Club Med Rolls Out Developments Across its Portfolio

The DJIA rose 56 points, the Nasdaq was up 102, the S&P 500 was up 24 points and the 10-year treasury yield was down .04 to 3.78%. The signal from the Fed was what everyone was expecting, meaning if things don’t change we will get an interest rate cut later this year. The good news is the market did not give back their gains.

Lodging stocks were higher. SOND and VCSA were the big movers, up 11% and 10% respectively.

STR reported US lodging data for the week ended August 17. US hotel RevPAR rose 0.9% year over year, with Chicago leading the top markets with an 18.7% jump ahead of the Democratic National Convention. Group RevPAR was up 11.7% year over year.

Club Med announced several significant developments across its international portfolio. Club Med Cancun will undergo a multitude of renovations over the next year to enhance the overall guest experience. The Main Pool & Deck Area will be transformed into an expansive infinity pool. The renovation will also introduce a new Beach & Pool Bar. Select Deluxe Rooms will be upgraded, while the Family Oasis at Club Med Cancun will be significantly enhanced. Additionally, Baby Club Med will be introduced, offering a dedicated space for children four months to 23 months. The resort will remain open during all renovations. Club Med North America’s family flagship resort, Club Med Punta Cana, will be opening a splash park in December 2024. This addition follows recent renovations at the property, which introduced all-new family rooms, a wedding venue, a beauty salon, and a refreshed dining experience at the resort’s main restaurant. Club Med is developing its first property in the Gulf States: Club Med Musandam, a luxurious beach resort set to open in 2028 in Oman. The 300-room Exclusive Collection resort will include all the amenities that Club Med offers, including gourmet dining, Children’s Clubs, wellness experiences, an adults-only area, a spa, and an array of land & water sports. The project is a collaboration between Club Med, Royal Court Affairs, and Omran Group. Club Med has also launched a new partnership with yoga instructor Jonah Kest, who serves as the Yoga Ambassador across the brand’s North American. Jonah will enrich Club Med’s Wellness Fusion program, which launched in 2022.

Developers are planning to build a new TownePlace Suites hotel in Lyndhurst, New Jersey at MetLife Stadium. The proposed 128-room hotel is being developed by BDG Hotels. The project would be completed toward the end of 2025 and is being financed by Cronheim Hotel Capital.

The Hilton Garden Inn hotel in downtown Greenville, North Carolina is anticipating a new completion date. With multiple obstacles delaying the process, Co-X Properties is looking at a soft opening for the month of December and then ready to go on January 1 with the hotel. Once the hotel is open, the eight-story building will offer parents of college students and out-of-stay visitors a place to stay, a rooftop restaurant, and a full view of the city.

IHG Hotels & Resorts announced the opening of a new Holiday Inn Express in Richmond, Indiana. The hotel offers 99 rooms, 3,500 square feet of meeting space, a pool, and a fitness center. Holiday Inn Express Richmond is owned by Rahee Investments LLC and managed by Hotel Equities Group, LLC.

The Ada Hotel, a new boutique property in downtown Ada, Michigan, has celebrated its grand opening. The hotel, owned by Cheri DeVos, includes 36 rooms, two restaurants, a fitness center, rooftop patio, and more.

Construction has kicked off at The Hotel Zamora, a boutique lodge in St. Pete Beach, Florida. A $7.5 million renovation began earlier this summer and is expected to finish by the end of the year. The 72-key hotel will be repositioned into a four-star luxury hotel. Sherman Associates started planning the project shortly after buying the property for $38 million in 2022. The Hotel Zamora already features an upscale dining and bar concept, which will be rebranded in the coming months. Renovations will upgrade the hotel’s common areas, including the lobby and the pool. The adjacent 2,500-square-foot office building will also be converted into a wedding and event venue.

TAFER Hotels & Resorts announced its partnership with Diamante Cabo San Lucas, a prestigious luxury resort community. Under this partnership, TAFER will launch two new luxury hotels, substantially enhancing the offerings for members of both the Diamante Residence Club and TAFER Residence Club. The multifaceted partnership will encompass a total of 750 rooms at Diamante Cabo San Lucas with gourmet cuisine, top-tier amenities, authentic experiences, wellness offerings, and unmatched service. The resorts will also feature timeshare options as part of the TAFER Residence Club. Additionally, TAFER will take over the management of the Diamante Residence Club. TAFER will also introduce exceptional residences at Diamante Cabo San Lucas, expanding its real estate portfolio in Mexico. TAFER Residence Club offers a health and wellness club, multiple pools, and a luxurious spa. TAFER has also agreed to co-own and operate the Dunes Course and El Cardonal golf courses.

