Forecasting the Medium-Term Hurricane Impact on Hotels

The DJIA was up 410 points on Friday while Nasdaq rose 61, the S&P 500 was up 35 points, and the 10-year treasury yield was down .02 to 4.07%. Lodging stocks were higher, with new highs scored by MAR, HLT, WH and CHH. AHT and BHR were both up 5%, but SOND fell -5% on the day.

Baird took a swing at what the recent hurricanes would do to some companies' P&L's. Baird said that in the short term, RevPAR is usually negatively impacted, but in the intermediate term, usually provides a boost with FEMA, insurance and clean-up crews spending lots of time there, mostly in select service and extended-stay hotels. Florida exposure to hotel REITs is high, pointing out the resort portfolios of HST and PEB as well as XHR and BHR.

STR reported US lodging data for the week ended October 5. The Rosh Hashanah holiday shift caused artificial weakness to the tune of RevPAR being down -7.7% year over year. The opposite affect had occurred a couple of weeks ago. Group RevPAR was down -21%.

Marriott International, Inc. announced an agreement with FibraHotel, Fibra Danhos, and Beyond Ventures to bring The Ritz-Carlton, Cancun, Punta Nizuc to the area. The property is slated to include a 131-ley luxury hotel, developed and owned through a joint venture between FibraHotel and Fibra Danhos, along with 126 branded residences developed by Beyond Ventures. Set to welcome guests and residents in 2027, The Ritz-Carlton, Cancun, Punta Nizuc will offer an oceanfront pool complex, a destination spa, six gourmet restaurants and exclusive residential amenities, all serviced by The Ritz-Carlton.

Hotel Equities and Beechwood Pinnacle officially announced the opening of the AC Hotel Kansas City Downtown. The 239-guestroom hotel is co-owned and developed by Beechwood Pinnacle, and Hotel Equities serves as the operator. Contrary to what was previously announced, Greenwood was not involved with the hotel.

Asher Adams, Autograph Collection, an adaptive reuse project that will transform Salt Lake City's 1907 Union Pacific Depot into a glamorous 225-room hotel, will open on October 31, 2024. Alongside the restoration of the historic railroad passenger station, Asher Adams will include a new eight-story guestroom tower, signature restaurant, market and coffee shop, three distinct bars, a fitness center and 10,000 square feet of function space, and an additional 10,000 square feet of versatile venues for social events. The Athens Group, along with its partner, Hatteras Sky, have transformed the former Union Pacific Depot into a fresh new space, bringing to life an elevated, modern hospitality experience.

Memphis Business Journal reported the opening of The Aloft Memphis Downtown. A grand opening is planned but no date is set. The 12-story hotel has 156 rooms, a seasonal rooftop WXYZ Bar, an onsite Topgolf Swing Suite and a theater room for private movie viewing. JVD Enterprises developed the hotel.

Wheelock Street Capital is exploring a potential sale of the Ben, a waterfront hotel in downtown West Palm Beach, Florida. The property owner has begun approaching potential buyers for a deal that could value the 208-room hotel at around $1 million a key. The firm is working with adviser CBRE Group Inc. The property, soft-branded as part of Marriott International, Inc.'s Autograph Collection, includes a rooftop venue.

A "Topping Off" ceremony was held at the site of the new Hard Rock Hotel & Casino Tejon in Kern County, California. The property will offer 150,000 square feet of gaming space featuring 3,000 of the most popular slots, 48 table games, and video poker, and will be the second closest class III casino to Los Angeles, which is less than an hour away. Multiple dining options, a Rock Shop, and much more will be included in phase one. Rounding out the second phase will be a 400-room hotel, additional fine dining, pool, spa, cigar lounge and a 2,800-seat Hard Rock Live event venue. The anticipated completion date of phase one is the end of 2025. Phase two is expected to be another 20 months and will complete the entire hotel and casino.

Dauntless Development plans to build a 250-room hotel in Santa Barbara, California. The beachfront hotel would include a spa, fitness center, restaurant, bar and meeting space as well as underground parking.

The new Hotel Alpenrock Breckenridge, Curio Collection by Hilton is set to debut this winter. The 205-room hotel will be located along the base of Peak 9, steps from both the Breckenridge Ski Resort and historic downtown.

Sonesta International Hotels Corporation announced the opening of Red Lion Inn & Suites IAH Airport East. The 47-room, midscale property is located in Humble, Texas.

A new hotel opened in Imperial County, California two weeks ago. The 108-room Cambria Hotel includes a restaurant, a ballroom, indoor pool and spa.

A 136-year-old Colorado hot springs resort in Glenwood Springs is planning its next era. Glenwood Hot Springs Resort announced it will add a new boutique hotel as well as begin a renovation of its existing hotel. The resort's existing 107-room hotel, the Lodge, will remain open for business during renovations, as work on the guestrooms will happen strategically in stages. At the same time, the resort's historic sandstone bathhouse building, previously known as Spa of the Rockies, will be transformed into Hotel 1888. The new hotel will have 16 luxury guestrooms. Both the Lodge and Hotel 1888 renovations will be completed by the spring of 2025. The hotel renovations are part of the Glenwood Hot Springs Resort's multi-year improvement plan which included the introduction of Sopris Splash Zone; the renovation of its Therapy Pool and poolside changing rooms; the reopening of its renovated bathhouse; and the opening of its new Yampah Mineral Baths area with five new pools, shade pergola and outdoor lounging area with a hearth. The expansion project also saw the return of the resort's drinking spa.

