Wyndham Expands Extended-Stay Portfolio

The DJIA rose 273 points, Nasdaq was up 49, the S&P 500 was up 15 points and the 10-year Treasury yield was up another .05 to 4.28%. Lodging stocks were higher. CHH traded up to another new high, but SVC went down another -6% to another new low. AHT, on its first day of trading after their reverse split, was up 10%. VCSA rose 13% on the day.

According to the Q3 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics, the total U.S. pipeline stands at 6,211 projects/722,821 rooms, up 9% by projects and 7% by rooms Year-Over-Year. At the close of the third quarter, there are 1,185 projects/148,716 rooms under construction, marking an 11% increase in projects and a 6% increase in rooms YOY. Projects scheduled to start construction in the next 12 months total 2,209 projects/251,797 rooms. Projects and rooms in the early planning reached 2,817 projects/322,308 rooms, up 17% by both projects and rooms YOY. LE analysts report that the upper midscale chain scale continues to have the largest project count in the U.S. pipeline, reaching a new all-time high of 2,315 projects/224,703 rooms. Following is the upscale chain scale with 1,407 projects/174,127 rooms. The midscale segment also showed significant growth, reaching an all-time high of 928 projects/77,600 rooms. Through the third quarter, 408 new hotels with 48,258 rooms opened in the U.S., with another 223 projects/23,902 rooms anticipated to open by year-end of 2024. LE projects 2024 to finish at 631 new hotels with 72,160 rooms, a 1.3% supply increase. Looking ahead, LE analysts forecast 759 new hotels/86,264 rooms to open in 2025. For 2026, LE forecasts 938 new hotels/101,017 rooms to open, amounting to a supply increase of 1.8%.

U.S. Hotel Construction Pipeline Summary (Q3 2024)

Pipeline by Chain Scale Segment (Q3 2024)

New Hotel Openings and Projections (2024-2026)

Guests seeking contemporary, upscale residence-style accommodations in urban destinations now have new offerings to consider in key cities like Houston, Washington D.C., and more as a result of a 10-year development relationship between Wyndham Hotels & Resorts and Reside. The franchise agreements bring five residence-style hotels that are open or under development to the Wyndham brand, marking the debut of its Wyndham Residence tier in the U.S., with a focus on expanding its offerings across the top 50 markets in the U.S. The model caters to guests looking for both long-term, home-away-from-home units as well as those looking for a home base for a quicker getaway. For more than three decades, Reside has successfully managed and operated alternative accommodations and multi-family units with a key focus on furnished corporate housing. Today, through its partnerships, the company boasts a presence in 60 countries around the world. Several Wyndham Residences are already established in other parts of the world, including the United Arab Emirates, Greece, and more. Through Reside, Wyndham Residences will bring guests to some of the country’s most iconic urban destinations. Open locations include Reside Seattle Downtown, a Wyndham Residence, a 55-room residence-style hotel, and the 79-room Reside Houston Downtown, a Wyndham Residence. Future locations include New Orleans with 22 guestrooms; Washington D.C. with 81 guestrooms in D.C.’s Navy Yard; and 67 rooms in D.C.’s NOMA neighborhood. Read more on Skift (free for DLR subscribers).

A new 207-room hotel has opened on the site of the former police headquarters in Clayton, Missouri. The $50 million AC Hotel features a rooftop bar and event space. Koplar Properties co-developed the hotel along with Homebase Partners, Eagle Realty and Concord Hospitality Enterprises.

Buffalo Lodging Associates is continuing to work on updates for its hotel portfolio, with projects slated for November and December at three of its local properties. This summer, the company completed renovations at its Home2 Suites Buffalo Airport/Galleria Mall. Additionally, work wrapped up at the Homewood Suites by Hilton Buffalo Airport. Next up are three more properties in Cheektowaga, New York, where we will see updates. The 158-room Hilton Garden Inn Buffalo-Airportwill see a large renovation beginning in November. The 140-room Fairfield Inn Buffalo Airport will see a full renovation in December, and the 132-room Hampton Inn by Hilton Buffalo-Airport/Galleria Mall will see room renovations.

The Motto by Hilton Bentonville Downtown is now open in Bentonville, Arkansas. The 175-room hotel is owned and developed by the Windsor Aughtry Company and managed by Hospitality America. The hotel features the Motto Commons, two restaurant concepts by Indigo Road Hospitality Group and a coffee bar.

Montage International and Pendry Hotels & Resorts announced the opening of Pendry Natirar, located on a 500-acre estate in New Jersey’s Somerset County. The resort is centered around a restored 1912 Tudor-style mansion and features an adjacent 66 guestrooms, including 20 suites. Amenities include many unique culinary offerings, Spa Pendry and fitness center, onsite 10-acre The Farm at Natirar, Compass Sports, Paintbox Children’s program, 13,000 square feet of indoor and outdoor meeting space, and The Natirar Club. Pendry Natirar will also feature 24 Pendry Residences, offering both Estate and Farm Villa Residences.

