Jefferies Reports Lodging Stocks Show Improvement

The DJIA rose 228 points but Nasdaq was down 92 while the S&P 500 was up 7 points and the 10-year treasury yield was down .03 to 3.62%. Lodging stocks were mixed.

Jefferies said the performance of lodging stocks quarter to date suggests the market is pricing in a more stable economy. Large-cap and small to midcap lodging names are up around 4.7%, with HLT, CHH, and WH up 9.4%, 9.8%, and 10.9%, respectively. Jefferies said their outperformance is noted due to their orientation towards moderate to lower-end brands, which had been the area of greatest concern in the consumer economy. Those tied to the higher end, namely MAR, H, HST, and PK, continue to see their stock prices underperform. Jefferies said they believe this is the result of a deceleration in higher-end leisure transient travel but also, in the case of REITs, is likely resulting from the deferral and solidifying expectations for interest rate cuts.

Residence Inn by Marriott Los Angeles Burbank/Downtown, in Burbank, California, announced the completion of its renovation. The 166-suite property is owned by Apple Hospitality REIT, Inc. and managed by Marriott International. The renovation includes new carpeting, wall vinyl, paint, custom artwork, backlit bathroom mirrors, and furniture in the guestrooms, as well as a newly redesigned lobby with stylish furniture and new flooring. The five-story hotel offers a fitness center, three meeting rooms with a combined 1,352 square feet of functional event space, a market, an outdoor pool, and a patio with a BBQ grill and a fire pit.

Sage Hospitality Group, together with Tidal Real Estate Partners, announced that The Ann Savannah will be joining Sage’s growing portfolio of lifestyle properties. Anticipated to complete its conversion and join the Apartments by Marriott Bonvoy brand by early 2025, The Ann Savannah will offer 157 premium, service apartment-style units, and Sage will oversee all operations for The Ann, including food and beverage offerings. Located in Savannah, Georgia, The Ann includes an expansive fitness center and outdoor space.

Peachtree Group has received its 1-956F approval from U.S. Citizenship and Immigration Services, the government agency that oversees the EB-5 Immigrant Investor Program, for the firm’s currently under-construction TownePlace Suites by Marriott in Palmdale, California. This is the second hotel development for which Peachtree has received I-956F approval, having previously secured it for its Home2 Suites by Hilton development in Boone, North Carolina. The TownePlace Suites by Marriott in Palmdale is slated for completion by spring 2025.

The Thompson Palm Springs, located in Palm Springs, California, is finally taking reservations. According to the Hyatt website, bookings are available for both cash and points starting September 30. Once open, the Thompson Palm Springs will have 168 rooms and 18 suites, multiple dining options, a gym, and two pool decks with cabanas, lounge chairs, and full-service bars. According to LCR Capital Partners, the total project cost has been extended from $152.3 million to $165.0 million, increasing the EB-5 capital raise from $70.4 million to $78.4 million.

Sonesta International Hotels Corporation announced the execution of a deal to open five Sonesta ES Suites hotels in the Dominican Republic. The first property, Sonesta ES Suites ELEMENTS Jarabacoa, is scheduled to open in the first trimester of 2026, with the remaining four hotels to be completed within seven years. Sonesta ES Suites ELEMENTS Jarabacoa will offer a minimum of 80 suites, multiple food and beverage offerings, eight outdoor pools, tennis courts, paddle courts, BBQ and fire pits, kids play area, game room, and spa/fitness center. The five Sonesta ES Suites properties are franchised by Almanzar Marte Ingenieros & Arquitectos.

Following a tragic fire in 2022, Wayfinder Newport, in Rhode Island, re-debuts after a comprehensive rebuild and renovations to its public spaces and 187 guestrooms and suites. The property features onsite dining options, an outdoor pool and party deck, a gym, free parking with electric car charging stations, a green space outdoor party deck with games, and 3,800 square feet of indoor and outdoor event space. The first hotel in Dovetail + Co’s expanding Wayfinder collection, the renewed hotel rejoins the brand’s other locations in Waikiki, Hawaii, and Bishop, California.

The Copper Vine Wine Pub & Inn is the newest addition to New Orleans’ downtown central business district. The historic, three-story boutique inn features 10 guestrooms and the Terrace Suite, a lively indoor/outdoor restaurant, contactless check-in/check-out, daily housekeeping, common area living rooms, and refillable water stations.

