Goldman Sachs Initiates Coverage with Buy Ratings on 3 Hotel Chains

The markets got what they wanted from the Fed with a 50 basis point cut but after a brief rally, they sold off modestly. The end of the day had the DJIA down 103, Nasdaq down 55, the S&P 500 down 16 points and the 10 year treasury yield up .04 to 3.69%. Lodging stocks were mixed.

Goldman Sachs initiated coverage of the lodging sector, and we can describe it as cautiously optimistic. They acknowledged a choppy environment with many companies lowering 2H forecasts, but GS believes much of that is priced in. They are rather sour on timeshare. On the Buy side, they have Hilton ($245 PT), Wyndham ($96), and Marriott ($267), while they have a Neutral rating on Hyatt ($151). They initiated Travel + Leisure ($44) with a Neutral rating and said Hilton Grand Vacations and Marriott Vacations have Sell ratings.

STR reported US lodging data for the week ended 9/14. US hotel RevPAR was down -1.4%, with rates up 0.2%. Group RevPAR was down -0.5%. The Rosh Hashanah calendar shift may have impacted this week.

Dimension Hospitality announced the 82-room Fairfield Inn and Suites - Charlotte/Arrowood, located in Charlotte, North Carolina, has joined the company’s growing portfolio of managed hotels. The hotel is in the final stages of a million-dollar top-to-bottom renovation. Every guest room will be updated and bathrooms will be upgraded. Public space improvements include a new breakfast area, lobby décor and a refreshed Corner Market. Exterior improvements include the new swoop portico and modern color pallet.

IHG Hotels & Resorts’ Luxury & Lifestyle portfolio announced the signing of Six Senses RiverStone Estate in Western Pennsylvania. Located outside the quaint town of Foxburg and anchored by a majestic three-story stone mansion, the resort’s 77 new guestrooms will be woven into the contours of the 1,200-acre estate, with over 50 miles of trails and 7 miles of riverfront. The mansion will be further enhanced to serve as the centerpiece for the property, alongside a Victorian carriage house. Set to open in 2028, Six Senses RiverStone Estate will offer guestrooms and cottages along with branded residences. Amenities include a Six Senses Spa, a fitness center, a pool, onsite farm-to-table dining, a central courtyard with tasting bars and the Orchard Alley pop-up experience, and an equestrian center housing a 22,000 square foot indoor riding area, 36 stalls with heated floors, and quiet corners for equine therapy programs. Six Senses RiverStone Estate ownership is led by Saji Daniel and Shannon McGauley Daniel and advised by Weitzman Associates.

Hyatt Hotels Corporation announced the opening of Hyatt Centric Delfina Santa Monica, marking the Hyatt Centric lifestyle brand’s sixth hotel in California and the 101st Hyatt hotel in the Golden State. The hotel is expected to soon undergo a $16 million refurbishment, bringing a fresh, modern touch to its 315 guestrooms. The refresh will also re-imagine the property’s dining experience, with an all-new three-meal restaurant and bar, while revitalizing nearly 15,000 square feet of meeting space, including a stunning 4,500 square foot rooftop ballroom. The updates will extend to the lobby and guest arrival area. Additionally, the hotel boasts an inviting fitness facility, including an outdoor pool and whirlpool. The refresh of Hyatt Centric Delfina Santa Monica is slated to begin this fall, with a carefully phased approach so as to not disrupt operations during the improvements.

West77 Partners and LivAway Suites announced the groundbreaking of a new 126-key LivAway Suites extended-stay hotel in Vineyard, Utah, marking the brand’s third location in the state.

A Drury Plaza Hotel is being planned at the Century Farms mixed-use development in Nashville, Tennessee. According to hotelprojectleads.com, Drury Development Corp is proposing a seven-story hotel with 180 guestrooms.

