U.S. Hotel Pipeline Report for Q2 2024
The DJIA rose 99 points while Nasdaq surged 452, the S&P 500 rose 86 points and the 10-year treasury yield was down .03 to 4.11%. Lodging stocks were modestly higher, did much better due to the overall market considering the initial reaction to Marriott’s earnings. MAR ended the day down -5% while BHR fell -6% and AHT was up 8%.
Marriott International received a somewhat rude response from Wall Street on their 2Q earnings report. The results were mostly in line. RevPAR was strong, but they lowered the high end of guidance, citing a weaker China and softness in the U.S. and Canada. As for whether it justified the big drop in the stock, remember that Marriott, Hilton, and Hyatt stock prices have had a great past year, so profit-taking on the slightest sign of weakness is not uncommon. Outside of the guide, everything else was positive, with the development pipeline up 2.2% or 12,000 rooms, with 37% under construction and another $1 billion worth of stock bought in the quarter.
Ashford Hospitality Trust missed the small consensus adjusted EBITDA in 2Q with the more important thing being they need to do more asset sales to repay the Oaktree loan. They completed the sale of six properties in 2Q24. The expectation had been it would be repaid this current quarter but now it looks like it will be pushed back to 4Q.
STR reported U.S. lodging results for the week ended 7/27. U.S. hotel RevPAR was up 0.9% year over year, with rates up 1.3%. Group RevPAR rose 13.7%.
U.S. Pipeline Report
U.S. Hotel Pipelines by Market Q2 2024
| Largest Hotel Construction Pipelines by Market (End of Q2 2024) | ||
|---|---|---|
| Market | Projects | Rooms |
| Dallas | 189 | 22,392 |
| Atlanta | 159 | 18,522 |
| Inland Empire | 124 | 12,569 |
| Nashville | 123 | 15,924 |
| Phoenix | 120 | 15,627 |
U.S. Active Under-Construction Hotel Projects Q2 2024
| Market | Projects | Rooms |
|---|---|---|
| New York | 46 | 7,572 |
| Dallas | 30 | 3,523 |
| Atlanta | 23 | 2,765 |
| Phoenix | 22 | 3,993 |
| Nashville | 22 | 3,049 |
U.S. Projects Scheduled to Start in the Next 12 Months
| Market | Projects | Rooms |
|---|---|---|
| Dallas | 73 | 8,787 |
| Atlanta | 68 | 8,300 |
| Inland Empire | 64 | 6,298 |
| Phoenix | 57 | 6,855 |
| Austin | 52 | 6,742 |
U.S. Hotel Projects in Early Planning Stage in the Next 12 Months
| Market | Projects | Rooms |
|---|---|---|
| Dallas | 86 | 10,082 |
| Atlanta | 68 | 7,457 |
| Nashville | 51 | 6,264 |
| Austin | 46 | 5,006 |
| Los Angeles | 45 | 7,693 |
U.S. Renovations and Conversions in the Next 12 Months
| Market | Projects | Rooms |
|---|---|---|
| Atlanta | 33 | 4,660 |
| Los Angeles | 29 | 4,552 |
| Chicago | 28 | 7,654 |
| Phoenix | 28 | 4,883 |
| Washington, DC-MD-VA | 27 | 4,036 |
U.S. Forecasted New Hotel Openings in Top U.S. Markets Q2 2024
| Market | Hotels | Rooms |
|---|---|---|
| New York City | 23 | 2,731 |
| Dallas | 16 | 2,025 |
| Atlanta | 15 | 2,753 |
| Inland Empire | 14 | 1,455 |
| Orlando | 13 | 2,397 |
U.S. News & World Report unveiled the 2024-2025 Best Travel Rewards Programs to help everyday travelers with the best loyalty programs. The 2024-2025 Best Travel Rewards Programs Rankings for Hotel Rewards Programs, in their order, are Wyndham Rewards, Marriott Bonvoy, World of Hyatt, Choice Privileges and InterContinental One Rewards.
