U.S. Hotel Brokers Project Increase in Transactions

The DJIA was down 76 points, but the Nasdaq was up 77, the S&P 500 rose 3 points, and the 10-year treasury yield was up .03 to 4.22%. Lodging REITs were on fire today thanks to the Bloomberg story on Sunstone Hotel Investors. SHO was up 10% to a new 52-week high, AHT was up 8%, PEB, XHR, and INN were up 6% each, and RLJ was up 5%. XHR and DHR joined SHO on the 52-week high list, as did IHG. SOND was down -7%.

Bloomberg published an article saying Trinity Investments had an interest in acquiring Sunstone Hotel Investors for around $13 a share. The article said Trinity had expressed interest, but there are currently no talks going on. SHO shares rose to more than $12 this morning anyway because not many people read past the headline. That being said, isn't it about time someone takes advantage of the hotel REITs that are trading at or below NAV? Baird commented on this, saying this would be a good starting point for buying SHO but thinks take-private pricing would need to be $13.50 to $15 to get a deal done. Truist said they view Trinity's recent hotel asset acquisition activity and the nature of its existing portfolio of assets as highly complementary to SHO's portfolio. Truist said if the offer is ultimately made, they think SHO should consider taking it as the macro and investor sentiment/multiples remain challenged in the sector, and they see investor support for an exit at the right price from many Lodging REITs today. They do think SHO should push for $14 or $15 versus the $13 cited in the Bloomberg article.

According to CoStar, U.S. hotel brokers anticipate a gradual, consistent increase in transactions over the next few years, particularly in the $10 million to $20 million segment. Financing for these transactions is becoming more accessible, with small banks becoming more active and non-bank lenders thriving in the commercial mortgage-backed securities market.

Marriott International, Inc. announced a new chapter in global growth and strategic expansion. The Luxury Group's new brand extensions, tented camps, remote lodges, and bespoke experiences are poised to further elevate the company as a leader in high-end hospitality. Spanning iconic names like The Ritz-Carlton, St. Regis Hotels & Resorts, W Hotels, The Luxury Collection, EDITION, JW Marriott, and Bvlgari Hotels & Resorts, this dynamic portfolio is pioneering a new vision of experiential travel. Luxury Group by Marriott International's portfolio of more than 529 properties now spans 73 countries and territories, with three new hotels slated to open in the final weeks of 2024 in coveted and emerging destinations around the globe. Over 260 luxury hotels and resorts across Marriott's luxury portfolio are in the global development pipeline, including over 30 properties expected to open in 2025.

Trenton, New Jersey's Mayor Reed Gusciora announced that the city plans to redevelop the former Trenton Marriott into a mixed-use development. Plans are in the works for the shuttered Trenton Marriott building to be renovated and re-opened as a new hotel, residential apartments, and retail shops. Trenton received a $4 million local property acquisition grant from the New Jersey Economic Development Authority that will allow the city to purchase the old Marriott Hotel, a property that has remained vacant since 2017. Once the sale is complete, city officials will make a call for proposals, find a prospective developer, and then sell the property for a nominal fee.

Island Hospitality Management has been named operator of the Embassy Suites Syracuse Destiny USA, located in Syracuse, New York. The hotel offers 209 guestrooms, more than 9,000 square feet of meeting space, and an indoor pool.

Peachtree Group announced the acquisition of its sixth hotel property structured as a Delaware Statutory Trust with the 90-key Home2 Suites by Hilton St. Augustine 1-95 in the greater Jacksonville, Florida area.

IHG Hotels & Resorts is celebrating the momentum of the Vignette Collection as it reaches 50+ open and pipeline properties. Just three years after the brand's introduction, the collection brand has surpassed the halfway point in its initial aim to reach 100 open and pipeline hotels in 10 years. Today, there are 19 Vignette Collection hotels open around the world, with a further 34 in the pipeline that will make brand debuts in markets such as Japan, Vietnam, and The Maldives. 6 hotels are currently open but are marked as unbranded as they complete their transition to the Vignette Collection brand. Some of the Vignette Collection properties that have recently opened or will start welcoming guests in the coming months include Ciel Tower, Dubai, set to be completed in 2025; Shanghai Snow World Hotel; RIHGA Royal Hotel Osaka, launching in 2025; Noku Maldives; and Hotel Franciscana in Mexico's Yucatan Peninsula and The Gwendolyn, located in the heart of Oregon's famed Willamette Valley wine region.

