Truist Unveils Forecasts for Hotels

The DJIA fell 38 points while Nasdaq was down 52, the S&P 500 fell 9 points, and the 10-year treasury yield was down .08 to 3.77%. Lodging stocks were lower on the day.

Truist updated estimates and price targets following 2Q24 earnings. They lowered Airbnb to $124 from $134, Choice Hotels to $134 from $144, DiamondRock Hospitality to $10 from $11, Host Hotels to $20 from $23, and Park Hotels to $18 from $20 while they kept Sunstone Hotels at a price target of $12.

Truist also reported on forward booking and pricing trends for mid and higher-end U.S. hotels from their checks. They said 3Q is tracking close to 0%-2% than the 1%-3 previously expected. For 4Q, Truist introduced a forecast of -1% to +1%. Their first look into 2025 has Truist expecting a positive 1%-3% forecast, with growth driven by ADR offsetting a slight decline in occupancy. Truist noted their forecasts are around 50-100 basis points below consensus expectations although we have a feeling in a month consensus will be lower. Truist said the good news is they have not seen any sudden deceleration in bookings or pricing that would indicate any customer segment is abruptly pulling back. The bad news is they do not see any upside to domestic RevPAR vs. company/investor expectations for at least the next several quarters.

According to the J.D. Power 2024 North America Third-Party Hotel Management Guest Satisfaction Benchmark, overall guest satisfaction with branded hotels run by the nation’s largest third-party management companies improved significantly this year, outperforming both chain-managed and independently operated hotels. Overall guest satisfaction with hotels run by third-party management companies is 683 (on a 1,000-point scale), up 8 points from a year ago. Although guests at branded hotels say they are paying more for their rooms this year, overall improvement in perceived value for price for the largest third-party managed hotels has risen 6 points, on average, from 2023. Across all operational areas in the benchmark, staff service achieved the highest guest scores. Davidson Hospitality Group ranks highest in overall guest satisfaction for a third consecutive year, with a score of 735. HEI Hotels and Resorts (705) ranks second and White Lodging (704) ranks third.

The Marriott Courtyard in Niagara Falls is planning a $14.3 million expansion. The project calls for a four-story, 50,000-square-foot addition to the existing building. According to Rupal Hospitality, the project will add 84 more guestrooms to the 82-room hotel, plus an expanded entrance and lobby. The 3,200-square-foot patio would be doubled in size with the existing portion covered and a possibility of adding banquet facilities. Rupal Hospitality is also looking for a restaurant partner to take over the existing bar and bistro space inside the hotel.

Vision Hospitality Group offered a sneak peek inside the multimillion-dollar renovation underway at the company’s waterfront hotel in Celebration, Florida. Upon Vision’s completion of the hotel’s comprehensive, six-month makeover in November 2024, the property will be renamed The Inn at Celebration, Autograph Collection. Some of the improvements in progress include transforming all 92 standard guest rooms and 23 suites (with 65 rooms offering lake views); curating a focal entry in the style of a welcoming living room; creating a new full-service, farm-to-table restaurant; expanding outdoor lounge and dining areas with a new waterfront patio; relocating and doubling the size of the on-property fitness center; and refreshing areas to gather for a variety of occasions, with combined indoor and outdoor event space totaling approximately 7,500 square feet.

An application to build a new hotel between the Holiday Inn Express and Courtyard by Marriott is working its way through the approval process in the town of Oneonta, New York. According to The Daily Star, Bilal Ahmad applied in May to build a four-story, 55,000-square-foot Homewood Suites hotel on the parcel between the two existing hotels on Courtyard Drive. The hotel would have 90 rooms and 87 parking spaces at a cost of approximately $9.5 million.

Hilton announced the highly anticipated opening of Signia by Hilton at the Georgia World Congress Center. Strategically located in the heart of downtown Atlanta, the opening of the new hotel marks a significant milestone for Hilton, as it is the first new build under the Signia brand. Signia by Hilton at the Georgia World Congress Center is directly connected to one of the largest convention centers in the country. The hotel boasts over 100,000 square feet of flexible event space, including a grand ballroom, multiple breakout rooms, and outdoor event areas. In addition to its exceptional event facilities, Signia by Hilton offers a variety of dining options, including a fitness center, a spa, a rooftop pool, and a jogging track.