More than two years after the project was announced, modified plans are advancing for the Beachwalk Compass by Margaritaville Hotel in St. Johns County, Florida. The county’s planning and zoning agency recommended approval for changes to the project plans that raise the limit of hotel rooms. The room count is planned to increase from 150 to 200, including 68 short-term stay cottages with up to six bedrooms. In addition to the cottages, a five-story boutique hotel is planned to have 132 rooms on the southwest end of Beachwalk’s Crystal Lagoon. Beachwalk Retail Center LLC, a partnership between PEBB Enterprises and Falcone Group, will develop the hotel and cottages. It owns the land. The St. Johns County Board of County Commissioners will vote on the changes to Margaritaville at an upcoming meeting.

Opening under an iconic moniker, The Surrey, A Corinthia Hotel brings new design and ultra-luxury experience to one of the most coveted addresses on New York City’s Upper East Side. The 16-story building is the inaugural property in North America for Corinthia Hotels. Owned by Ruben Brothers, The Surrey has been completely transformed to encompass 70 guestrooms, 30 suites and 14 private residences. It is home to the first New York outpost of the beloved eatery Casa Tuaand the tranquil Surrey Spa featuring Sisley Paris.

Maine Course Hospitality Group announced the groundbreaking ceremony of HomeAwhile, an innovative boutique hotel concept set to transform the extended-stay experience in Scarborough, Maine. The ceremony marked the official start of construction on this 109-room all-suite hotel. The hotel will be developed in partnership with Opechee Construction. HomeAwhile is scheduled to open in late spring 2026.

Mumford Company announced the recently completed sale of the Holiday Inn Express located in Fairmont, West Virginia. The firm represented the seller Parshva Corporate LLC in the transaction. Critical Hospitality LLC is the purchaser. After the cosmetic renovations are completed, the property will remain a Holiday Inn Express.

Marriott International, Inc. announced the opening of its 500th property in the Caribbean and Latin America region. The Almare, a Luxury Collection Resort, Isla Mujeres, Adult All-Inclusive marks Marriott’s first luxury all-inclusive resort in Mexico, expands its Luxury Collection brand to a fourth property in the country and strengthens its presence in the high-demand market of Isla Mujeres. This resort also marks the 62nd luxury property in the region for the Luxury Group by Marriott International. This adults-only oasis boasts 109 suites, seven distinct dining venues and bars, an Alma spa, and a sparkling infinity pool overlooking the Caribbean Sea.

Personnel Moves

Kerten Hospitality announced the appointment of Giacomo Nicolodi as group marketing communications director. Nicolodi will work on shaping how Kerten Hospitality connects with its global audiences by placing creativity, culture, and community at the forefront. Based in Dubai, Nicolodi steps into his role with Kerten Hospitality as the company gears up for two launches: Cloud 7 in Rome is set to open in January 2025, while Dar Tantora - The House Hotel in Saudi Arabia’s AlUla will also open soon. Nicolodi is also set to spearhead the launch of a new hotel brand in 2025, one that will re-imagine the guest experience. Additionally, Kerten Hospitality is placing a significant emphasis on branded residences, which will integrate partnerships with leading brands across the fashion, design, automotive, sports, and lifestyle sectors.

LuxUrban Hotels Inc. announced the resignation of board member Patrick McNamee, effective October 24, 2024. McNamee, who was part of the Compensation and Nominating Committees, stepped down to pursue other opportunities. The company has not indicated any immediate plans for replacing McNamee on the board or its committees.

Europe Highlights

Hyatt Hotels Corporation announced plans for affiliates of Hyatt and Grupo Pinero to enter into a long-term asset-light strategic joint venture headquartered in Palma de Mallorca, Spain, which will manage Bahia Principe-branded hotels and resorts and own the Bahia Principe brand. The 50/50 joint venture is expected to expand Hyatt’s all-inclusive room portfolio by approximately 30% and enhance Hyatt’s position as one of the leading providers of all-inclusive offerings across the world. The transaction is anticipated to close in the coming months, subject to customary closing conditions. Hyatt plans to appoint Bahia Principe’s current CEO, Julio Perez as CEO to lead the management company following close, with Grupo Pinero’s current Global Chief Executive Officer, Encarna Pinero, serving as Chairman of the Board and additional officers to be named at a later time. Upon closing, 23 resorts, totaling over 12,000 rooms, including 22 resorts under the Bahia Principe Hotels & Resorts brand located across the Dominican Republic, Mexico, Jamaica, and Spain, as well as the exclusive Cayo Levantado Resort in the Dominican Republic, will be added to Hyatt’s Inclusive Collection. Bahia Principe Hotels & Resorts is expected to join the World of Hyatt loyalty program at a later date.