New York City Targets Hotel Labor Sub-Contracting

The DJIA fell 49 points, Nasdaq was up 12, the S&P 500 rose 4 points, and the 10-year treasury yield was down .02 to 4.18%. Lodging stocks were modestly higher. BHR traded up to a new 52 week high but AHT was down -7% on the day.

A new bill that would regulate New York City’s nonunion hotels is sending shock waves through the lodging market, where hotel owners say it will upend their business, according to the Wall Street Journal. The proposed legislation would ban nonunionized hotels from contracting out most of their functions, such as housekeeping, cooks and bartenders, and security, which many of these hotel operators now outsource. Subcontracted agency staff typically earn less than full-time hotel employees. Officials in the Hotel and Gaming Trades Council, the union representing hotel staffers, say the bill is necessary to protect workers and shut down a small subset of hotels rife with drugs and trafficking. Around 30% of New York City’s more than 120,000 guest rooms are in nonunionized hotels. This bill would have the greatest impact on those hotels. The bill is headed for a July 30 public hearing.

The 13-story hotel planned as part of Marriott’s Autograph Collection brand, by White Lodging, could kick off demolition and construction in downtown Austin, Texas before the end of the year. Slated for completion in mid-2026, the 258-room hotel will replace two storefronts dating back to the 1920’s.

The Palmetto Marriott Resort and Spa opened on July 22 in Palmetto, Florida. The resort connects with the Bradenton Area Convention Center and will create a combined 140,000 square feet of indoor and outdoor meeting and events space once the convention center’s renovations are completed in 2025. The eight-story hotel features 252 guestrooms, various dining and drinking options, two resort-style pools and a spa and a fitness center. The hotel also includes the Yard at SoBay Center, a 40,000 square foot event space, on the grounds.

IHG Hotels & Resorts announced the opening of its newest addition to its Candlewood Suites portfolio, Candlewood Suites Trois-Rivieres West. The 111-room hotel features self-service laundry, an indoor heated pool and a fitness center. Developed by Groupe Robin, the property is IHG Hotels & Resorts’ first dual-brand hotel in Quebec, sharing a reception with the Holiday Inn Express & Suites.

Lark Hotels announced the opening of AWOL Stowe this July, the third iteration of their emerging brand, AWOL, in the heart of Stowe, Vermont. The property features 35 guestroom and suites, including six free-standing A-frame cabins; an outdoor Nordic spa deck with a cold plunge pool, outdoor hot tub, cedar sauna and roaring fire pits; and an onsite restaurant and four-seat bar.

The historic Wentworth Mansion in Charleston, South Carolina, can now be booked through Hilton’s membership and honors program. For the last two decades, the 21-room inn, housed in a landmark building and owned and operated by Charming Inns of Charleston, has been the only property in the Southeast to join Small Luxury Hotels of the World. Hilton Worldwide Holdings recently formed a partnership with the group to offer its members new ways of staying in intimate spaces and unique places.

The Dream Hotel Louisville, a 169-room development slated to be built on Main Street in Louisville, Kentucky, is indefinitely on hold, the Louisville Metro Cabinet for Economic Development confirmed to Louisville Business First. Multiple sources previously told LBF that the more than $100-million project could be scrapped. The Louisville Metro Cabinet for Economic Development did not provide a reason for why the project is on hold, except to say it was the developer’s decision. Dream Louisville was developed by Royal Investments LLC, which is owned by Alex Marks. The hotel was to feature four original food and beverage options, including a signature restaurant and rooftop lounge.

The Grand Sierra Resort released new renderings of its proposed project to build a $1 billion entertainment district in Reno, Nevada, which would include a new arena for the Nevada men’s basketball team. The Reno Area, which would be home of Nevada’s men’s basketball team and a potential AHL hockey team owned by GSR’s Alex Mereulo, would include a 10,000-seat area, a satellite ice rink, a dedicated parking garage, a fan zone, workforce housing and more.

Paramount Lodging Advisors announced the sale of the 57-room Fairfield Inn Middletown Monroe located in Middletown, Ohio. The company also announced the sale of the Extended Stay America Auburn Hills, in Auburn Hills, Michiganand the 124-room Candlewood Suites Syracuse Airport in North Syracuse, New York.

Cronheim Hotel Capital has secured $10M to refinance the prior debt on the Fairfield Inn & Suites in Downtown Pittsburgh, Pennsylvania. The financing was originated with a private conventional lender. The floating rate, non-recourse loan was structured with flexible prepay and a floor allowing the Owners to take advantage of downward rate movement. Sponsorship is a joint venture partnership between Blue Vista Capital, Woodmont Lodging, and Milestone Hospitality Management.

Personnel Moves

Loews Corporation announced that on December 31, 2024, James Tisch will retire as President and CEO and will be succeeded by Benjamin Tisch, current Senior Vice President of Corporate Development and Strategy. As part of the leadership transition, James Tisch will become Chairman of the Board of Directors, and Benjamin Tisch and Lowes’ Hotels & Co’s CEO Alexander Tisch will join the Board. Also, Andrew Tisch and Jonathan Tisch will transition from Directors to Directors Emeriti. Ben Tisch joined Loews in 2011 as a member of the company’s investment departments. He was then promoted to Vice President in 2014 and then to Senior Vice President, Corporate Development at Strategy in 2022. Prior to joining Loews, Ben was a Managing Director at Fortress Investment Group.

Warner Hotels announced that David Murdin has been appointed as Chief Marketing Officer. Murdin brings a wealth of experience from his leadership roles at British Airways, Sky Sports, Whitbread, Costa Coffee and Wagamama, among others. A newly created role for Warner Hotels, Murdin’s appointment aims to bolster its brand and commercial achievements as part of an ambitious growth plan for the coming years. As CMO, Murdin will be an integral member of the Warner Hotels Brand Board. Murdin will have overall responsibility for brand, insight, proposition development, marketing, PR and communications.

Dreamscape Hospitality announced the appointment of Christina Pedersen as Vice President of Sales and Marketing. In this role, Pedersen will oversee strategic initiatives to drive revenue growth and elevate the guest experience across Dreamscape’s diverse portfolio. Pedersen comes to Dreamscape Hospitality from NewcrestImage, where she most recently served as Vice President of Asset Management.

Europe Highlight

Boutique operator Another Place is poised to relaunch The Machrie Hotel on the Isle of Islay, Scotland. The Machrie will become the second hotel in the group’s portfolio when it relaunches on August 1. The hotel, which offers a world-renowned links golf course, will offer a range of new features and menus when it reopens. The hotel, which has 47 rooms, suites, and family lodges, features a sauna, two large wood-fired hot tubs, a cold plunge bath a terrace and firepit.