The historic Hotel Grim in Texarkana, Texas, will be open for business within the next few days. The structure, now known as The Lofts at The Grim, was vacant for nearly 30 years before the City of Texarkana received a HUD loan for approximately $1.4 million for work in 2017. In 2019, the company Cohen-Esreybegan construction, designating $25 million for the project. There are already 55 applicants for the 93 apartments at the site.

Norton Commons, in Louisville, Kentucky, is welcoming its first boutique hotel. Palmer Cole is the builder and co-owner of the Purple Martin, an Airbnb-style hotel offering mostly two-bedroom, two-bathroom units with full kitchens and washers and dryers.

Two new hotels are coming to the City of Dubuque, Iowa by the end of 2026. An agreement was reached by the Dubuque City Council to sell a 13-acre lot in the Port of Dubuque to Kinseth Hospitality Company for $800,000. In turn, the developer is building a six-story facility to house two connected Marriott hotels with a combined 160 hotel rooms. Under Kinseth Hospitality’s agreement with the city, the complex is expected to be finished by December 31, 2026.

Worcester Polytechnic Institute has finalized its controversial $46 million purchase of two hotels at Gateway Park in Worcester, Massachusetts. On Friday, WPI signed deeds to purchase the Hampton Inn & Suites and the Courtyard by Marriott, according to records with the Worcester Registry of Deeds. They were both owned by BRE Hotels & Resorts. According to the deeds, the Hampton Inn sold for $20.4 million, and the Courtyard by Marriott sold for $25.6 million. The plan is to transition the Hampton Inn to student housing in 2026, while the Courtyard by Marriott will continue to operate as a hotel through at least 2030.

Hodges Ward Elliott arranged the sale of The Ray Hotel, a 141-key boutique lifestyle hotel located in Delray Beach, Florida. HWE represented the seller in the deal. 

Costa Rica’s eco-friendly Hotel Belmar has completed its carefully curated room renovations. Almost all of the ecolodge’s 26 rooms underwent a transformation.

Personnel Moves

Longtime hotel and hospitality brokerage leader Dan Peek is joining JLL’s Americas team, where he will co-lead the hotel and hospitality practice with current CEO Kevin Davis. Peek joins the company as president of JLL Americas Hotels & Hospitality after a five-year stint as president and chief operating officer at Hodges Ward Elliott. Prior to that role, Peek served as senior managing director and head of hospitality at HFF, a firm that has since been bought by JLL.

EOS Hospitality has appointed Nicole Di Maio-Kennedy as Vice President of Revenue Maximization. In this pivotal role, Di Maio-Kennedy will spearhead the company’s revenue management strategies, driving profitability and market share growth across EOS’s diverse portfolio. Di Maio-Kennedy joined EOS Hospitalityfrom Pyramid Global Hospitality, where she most recently served as vice president of revenue management.

Valencia Hotel Collection announced the appointment of Brenda Geffert as Corporate Director of Sales and Marketing. In this role, Geffert will be responsible for developing and executing strategic sales initiatives, driving market share growth and overseeing marketing efforts across all Valencia Hotel Collection properties. Geffert was previously the Area Director of Sales at Aimbridge Hospitality.

SLS Hotels & Residences will open SLS Barcelona this December. The property boasts 471 rooms and suites, six distinct restaurant and bar concepts, three pools, a spa and extensive events space.

European Highlight

ProsperCap Corporation has entered into facility agreements to secure new term loans and capital expenditure loan facilities for up to £310 million. Arranged by Deutsche Bank AG London Branch and Standard Chartered Bank, the new facilities comprise a term loan facility of up to £296.04 million and a capex loan facility of up to £13.96 million, both with an initial tenure of 24 months and three extension options of 12 months each. The proceeds from the term and capex facilities will be used to refinance ProsperCap’s existing facilities, pay for transaction costs, budgeted capital expenditure, and for general corporate purposes such as working capital requirements. ProsperCap’s portfolio comprises 17 hotels - mostly in the upscale segment - across regional cities in the UK, including Manchester, Birmingham, Glasgow, and Liverpool, under the Hilton, IHG and Marriott brands.