KSL Sells Davidson Hospitality

The DJIA rose 289 points on Friday while Nasdaq was up 145, the S&P 500 rose 23 points and the 10-year treasury yield continued its march to 4.5% again, up .08 to 4.36%. Lodging stocks were mixed. SVC traded down to another new low AHT was down -8% but SOHO surged 20%.

KSL Capital Partners was reported to have sold management company Davidson Hospitality Group to private equity firm Nautic Partners. KSL will continue to work with Davidson as a manager while Nautic takes its first step into hotel management ownership by purchasing the 86 hotel management company. Nautic does have previous experience in third-party property management, facilities management and corporate lodging services. No transaction value was given. Moelis & Company served as financial advisor to Davidson Hospitality Group.

According to STR, the U.S. hotel industry experienced a 2.5% decrease in occupancy and a 1.3% drop in RevPAR in September 2024 compared to the same month in 2023. Despite the decline in occupancy and RevPAR, the industry saw a 7% YoY increase in rooms under construction, marking seven consecutive months of growth. The Top 25 U.S. markets outperformed the rest of the industry, with RevPAR up 1.2% due to a 2.8% increase in ADR. Houston, Chicago, and Anaheim reported the largest RevPAR gains among these markets.

It took more than 30 years for a new hotel to be built in Clayton, Missouri, and now the city's downtown area has seen two new hotels open within 18 months. The new $50 million Marriott AC Hotel, constructed at the site of the former Clayton Police Department, was developed by Koplar Properties and Homebase Properties. Managed by Concord Hospitality Enterprises, the 11-story hotel boasts 207 guestrooms, more than 3,000 square feet of top-floor meeting space, the AC Lounge & Kitchen and a rooftop bar. The opening of the latest hotel follows the May 2023 opening of the $47 million Residence Inn of Clayton from Midas Enterprises.

An AC Hotel is coming to downtown Charlottesville, Virginia. Developer Jeff Levien, of Heirloom Development, originally planned to build an apartment building at the site but changed course, citing the city's new zoning code and high construction costs. Heirloom has since teamed up with an undisclosed national hotel operator to create Cavalier Hospitality LLC. The joint venture intends to build a seven-story, 160-key AC Hotel.

Schahet Hotels LLC announced the construction of its new boutique hotel, The Cantio Hotel, coming to Ball State University's campus in 2026. Located within The Village commercial district of Muncie, Indiana, the hotel is the first of its kind in the area and will feature 97 guestrooms along with diverse dining options, an intimate meeting space, an onsite exercise room, and a gift shop in the lobby. The hotel also marks Schahet Hotels' first project in Muncie. The Cantio Hotel is made possible with partners including RATIO and Hilton Hotels & Resorts. Construction of the hotel will begin in November 2024, and the hotel is expected to be completed in 2026.

Sonesta International Hotels Corporation announced the opening of Sonesta Essential Savannah, a 41-room, upper-midscale hotel in Savannah, Georgia.

Jai Bhola LLC proposes building a dual-branded La Quinta Inn & Hawthorn Suites Hotel in Brentwood, California. The project would consist of 151 guestrooms on a 2.68-acre parcel. The four-story hotel would also include an outdoor pool and spa area, a covered barbeque patio and 121 parking spaces.

Saltwater Resort, a new luxury hotel and event center, has opened on Topsail Island just off the coast of North Carolina. The resort offers 48 expansive suites, a saltwater pool, outdoor showers, an outdoor guest common area, tent rentals and beach cruisers for guests to borrow. The two-story event center includes 900 square feet of indoor space and 900 square feet of covered outdoor deck space.

The much-anticipated expansion of Downtown Arlington's Urban Union District, led by Street Realty, is nearing completion. The project included the construction of five new mixed-use buildings, which will host new restaurants, retail, lifestyle shops and The Rambler Inn, a 23-room boutique hotel.

The Planning Board of York, Maine, has approved the Grand View Hotel's proposed expansion, which includes eight new hotel rooms expected to open in 2026. Owner Jimmy Asprogiannis plans to demolish the existing six-unit building and replace it with a new eight-unit motel structure. The project will also feature a new single-unit building for the innkeeper's residence.

Blue Diamond Resorts announced its expansion into Barbados with the introduction of Royalton CHIC Barbados, a posh and vibrant adults-only, all-inclusive resort set to open in Spring 2026. Located on the island's coveted Gold Coast, Royal CHIC Barbados will feature 220 modern suites, a variety of dining options, a pool, and The Royal Spa. This innovative resort marks a significant moment for Barbados, as it will be the island's first new all-inclusive adults-only property of its kind.

Latin America Pipeline

Lodging Econometrics' Q3 2024 Latin America Construction Pipeline Trend report signals growth for the region's hospitality industry. The pipeline currently stands at 642 projects and 104,513 rooms, a year-over-year increase of 11% in project count and 10% in room count. Highlights are broken down, below.

Latin America Construction Pipeline for Q3 2024

Top Chain Scales by Pipeline for Q3 2024

Top Countries by Pipeline for Q3 2024

Top Cities by Pipeline for Q3 2024

New and Completed Projects for Q3 2024

Forecasted Openings From Q3 2024

Personnel Moves

Arch Amenities Group announced the appointment of wellness and hospitality veteran Caitlin McKenna as Chief Executive Officer. Barry Goldstein, who served Arch as CEO for the past three years, has been appointed to the new position of Chief Commercial Officer, responsible for business development and customer relationship management. McKenna most recently was chief development officer for Trilogy Spa Holdings and global head of facilities management, wellness & experience services for JLL.

Sereno Hotels announced the appointment of Claudio Cadeddu as Chief Commercial Officer. In his new role, Claudio will guide Sereno Hotel's commercial, operational, and management teams across its award-winning properties. His previous experience includes time at iconic properties such as Cala di Volpe and The St. Regis in Rome.

Europe Highlights

The Hilton Woking Hotel, featuring 189 rooms in Victoria Square in Woking, United Kingdom, has officially opened. The hotel offers a fitness center, an Executive Lounge, and multiple food and beverage options. The Hilton Woking Hotel boasts extensive event facilities, including a ballroom, 11 meeting rooms and two private dining spaces.

Oberoi Hotels and Resorts announced plans to open its first property in London in Spring 2028. The boutique hotel will have around 20 rooms and be located in Mayfair.

IHG Hotels & Resorts announced the signing of Crowne Plaza Podgorica, its seventh hotel in Montenegro, and second in the capital city. The converted property, owned by BIG CEE, is set to open by the end of 2024. The 122-key hotel is situated within the Capital Plaza mixed-use development. Alongside several meeting and events spaces, the hotel will feature one main restaurant and a bar and signature lounge.

Choice Hotels expands in Spain with the Faranda Hotels & Resorts agreement. The agreement sees the addition of eight properties across Spain, comprising more than 700 rooms. The properties will be integrated throughout 2024 and 2025, under the Choice Hotels upscale brand Ascend Hotel Collection, with the first six hotels open for bookings, including Faranda's new flagship hotel, Faranda Hotel Rias Altas, Ascend Hotel Collection in A Coruna. Two further hotels are currently undergoing full refurbishment and are expected to open in Summer 2025. The hotels are spread across Spain's northern provinces Galicia, Asturias and Cantabria, located in key cities such as A Coruna, Santiago de Compostela, Gijon and Santander. The hotels include: Faranda Rias Altas, Faranda Marsol Candas, Faranda Hotel Pathos Gijon, Faranda Alisas Santander, Faranda Los Tilos, Faranda Torrelavega and Faranda Las Lomas.