Hyatt to Buy Standard International's Brands

The DJIA fell 62 points while Nasdaq was down 60 and the S&P 500 fell 11 points. The 10-year treasury yield was down another .05 to 3.82%. Lodging stocks were mostly lower. The only mover of note was to the upside as AHTrose 5% on the day.  

Stifel upped their price target on Hyatt Hotels to $151 from $141. They maintained their Hold rating.  

UBS cut their price target on Park Hotels to $14 from $18. They maintained their Neutral rating on the stock.  

Right at the close of trading today, Hyatt Hotels confirmed the rumors were true. They announced the planned acquisition of the brands and most of Standard International's affiliates. With that, Hyatt gets the Standard and Bunkhouse Hotels brands. Hyatt said they would form a new dedicated lifestyle group that will be headquartered in New York City and led by Standard's Executive Chairman Amar Lalvani as President & Creative Director. More details of the lifestyle group will be given following the closing of the transaction, which is expected later this year. The acquired portfolio will be 100% asset-light and includes management, franchise, and license contracts for 21 hotels with 2,000 rooms. Following the closing of the transaction, Hyatt plans to integrate these hotels into World of Hyatt. Besides the Standard and Bunkhouse Hotels brands, Hyatt also gets the brand new StandardX and The Manner as well as Peri Hotels. Upon closing, Hyatt will pay a base purchase price of $150 million with an additional $185 million over time as additional properties enter the portfolio. Stabilized fees associated with the base purchase price are anticipated to be $17 million, and to the extent the contingent purchase price is paid, additional stabilized fees are anticipated to be up to $30 million. Moelis & Co acted as Hyatt's financial advisor.  

TPG Hotels & Resorts has been selected by PeachState Hospitality to manage two properties in Augusta, Georgia. The 124-room Residence Inn Augusta features a fitness center and the 88-room SpringHill Suites Augusta offers a market, fitness center, indoor pool, and outdoor fire pit.  

The Marriott Element Albuquerque Uptown Hotel has opened in Albuquerque, marking the brand's first location in New Mexico. The office-to-hotel conversion features seven stories with 126 guestrooms, a 1,050-square-foot meeting room, an outdoor pool, and electric vehicle charging stations. The general contractor and developer on the project was Total Management Systems, who partnered with Sigmon Real Estate Group. Southwest Capital Bank financed the project.   

Fort Worth's historic Hotel Texas annex building has been completely re-imagined. The 14-story boutique hotel has been transformed into the city's first Le Meridien. The hotel will add nearly 5,000 square feet of flexible meeting space to the downtown landscape, along with French-inspired dining, an inviting pool deck, and a rooftop lounge.   

Tru by Hilton announced the opening of one of their hotels in Wilmington, North Carolina. The 107-room hotel is owned by CN Hotels and managed by McKibbon Hospitality. The property is connected to Hotel Lela Wilmington, a Tapestry Collection by Hilton, which is set to open later this summer. The properties will include a restaurant and a shared outdoor saltwater pool with cabanas and outdoor games.   

Park Hyatt New York announced a multi-million dollar renovation as the hotel celebrates its tenth anniversary. The multi-million dollar investment will inaugurate the opulent Manhattan Suites on the top floor of the 25-story hotel, introduce the signature Rossano Ferretti salon and Spa Nalai in their new locations, and bring upgrades to the hotel's premier specialty suites, which will be unveiled by January. The 211-room Park Hyatt New Yorkfeatures Spa Nalai with its indoor saltwater pool, eucalyptus steam room, oversized hot tub, and fitness center.   

Extended Stay America announced the opening of the Extended Stay America Premier Suites Portland North, located in Portland, Oregon. The three-story property, developed by Trimark-University Housing IV and managed by Ark Hospitality, offers 146 guestrooms, a fitness center, and guest laundry.   

IHG Hotels & Resorts announced the signing of a new InterContinental Hotels & Resorts property in Orlando, Florida. Developed in partnership with owner Flag Luxury Group and Unicorp National Developments, InterContinental Orlando is set to open in 2028. The new hotel will feature 700 guestrooms, including 84 suites; five restaurants and bars; 106,000 square feet of meeting and event space; a business center; signature Club InterContinental lounge; and 15,000 square feet of spa and wellness amenities, inclusive of a pool and fitness center.  