Sonesta announced a new incentive program that provides a 2% incentive to franchisees who utilize Sonesta’s procurement program for purchasing needs. This initiative offers significant financial benefits to owners and underscores Sonesta’s commitment to transparency, innovation, and strong franchise relationships. Owners will receive the 2% incentive based on their spending with Sonesta-contracted suppliers under both the Avendra program and other Sonesta-negotiated contracts. This incentive will be paid quarterly as a credit on franchise fee statements. Additionally, Sonesta will provide a free mobile app purchasing platform to help franchisees identify and purchase cost-saving products from Avendra and other key suppliers.

Hunter Hotel Advisors announced the successful sale of the Residence Inn in Macon, Georgia. Keshav Management purchased the property from an institutional seller represented by Hunter. The 78-key Residence Inn Macon offers an indoor pool and fitness center.

Portman Holdings has sealed a $41.9 million loan to refinance an Atlanta hotel that was once a condominium property. Peachtree Group supplied the loan on Portman’s 217-room Kimpton Sylvan Hotel in Atlanta’s Buckhead neighborhood. The loan, which has a 36-month term with two 12-month extension options, will retire the acquisition loan provided by Fifth Third Bank to acquire each condo unit in 2018 and convert the property to a hotel in 2021.

Alpha Wave Investors announced the successful refinancing of its AWI Pac Three hotel portfolio, which includes Salishan Coastal Lodge by SCP, the SCP Colorado Springs Hotel, and the SCP Depoe Bay Hotel. The combined $36.6M, blended 7.67% interest rate financing has resulted in higher proceeds and favorable amortization terms despite challenging credit market conditions. Proceeds from this refinancing will fund further competitive upgrades across the AWI Pac Threeportfolio. JS Coats Capital, LLC helped arrange the refinancing.

Lone Star PACE facilitated $27M in retroactive C-PACE financing for the HALL Arts Hotel in the Dallas Arts District. Financing proceeds will recapitalize previously installed sustainable upgrades that save energy and water, including improvements to the building’s envelope, electrical, lighting, HVAC, and plumbing systems. The 11-story HALL Arts Hotel includes 193 guestrooms and 19 suites, premier event space, and a restaurant and lounge.

Andaz Turks & Caicos at Grace Bay, developed by Vista Development Inc., celebrated a topping-off ceremony, marking the completion of the building’s fundamental framework and roof. The first model hotel rooms will debut this fall, adding a physical component to the Andaz Turks & Caicos’ sales office experience for owners and prospects. Stretching more than five ½ acres, Andaz Turks & Caicos at Grace Bay will begin welcoming guests in early 2026 as the first Hyatthotel in Turks & Caicos and the first Andaz hotel in the Caribbean. The property will boast a 59-key resort and 73 residences, exceptional dining across three restaurants and bars, an elevated rooftop venue, a fitness facility, a garden yoga studio, tennis and pickleball courts, a kids’ club, and a full-service indoor/outdoor spa with a cold plunge.

Lodging Econometrics’ Q2 2024 Global Construction Pipeline Trend Report states that the total pipeline ascended to a record-high 15,453 projects with 2,395,726 rooms. The first half of 2024 saw 948 new hotels and 135,579 rooms open around the world, with an additional 1,586 new hotels and 237,107 rooms scheduled to open by year-end. We break down more of the pipeline in the tables below:

Global Construction Pipeline (Q2 2024)

Pipeline by Chain Scale (Q2 2024)

Top Countries by Project Count (Q2 2024)

Top Cities by Project Count (Q2 2024)

Hotel Openings Forecast (2024-2026)

Europe Highlights

Bank of London and The Middle East plc has provided Criterion Capital with a 3-year, £25 million investment facility as they embark on a transformative office-to-hotel conversion in London’s iconic Trafalgar Square. With this project, Criterion Capital is set to rejuvenate the upper floors of the Trafalgar Buildings, converting them into Zedwell Trafalgar Square.

Heimstaden and Core Hospitality signed a 15-year contract on the lease and operations of the hotel “A Place To” in Esbjerg, Denmark. The hotel will also expand from 117 guestrooms to 214 guestrooms and will change its name as it seeks to partner with an international brand. Heimstaden wants to expand the hotel capacity by converting 97 apartments to hotel rooms. Core Hospitality will take over the lease and operations of the hotel in the second half of 2024 and expects to reveal the international hotel chain that the hotel will rebrand to in September. The full conversion is expected to take place at the beginning of 2025.