Sonesta Announces 30 New Franchise Agreements

The DJIA fell 155 points while Nasdaq was up 146, the S&P 500 was up 10 points, and the 10-year treasury yield was flat at 4.27%. Lodging stocks were mixed. The only big mover of note was SOHO, down -8%, while SVC traded down to another new low.

The latest Q3 2024 U.S. Hotel Construction Pipeline Trend Report from Lodging Econometrics is out. Please review the tables below for the highlights.

U.S. Markets with the Largest Hotel Construction Pipelines (Q3 2024)

U.S. Markets with the Most Active Under-Construction Hotel Projects (Q3 2024)

U.S. Markets with the Most Projects Scheduled to Start in the Next 12 Months

U.S. Markets with the Most Hotel Projects in Early Planning Stage (Q3 2024)

U.S. Markets with the Largest Combined Number of Renovations and Conversions (Q3 2024)

U.S. Markets with the Most New Project Announcements (Q3 2024)

U.S. Hotel Openings and Forecast (2024-2026)

Reuben Brothers has acquired the W South Beach from Tricap and RFR. The landmark deal, valued at over $400 million, reinforces Reuben Brothers’ commitment to strategically expanding their hospitality portfolio in the United States and beyond. The property includes 348 hotel and condo units. The transaction was facilitated by Eastdil Secured, who served as an advisor to the seller on this deal. This acquisition marks Reuben Brothers’ second significant Florida location, following the purchase of the Chesterfield in Palm Beach. In Puerto Rico, Reuben Brothers and their partners at Three Rules Capital are developing Esencia, a $2.6 billion luxury community on the island’s southwest coast. The expansive project is set to include five luxury hotels featuring brands such as Mandarin Oriental Hotel Group and Rosewood Hotels & Resorts alongside 900 branded residences.

The AC Hotel and Residence Inn by Marriott Reston, located in the next phase of Reston Town Center in Reston, Virginia, is set to open its doors in January 2025. Operated by Donohoe Hospitality Services, the dual-branded hotel features 120 Residence Inn guestrooms and 147 AC Hotel guestrooms. Shared amenities include 11,300 square feet of meeting/event space, a spa-style indoor pool, a fitness facility, a full-service restaurant, and an all-season rooftop bar and lounge.

IHG Hotels & Resorts announced the opening of a new Holiday Inn Express & Suites in Austin, Texas. Located near the Austin Airport, the hotel offers 102 rooms, 586 square feet of meeting space, EV charges, an outdoor pool, a fitness center, and a business center. Holiday Inn Express & Suites Austin Airport Eastoperates under the ownership of Austin Airport Investment LLC.

IHG Hotels & Resorts also recently opened a newly converted and rebranded Holiday Inn Express & Suites hotel in Kitchener, Ontario. The property offers 84 rooms, a fitness center, and 913 square feet of meeting space. Holiday Inn Express & Suites Kitchener Southeast is owned by Sitara Hotel Inc. and managed by Sunray Group.

Sonesta International Hotels Corporation announced the execution of 30 new franchise agreements during the third quarter of 2024, representing growth at seven of the company’s 13 distinctive brands. The 30 new franchised hotels are distributed across seven of Sonesta’s brands, including Sonesta ES Suites - 11; Sonesta Essential Hotels - 7; Americas Best Value Inn by Sonesta - 6; Sonesta Hotels, Resorts & Cruises - 2; Sonesta Select Hotels - 2; Red Lion Hotel, Inn and Suites - 1; and Sonesta Simply Suites - 1.

The new Hotel Polaris at the U.S. Air Force Academy, managed by CoralTree Hospitality, is preparing for takeoff on November 14. Located in Colorado Springs, Colorado, the 375-room resort-style hotel will feature the only immersive flight simulators at a hotel in the United States, a K9 Cadets dog-friendly program, Junior Cadets Kid’ activities, six food and beverage experiences, the Ascend Spa & Wellness, and so much more.

