Wells Fargo Adjusts Ratings for Hotel REITs

The DJIA was up 297 points on Friday while Nasdaq rose 114, the S&P 500 was up 30 points, and the 10-year treasury yield was down .03 to 3.65%. Lodging stocks were higher although the only big mover was to the downside as SOND fell -7% on the day.

Wells Fargo upped Xenia Hotels to Overweight from Equal Weight while lowering their price target to $15 from $16. Sunstone Hotels was upped to Equal Weight from Underweight with a $10.50 price target. WF cut their rating on RLJ Lodging Trust to Underweight from Equal Weight, cutting their target price to $9 from $11. WF cut Service Properties Trust's target price to $4 from $5 while maintaining their Underweight rating, Ryman Hospitality's PT was cut to $115 from $127 while maintaining their Overweight rating and Pebblebrook Hotel Trust's target price was cut to $13 from $15. WF maintained their Equal Weight rating. Finally, they cut Host Hotels' target price to $19 from $21 while maintaining their Overweight rating and DiamondRock's PT was cut to $9 from $9.50 while WF's Equal Weight rating was maintained.

Renaissance Orlando Resort and Spa opens in the Disney Springs Resort area in Lake Buena Vista, Florida. Following a $25 million renovation, the 394-room resort boasts newly renovated amenities including the expansive Indulged Spa + Wellness Retreat, a 5,000-square-foot outdoor terrace, a fitness studio, updated rooms and lobby. The Renaissance Orlando Resort and Spa also offers multiple dining outlets, a pool, hot tub, and an additional 20,000 square feet of meeting rooms.

Moxy Asheville, North Carolina's first Moxy flagship, is officially open. The six-floor, 115-room property features Bar Moxy, a living room lobby, grab-and-go market, and a rooftop bar and restaurant. Forming a new dual-brand offering, Moxy Asheville is connected to the existing Aloft Asheville Downtown. The hotels boast separate lobbies and elevators; however, guests of both brands share access to amenities, including the Splash pool deck adorned with cabanas, a fitness center, and flexible meeting space. Moxy Asheville is owned by McKibbon Equities and operated by McKibbon Hospitality.

Delta Hotels by Marriott has made its South Florida debut with the grand opening of its first full-service property, Delta Hotels West Palm Beach. The hotel features 199 rooms, a signature restaurant and bar, over 6,000 square feet of versatile event space, a grab-and-go café, a fitness center, pool, and strategically placed workspaces near the lobby.

Remington Hospitality, in collaboration with Premier as well as Pure Wellness, announced the comprehensive renovation of the Houston Marriott Sugar Land. The hotel's transformation includes updated guest rooms. The project also includes the introduction of the first Pure Meeting Room, a meeting room enhanced with an air purification system from Pure Wellness. The Houston Marriott Sugar Land features an outdoor pool and whirlpool, a fitness center, in-room dining options and over 20,000 square feet of flexible banquet space.

More than two years after becoming the Marriott Jacksonville Downtown, the hotel is preparing for an estimated $6 million guestroom renovation on the fourth through 16th floors. L+R Hotels of London applied for a permit to renovate and convert the guestrooms and public areas on the top 13 floors of the hotel. Previously, the Omni Jacksonville Hotel offered a restaurant, bar bistro, hotel bar, outdoor pool, fitness center, event space, and event and breakout rooms. The hotel is the official hotel of the Jacksonville Jaguars.

Omni Hotels & Resorts signed a development agreement with Midland Downtown Renaissance, LP to develop and manage a highly anticipated 135-room luxury hotel in the heart of downtown Midland, Texas. Omni Midland Hotel is Omni's 12th hotel in the state. Originally Hotel Santa Rita, the plans for the property include approximately 15,000 square feet of meeting space, a 7,000 square foot ballroom, 135 guestrooms, a spa, rooftop pool, lobby bar with an all-day dining concept, and a Bob's Steak and Chop House.

LionGrove unveiled a series of transformative upgrades in an upcoming multi-million dollar transformation of Wyndham Grand Rio Mar Rainforest Beach & Golf Resort in Rio Grande, Puerto Rico. The transformation, which will take place over the coming months, will encompass the full reconstruction of all 400 guestrooms, ten distinct culinary outlets, a revamped lobby and porte cochere, new pool experiences, modern social and nightlife spaces and innovative programming. The renovation will ensure minimal disruption to guests, with the first set of new offerings rolling out before the holidays in December 2024. The transformation will occur across three seamlessly planned unveilings. The first phase, scheduled for December 2024, will introduce two new pools, including a zero-entry pool and an adult pool, along with new cabanas. The second phase, in January 2025, will include newly designed guest rooms and suites, and will introduce a new healthy, all-day cafe concept. Finally, the third and final phase in Fall 2025 will debut three new signature restaurants, the resort's new Xplorers Club, the opening of a racquet center, and other wellness offerings. Wyndham Grand Rio Mar Rainforest Beach & Golf Resort boasts 400 guestrooms and suites, two PGA championship golf courses, a world-class racquet center and over 100,000 square feet of versatile function spaces.

