Pebblebrook Boosts EBITDA Outlook

The DJIA surged 654 points on Friday while Nasdaq was up 176, the S&P 500 rose 60 points and the 10-year treasury yield was down .06 to 4.20%. Lodging stocks were higher. SOND led with a 6% gain but BHR traded up 5% to a new high. Selina delists on Monday.

In Thursday's coverage of Pebblebrook Hotel Trust's earnings report, we focused so much on their commentary about leisure and group travel that we left out that they increased their 2024 EBITDA and AFFO outlook despite reducing their RevPAR outlook. While PEB is cautious about the rest of 2024, they are looking at 2025 being stronger. It really is about rate in the second half of the year for the reduced RevPAR outlook, offset by strong out-of-room spending from increased occupancy and significant remerchandising efforts across their redeveloped portfolio.

Canada's hotel industry achieved continued performance gains through ADR, according to CoStar's June 2024 data. June 2024 (percentage change from 2023): Occupancy: 74.5% (+0.5%) ADR: CAD231.04 (+3.7%) RevPAR: CAD172.10 (+4.2%). Among the provinces and territories, Newfoundland and Labrador recorded the highest occupancy level (82.8%), 4.6% below 2023. Among the major markets, Toronto saw the highest occupancy (84.7%), up 1.5% over June 2023. Despite this increase, ADR declined for the second consecutive month, primarily due to a 5.6% decrease in transient rates. The lowest occupancy among provinces was reported in Saskatchewan (63.3%), up 0.4% against 2023. At the market level, the lowest occupancy was reported in Edmonton (+7.5% to 62.26%).

Crescent Hotels & Resorts announced the management of a dual-branded hotel development, in the Norterra neighborhood of Phoenix, Arizona, the 184-room AC Hotel by Marriott North Phoenix at Norterra and 94-room Element by Westin North Phoenix at Norterra. The project broke ground in May 2024 and is expected to open in late 2025. This venture is a collaborative effort between Jackson Saw and Holualoa Companies.

InterContinental Hotels & Resorts announced the opening of InterContinental Bellevue at the Avenue in Bellevue, Washington. The 208-room luxury hotel, situated within the $1b+ Avenue Bellevue complex developed by Fortress Development, marks the brand's debut in the Pacific Northwest. The property offers multiple food and beverage venues and the conference center, connected by a sky bridge to the hotel, features 12,000 square feet of versatile indoor and outdoor event space.

New Waterloo is planning an early November opening of the 105-room Albert Hotelin Fredericksburg, Texas. The $25 million project will also include a lobby restaurant, an outdoor pool, a fitness center, a spa, and a two-level 160-space parking garage. The property will host events, with a 3,600-square-foot event space, a 1,200-square-foot mezzanine deck, and an event lawn.

Construction on the Legacy Hotel, in Medina, Ohio, will soon be underway, with an opening by the end of 2025. The four-story structure will have 77 guestrooms and suites, over 110 parking spaces, indoor and outdoor meeting space, three distinct food and beverage outlets and an event venue. Riley Hotel Group will manage the hotel.

Shenandoah Mansions, the fifth hotel from hotelier Ash, launched reservations ahead of its February 2025 opening in Richmond, Virginia. Owned and designed by Ash, Shenandoah Mansions is a red brick, 73-key hotel inhabiting a six-story historic apartment building. The property offers two bars, an intimate exterior garden, and an all-day dining concept.

Sandpiper Hospitality has started construction on an ECHO Suites Extended Stay hotel in Reno, Nevada. The four-story, 100-suite property is valued at $10 million and is slated to be completed in summer 2025.

Hodges Ward Elliott said they arranged the $30 million, fee-simple sale of the Lorien Hotel & Spa, a 107-room, six-story luxury hotel in Alexandria, VA. HWE represented the seller, Xenia Hotels & Resorts, in the deal.

Personnel Moves

Both American Hotel Income Properties REIT and Ashford Inc. announced the sudden passing of W. Michael Murphy. He had been Chairman of AHIP and a key member of the Board of AINC while being a veteran of the hospitality industry.

Bryan Terzi is the new Chief Marketing Officer at AutoCamp. Bryan will spearhead the ongoing expansion of AutoCamp and enhance the outdoor hospitality experience. Bryan previously served as Group Vice President of Marketing at Sage Hospitality.

International News

Hilton announced the signing of Hampton by Hilton London Heathrow Bath Road, marking the brand's debut at Europe's busiest airport as part of a franchise agreement with Acre Hotels Ltd, part of the Westcombe Group. The 157-room hotel will offer onsite parking and Hampton by Hilton's signature amenities including flexible communal spaces and a retail market.

Warner Hotels revealed an exciting new rebrand, to be rolled out across its collection of unique country and coastal properties. The rebrand is the latest milestone in Warner Hotels' growth journey, which has seen it invest £200m since it was acquired by Blackstone in 2021, to renovate, refurbish and expand its portfolio. This includes the 180-room Runnymede on Thames hotel, in Windsor, set for its grand reopening in late 2024. The new Warner Hotels' brand identity will be rolled out through a multi-channel marketing campaign and across properties in the coming months.

Coral Sands Hotel, a beachfront resort on Harbour Island, Bahamas, announced it is embarking on a transformation following its new ownership by AJ Capital Partners earlier this year. A multi-phased restoration is underway, initially focusing on revitalizing guestrooms and public spaces. The property will reopen in December 2024.

The Ascott Limited has unveiled plans to reflag the stadium hotels at Chelsea Football Club and open half a dozen new properties across the UK and Franceunder its stable of brands. Unveiling a four-year, worldwide partnership with the football club, Ascott added that while its primary focus will be the refurbishment of the Millennium & Copthorne stadium hotels, set to be repositioned to Ascott's lyf brands, the deal signed with the Premier League side will also see Ascott offer sporting packages to its loyalty members worldwide. Ascott is also enthusiastic about expansion opportunities in Europe, perhaps no more so than in the UK, home to four of five further openings announced. Ascott has signed new properties in Colmar in France, as well as Edinburgh, Glasgow, Leicester and Manchester in the UK. The majority will be conversion projects, largely to its brands lyf or The Unlimited Collection. While it pursues new openings in the Midlands and UK North, it is repositioning its London properties to match evolving guest needs. After the successful opening of Citadines Islington London, the brand is working on the revamp of Citadines Holborn-Convent Garden London. In Mayfair, its flagship four-star, The Cavendish London, will slowly be converted into a five-star property from the first quarter of 2025, its is repositioned under The Crest Collection banner.

Warwick Castle unveiled its new medieval-themed hotel, the Warwick Castle Hotel, in Warwick, UK. Set in the heart of the castle's 64-acre grounds, the hotel boasts more than 60 medieval-inspired rooms. Other accommodations on site include the Knight's Village Lodges, Glamping and Caesar's Tower Suites.

Las Torres Patagonia announced the evolution of Hotel Las Torres located in Torres del Paine National Park in Patagonia, Chile. The transformation of the 74-room Hotel Las Torres, owned by the Kusanovic family, will be unveiled alongside the upcoming season, which commences October 1, 2024. The architect and interior designer team chose a variety of furniture, décor and design elements inspired by the Torres Del Paine, including replacing carpet with porcelain tiling; and the bed and head frame are a focal point of the rooms. The bathrooms will also play a key role in the new era at Hotel Las Torres, leaving aside classic bathtubs for modern showers with glass doors. Over the next year, Las Torres Patagonia will continue to make updates to the property, extending the renovation to the Coiron Restaurant, Pioneer Bar, and other public spaces around the property.