Abilene's new Holiday Inn Express & Suites opened on November 21 along Kansas I-70. Owned by Anjan Ghosh Hajra, the four-story, 65-room property features 400 square feet of meeting space, an indoor pool, and a fitness center. The hotel marks the Ghosh Hajra family's second investment in Abilene. Their original Holiday Inn Express, built in 2000, is being rebranded as Abilene Inn & Suites, a Choice Hotels property.

Flack Group has acquired the Crowne Plaza North Augusta located in North Augusta, South Carolina. The hotel has 180 rooms and suites, 11,000 square feet of meeting space, an indoor fitness center, and an outdoor pool. The Crowne Plaza also features a gourmet steakhouse and a rooftop bar.

Extended Stay America announced the opening of the Extended Stay America Premier Suites - Pensacola - NAS Corry Station, located in Pensacola, Florida. Developed by Artemis Hotel Group, the four-story, 124-room newly constructed property features a fitness room, onsite guest laundry, a dedicated pet area, an outdoor patio area, EMV charging stations, and Extended Stay America Premier Suites' signature spacious lobby with additional vending options.

Choice Hotels International, Inc. announced the opening of the first new construction hotel to feature the Lobby in a Box package, a MainStay Suites in Chesapeake, Virginia. The three-story, 77-room property was developed by Ray Patel and designed by Parth Hospitality. With Lobby in a Box, MainStay Suites Chesapeake introduces a versatile, multi-functional lobby that features a built-in marketplace with on-the-go meal and beverage options, essential travel items, and flexible seating. Complementing the new lobby design, the property also incorporates Choice's Kitchen in a Box package, with in-room kitchens that enhance the guest experience by offering cooking amenities. MainStay Suites Chesapeake also installed over 330 solar panels, providing an eco-friendly energy source.

Local resident and co-owner of Siesta Key Beach Resort and Suites, Dave Balot, plans to bring a new hotel to Siesta Key, Florida. According to the renderings, it will be called The Hotel Siesta and will be located at the old Wells Fargo Bank on Midnight Pass Road. Balot stated that The Hotel Siesta will be similar to the hotel he co-owns now, which offers a density of 52 rooms per acre and is not regarded as a high-density or mega hotel.

According to the Winnipeg Free Press, the Sutherland Hotel is up for sale for likely the third time in four years. A former Main Street crime hub, the hotel, by the seller's description, would make for a great reinvention into affordable housing and a grocery store. The current owner gutted the century-old building's plumbing, electrical, and heating while attempting to transform the place and create more rooms. However, the job was never finished. The Sutherland has been boarded up since, at minimum, springtime. It is listed for $575,000.

IRIS announced the renewal of its 10-year, exclusive digital F&B ordering agreement with Marriott International. The announcement comes as IRIS deploys mobile dining in thousands of outlets across Marriott hotels. Under this renewed agreement, Marriott will continue to utilize IRIS's seamless and efficient mobile dining and digital guest directory solution to maximize F&B revenue, free up staff time, and enhance the guest experience across their global portfolio of hotels. The collaboration sees IRIS (also available via QR codes and web links) operating across Marriott's portfolio of 30 luxury, premium, and select-service brands. IRIShas extended its tech ecosystem with integrations to third-party POS and payment vendors that Marriott works with. The new agreement will also include IRIS' latest feature - digital staff ordering - which enables wait staff to use IRIS on any device to take orders from customers. Providing quick and efficient ordering for those guests who prefer waiter service helps reduce customers' wait times and free up staff time.

Ashford Hospitality Trust, Inc. announced it plans to close its offering of Series J and Series K non-traded preferred stock on March 31, 2025. Since launching the offering in 2022, the company has raised approximately $180.0 million of gross proceeds from the sale of its Series J and Series K non-traded preferred stock.

Europe Highlights

Preferred Hotels & Resorts is set to unveil 10 new luxury properties between September 2024 and 2025, spanning diverse destinations. Highlights of the upcoming openings include Peter Island Resort (Peter Island, British Virgin Islands), which opened in December 2024, and Legend Collection. Royal Hideaway Corales Villas (Tenerife, Spain), launching March 2025, L.V.X. & Residence Collections. OROS (Crete, Greece), launching May 2025, L.V.X Collection. The Newman (London, UK), launching Summer 2025, Legend Collection. Romegas Hotel (Valletta, Malta), launching June 2025, L.V.X Collection.