Developer Stream Real Estate filed plans for a $40 million, seven-story Residence Inn Marriott on Lower Queen Anne in Seattle, Washington.
Highline Hospitality Partners has acquired the Hilton Garden Inn Courthouse Plaza Arlington Courthouse Plaza in Arlington, Virginia. The 193-room select-service hotel marks HHP’s 12th property and its first venture into the Washington DC area. The Hilton Garden Inn Arlington/Courthouse boasts newly renovated guestrooms, a full-service restaurant, approximately 3,000 square feet of meeting space, a fitness center, and onsite parking in an underground garage. Highline Hospitality Partners has selected Stepstone Hospitality as the hotel’s third-party manager, marking the fourth collaboration between Highline and Stepstone.
Buffalo Lodging Associates announced the completion of an extensive renovation to the 6-story Hilton Garden Inn Orlando International Drive North. The transformation includes 158 newly refreshed guestrooms, alongside a rejuvenated lobby, bar, restaurant and 1,150 square feet of meeting space. The property also features a fitness center, an outdoor pool and whirlpool spa, poolside fire pit and a Tiki bar.
Ground should be broken by the end of 2024 on a five-story hotel at Uptown Tucson, the commercial redevelopment of the former Foothills Mall at La Chollaand Ina. Bourn Companies is collaborating with Valencia Hotel Group to bring the 144-room Tempo by Hilton Tucson Uptown hotel to Uptown Tucson. Five-story apartments, now under construction, are immediately north of the hotel site. Those apartments and an adjacent parking garage intended to serve both the hotel and apartments are slated to open in January 2026. The hotel would follow later in the year. Guestrooms would occupy the top four floors of the building. Plans call for about 31,000 square feet of commercial space, most of it on the first floor. The hotel would offer a bar and café, an outdoor pool, fitness center and 3,000 square feet of meeting and event spaces.
IHG Hotels & Resorts announced the opening of a newly-built Holiday Inn Express in Macclenny, Florida. Owned by Maharudra, LLC and managed by Alpha Hotels Worldwide, the Holiday Inn Express Macclenny features 85 guestrooms, a brand-new fitness center and an outdoor pool.
Trailbreak Partners and Scarlett Hotel Group announced the August 1 debut of the InterContinental San Antonio River Walk following an extensive makeover and rebranding. Formerly a Wyndham hotel, the 21-story hotel features a lineup of food and beverage spaces.
Allegiant Travel Company has retained Prospect Hotel Advisors, LLC to conduct a strategic review of its hotel, Sunseeker Resort Charlotte Harbor, located in Southwest Florida. Prospect Hotel Advisors will advise the company on strategies that maximize the value of Sunseeker Resort. The engagement aims to improve financial performance and help accelerate the strategic positioning of the hotel in conjunction with the existing experienced management team. Sunseeker Resort Charlotte Harbor spans over 22 waterfront acres, featuring 785 guestrooms, 20 food and beverage brands, 60,000 square feet of meeting and event space, a fitness center, spa, two pool experiences, and seven unique retail outlets. The resort also features the guest-exclusive Aileron Golf Club.
Developers are planning to build a new hotel at the Fenton development in Cary, North Carolina. The entertainment destination will add a 7-story hotel to its mix of retail, restaurants, apartments and offices. The hotel, proposed by Mainsail Lodging & Development, would include 186 guestrooms at a cost of $70 million.
Following an extensive, multimillion-dollar re-invention, The Ansonborough Charleston, sourced, co-developed, capitalized, and managed by Wright Investments, Inc. and developed by Continental Hospitality Group, will celebrate its grand opening on September 2024. Located in Charleston, South Carolina, and formerly known as The Ansonborough Inn, the hotel features a newly transformed, intimate lobby and communal area, 45 guestrooms, and a newly added bar.
