Hyatt Has Had a Good Year, But Stock Still Drops After New Guidance

Hyatt reported a relatively in-line 3Q but they lowered 4Q adjusted EBITDA guidance. What we think hurt the stock (down more than -6%) is the lowered unit growth outlook for this year. They had previously guided to 5.5% to 6% growth but lowered that to 4% to 4.5%. Some of the rooms are delayed into 2025, conversion deals are taking longer than they expected, and they have seen more attrition than normal as brand standards are impacting renewals. H is also going to pay more income tax than expected, and free cash flow guidance was reduced. Hyatt also has been like Hilton and Marriott, a very strong stock performer this year, so any hint of disappointment was going to be met with heavy profit-taking.

Pebblebrook Hotel Trust gave a hurricane impact update, and the impact is worse than was expected. LaPlaya Beach Resort & Club in Naples, FL seems to be the most impacted, partially closed after Hurricane Helene and fully closed after Hurricane Milton. PEB expects to reopen two towers and the primary bar and restaurant tomorrow. The 79-room Beach House will be closed with a partial reopening in a few months. Baird took down 3Q24, 4Q24, and 1Q25 estimates to account for the impact both now and in the future, as they expect it to take some time for bookings to get back to normal. Clearly, with the holidays and snowbird season starting, this is not the time for any property in Florida to be full or partly closed. PEB said that besides LaPlaya, all their southeast resorts are fully operational.

The latest Lodging Econometrics data from Q3 2024 reveals unprecedented growth in Canada’s hotel development pipeline. The total pipeline has reached a historic peak of 327 projects/40,799 rooms. Currently, under-construction activity is at 83 active projects accounting for 10,596 rooms. The early planning phase has 177 projects/20,435 rooms. Another 69 projects/9,768 rooms in Canada are scheduled to begin construction within the next 12 months. By chain scale, upper midscale hotels lead the pipeline with 135 projects/14,219 rooms. The upscale chain scale follows with 56 projects/7,748 rooms, midscale follows with 43 projects/3,718 rooms, and then the upper upscale chain scale with 22 projects/5,066 rooms, at the end of Q3 2024. Ontario dominates provincial hotel construction with 193 projects/24,697 rooms. British Columbia follows with 60 projects/8,420 rooms, while Quebec has 22 projects/2,547 rooms, and Alberta with 16 projects/1,647 rooms. The top cities in Canada at the Q3 close are led by Toronto with 67 projects/9,468 rooms. Following distantly are Vancouver with 22 projects/3,921 rooms, Niagara Falls with 17 projects/4,451 rooms, Montreal with 17 projects/2,092 rooms, and Ottawa-Hull with 14 projects/1,992 rooms. During the first three quarters of 2024, Canada has 9 new hotels open accounting for 1,004 rooms. LE is forecasting another 12 hotels/1,359 rooms to open by year-end 2024. In 2025, LE is forecasting another 35 hotels/3,875 rooms to open. Scheduled new hotel openings for 2026 are anticipated to be 44 hotels adding another 5,079 rooms.

Driftwood Hospitality Management announced the completion of a multimillion-dollar renovation for the Delta by Marriott West Palm Beach, a 199-key hotel located in one of South Florida’s most dynamic markets. Formerly known as a Holiday Inn, the Delta by Marriott West Palm Beach is owned by Activate Hospitality, with DHM overseeing management operations. Renovations include lobby and restaurant modernization, more than 8,200 square feet of versatile meeting spaces across 10 event rooms, the introduction of an Ocean Blend Café, new guestroom soft goods and improvements, and common area enhancements.

The Courtyard by Marriott on I-40 in Amarillo, Texas unveiled its newly renovated facilities. The extensive renovation covers all guestrooms, public spaces, a new fitness center, and a redesigned meeting room. Landscaping upgrades, including a refreshed gazebo and outdoor seating area, are still underway.

Hilton announced the signing of a franchise agreement for the upcoming conversion of The Sens Cancun Adults Only All-Inclusive Resort, Tapestry by Hilton, one of more than 10 new deals Hilton has signed in Mexico in 2024. The Sens Cancun resort is owned and will continue to be managed by Oasis Hotels & Resorts. The property is expected to open in 2026 following a complete renovation, transforming all guestrooms and public spaces. The resort will also feature elevated food and beverage concepts, including nine restaurants, and a brand-new rooftop bar and restaurant.

DoubleTree by Hilton Hotel Denver announced the completion of an $18 million renovation, revitalizing its guestrooms, meeting spaces, and all public areas including the lobby, lounges, and dining areas.

For more than 50 years, Hotel Petersburg has lain dormant as a source of untapped potential in Petersburg, Virginia. On Wednesday, the revitalized building located in the Petersburg Courthouse Historic District reopened to the public as the city’s first boutique hotel. Hotel Petersburg includes 64 rooms, a full-service restaurant and bar, a rooftop lounge, a speakeasy-style spirits bar, and 2,220 square feet of meeting space. The hotel is a Tapestry Collection by Hilton property with Retro Hospitality serving as the hotel operator. The hotel is scheduled to open for overnight guests on December 5. The hotel has already begun hosting private gatherings, including one for Virginia State University alumni and students from the hospitality management program.