Las Posadas of Sedona announced the completion of its million-dollar renovation, including the renovation of all 23 oversized guestroom suites and villas. The property's newly revitalized amenities now offer secluded courtyards with firepits and games, a serene pool and Jacuzzi, refreshing cold plunge, sauna, and several other enhancements. At the core of Las Posadas of Sedona's Wellness offerings is Basecamp, a newly designed multiuse room offering a large communal table for gatherings and a meditation deck. Managed by Ensemble Hospitality, Las Posadas of Sedona is the company's second property in Sedona and third in Arizona.

Atwell Suites at The Pass is targeting a soft opening in October, according to owner Joe DeSimone. A grand opening event is planned for November 21. DeSimone's development and gaming company, First Federal Realty DeSimone, began working on the 90-room hotel attached to The Pass, a casino in Henderson, Nevada's business district, in February 2023. The hotel features 57 king rooms and 33 double queens, an onsite market, evening bar with a limited menu, fitness center and a pool. IHG Hotels and Resorts will operate the accommodations.

In Pennsylvania, the Hanover Township Board of Supervisors granted conditional use approval for a proposed limited-service hotel. The proposal, for a Hyatt Studios with grab-and-go breakfast, calls for a four-story, 123-room structure. The hotel would also feature 172 parking spaces.

The AT&T Hotel and Conference Center, located in the heart of Austin, Texas, announced a comprehensive $30 million renovation aimed at elevating both the guest and conference experience. Set to begin in Spring 2025, the project will focus on modernizing the hotel's expansive 85,000+ square feet of meeting space. The renovation is timed to coincide with the upcoming closure of Austin's Convention Center in late Spring 2025. Key design and technology upgrades include a brand new junior ballroom, expanding the hotel's event capabilities; advance audio-visual technology, including beamforming microphones for seamless, high-tech meetings and conferences; and re-imagined foyers that bring in more natural light and encourage collaboration. The re-imagination of the conference facilities will be completed by Summer 2025. The hotel and conference center will remain open throughout the renovation.

Aken Hotels & Resorts announced its second hotel project in Mexico, the Aken Mind, Merida Hotel. The hotel is open and has 128 guestrooms, including eight Aken Signature Suites; a three-meal restaurant; a rooftop pool; and event space. The property will undergo a complete refurbishment of its public spaces including the lobby, terrace, restaurant and rooftop pool and bar, set to be completed in early December.

What would be Northern California's first developed surf park is aiming to open in less than three years, according to the project's founder and CEO. Chris Gallardo of what would be called Alchemy Surf Resort in the Placer One project, said he is planning to submit a formal application to Placer County for the 25-acre project in the coming months. If everything goes to plan, the goal is to open by Memorial Day 2027. Alchemy Surf Resort would center around an artificial wave pool. The pool would be split by a central walkway, while around the edges would be features such as cabanas, smaller pools, and other recreational sport venues, such as pickleball courts. Plans also include a hotel and an action sports hub for sports such as skateboarding, though those facets may come in a later phase. There would also be dedicated flexible events spaces for public and private events as well as opportunities for para-surfing and high school surf teams. Alchemy Surf Resort would have an estimated project cost of $120 million to $150 million.

The Origin Hotel has opened on the Berkley Riverfront in Kansas City, Missouri. The 118-room boutique hotel features an onsite restaurant, fitness studio, and a retail store. Additionally, the hotel boasts 4,800 square feet of meeting and event space across five unique and versatile venues. The Origin, a Wyndham Hotel, is owned by The Thrash Group and operated by Tandem Hospitality Group.

JLL Capital Markets secured the $14 million refinancing for Home2 Suites by Hilton Temecula, a 120-room extended-stay hotel in the heart of Southern California's wine country. JLL worked on behalf of the borrower, an affiliate of Huntington Hotel Group, to secure the floating-rate, three-year loan through MetLife Investment Management. The four-story Home2 Suites by Hilton Temecula offers a fitness center, an outdoor pool area complete with BBQ facilities, a business center, onsite parking and a market.

Nine luxury hotels in what's now a 12-hotel portfolio for Strategic Hotels & Resorts were refinanced through CMBS debt, CoStar News reported. The properties included in the refinancing are: Ritz-Carlton Laguna Niguel in Dana Point, California; Ritz-Carlton Half Moon Bay in Northern California; Westin St. Francis in San Francisco; JW Marriott Essex House in New York City; Regent Santa Monica in California; InterContinental Miami; InterContinental Chicago; Fairmont Scottsdale Princess in Scottsdale, Arizona; and Four Seasons Washington, D.C. Collectively, the refinanced hotels represent 4,957 rooms. CoStar News reported Strategic Hotels & Resorts secured the financing from Bank of America and German American Capital, according to analysis of the deal by Morningstar DBRS and Moody's Investors Service.

Personnel Move

HRI Hospitality announced the appointment of Adnan B. Virani as the Senior Vice President of Capital Markets and Investor Relations. In this pivotal role, Virani will be integral in raising equity and expanding HRI Hospitality's financial partnerships and strategies to maximize market investment and development opportunities. With a focus on developing new capital relationships and platforms, securing funding for specific projects, and overseeing reporting and compliance requirements, Virani will lead the charge in developing a long-term capital-raising network to support the continued success and long-term growth of HRI Hospitality. Virani comes to HRI Hospitality from FD Stonewater where he most recently served as the Director of Investor Relations.

European Highlights

Resident Hotels signed a franchise agreement with Marriott International to convert its four Sleeperz Hotels to the Four Points Flex by Sheraton brand. The Sleeperz Hotels portfolio currently features over four hundred rooms across four properties in Cardiff, Dundee, Edinburgh and Newcastle upon Tyne, all of which will undergo the rebranding. Following the purchase of a majority stake in Sleeperz Hotels by Mactaggart Family & Partners, the portfolio has been operated by Resident Hotels, also majority owned by the same family office. The hotels are due to complete the rebrand in 2025 and will undergo a series of renovations funded by the Sleeperz Hotels' principal investors