Marriott Expands Branded Residences Globally

Baird conducted the fourteenth edition of their Investor Sentiment Survey. The survey of buy-side investors found that consensus on the hotel space remains negative, with 59% having an Underweight sector positioning. That is better than the prior survey, which was before 1Q24 results. Host Hotels was selected most often as a high conviction long idea, with 26% picking them, followed by Ryman and Sunstone, both with 19%. SHO and Apple Hospitality saw the biggest increases since the last survey, with Park Hotels declining the most. Baird said Pebblebrook Hotel Trust had 30%, saying they were short, followed by PK, which had 19%. Hilton and Wyndham were selected most often as the ownership brands. Baird said that compared to 90 days ago, approximately half the respondents have a more bearish sector view versus only a quarter that identified as more bullish.

The Baird Hotel Stock Index was up by 4.4% in June, reversing two prior months of declines. The hotel brand sub-index was up 5.8%, while the Hotel sub-index was down -1.7%.

Some of you, particularly the ones who purchased Selina Hospitality stock the first two days they were trading, may have been holding out hope for a miracle. SLNA filed a 6K with the SEC, and the main statement was that their board had resolved that the company no longer had any reasonable prospects of avoiding insolvency. The stock traded near $50 on its first day of trading back in late October 2022 and just days later was all the way down in the $4 range. This was clearly one of, if not the biggest SPAC disaster in history. The subsidiaries continue operating while the parent company tries to figure out its next move.

Marriott International, Inc. announced the continued growth and global leadership of Marriott Branded Residences, along with enhanced Residence Owners benefits through ONVIA, the company’s newly integrated Owner recognition platform. Marriott Branded Residences offers development licensees a unique opportunity to generate added value with the world’s largest hospitality and branded residences company. Developers benefit from buyer confidence driven by Marriott’s renowned hospitality expertise, powerful brands, and long-term agreements. With Marriott, developers can also expect to benefit from strong brand affinity and buyer confidence from potential Residence Owners across the Marriott Bonvoy portfolio. A dedicated team of residential experts providing support across development, operations, sales and marketing. Expert technical services and pre-opening guidance. Support from best-in-class global design team and established partnerships with some of the world’s most preeminent design firms, and seamless integration with hotel systems and programs with co-located projects. Earlier this month, Marriott announced the launch of ONVIA. The platform is designed to elevate experiences for Residence Owners, whether they are staying at a Marriott Bonvoy hotel, are aboard The Ritz-Carlton Yacht Collection, or enjoying their day-to-day life while in Residence. Marriott is confident the fully integrated program provides world-class, exclusive offerings, including, but not limited to, elevated Marriott Bonvoy status for Residence Owners. Preferred Residence Owner rates for select hotels within the global Marriott Bonvoy portfolio. Special offerings and preferred access on voyages with The Ritz-Carlton Yacht Collection. Exclusive offers on culinary experiences when at home. A focus on wellness, including spa and treatment offerings, and access to a world-class accredited concierge service. Consumer demand has fueled Marriott’s expansion of its branded residences portfolio to exciting and growing markets around the world. New open and pipeline projects worldwide include 27 open and 41 in the pipeline in Europe, the Middle East and Africa; Asia Pacific excluding China with 17 open and 11 in the pipeline; United States and Canada with 76 open and 35 in the pipeline; and 16 open and 25 in the pipeline in the Caribbean and Latin America.

A new, dual-branded hotel recently opened in the Uptown area of Albuquerque, New Mexico. Half of the property is dedicated to TownePlace Suites by Marriott, offering 63 rooms with full kitchens, while the other half features the Fairfield Inn by Marriott with 86 standard rooms. Sun Capital Hotels spearheaded the project. Prime Hospitality began constructing the 149-room hotel last year.

Sonesta International Hotels Corporation announced the opening of Costa Sur Resort, Classico Collection by Sonesta. The 206-room, upper-upscale property is located on a private beach south of Puerto Vallarta, Jalisco, Mexico. The opening of Costa Sur Resort, Classico Collection by Sonesta is significant for Sonesta as it is the first property in Mexico and the second Classico.

