Hilton Beats Estimates

The DJIA fell 234 points, the Nasdaq was down 171, the S&P 500 was down 41 points, and the 10-year treasury yield was up .08 to 3.97%. So much for that one-day wonder attempt at a rally. Lodging stocks were lower. ABNB was the disaster of the day, down -13% to a new 52-week low. VCSA also traded down to a new low. SOND and SVC were down -12% and -7%, respectively, both getting down very close to a new 52-week low but not touching it.  

Hilton beat estimates, cut the upper-end of its 2024 RevPAR guidance but seemed to have a report that was accepted more than Marriott’s. HLT raised their net room growth target for the year to 7% to 7.5%, up from 6% to 6.5%. HLT repurchased 3.5 million shares in the quarter for $724 million.  

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Airbnb reported a 2Q beat, but they lowered their 3Q guide so much that the stock was taken out to the woodshed. ABNB noted slowing demand in the U.S. and shorter booking lead times on a global basis. ABNB has turned into a more leisurely company, so with a little buffer from Group and Business travel, like most hotel companies, they are vulnerable, and it showed.  

Also reporting 2Q results were Sunstone Hotels, right around estimates but with a report described as mixed. They modestly lowered guidance for 2H24. They also only repurchased 700,000 shares for $6.9 million.  

STR reported U.S. lodging data for the week ended 8/3. U.S. Hotel RevPAR was up 1.3% year over year, with ADR up 0.6% and occupancy up 0.8%. Group RevPAR was up 5.7%.  

The Q2 2024 Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics reported that at the close of the quarter, there were 322 projects/40,297 rooms in the country’s total pipeline. Projects scheduled to start construction in the next 12 months, at Q2, stand at 80 projects/9,249 rooms, while projects in early planning stand at 162 projects/20,445 rooms. Chain scale segments with the largest number of projects in Canada’s total pipeline at the Q2 close include the upper midscale segment with 131 projects/13,822 rooms. Projects in the midscale segment are at 42 projects/3,546 rooms, and the upper upscale segment at the close of Q2 stands at 21 projects/4,770 rooms. Provinces with the most projects in the pipeline in Canada in Q2 are dominated by Ontario, with 189 projects/24,228 rooms. Next is British Columbia, with 59 projects/8,439 rooms; Quebec, with 21 projects/2,442 rooms; and Alberta, with 18 projects/1,822 rooms. The top cities in Canada at the Q2 close are led by Toronto, with 68 projects/9,532 rooms. Following distantly are Vancouver with 21 projects/4,075 rooms, Montreal with 17 projects/2,062 rooms, Niagara Falls with 15 projects/4,244 rooms, and Ottawa-Hull with 14 projects/1,992 rooms. Six new hotels with 815 rooms opened in Canada during the first half of 2024, with an additional 20 new hotels/2,129 rooms scheduled to open before year-end. LE’s total new hotel openings forecast for 2024 anticipates 26 new hotels and 2,944 rooms will open by year-end. In 2025, LE analysts forecast another 37 new hotels/4,055 rooms to open, and LE’s 2026 forecast anticipates 52 new hotels/5,812 rooms will open.  

Marriott unveiled a $15 million overhaul for its Saddle Brook, New Jersey hotel after the property sold for nearly $17 million last year. The property was sold by CP Saddle Brook LLC to Victory Worldwide. The hotel is operated by Pyramid Global Hospitality. Once completed early next year, the newly-renovated Marriott Saddle Brook will feature 244 rooms, nearly 12,000 square feet of meeting space, a restaurant, a remodeled hotel lobby and atrium, and a fitness center. The first phase of the hotel’s renovation was completed in July. It included the redesign of all guestrooms, a revamped fitness center, 7,200 square feet of indoor gathering space, a 300-guest ballroom, 4,700 square feet of outdoor gathering space, and a new atrium lobby. A second phase, slated for completion in early 2025, will include a new restaurant as well as upgrades to the hotel lobby.  

Valor Hospitality Partners assumed management of the Hilton Garden Inn Haymarket in Haymarket, Virginia. The hotel features 117 guestrooms, a fitness center, a business center, three meeting rooms with a total of 2,570 square feet of event space, and two onsite restaurants.  

The Park Hyatt New York accounted a multi-million dollar renovation as the hotel celebrates its 10th anniversary. The multi-million dollar investment will inaugurate the opulent 3,500 square foot “Manhattan Suite” on the top floor of the 25-story, 211-room hotel; introduce the signature Rossano Ferretti salon and Spa Nalai in their new locations; and bring upgrades to the hotel’s premier specialty suites.  

