Viking, in Newport, Rhode Island. Hotel Viking, an iconic 208-room property, boasts amenities, including an indoor pool with a whirlpool, a fitness center, and over 14,000 square feet of indoor and outdoor event space.

The LCP Group announced its origination of construction financing for the Moxy Centennial Olympic Park, located in Atlanta’s downtown entertainment district. The project is being developed through a partnership between Nexera Capital and Emerge Hospitality Group. The 13-story, 183-room property will feature a rooftop restaurant and lounge, a lobby bar, and ground-level retail. The hotel is scheduled to open during the second quarter of 2026.

Personnel Move

Hotel Equities announced the promotion of Bill Stachler to Senior Vice President of Revenue Management. In his elevated role, Stachler will assume an expanded range of responsibilities that will further drive the company’s performance and growth. Stachler will lead the development and execution of cutting-edge data analytics and business intelligence systems, enhancing the company’s ability to make proactive and informed decisions. Additionally, Stachler will spearhead cross-departmental collaborations to identify and capitalize on emerging market trends, optimize pricing strategies, and maximize revenue opportunities.