U.S. Hotel Transactions Rise 30% Year-Over-Year

The DJIA fell 241 points while Nasdaq was down 123, the S&P 500 fell 37 points, and the 10-year treasury yield was up .05 to 4.20%. Lodging stocks were mixed. SHO traded up to a new high.

BMO Capital initiated coverage on Ryman Hospitality and Apple Hospitality with Outperform ratings. BMO put a $133 price target on RHP and an $18 target for APLE.

Wells Fargo changed some price targets on their covered hotel names. Overweight-rated Ryman Hospitality's target was upped to $130 from $124 while Host Hotels was upped to $22 from $21. Equal-Weight rated Park Hotels' price target went to $17 from $16, Pebblebrook Hotels PT rose to $16 from $14, and DiamondRock's PT is now $10.50 from $10. As for those Wells Fargo rates Underweight, they lowered Service Properties Trust's target price to $2.75 from 3 while upping RLJ to $10.50 from $10.

The U.S. hotel deals environment is linking up for gradual, steady increases over the next several years. According to Hospitality Real Estate Counselors, the company has seen closed deals increase by 30% year over year. The deals have been consistent within regions, with some up and some down. The company's brokers in the Midwest have been busy and buyers and sellers have been able to reach agreements on pricing. Florida saw a great deal of interest during and after the pandemic. That activity is now much slower. California is similarly slow. Overall, barring a black swan event, HREC expects a good four- to five-year ride, with transactions increasing about 10% a year.

Ashford Hospitality Trust, Inc. announced today that its Crowne Plaza La Concha Hotel in Key West, Florida has completed the conversion to a Marriott Autograph Collection property and is now called the Autograph La Concha. The hotel recently completed a $35 million transformation renovation, including transforming the lobby, bar, and restaurant, as well as upgrading the exterior, guestrooms, guest bathrooms, corridors, pool and meeting space. As part of the renovation, the previously underutilized spa has been converted into premium rooftop suites. The 160-room hotel is located in the heart of Old Town Key West.

The 143-room Aloft Phoenix Airport announced the completion of a comprehensive, property-wide renovation. The hotel, owned by The RADCO Companies and operated by HEI Hotel & Resorts, received a full refurbishment to upgrade guestrooms and baths, public spaces, a restaurant and bar, 600 square feet of meeting space, a fitness center, and a swimming pool area.

IHG Hotels & Resorts, in collaboration with General Hotels Corporation, recently embarked on a renovation of a Crowne Plaza hotel in downtown Indianapolis. The first phase of the renovation at Crowne Plaza Indianapolis-Dwtn-Union Stn will see a remodeling of the hotel's 273 guestrooms. Ensuing renovations are scheduled to be completed later in 2025 and will include a modernization of its public spaces and more than 55,000 square feet of meeting and event space, along with a retouch of its exterior and new signage.

Owner, Rich Siegert, announced the Hampton Inn, in Bemidji, Minnesota, is now the SouthShore Hotel on Lake Bemidji, Trademark Collection by Wyndham.

Sonesta International Hotels Corporation announced the opening of Red Lion Inn & Suites Grimes, a 53-room hotel located in Grimes, Iowa.

Candlewood Suites may expand its local footprint with a second location in the Warrington area. A local group filed updated plans with Escambia County, Florida to build a Candlewood Suites on North Navy Boulevard. The latest proposal resembles their plans from last year, where they applied to build a four-story hotel with 87 rooms, a parking lot, pool and an outside seating area with a gazebo.

The Nautica Hotel & Residences in Fort Lauderdale, Florida, has been approved by the city commission. The $1.5 billion Nautico District project, by Cymbal DLT, would include 355 apartments in 37 stories in the first phase and 345 branded condos in 20 stories in the second phase, along with waterfront retail space. There will also be a 119-room hotel in 30 stories and a marina with 78 dry boat slips and 12 wet boat slips.

A new apartment building in East Austin, Texas, is being converted into a hotel as part of a local group's effort to launch a national boutique hotel brand. The Juno East Austin apartment building opened earlier this year with 24 studio and one-bedroom apartments. Now, the Elysian Real Estate Group plans to make it a boutique hotel called Boheme. Renovation costs are estimated at under $6 million, and the hotel could open sometime next summer. The hotel will have 20 rooms, 14 studios and six suites, a ground-floor bar and a rooftop lounge. Elysian will oversee the day-to-day operations of the hotel once it opens, while Nova Hospitality is slated to run the food and beverage options. Elysian plans to make the Boheme a national brand, and is aiming to open 12 hotels under the same name in cities similar to Austin.

Peachtree Group has reached a milestone in CPACE financing, surpassing the $1.0 billion mark. In 2024, alone, Peachtree completed 22 CPACE transactions across the U.S, surpassing its previous record for CPACE originations. The firm's $1.0 billion in CPACE financing is rooted in hospitality which remains its largest segment comprising approximately 45% of its total.

Personnel Moves

Choice Hotels announced Robert McDowell, the company's Chief Commercial Officer, will be leaving the company effective January 15, 2025, to pursue other opportunities. The Form 8-K filing did not specify the reasons for McDowell's departure or mention a successor.

Lodging Dynamics Hospitality Group appointed Lisa Carlson as its new Chief Operating Officer. Lisa's career spans leadership of over 45 hotels across multiple states, where she drove operational improvements and financial performance.

Europe Highlights

Small Luxury Hotels of the World is celebrating its collection of 600 members, with 80 new additions in 2024 and seven completely new openings expected for 2025, from Italy to the Galapagos. The Plein Hotel will open in Milan, Italy, in January with 13 rooms. In February, The Goethe Hotel will open in Rome. Park Lane Copenhagen will debut in January, offering 69 rooms. Barrington's Hotel & Residences will open in April in Almancil, Portugal, with 31 rooms. The Laguna Coast Resort in Naxos, Greece, will open in May as part of SLH's Considerate Collection. The Levantine Hill Hotel will open in June 2025 in the Yarra Valley in Australia. Additionally, the Hermes Galapagos Mega Catamaran launches in April 2025, offering space for up to 20 people across 12 suites.

Grupo Lar has signed a strategic alliance with Westmont with the aim of investing, in a first phase, 350 million in the development of a dozen urban hotels in Spain with some 2,500 beds over a period of six years, according to EXPANSION. The companies also stated that they are currently in talks with potential investors to expand the scope of the project.

Holiday Inn submitted plans for a redesign of its hotel at Hull Marina, which is located in Hull, UK. The plans, which have been submitted to Hull City Council, include detailed proposals to alter several aspects of the hotel, including the bar and restaurant area, conference facilities, and parts of the building's façade. Changes to the 100-room hotel are set to be completed in May 2025. Significant improvements are also planned for the reception and walkway into the hotel, and the hotel's courtyard is also set for a facelift.

Christie & Co. and Cushman & Wakefield have been jointly instructed to list the DoubleTree by Hilton hotel on Great Western Way in Swindon, UK. The hotel comprises 171 en-suite guestrooms, with the potential to expand to 181 rooms, over 1,115 square meters of conferencing and event facilities, two food and beverage outlets, and fitness and wellbeing facilities.