Standard International is entering the luxury segment with the launch of a brand called The Manner. Anticipated to debut in New York’s SoHo neighborhood in September, the 97-room property will feature four food and beverage concepts.

A new boutique hotel about to open in Litchfield, along with another planned in Middletown and two heavily upscale hotels coming to Mystic and Westport, indicate Connecticut’s hospitality industry is bouncing back from the pandemic but with a different emphasis than before. The niche for smaller, ultra-stylish hotels is drawing plenty of action this year, with developers constructing or proposing nearly a half-dozen across the state. The demand for large, mid-market hotels catering to weekday business travelers, conventions, class reunions, and similarly large events still appears significantly weaker than before 2020. There are exceptions, but most new hotel development in Connecticut over the past few years has focused on boutique hotels and small, heavily upscale operations. In Litchfield, Lexington Partners is finishing work on the conversion of the historic courthouse into the 20-room The Abner boutique hotel, which is anticipated to be a pricey destination when it opens later this summer. Middletown earlier this month approved Brill Hospitality’s proposal to convert two vacant South Main Street buildings into The Doug, a 20-room boutique hotel. Later this year, upscale chain Delamar plans to open locations in Westport and Mystic. The one in Mystic will have 31 rooms and suites while the Delamar Westport will have 86 guestrooms.

Personnel Moves

Wyndham Hotels & Resorts announced the expansion of its Middle East and Africa development team. Charl Nel and Jean-Claude Abi Khalil have been newly appointed as development managers for the Middle East & Africa, based in Wyndham’s regional headquarters in Dubai, UAE. Having held previous roles in companies like Hilton, Radisson Hotel Group and TUI Group, Nel was responsible for driving multiple hotel growth through management and franchise agreements across various regions. His focus areas include Southern, Eastern, and Central Africa, in addition to the Gulf Cooperation Council region, leveraging his deep understanding of these markets. Jean-Claude Abi Khalil has a robust background in hotel operations, sales and asset management. Abu Khalil’s focus will include Western and Northern Africa, in addition to the GCC region, where his operations experience will be invaluable. The expanded team will focus on key markets in the GCC, including Saudi Arabia and the UAE, as well as targeted regions in Africa such as Egypt, Nigeria, Morocco, Ghana, South Africa, Tanzania, Kenya and Ethiopia.

Crescent Hotels & Resorts appointed Paul Bushman as its new Senior Vice President of Technology and Enterprise Solutions. Prior to joining Crescent, Paul held the position of Senior Vice President, Enterprise Solutions at Aimbridge Hospitality.

Kessler has welcomed brand and communications executive Angela Showley as Vice President of Marketing & Revenue. In this role, Showley is responsible for leading the brand’s marketing strategies in addition to overseeing revenue generation across its entire hospitality portfolio, including Kessler’s Grand Bohemian brand. Most recently, Showley oversaw the marketing and public relations department for the leading luxury tour operator Classic Vacations.

Europe Highlights

One of London’s most luxurious and historic hotels, The Savoy, is undergoing a big renovation of its interiors this summer and will sell off items it no longer needs amid the spruce up, according to Pro Auction, the company handling the sale. The renovation is expected to start at the end of August and last four months. The main focus will be the heart of the hotel, including the so-called Thames Foyer and the Upper Thames. The sale will include many items from the Savoy’s “Personality Suites” along with autographed portraits and framed artwork. The hotel will sell the memorabilia in phases while it stays open during the renovation. There will be 1,800 articles for sale in the initial phase, with Pro Auction handling three more in the future.

Seamill House Hotel in North Ayrshire, in Scotland, has been sold to Suraj Thapa, who selling agent Christie & Co noted “currently operates hotels in Scotland”. Christie & Co noted that the off-market sale of the hotel came within a year of Seamill Hydro, on the same street, changing hands.