Choice Hotels International has expanded its Cambria Hotels brand with four new openings in popular U.S. destinations, bringing the total number of Cambria Hotels to over 70 nationwide. The new destinations include The Cambria Hotel Denver Downtown RiNo, which opened in Denver, Colorado, in May with 153 guestrooms and 1,192 square feet of meeting space. In March, the new Cambria Hotel Niagara Falls opened in Niagara Falls, New York, with 120 guestrooms and 960 square feet of meeting space. The Cambria Hotel North Conway opened in New Hampshire on June 6 with 115 guestrooms and 1,550 square feet of meeting space. The Cambria Hotel Rehoboth Beach opened in Rehoboth, DE in May with 106 guestrooms and 6,400 square feet of meeting space.
Rentyl Resorts secured an agreement with Choice Hotels to add Spectrum Resort Orlando to its Ascend Hotel Collection. Both companies will market the resort and accept website reservations that credit Choice Privileges members with stay points starting September 1. Onsite amenities include golf courses, a spa, a clubhouse with a communal pool, restaurants, and in-home experiences.
Banyan Group announced the opening of Banyan Tree Veya, Valle de Guadalupe, a luxurious well-being resort set amidst the vineyard landscape of Mexico’s wine country. The opening marks the first full-fledged property for the Group’s dedicated well-being brand, Banyan Tree Veya. Nestled in the hills of Baja California, the 16-acre resort features a bespoke collection of 30 villas with private plunge pools, a variety of well-being experiences, and an ethnobotanical garden. The resort also offers a private winery that will debut its own exclusive collection of wines, as well as seven culinary outlets and an exceptional venue for weddings, events, and celebrations. The Veya Spa will be home to four treatment rooms: the Desert Spring hydrotherapy room, Vitality Fitness Studio, the White Cave for meditation and sound healing, Multifunction Movement Studio, two hilltop pools, a labyrinth, and a traditional temazcal.
Posadas opened the Fiesta Inn Suites Silao Aeropuerto, bringing the total number of hotels in Guanajuato, Mexico, to four and 78 nationwide. The Group’s new 139-suite property offers an open-plan design with first-class facilities including a pool, fitness center, meeting rooms and event planning services, and a restaurant.
The city of Alabaster, Alabama is getting a new Fairfield Inn and TownePlace Suites hotel near the Promenade shopping center. The dual-brand hotel will have about 130 rooms and is expected to be complete by the fall of 2025.
Personnel Moves
American Hotel Income Properties REIT LP announced Charles van der Lee has been appointed as the Chair of the Board of Directors, which position was vacant following the recent passing of W. Michael Murphy. AHIP also announced that Jonathan Korol, AHIP’s CEO, has been appointed to the Board. Mr. van der Leehas been a member of the Board since 2016. Mr. Korol has been AHIP’s CEOsince October 2020.
Dalata Hotel Group appointed Kathrin Jung-Reinhard to the role of Head of Development Strategy - Northern Europe. Kathrin’s deep knowledge of the European hotel market and her network of key contacts will support the Group’s strategic growth in both existing and new markets while further strengthening its acquisitions and development team. Kathrin Jung-Reinhard most recently served as Head of Real Estate Portfolio Management at Universal Investment GmbH. She joined Dalata in July and will be based in Frankfurt.
Hyatt Hotels Corporation, in collaboration with Maya Rio Development, announced plans for the first Hyatt-branded hotel in Belize with The Placencia Resort, which is entering the Hyatt portfolio as an affiliated hotel before joining the Destination by Hyatt brand. The Placencia Resort is located on Placencia Peninsula, a 13-mile-long beach in southern Belize. By late 2025, The Placencia Resort is expected to offer 90 re-imagined guestrooms, suites and beachfront villas following a $10 million renovation, including an enhanced arrival experience and refined public areas. Shortly after, guests can expect a new three-meal restaurant, indoor/outdoor event space, an overwater signature restaurant and bar, a refreshed pool and pool bar experience, and an indoor-outdoor basophilic gym.