Skyline Investments Sells Courtyard Hotels Across the U.S.
Skift Take
The DJIA fell 325 points while Nasdaq was down 187, the S&P 500 fell 45 points and the 10-year treasury yield was down .06 to 4.04%. Lodging stocks were modestly lower today. WH traded up to another new high while SOHO was the only mover of note, up 8% on the day.
In an article from The Wall Street Journal, group travel is buoying the hotel business. Conferences and other group business are usually the last part of lodging to recover from a downturn. Now, the spread of remote work and Zoom calls is prompting many companies to give priority to group travel and industry conferences as a more efficient way of promoting team cohesion or meeting with partners and clients, analysts say. According to Omni Hotels & Resorts, some people are not going to the office every day, so there is a need to get together. They are planning to attend meetings and conferences in order to make those face-to-face connections. RevPAR for group travel was up 6.8% for the first eight months of this year compared with the same period in 2023, according to CoStar Group. That outpaced inflation and revenue from smaller groups and individual travelers, which was up less than 1%. Average daily room rates for non-group travel, meanwhile, have fallen slightly this year while group booking rates increased 4%. It isn’t an entirely rosy picture for group travel, which first started showing promising signs of recovery in 2022. Occupancy remains slightly below 2019 levels, while rooms rates are barely keeping pace with inflation.
The Hospitality Asset Managers Association announced the result of its Fall 2024 Industry Outlook Survey. The semi-annual report conveyed the latest opinions, experiences, and predictions of nearly 70 hotel asset managers on topics ranging from budget forecasts to management company outlooks. Highlighted results include: The top three issues of greatest concern are demand, wage increases, and ADR growth. Nearly 82% of respondents do not believe the economy is headed toward a recession in 2025. Approximately 58% of respondents have made or are planning to make changes to the band and/or management as part of their current strategy.
Skyline Investments completed the sale of 11 Courtyard by Marriott hotels in the U.S. The properties were sold to third parties for $101 million. Other terms were not disclosed. The 11 Courtyard hotels are: Chicago Arlington Heights; Chicago Deerfield; Chicago Rockford; Birmingham (AL) Hoover; Huntsville (AL) University Drive; Courtyard Manassas (VA) Battlefield Park; Courtyard Lexington (KY) North; Courtyard Dayton (OH) Miamisburg; Courtyard Little Rock (AR); Courtyard Oklahoma City; and Courtyard Toledo (OH) Holland. Marcus & Millichap represented Skyline in the transaction. Following the completion of the transaction, the company retained ownership of three Courtyard properties: Ft. Myers, Florida; Ithaca, New York; and Tucson, Arizona, which are up for sale.
White Lodging, in partnership with REI Real Estate, is expanding in Austin once again. Starting this month, Hotel Trinity, Autograph Collection, will begin its 13-floor, 258-room rise at the corner of Trinity and Fifth Streets. Hotel Trinity will offer a private hideaway featuring an exclusive rooftop pool, fitness center, and social club. The property will also feature approximately 6,000 square feet of meeting space and a ground-floor restaurant.
Grand Wailea, a Waldorf Astoria Resort, announced its latest culinary partnership with Nobu. Set to launch at the resort in Summer 2025, Nobu at Grand Wailea will expand the property’s gastronomic offerings with the newest addition to the Japanese restaurant empire. Nobu at Grand Wailea will offer over 13,000 square feet of indoor and alfresco dining spaces, with a dedicated sushi bar. Blackstone Real Estate acquired Grand Wailea in 2018. The newly renovated resort boasts 777 rooms and 57 suites and the Kilonai Spa and multiple food and beverage venues.
According to travelweekly.com, The Waldorf Astoria New York’s reopening has been postponed until next spring. The landmark Manhattan hotel had most recently aimed to open before the end of 2024. The Waldorf is in the midst of a major revamp, which will transform a hotel with 1,400 guestrooms into one with 375 hotel rooms and 375 condo residences.