The iconic SENZA Hotel, in Napa, California, unveiled its enhanced two-story lobby and library space, plus a refreshed patio space. Cienda Partners and Bentley Legacy Holdings purchased the hotel one year ago. Bentley Legacy manages the hotel operations. In addition to the thoughtful transformation of the hotel's public spaces, the 48-room SENZA Hotel has also changed its food and beverage program.

Cobblestone Hotels cut the ribbon on a new hotel featuring 54 guestrooms, located in Denmark, Wisconsin. Cobblestone Hotel & Suites Denmark offers a coin-operated guest laundry, a business center, indoor pool and an exercise room.

Occidental Hotel Group announced its commitment to continue investing in its Caribbean properties. The three hotels that will primarily benefit from the investment include the Occidental Xcaret in the Riviera Maya; Occidental Tucancun, in Cancun; and Allegro Cozumel, located in Cozumel Island. The Occidental Hotel Group manages these properties.

Kalahari Resorts & Conventions announced an investment of $10.5M to bring new amenities to its Sandusky, Ohio location. Updates to the resort include: two new restaurants, a lobby renovation, and a new waterslide experience. Currently under construction, the new amenities are estimated to open by the end of the year.

Infinity Collective is the latest Miami Beach landlord to give LuxUrban Hotels the boot. Last month, Infinity took possession of a five-story, short-term rental building at 1700 Alton Road after winning an eviction lawsuit against LuxUrban. Infinity alleged that LuxUrban failed to make monthly rent payments totaling $244,312. LuxUrban was also evicted from a 28-unit short-term rental building at 1238 Collins Avenue in Miami Beach. Court records show the landlord took possession of the property in April. Another landlord, Victory Investments Group, has a pending eviction lawsuit against LuxUrban to retake possession of Hotel Astor at 956 Washington Avenue in Miami Beach.

Earlier this week, RLJ closed on the sale of the 134-room Fairfield Inn & Suites Denver Cherry Creek; the buyer was Tunnel to Towers Foundation. The hotel has been de-flagged and is no longer operational, pending its conversion to permanent housing. Public documents indicate that the sale price was $12.7 million.

Data recently released by the National Travel and Tourism Office show that in June 2024, international arrivals to the United States: Total non-U.S. resident international visitor volume to the U.S. of 5,639,831 increased 13.2% compared to June 2023. Overseas visitor volume to the United State of 2,901,542 increased 7% from June 2023. June 2024 was the 39th consecutive month that total non-U.S. resident international arrivals to the United States increased on a year-over-year basis. June 2024 was the 16th consecutive month that overseas visitors totaled over 2 million. The largest number of international visitor arrivals was from Canada (1,430,418), Mexico (1,307,871), the United Kingdom (286,654), India (233,149), and Brazil (137,762). International Departures from the United States: Total U.S. citizen international visitor departures from the United States of 11,206,403 increased 7.9% compared to June 2023. June 2024 was the 39th consecutive month that total U.S. citizen international visitor departures from the United States increased on a YOY basis. Mexico recorded the largest outbound visitor volume of 3,276,884 (29.2% of total departures for June). Canada recorded a YOY increase of 7.7%. Europe was the second largest market for outbound U.S. visitors with 3,002,181 departures. Outbound visitation to Europe in June 2024 increased 11.4% compared to June 2023.

Weller Development Partners and Pegasus Capital Advisors revealed the new renderings and master plan for their latest venture, the Six Senses Grand Bahama. This ambitious $250 million+ project will span 50 acres and feature 70 resort villas along with 28 branded residences. The resort boasts a host of luxurious amenities, such as a signature Six Senses Spa, a variety of dining options, versatile event spaces, a beach club, and an oceanfront pool. Construction is scheduled to commence at the end of 2024, with the resort anticipated to open in 2026.

Personnel Moves

Kempinski Hotels announce the arrival of Massimo Brancaleoni as of November 1, 2024. Amanda Elder steps down to pursue other opportunities. Massimo Brancaleoni, who most recently held the position of Senior Vice President Sales and Revenues at Silversea Cruises, brings over 25 years of commercial experience to his new role as Chief Commercial Officer.

Europe Highlights

Element by Westin debuts in Denmark as Core Hospitality rebranded Esbjerg A Place To into a premier hotel destination, set to open in early 2025. Core Hospitality has entered into a lease agreement with the property owner Heimstaden to manage the existing extended-stay hotel, A Place To, located in Esbjerg, Denmark. After a light renovation, the property will be transformed into Element by Westin Esbjerg.

IHG Hotels & Resorts will introduce its Vignette Collection brand to Spain following an agreement with Prevario Banyols (owner) and Hotel Collection International (management). Vignette Collection Mallorca - Finca Banyols is poised to open in the first half of 2025 with 45-guestrooms, a casual restaurant, stylish bar, signature fine-dining restaurant, spa treatment rooms, an indoor pool, an outdoor pool, and substantial events space.