Choice Hotels International, Inc. continues to strengthen its leadership position in extended stay with three new Everhome Suites breaking ground in San Antonio, Texas; Bowling Green, Kentucky; and Wichita, Kansas. All three are developed in collaboration with Highside Companies. In total, Choice Hotels has four Everhome Suites open, 65 in the pipeline, over 20 under construction, and more than 15 expected to open within the next 12 months. The Everhome Suites San Antonio marks the sixth property under construction in Texas. This will be Choice's second Everhome Suites in Kentucky and the first in Kansas. Expected to open in November 2025, the Everhome Suites Bowling Green will have 115 rooms. Everhome Suites San Antonio will open in November 2025 with 115 rooms. The 123-room Everhome Suites Wichita is expected to open in the fall of 2025. Everhome Suites offers the comforts of home along with many other convenient amenities, including a contemporary multipurpose lobby; communal outdoor amenity area with barbecue grills, firepits, and green spaces; pools at select locations; Homebase Market; fitness center; and guest laundry facilities.   

Coast Hotels Limited announced the opening of its latest franchised property in Weyburn, Saskatchewan. Formerly Canalta Hotel Weyburn, Coast Weyburn Hotel features 68 guestrooms, a meeting and conference room, a fitness center, a steam room, a hot tub, and free onsite parking.   

Morgan's Wonderland theme park in San Antonio, Texas, announced plans to build a new "ultra-accessible" Morgan's Hotel, a concept new to the hotel industry. Construction on Morgan's Hotel will break ground at the end of the year, half a mile from Morgan's Wonderland. The Ultra-Accessible design includes sound-absorbing floors for a sensory-friendly atmosphere, pink noise for people with sensory sensitivities, and family restrooms with adult changing stations and showers. Hilton, Marriott, and Hyatt are in negotiations with the theme park and are competing to add their name to the hotel. The San Antonio location will be a model for future ultra-accommodating hotels for people with special needs. The hotel, which is estimated to cost in the tens of millions to build, is expected to open in 2026. 

Lawyers representing The Greenbrier Hotel Corporation have filed for a preliminary injunction to halt the forced auction of the historic resort. The Greenbrier Hotel has been announced for auction next Tuesday because of default by it’s owner, West Virginia governor Jim Justice’s family, on the terms of a longstanding loan through JPMorgan Chase. A few weeks ago, JPMorgan sold loan documents, including the deed of trust, to a credit collection company, McCormick 101.  

Gibbons Lang & Company announced the closing of bridge financing with Access Point Financial, LLC for the 168-key Hilton Garden Inn at Cleveland Hopkins International Airport on behalf of the hotel's owners, Ceres Enterprises and The Orlean Company. The renovated hotel features a restaurant and lounge, 3,300 square feet of meeting space, an indoor pool, a fitness center, and a market pantry. 

Personnel Move

Avion Hospitality appointed Dan Peterson senior vice president of operations. Most recently, he served as executive vice president of operations with CSM Corporation.   

Europe Highlights

In the heart of a vast private estate in Spain, the Four Seasons Resort Mallorca at Formentor is celebrating its inaugural season. With sustainable practices at the core of the resort's restoration effort, all 110 guestrooms and suites have terraces facing the sea, some with private plunge pools. The resort offers a fully-supervised program for children, multiple onsite dining options, a gym, and a variety of indoor and outdoor spaces, including an all-new ballroom, several meeting rooms, the Na Blanca gardens, and two outdoor terraces. A pop-up spa with two treatment rooms is now open for the 2024 season, with a new, full-service spa debuting in 2025. 

Radisson Hotel Group announced the opening of The Bolton Stadium Hotel, a member of Radisson Individuals, located in the heart of North West England and attached to the home of Bolton Wanderers Football Club. Situated in the Toughsheet Community Stadium, the hotel offers 125 guestrooms and suites, an all-day restaurant, bar, and lounge, as well as several modern meeting rooms.