Azul Hospitality announced the newly constructed Hyatt Place South Reno, located in Reno, Nevada, has opened and joined its portfolio of managed assets. Tolles developed the property in conjunction with Pelzer Hospitality. The 132-room hotel offers a fitness center, business center, outdoor patio and terrace with fire pits, expansive heated outdoor enclosed pool, golf club, ski equipment storage, and an onsite restaurant.
IHG Hotels & Resorts announced the opening of a new-build Holiday Inn Express Hotel in Long Island, New York. The 20-story hotel offers 200 rooms, 1,000 square feet of meeting space, and a fitness center. Holiday Inn Express Long Island City E – New York is owned by Queens Plaza South, LLC and managed by H2 Hospitality Group.
Extended Stay America announced the opening of the Extended Stay America Premier Suites Belgrade – Bozeman – Yellowstone Airport, located in the heart of Belgrade, Montana. The property was developed by Rimrock Companies and will be managed by Hotel Management & Consulting. The 4-story, 124-room newly constructed property features a fitness room, onsite guest laundry, dedicated pet area, grill and picnic area, and the brand’s signature spacious lobby with additional vending.
CoralTree Hospitality has been awarded management of The Islands of Islamorada resort in the Florida Keys. The gated, luxury enclave of 22 waterfront villas and eight, one-bedroom suites is the seventh CoralTree property in Florida. The villas are also available for purchase with residential sales by Ocean Sotheby’s International Realty. The Islands of Islamorada will be part of the CoralTree Residence Collection.
Marc & Rose Hospitality announced Casa Loma Beach Hotel, located on the rock-strewn cliffs of Laguna Beach, California, has debuted a $15 million renovation. Formerly the beloved Inn at Laguna Beach, Casa Loma features 70 newly appointed guestrooms, culinary offerings, public spaces, and event venues. Casa Loma Beach Hotel marks the second of two key historic restorations for Marc & Rose Hospitality on the Pacific Coast Highway, following on the heels of sister property La Playa Hotel in Carmel-by-the-Sea.
Bartell Hotels announced the Pacific Terrace Hotel recently unveiled a transformation of the elegant hotel on the shores of San Diego’s sandy beach. Following a two-year, $3 million renovation, the hotel now features a chic residential-style lobby, a fresh and inviting Terrace Café, plus 73 re-imagined guestrooms, including 27 suites and junior suites.
Populus, located in downtown Denver, Colorado, has officially opened, according to Travel & Leisure. Aiming to become the country’s first carbon-positive hotel, the property features 265 guestrooms and suites and multiple dining venues. The hotel uses 100% renewable electricity and is committed to zero-waste dining, which includes composting all of its food waste and delivering it to local farms.
Specialty Search International announced Jim Coffey has been promoted to senior vice president from vice president. In his new position, Coffey will assume an expanded role with the firm’s digital strategy that will include an upgraded CRM platform and the launch of the firm’s new website. Prior to joining SSI, Coffey was senior director of corporate sales with Sonesta International Hotels Corporation.
Just a few days after snapping up Motel 6 and Studio 6 brands’ parent G6 Hospitality, Oravel Stays Ltd is reportedly in discussions for fresh funding at a larger valuation to boost its inorganic strategy. Oravel Stays’ G6 Hospitality deal, which it had bought from Blackstone Real Estate for $525 million in an all-cash transaction, was a part of its expansion spree into the U.S. market. As per Business Standard, hospitality major OYO’s parent Oravel Stays has kicked off talks with overseas institutional investors and private Indian investors to raise $200 million at an estimated valuation of $4.5 – $5 billion. Additionally, the SoftBank-backed company is also looking to refinance $450 million of its outstanding debt, seeking lower interest rates from 14% to 10-10.5% and extending the loan maturity by three years to FY29. As a precautionary measure, it is also adding a $350 million drawable bridge facility to provide interim funding until the equity raise takes place. This comes at the heart of OYO looking to go public as soon as next year, after shelving its plans twice. The company plans to refile.