AKEN Hotels & Resorts announced its second hotel project in Mexico, the AKEN Mind, Merida Hotel. The new property features 128 guestrooms, including eight AKEN Signature Suites; a three-meal restaurant, rooftop pool and bar; and three different private social spaces, including a meeting room, the terrace, and the salon, which can host up to 150 people. Under the parent company, AMEK Group, the property will undergo a complete refurbishment of its public spaces, including the lobby, terrace, restaurant, rooftop pool, and bar, which is set to be completed in early December. AKEN operates 10 hotels across Argentina, Colombia, Ecuador, and Costa Rica, with another 11 projects currently under development throughout the Americas.

A long-shuttered hotel on one of Palm Beach’s most prominent streets in South Florida will open as the luxury Palm House Hotel in November, according to a statement released exclusively to the Palm Beach Daily News. The statement was issued on behalf of Iconic Luxury Hotels, a brand that is part of L+R Hotels. With 79 rooms, including 21 suites, the Palm House will feature a courtyard anchored by an expansive pool and a function room with a garden terrace and a poolside lawn. The statement did not say anything about a restaurant at the property, although plans call for an onsite dining room with a bar area.

A new hotel is coming to the Millwork Commons neighborhood of Omaha, Nebraska. Taking over a vacant building, the new $57 million, soon-to-be Millwork Hotel will have 135 rooms and a rooftop bar.

In 2023, Lisa Sassman and her husband purchased the Broadway Court Motel in Point Pleasant Beach, New Jersey. The 20-room, 1950s-era motel has been given a fresh new look and feel.

Personnel Moves

HQ Hotels & Residences, the newly launched lifestyle hospitality brand spearheaded by SBE Chairman & CEO Sam Nazarian, has appointed Mike Metcalf as President of HQ Hotels. Metcalf joins the HQ Hotels team from Crescent Hotels & Resorts, where he served as COO, Executive Vice President, Senior Vice President, Operations, and Vice President of Business Development over his 18 years with Crescent. Metcalf’s focus will be to source new deals, develop brand standards, and ensure the company delivers on the HQbrand promise to guests, employees, and owners alike. HQ Hotels & Residences is set to become a leader in the hospitality industry through its focus on innovation, sophistication, and a unique blend of cultural and smart lifestyle elements. In partnership with Wyndham Hotels & Resorts, the vision is to create desirable destinations that cater to the evolving needs of modern travelers who seek memorable experiences and connectivity.

International Highlights

The Ritz-Carlton announced the opening of The Ritz-Carlton Rabat, Dar Es Salam, debuting a palatial oasis of contemporary majesty in the vibrant capital of Morocco, Rabat. The Ritz-Carlton, Rabat Dar Es Salam offers 100 guestrooms and 17 suites, multiple dining options, the Ritz-Carlton Spa, and a fitness center. The property’s meeting and events spaces include the Grand Ballroom for hosting up to 400 guests and 2,200 square meters of beautifully landscaped outdoor event spaces complemented by 454 square meters of indoor event space spread over three rooms.

Vienna Airport in Schwechat will host the largest hotel in Lower Austria, with 510 rooms. The hotel, Vienna House Easy by Wyndham, which is under construction, is being developed by the MAMMA Group and will be operated by the HR Group.

With Selina now controlled by Collective Hospitality, it is not surprising there are changes. The latest news is that Selina Israel, the subsidiary operating 14 accommodation sites in Israel, has ceased its activities. The Gabay real estate company, which rents a property on Migdal Beach at the Sea of Galilee to Selina, announced over the weekend that it is working to evict Selina due to a breach of their lease agreement. Selina has issued checks that were not honored. On Sunday, Gabay reported that Selina Israel has informed them that Selina Israel and its subsidiaries are immediately ceasing the provision of management services to all hotels, including the hotel operated on the company’s property on Migdal Beach, and that Selina Israel is forced to announce the cessation of its operations. Gabayintends to take over the management of the hotel and employ Selina Israel’s staff in its place.

EIH Ltd announced its board approved the setting up of EIH London Investments Ltd, which will be incorporated in the UK. EIH London will have a total authorized share capital of 30 million pounds sterling. EIH said the investment in the UK will enable the company to have a hotel presence in London. According to an exchange filing, EIH Ltd, along with its subsidiary EIH Holdings, Ltd, will own 51% of EIH London. The transaction will be completed by September 30. EIH London will develop a luxury hotel under the brand “The Oberoi.” The hotel will be operational by the March quarter of 2027-2028 and will have about 11 suites and six rooms. The company said this will require an investment of about 15 million pounds sterling.