Kimpton Hotels & Restaurants announced a new partnership with JMA Ventures and Machete Group to develop the boutique luxury brand’s first location in Orlando. The new hotel will be located adjacent to the Kia Center arena as part of Westcourt’s new mixed-use sports and entertainment development. The new 11-story, 261-room Kimpton hotel will feature over 16,000 square feet of indoor meeting space, a full-service restaurant and lobby bar, a café, and a pool bar and pool lounge. The new Kimpton Orlando will be the seventh Kimpton in Florida.   VK Group broke ground on a 142-guestroom Indigo Hotel in Glendale, Arizona. The project calls for a seven-story building with a pool deck, fitness room, meeting rooms, and a 137-car underground garage.  

Red Roof announced the opening of the HomeTowne Studios Huntsville-Madison in Madison, Alabama. The 40-room, extended-stay hotel offers washers and dryers in each room and a seasonal outdoor pool. Owner Krina, Inc. completed a renovation of the property that included adding new bedding and new shower curtains in all guestrooms.  

Red Roof also announced the opening of the HomeTowne Studios Montgomery-Midtown in Montgomery, Alabama. The 50-room, extended-stay hotel offers a seasonal outdoor pool and a guest laundry facility. The HomeTowne Studios property is located adjacent to the 86-room Red Roof Inn Montgomery-Midtown. Owner Reha Hotels, LLC completed a renovation of the property that included painting the interior and exterior of the property, adding new furniture, bedding appliances, and TVs in guestrooms, and refreshing the guest bathrooms.  

Sunriver Resort, located in Sunriver, Oregon, and managed by CoralTree Hospitality, announced the expansion of its amenity offerings at Caldera Springs, the region’s premier residential resort community adjacent to Sunriver Resort. The Lake House at Caldera Springs has been reimagined as Central Oregon’s premier waterfront dining destination, including an al fresco lakeside venue called Shore Shack, all open to the public. Additionally, the debut of Forest House, with multiple outdoor pools, one of Oregon’s longest dual-racer slides, a fitness center, and a family recreation center, offers exclusive access to Caldera Springs homeowners and guests staying in a Sunriver Resort vacation home at Caldera Springs. Forest Park, a four-season adventure park featuring six pickleball courts, a dog park, dedicated play areas, and a sledding hill during the winter, is also included in this expansion. This news follows recent announcements, including the launch of The Club at Sunriver Resort, Sunriver Golf Club, the reimagining of The Spa at Sunriver Resort, the introduction of an 18-court indoor/outdoor pickleball complex, and upgraded River Lodge and Lodge Village resort guestrooms.  

The Harrison Family announced the reopening of The Rusty Parrott Lodge & Spain Jackson, Wyoming, following a fire that destroyed the original structure in 2019. The 40-room Small Luxury Hotel features a spa, restaurant, library, complimentary cruisers, and electric bicycles.  

Lum Hotel and Chartres Lodging Group, LLC announced its grand reopening, in Inglewood, California, with modern accommodations and elevated amenities. Located at the entrance of the Intuit Dome, Lum Hotel offers a resort-style outdoor pool with a vibrant outdoor bar scene, a fitness center, rooftop terrace and an onsite restaurant.  

Related California is upsizing its plans to build a 41-story boutique hotel and trophy office building from an initial 19 stories at 530 Sansome Street in San Francisco’s Financial District. The project is expected to cost $600 million. The developer filed plans to construct the tower with a luxury hotel on the first 11 floors, topped by 375,000 square feet of premium offices on its upper 24 floors. Under the revised plan, the hotel and offices would be divided by an amenity floor, plus another floor containing a spa and fitness center. The two floors above the building’s ground floor lobby would be home to a restaurant and conference rooms.  

Cronheim Hotel Capital secured $43,350,000 for the construction of the 183-key Moxy Atlanta Downtown. The property will be developed by Nexera Capital and Emerge Hospitality Group and will feature a rooftop restaurant and lounge, electronic billboard and ground level retail space.  

Personnel Moves

Peachtree Group announced that Vickie Callahan has been promoted to President of the firm’s Hospitality Management Division. In her new role, Callahan will oversee the company’s portfolio of owned and third-party managed hotels, totaling 88 hotels across 27 brands and 11,173 rooms in 23 states and Washington, D.C. Callahan joined Peachtree Group in 2020 as Senior Vice President of Revenue Generation. Callahan previously held vice president of revenue management positions at Atrium Hospitality and JQH Hotels.

Trinity Investments announced the addition of Luke Toland, Managing Director and head of Trinity’s newly formed debt platform, and Stephany Chen, Senior Vice President of Acquisitions. As Managing Director, Luke will be responsible for overseeing the firm’s strategy for investing in private credit and special situations. Luke joined Trinity from BofA Securities, where he was a managing director of the real estate gaming and lodging investment banking group. As Senior Vice President of Acquisitions, Stephany will be responsible for overseeing the identification and execution of acquisition opportunities. In her new role, Stephany will also support the firm’s business development initiatives. Stephany joins Trinity from JLL’s Hotels and Hospitality Group, where she was the U.S. lead for the Global Hotels Desk.