Taylor Swift-Fueled Surge in New Orleans Drives U.S. Hotel Industry Boost

The DJIA was down 92 points today while Nasdaq was down 105, the S&P 500 fell 19 points, and the 10-year treasury yield was down .01 but still around 4.27%. Lodging stocks were mixed. HLT traded up to another new high while AHT was the big winner, up 15%, and SOND bounced 8% higher.

Park Hotels reported a generally in-line 3Q report but they highlighted just why these strikes and union contracts need to be paid attention to. PK paused their guidance for even the 4th quarter, pending negotiation outcomes with unions in Hawaii. A strike has been occurring at Hilton Hawaiian Village, and that property contributed 28% of FY23 EBITDA. PK bought back 2.5 million shares in 3Q24, spending $35 million.

STR reported U.S. hotel data for the week ending October 26. U.S. Hotel RevPAR was up 9.3% year-over-year, with ADR and occupancy gains near identical at 4.6% and 4.5%, respectively. Thanks to Taylor Swift, New Orleans was the best-performing top 25 market, with RevPAR up 77.6%. Group RevPAR was up 10.3%.

Machine Investment Group and Taconic Capital announced the launch of Hollywood VOLUME. Formerly tommie Hollywood, the property re-launched as a re-imagined lifestyle hotel in the heart of Hollywood’s Vinyl District, joining Marriott International’s Tribute Portfolio. Managed by Ten Five Hospitality, the nine-story, 212-room boutique hotel’s culinary and nightlife offerings will remain unchanged.

A topping-out ceremony was held for the AC Hotel by Marriott Symphony Park and Element by Westin Symphony Park, being built in Symphony Park in Las Vegas, Nevada. Once completed, the five-story hotel will include more than 400 rooms, a ballroom, and seven entertainment suites with an outdoor pool and terrace. The dual-branded hotel is expected to be completed next year and open in late 2025.

The Tru by Hilton Cali Sur is now open in Cali, Colombia. The new hotel is operated by Hoteles MS and offers 98 modern and functional rooms, a gym, and a market.

Daxton Hotel Birmingham, located in Birmingham, Michigan, has officially become part of the Curio Collection by Hilton. Owned by Mark Mitchell, Daxton Hotel is home to 151 rooms and suites and a variety of onsite dining options.

Noble Investment Group completed its comprehensive multimillion-dollar renovations at the Embassy Suites by Hilton East Germantown Area and Hampton Inn & Suites Memphis East Germantown Area, both located in Germantown, Tennessee. The Embassy Suites by Hilton Memphis East Germantown Area transformation encompassed all 230 guest suites, public spaces, fitness center, and more than 4,200 square feet of flexible meeting and event space across seven meeting rooms. The Hampton Inn & Suites Memphis East Germantown Area underwent a complete modernization of its 133 guestrooms, meeting spaces, and public areas.

Another newly renovated hotel has opened in Revelstoke, B.C. The Northwinds Hotel Revelstoke is the third hotel from Basecamp Resorts to open in the mountain community. Formerly the Days Inn Revelstoke, the Northwinds spent months renovating and revamping the property into a comfortable, modern, and affordable spot to stay. The hotel has 57 guestrooms, and one of the facility’s main draws will be the rooftop, which has a seating area and hot tub with views of the surrounding mountain ranges. It is set to open in late fall.

The Walt Disney World Swan and Dolphin announced the largest renovation and expansion in the property’s history, highlighted by the addition of 120,000 square feet of event space to its current meeting and convention floor plan. The entire project is an investment of $275 million over the next several years and will also include modernized upgrades to the existing meeting spaces and Swan guestrooms, along with technology enhancements throughout the property. The expansion will bring the triplex’s total meeting space to 469,000 square feet between its three buildings, the Swan, Dolphin, and Swan Reserve, to go with its 2,619 guestrooms. The new two-story annex will be constructed and connected to the hotel’s existing convention space. It will offer 41,000 square feet of multi-purpose space and 24,000 square feet of additional pre-function space on the first floor. The second floor will house an elegant ballroom offering 41,000 square feet of divisible event space with 14,000 square feet of pre-function foyer space. The hotel’s existing 333,000 square feet of meeting space at the Swan and Dolphin are also being enhanced, with the final work completed by summer 2025. The property is remodeling all guestrooms in the Walt Disney World Swan, which will be completed in 2024.

Drury Hotels Company has opened the Drury Plaza Hotel Chattanooga Hamilton Place, marking the company’s fifth location in the state of Tennessee. The new hotel brings 210 guestrooms, an onsite restaurant, and over 2,500 square feet of meeting space to the Chattanooga area.

DC Hospitality is set to begin construction of a dual-branded extended-stay WoodSpring & Everhome Suites hotel in Palm Springs, Florida. According to hotelprojectleads.com, the hotel will cost $13.3 million to build and will include 236 total guestrooms consisting of a 122-guestroom WoodSpring Suites and a 114-guestroom Everhome Suites. The construction loan was provided by Equity Bank.

A downtown Las Vegas hotel-casino has added more rooms after several years of weekend sell-outs. Circa completed a nine-month expansion to add 106 rooms, including four suites. The team worked carefully to keep the designs the same as the rest of the now 618-room hotel.

Reef Private Equity held a ribbon-cutting ceremony for the Boardwalk Hotel on Lake Anna, a four-story, 34-room hotel located in Mineral, Virginia.

Golden Gate Global unveiled its new EB-5 project, the Appellation Healdsburg, located in the heart of Northern California wine country in the town of Healdsburg. The hotel is the 17th EB-5 fund offered by Golden Gate Global. The Appellation Healdsburg is a fully approved project offering 108 rooms and premium amenities like a signature restaurant, rooftop bar, spa, fitness center, and more than 15,500 square feet of event space. The hotel will be managed by Appellation Hotels. The Appellation Healdsburg is also funded by C-PACE institutional financing from Petros.

Europe Highlights

A new hotel with 412 rooms has opened at Manchester Airport. The TRIBE Manchester Airport is the firm’s second UK hotel. The new hotel, which boasts an £80 million design, also has an Italian Dolce Vita-inspired restaurant, TRIBE Table, and a trendy bar with seating for 220 guests. There is also a versatile breakfast room that can be transformed into a private dining space for events. TRIBE Manchester Airport is a participating property in ALL - Accor Live Limitless.

The Slieve Russell Hotel has been sold for €30 million to Tom Brady of Brady Group. The Slieve Russell boasts 224 bedrooms, a spa, and a leisure center. It sits on 300 acres which has incorporated an 18-hole golf course as well as a nine-hole academy course.

Whitbread PLC has completed the sale and leaseback of two of its operational hotels. The sale and leaseback transactions involved the 137-bedroom hub by Premier Inn London Westminster St James’s Park and the 90-bedroom Premier Inn Oxford Westgate. The two properties have generated a net initial yield of 4.25%, bringing in £56 million for the company. The sale and leaseback deal included a 30-year term with five yearly CPI reviews ranging from 0-4%. CBRE Investment Management clients purchased the hotels.