RLJ, Xenia, DiamondRock, and Chatham Report Earnings

The DJIA and Nasdaq plunged again on Friday, with the DJIA down another 611 points, the Nasdaq down 418, the S&P 500 down 100 points, and the 10-year treasury yield continuing to spiral lower, down another .18 to 3.79%. Lodging stocks were lower. RLJ traded down to a new low, SOND was down 7%, MAR and PLYA were both down 6%, and ABNB fell 5% on the day.

RLJ Lodging Trust had the most interesting earnings report. Analysts said that even with 2Q24 coming in stronger than expected, with June performance paving the way, this was the worst of the REIT's reporting because of how steeply RLJ cut 2H24 guidance. Meanwhile, they upped their quarterly dividend by 50% to $0.15, giving them a 6.5% dividend yield. As for the guidance cut, RevPAR guidance had been 2.5% to 5.5% and RLJ cut it to 1% to 2.5%. RLJ said they have bought back $4 million worth of shares in 2Q and so far in 3Q.

Xenia Hotels reported a slight miss while tightening up their remaining 2024 outlook. XHR has a solid balance sheet with no debt maturities until a year from now. XHR did not repurchase any shares in 2Q.

DiamondRock Hospitality bucked the trend of most other hotel REITs, not only beating estimates for 2Q but RAISING guidance for full year 2024. That was despite lowering the RevPAR outlook. DRH and Pebblebrook seem to be the only two doing that. DRH repurchased $23.5 million worth of stock during 2Q and so far in 3Q.

Chatham Lodging Trust reported a solid 2Q with RevPAR up 4%. CLDT said this was the first time RevPAR exceeded 2019, led by Silicon Valley and Bellevue hotels' RevPAR up 10% year over year. They also purchased their first hotel since 2022, the recently opened 148-room Home2 Suites Phoenix Downtown, for $43.3 million.

The Downtown Development Review Board of Jacksonville, Florida, is scheduled to consider conceptual approval of a proposed AC Hotel and parking deck at the board's August 8 meeting. The six-story hotel and two-story parking structure would be built on Dora Street. The owner of the property is Jax Lifestyle Hospitality LLC.

Colwen Hotels and Marriott International announced the opening of the first Marriott Bonvoy dual-branded Annapolis hotel; Residence Inn & Fairfield Inn & Suites. The property offers an integrated reception desk, lobby, market, business center, fitness facility, guest laundry, a 576 square foot meeting space, a Boardroom, bar and lounge, outdoor patio and a dog park. The Residence Inn features 78 suites and The Fairfield Inn features 75 guestrooms.

MHG Hotels purchased the 94-room Hampton Inn by Hilton in Boca Raton, Florida from Hospitality Investors Trust for $15.5 million. MHG Hotels is planning a $5 million interior and exterior renovation of the hotel. The property features a pool, fitness center and business center.

RLJ Lodging Trust acquired the fee simple interest in the 110-room Hotel Teatro in Denver for $35.5 million. The Company has engaged Sage Hospitality Group to manage the independent boutique hotel as part of the Sage Independent Hotel Collection. Hotel Teatro offers dining outlets and dynamic meeting space.

In Delaware, the Rehoboth Beach Planning Commission has approved plans, by the Papajohn family, for the Belhaven Hotel. The 92-room Belhaven is planned for the southern corner of Rehoboth Avenue and the boardwalk. As planned, the three-story hotel will sit atop ground-floor retail space and a 94-space underground parking garage. A ballroom/convention center, restaurant, spa and rooftop pool are all planned to be included.

Colwen Hotels announced the opening of The Inn at Burlington in Burlington, Vermont. Formerly known as La Quinta Inn & Suites South Burlington and later as part of the Trademark Collection by Wyndham, this newly renovated hotel has been re-imagined as an upper-midscale hotel. The three-story property offers a market, bistro, business center, fitness facility, guest laundry and complimentary parking.

Avocet Hospitality announced the opening of the newly renovated Admiral Hotel in Mobile, Alabama.

The Greenbrier Hotel, located in White Sulphur Springs, West Virginia, is set to go to public auction on August 27 because of a default. The hotel is owned by Governor Jim Justice and run by his family.

HREC Investment Advisors arranged the sale of the 148-room Sonesta Select - Milwaukee Brookfield, located in Brookfield, Wisconsin. The hotel was acquired by Blue Hotels LLC. HREC Investment Advisors exclusively represented an affiliate of Service Properties Trust, as the seller in this transaction.

Hodges Ward Elliott represented the seller in the recent sale of the Dillard House Resort, a destination resort, restaurant and conference center located in Dillard, Georgia. Spanning 200 acres, the Resort's components include 95 guestrooms, the iconic Dillard House restaurant, 11,000 square feet of indoor meeting space split between the Henry E. Dillard Conference Center and the Rock House, an equestrian center, beautiful riding trails, a trout pond and a pool. The property was owned and managed by the Dillard family for generations.

Ashkenazy Acquisition has secured an $85 million refinancing deal for the Arthouse Hotel New York City, located on the Upper West Side. Citi Real Estate Funding provided the five-year loan to refinance the 16-story, 300-suite boutique hotel.

A top all-inclusive hotel in Saint Lucia has closed to begin a $1.5 million refurbishment project. The East Winds resort will be closed in August and September to refurbish and redecorate all of its 26 superior and deluxe rooms. That will also see the addition of new bathrooms for the superior rooms. The "new-look" East Winds will reopen in October. Next year, the resort will begin refurbishments of its oceanfront rooms and its oceanfront suite, along with a redesign of the pool area and provision of new soft furnishings for the restaurant and bars at the resort.

Personnel Moves 

HREC Investment Advisors announced that Maya Patel has joined the firm as Vice President in the newly formed Oklahoma City hotel brokerage office. Maya is a second-generation hotelier with over two decades of firsthand experience in hotel and motel ownership, operations, management, acquisitions, and dispositions.

International News 

Cristiano Ronaldo is expanding his CR7 hotel portfolio by opening new franchises in New York, Madrid and Marrakech. The first new hotel to open, within 18 months, will be in Marrakech.

Ellen Kensington, a refurbished luxury boutique hotel in the heart of London's Earl's Court, will open in early summer 2024. The property features 105 bedrooms and exceptional drink and dining options. Ellen Kensington is the second property in the UK market to be operated by KOP's Montigo Resorts hospitality brand.

DoubleTree by Hilton Rotterdam Centre has opened following an extensive re-brand from one of the city’s iconic landmark properties. The 265-room hotel is the latest addition to the growing DoubleTree by Hilton portfolio in Europe and marks a first for the hotel brand in the Dutch city. DoubleTree by Hilton Rotterdam Centreoffers nine meeting rooms, wellness facilities including an indoor heated pool and fitness center, and an onsite bar and restaurant. The property is owned by Annexum, operated by Orange Investment Managers, and managed by Cycas Hospitality.