Hilton Garden Inn Cupertino owners are seeking an extension of a 10-year, $32 million, interest-only loan due December 1, according to loan servicer reports. The mortgage loan was reportedly sent to special servicing in March of this year, ahead of its maturity date, for being at risk of a maturity default. When the owners obtained the loan in late 2014, the five-story, 164-unit hotel was in a stronger operating position. Three entities separately registered to Kelly Heil, Robert Longinetti, and Peter Danna own the Hilton Garden Inn Cupertino, which is located in Cupertino, California.

According to the Indianapolis Star, Indianapolis will add a name to its lengthy list of hotels this winter with the opening of the InterContinental in the historic Illinois Building. The 11-story InterContinental will feature 170 guestrooms, two restaurants, 5,000 square feet of event space, and a penthouse suite with views of Monument Circle. It will be operated by IHG Hotels and Resorts as one of the company’s two dozen InterContinental-branded hotels in the country. Keystone Group bought the building in 2013 for an undisclosed price and poured $110 million into the renovation. Currently, guests can book rooms for stays on January 25 and beyond.

IHG Hotels & Resorts announced the opening of a new-build Holiday Inn Express in Laramie, Wyoming. The property offers 84 guestrooms, 324 square feet of meeting space, and a fitness center. Holiday Inn Express Laramie West is owned and operated by PRHEA Hospitality, LLC.

Hotel De Anza, located in San Jose, California, is under new ownership. The 10-story, 100-key hotel sold for $11.5 million, according to records filed with the Santa Clara County Clerk-Recorder’s office. The seller was a limited liability company with the same address as HotelAVE’s headquarters in Rhode Island. The buyer is 233 W Santa Clara LLC. The new owner is planning upgrades for the 93-year-old hotel, including the addition of fine dining and a full-service bar. Hotel De Anza temporarily closed in May to deal with water damage, and it is set to reopen November 6. Hyatt Hotels Corp. previously managed the hotel, but effective October 28, the property ended its affiliation with Hyatt. The new owner said it now operates Hotel De Anza as a high-end independent, boutique hotel.

Yellowstone Real Estate Investments has acquired the defunct Midtown East Maxwell hotel, adding another distressed property to its real estate portfolio. According to therealdeal.com, the firm picked up an outstanding debt of $233.6 million on the hotel, a 697-room property at 541 Lexington Avenue in Manhattan. Yellowstone snagged the property at auction for $140 million. The $233.6 million loan was first provided by LoanCore Capital. While Capstone Equities and Highgate Hotels bought the building in 2018 for $183 million, Dune Real Estate Partners and Aynsley Capital covered the acquisition portion of the loan. The firms were listed as the defendants in Yellowstone’s suite to claim the property.

A new seven-story, mixed-use development with hotel rooms and apartments is coming to the downtown riverfront of Corvallis, Oregon in 2025. The project, designed by Obie Companies to boost both housing and social spaces, is scheduled to break ground early next year. Developers plan to build a 75-unit hotel and 92 apartments at the site, located at the corner of First Street and Madison Avenue. The project is expected to break ground in February 2025 with a hopeful timeline to open in 2027.

Kasa announced its expansion into New Orleans with the addition of the celebrated Lafayette Hotel, now rebranded as The Lafayette New Orleans by Kasa. By blending Kasa’s signature tech-enabled hospitality with the property’s classic elegance, the re-imagined Lafayette Hotel offers a nostalgic yet modern experience at the heart of New Orleans.

A seemingly stalled casino project slated for the Las Vegas Strip is making incremental progress and wants more time to continue working on the site. The group behind Dream Las Vegas, a 531-room boutique casino-hotel, has requested an extension of building permits relative to the project. The Paradise Town Advisory Board cast a non-binding vote in favor of a two-year extension. Clark County officials will consider the extension next month. The current application is the second time the Dream development group has asked for an extension. Shopoff Realty Investments and Contour are developing Dream. According to prior reports, Dream Las Vegas will be operated by Dream Hotel Group, which was acquired by Hyatt Hotels Corp. in 2023.

Miami Beach is getting into the hotel business. Miami-Dade County Commissioners approved a measure that would allow the county to incur up to $92.5 million in debt to allow a development team to build the Miami Beach Convention Center Headquarters Hotel. Terra Group and Turnberry Associates will oversee the hotel’s design, construction, and operation. The Convention Center Hotel, also known as Grand Hyatt Miami Beach, will utilize a 99-year ground lease structure. The city will maintain ownership of the land while the developer constructs and operates the hotel. The project is expected to open by 2027 and will feature a sky bridge to the convention center, five food and beverage outlets, 100,000 square feet of meeting space, a gym, two pools, and 320 parking spaces. The total project cost is now estimated at approximately $600 million. The $92.5 million outlined in the resolution is designed to bridge a financial gap caused by rising construction expenses and interest rates.

The city of St. Louis, Missouri has approved a new hotel project by developers Versa and Rothschild Development for a seven-story, 129 guestroom hotel. The project would incorporate the existing historic Optimist building that would house the hotel’s lobby, back-room operations, indoor and outdoor lounges, restaurant, and fitness center.

Personnel Move

The American Hotel & Lodging Association announced Rosanna Maietta has been selected to serve as the association’s next president & CEO, effective November 14. Maietta was selected after a thorough and comprehensive search conducted over the last several months under the oversight of the AHLA Search Committee. Maietta’s appointment was unanimously approved by AHLA’s Executive Committee and Board of Directors. Kevin Carey, the interim president & CEO of AHLA, will continue serving at AHLA in his role as Chief Operating Officer and Senior Executive Vice President. Maietta most recently served as the chief communications officer & senior counselor to the CEO at the American Clean Power Association.