The Hilton Garden Inn Dallas/Arlington, in Arlington, Texas, recently completed a $5.2 million renovation. The hotel has 132 guestrooms, including 13 suites and two Peloton rooms. Exterior improvements included the façade and site amenities, new outdoor seating and decorative lighting, and new ADA lifts at the pool and spa. Interior improvements include new interior signage, a new front desk and The Shop market, furniture, fixtures, and equipment softgoods and case goods replacement in all public spaces and guestrooms, refreshed finishes in all public spaces and guestrooms, and new fitness equipment.

Crescent Hotels & Resorts added the historic NOPSI Hotel in New Orleans, Louisiana to its Latitudes: Lifestyles by Crescent collection. The former headquarters of the New Orleans Public Service Inc., NOPSI offers 217 rooms with 60 expansive suites, multiple food and beverage venues, and an array of indoor and outdoor settings that provide magical backdrops for weddings, meetings, and events.

Located in the heart of the Gaslamp District, The Omni San Diego has reopened after a multi-million dollar renovation, according to the Times of San Diego. The hotel offers a new rooftop pool bar and terrace.

The Secrets Tulum Resort & Beach Club has expanded its offerings with the introduction of Casa Zamna, a 21-room luxury addition at the Zamna Beach Club. This retreat, located 15 minutes from the main resort, provides a secluded and serene beachfront experience on Mexico’s Caribbean coast. Guests enjoy exclusive access to Rosewater, a full-service restaurant, as well as the all-inclusive amenities of the Secrets Tulum Resort & Beach Club, including the spa, eight dining options, and four bars.

KT Urban got the green light to build a 176-room boutique hotel across from Santana Row in San Jose, California. The developer received special use permits from the city’s planning director to build the seven-story hotel at 425 South Winchester Boulevard, the San Jose Mercury News reported. It would replace a gas station and restaurant. KT Urban estimates the project would take 21 months to complete. It is not clear when the developers plan to break ground.

Developer Odin Endeavors/Unilog Group has filed plans for an 11-story, 253-room Yotel Hotel in the heart of Orlando’s Central Business District. Each floor of the Yotel Hotel would have a combination of four different cabin types. The ground floor includes 1,056 square feet that would be leased to a third-party food and beverage operator, while the pool and bar would be located on the roof. The site plan shows three EV parking spaces and two wheelchair-accessible spaces but no additional onsite parking. The developers indicated that the hotel would provide 126 designated spaces in the adjacent garage.

Brick Hospitality announced the opening of The Boardwalk Hotel, Mission Beach’s newest boutique space. Located in San Diego, California, and formerly known as the Santa Clara Motel, the revitalization and new stewardship promises to elevate the guest experience. The Boardwalk Hotel features just 18 rooms and a large common area patio with fire pits, inviting seating, and shade. There’s more to come. As part of its phase-two plans, The Boardwalk Hotel announced a new, privately owned restaurant, slated to open in late 2024, according to Times of San Diego.

Peachtree Group launched a restaurant management division. Under the leadership of Daniel Puglisi, SVP of Corporate Operations for Hospitality Management, this division will focus on operating quick-service restaurants, starting with coffee shops. This new venture underscores Peachtree Group’s commitment to expanding its footprint in the hospitality industry, beginning with a high-profile partnership with AdventHealth and launching a Starbucks location in its AdventHealth Orlando hospital. The Starbucks at AdventHealth Orlando is now open and is the first store to be opened under this new division. Peachtree Group is also in discussions with other coffee franchise offerings and aims to extend its reach to high-profile or high-demand markets with captive audiences. The new division will oversee all new restaurant locations that are not within its own hotel portfolio. This includes transitioning its downtown Orlando Starbucks location at its dual-branded Hilton Garden Inn and Home2 Suites by Hilton to the restaurant management division.

Personnel Move

B&B Hotels has hired former CBRE director Sami Mendil as Global Head of Real Estate. The French budget hotel chain says Mendil will play a central role in developing relationships with real estate investors, identifying potential new owners, and structuring innovative programs and vehicles to support the group’s growth plans. The new hire is a progression of B&B’s international expansion plans after it launched B&B Home in the U.S., opened hotels in Miami and Orlando and announced its intention to open 100 hotels in the UK by 2035.