Hoshino Resorts to Debut First U.S. Luxury Hotel in New York State

The DJIA rose 161 points, Nasdaq was up 7 but the S&P 500 was down a point while the 10 year treasury yield certainly is not acting like we are in a lower interest rate environment, up .08 to 4.10%. Hotel stocks were modestly higher. HLT, MAR and CHH each traded up to new high but SVC traded down to another new low, down another -5%.

Baird does not believe there is much to get excited about for this 3Q24 earnings season when it comes to the hotel brand companies. 3Q24 RevPAR growth was softer than expected, mainly from September and they expect 4Q to be similarly sluggish with estimates coming down as a result. Meanwhile we are seeing new highs in the stock prices of a lot of the companies but Baird’s enthusiasm is tempered by a continued deceleration in RevPAR growth and absolutely/relatively high valuations. They are not excited about the near term setup, especially with the businesses generally operating at/near their growth algorithms. Wyndham remains their Best Idea but their bullishness towards Choice Hotels and Hilton has waned. The hurricanes have not helped their sentiment as the three big ones this year, Beryl, Helene and Milton have been disruptive to travel patterns and overall demand. They impact larger group-oriented hotels while the lower end brands tend to capture a lot of post-storm demand, referencing Choice and Wyndham. On the resort side, Baird believes Caribbean RevPAR was particularly weak in July and September and Hyatt’s ALG business likely was impacted by hurricanes. They also are watching the impact hurricanes had on the construction/development pipelines and would not be surprised if more hotel openings slip into 2025. The labor strikes obviously have not made them feel any better. Overall Baird said this set up feels like 2018/2019 with RevPAR growth positive but decelerating, net unit growth robust and improving, interest rates declining, but this time from a higher starting point but valuations are not cheap.

Compass Point upped their rating on Host Hotels to Buy from Neutral. Compass Point has a $22 price target on the stock.

A refurbished hotel at the University of Toledo Medical Center campus, in Toledo, Ohio, is under a new name with new ownership. Woodland Real Estate Group celebrated a ribbon-cutting ceremony of the Delta Hotel by Marriott. The redesigned hotel offers conference rooms, upgraded guestrooms, a new fitness center, an indoor pool, and a new restaurant.

Just two years after opening as the Line Hotel, the 12-story, 236-room hotel plans to switch operators to Highgate and rebrand as a Hilton Curio Collection hotel. The flag switch will take effect December 10, according to a public filing. It is unclear what Line San Francisco’s new name will be after the flag change, and if there are major leadership or renovation plans in the works alongside it. The hotel developer and property owner is Group i.

IHG Hotels & Resorts announced the opening of Regent Santa Monica Beach, marking the return of Regent Hotels & Resorts to the Americas. The flagship property is the 12th Regent hotel globally. Regent Santa Monica Beach has 167 guestrooms and suites, special events venues, four dining destinations, Guerlain Wellness Spa, Azure Pool, and a fitness center.

IHG Hotels & Resorts also announced the opening of Kimpton Santo, a newly converted hotel in San Antonio, Texas. The property offers 347 guestrooms, including 16 suites; 13,000 square feet of event space, four unique dining venues; and a rooftop pool. The property is owned by Sauto Hotel II, LLC and managed by White Lodging Services.

Landmark Hotels, Inc. broke ground at the site of the Hyatt Place Sonoma Wine Country on October 9th. The 165-unit hotel will feature an elevated lobby style, meeting spaces, multiple food and beverage options, a pool, and a fitness center.

Four Seasons Hotel New York is preparing to reopen this fall. The hotel plans to reopen with a selection of rooms across multiple categories, with all suites expected to be available in 2025. Four Seasons Hotel New York will have multiple dining venues and more than 15,000 square feet of versatile event space.

The 764-key Fairmont Banff Springs, in Banff, Alberta, has completed a $35 million renovation. The latest refresh was focused on the hotel’s luxury guestrooms and suites, including the transformation of Fairmont Gold, an exclusive hotel-within-a-hotel experience.

Scaffolding has been removed from the north side of The Vineta Hotel construction site in Palm Beach, Florida, marking the final stages of a major redevelopment effort. The hotel, previously The Chesterfield, is expected to open in the first quarter of 2025. The four-story land marked building was purchased for $42 million in April 2022 by David and Simon Reuben, and closed five months later for renovations. It is managed by Oetker Collection. Previously 57 rooms, The Vineta will open as a 41-room luxury hotel with restaurant, nightclub and pool space. Renovation plans include external sitework improvements, façade renovations and alterations, and interior demolition and alterations that include enlarging the existing hotel rooms on the second, third and fourth floors. Also planned are interior layout changes to the ground floor to accommodate an expanded food and beverage program.

Hoshino Resorts, which operates high-end hotels as well as more modest inns across Asia and the Pacific, will open its first new-build hotel in the United States by 2028. The location for the 40-room resort is Sharon Springs, New York, a small town about 200 miles north of New York City.

Just in time for Halloween, JLL is selling a $78.4 million debt that appears to be tied to Hotel Union Square, which often appears on lists of the most haunted hotels in San Francisco. According to therealdeal.com, JLL’s Capital Markets team declined to comment on whether or not the sale of the non-performing loan on an unnamed Union Square hospitality property was in fact Hotel Union Square, which was owned and managed by a partnership of Rockpoint and Highgate Hotels before going into default last year. The outstanding loan amount, 131-key room count, 1908 vintage and non-operational status noted on the offering all match the recently closed hotel at 114 Powell Street. The six-story hotel was purchased in May 2015 for about $109 million, and the owner is 100-120 Powell LP, which has the same Dallas address as Rockpoint. United Overseas Bank Limited originated a $122.5 million loan in May 2015 for two hotels, the one in Union Square and another called Hotel Diva, which shut its doors in December 2020 and sold to the city for about $50 million in 2021. The Union Square Hotel’s other co-owner, Highgate Hotels, was managing partner for both hotels.

Paramount Lodging Advisors announced the sale of the 94-room Courtyard by Marriott Statesville Lake Norman, North Carolina and the 80-room Hampton Inn Statesville, North Carolina. The properties were sold individually as part of a larger institutional portfolio sale.

DoveHill announced the first close of its DoveHill Opportunity Fund 2, an investment vehicle focused on two competitive-edge strategies: Preferred Equity and Experiential Hotels. With Fund 2, DoveHill aims to further capitalize on its highly differentiated strategies, which seize the unique advantages of both on- and off-market deals and the ability to invest directly with a vertically integrated investment manager. With Wurzak Hotel Group, DoveHill’s affiliate management company, the company has boots-on-the-ground oversight on every deal and strategic relationship. DoveHill distinguishes itself as an investor by creating operational leverage through its vertically integrated value-added skill set.

Walker & Dunlop, Inc. announced its strategic move into Hospitality Investment Sales with the addition of Jonathan Morrow as senior managing director. Morrow will lead Walker & Dunlop’s hospitality practice and be responsible for the origination and execution of hospitality investment sales and capital placement across the United States. Morrow will be based in New York. Prior to joining Walker & Dunlop, Morrow spent over 15 years at Hodges Ward Elliott.

Europe Hightlight

Mohari Hospitality, Omnam Investment Group and Pharrell Williams acquired the property formerly known as the Hotel Saint-James & Albany in Paris, according to a news release. The historical property is located on the right bank of The Seine in the 1st arrondissement of Paris. Eastdil Secured advised on the transaction and affiliates of Apollo Management International LLP acted as lenders.