Ennismore and TWG announced the signing of 21c Museum Hotel Indianapolis. The property will feature 156 guestrooms, including 20 suites, three food and beverage destinations, and 16,000 square feet of gallery space. Part of a mixed-use development, the site will also be home to 8,000 square feet of retail space. 21c Museum Hotel Indianapolis will be managed by Ennismore and developed in partnership with TWG.

The Baltimore Peninsula development team, led by MAG Partners and MacFarlane Partners with investments from Sagamore Ventures and Goldman Sachs Asset Management Urban Investment Group and Method Co., announced the opening of Vessel, bar, lounge, and event space located within the 81-room ROOST Baltimore.

The Biltmore Estate, a top tourist attraction in Asheville, North Carolina, has set a reopening date of November 2. The 8,000-acre property shuttered in late September after Hurricane Helene damaged some of the estate’s grounds and facilities. Among the areas undergoing repair and restoration are the Biltmore’s main entrance as well as other low-lying areas impacted by flooding. The estate said its Biltmore House and conservatory, winery, gardens, and hotel and cottage accommodations received minimal or no damage from the storm.

The Pacific Terrace Hotel, San Diego, has completed its two-year, $3 million renovation project. The hotel now has a residential-style lobby, a fresh café, plus 73 re-imagined guestrooms, including 27 suites and junior suites.

Hotel Xcaret Mexico is set to undergo a transformative evolution in 2025. Grupo Xcaret announced a $700 million hotel expansion project that will include a new phase for the Hotel Xcaret Mexico collection in Riviera Maya. This evolution marks a significant milestone for Hotel Xcaret Mexico as it transitions to become a true family-inclusive hotel. Grupo Xcaret noted that the investment will consist of 1,800 rooms distributed in 20 buildings. In addition, there will be 16 pools, four of which will be rooftop experiences, and there will be five slides, adding to the resort’s entertainment options for families.

The Atlanta Marriott Buckhead Hotel and Conference Center was transferred to a special servicer after its owner missed debt payments on a $51 million mortgage that backed the 349-room hotel, according to data from Morningstar Credit.

Topsecret Resort of Orlando LLC sold the Dolce Vita Resort & Spa in Orlando, Florida, to Ecam Realty Partners VIII LLC for $18 million. The 205-room Dolce Vita lists itself on TripAdvisor.com as a “private member-only luxury condo-hotel project…catering in adults-only, liberally innovative experiences.”

stayAPT Suites announced they have officially opened their first Pennsylvania hotel location in Harrisburg. The apartment-style hotel brand says the new 3-story Midstate location now marks their 30th hotel to open nationally. Hotel amenities include an outdoor courtyard with a built-in grill station, onsite laundry facilities, and a fitness center.

Berkadia has arranged the refinancing of the Cape Rey Carlsbad Beach, a Hilton Resort & Spa, and Hilton Garden Inn Carlsbad Beach, both located in Carlsbad, California. Berkadia Hotels & Hospitality secured the $92.5 million loan through MetLife Investment Management on behalf of the borrower, Wave Crest Hotels and Resorts. The five-year loan featured a half-term interest-only provision and a 65% loan-to-value ratio. The 215-key Cape Rey Carlsbad Beach and the 161-key Hilton Garden Inn Carlsbad Beach feature ocean views, outdoor pool areas, and meeting and event venues.

Access Point Financial announced the closing of a $133.1M investment in Goldman Sachs’ recent $985M hotel portfolio refinance. Goldman Sachs arranged the transaction for Atrium Holdings who will use the proceeds to refinance a 24-property hotel portfolio. APF acquired three bond tranches (HRR, G, & F) of the capital stack, totaling $133.1M.

Personnel Move

Lesya Batsuk has been promoted to Group Finance Manager of Hotel Co 51, heading up the operator’s Finance Department. Prior to joining the hotel management company in 2021, Lesya spent over eight years in a senior financial management role at Intertrust Group. This is the hotel operator’s second internal promotion to its senior leadership team in recent months, following Wayne Androliakos’ appointment as Hotel Co 51 CEO in June 2024.