Fitch Sees Strong Hotel Outlook for 2025 on Supply Constraints

In another strange day on Wall Street, the DJIA was down 99 points, but Nasdaq surged 348 while the S&P 500 was up 49, and the 10-year treasury yield was up .04 to 4.27%. Lodging stocks were modestly higher with new highs set by WH and XHR. VCSA was up 12%, SOHO was up 5% but SVC was down -7% on the day.

Fitch Ratings' "neutral" hotel sector outlook for 2025 reflects a mix of stability and modest growth across segments and regions. Fitch expects pricing power to moderate, but room rate increases will be possible as there is still a lack of new supply for hotels. This would allow hotel operators to generate steady revenue. Regionally, the outlooks are neutral but vary in confidence. Asia-Pacific, particularly Greater China, has challenges due to economic pressures and weak domestic demand. Fitch expects the U.S. to perform similarly in 2025 to this year, with some potential upside from an improved macro outlook. In contrast, growth in Europe might be slightly less robust, as major sports events and concerts that benefited inbound tourism in 2024 will not recur. For leisure travel, Fitch projects demand to remain flat compared to the high levels during the post-pandemic recovery period, with some variation between luxury and lower-priced segments. As in 2024, demand for luxury segments may have greater strength, but this disparity may reduce as consumer confidence grows, particularly in the U.S. Fitch Ratings expects business travel to maintain its momentum, potentially surpassing pre-pandemic levels, driven by increased corporate travel and recovery in major urban markets. Bookings for meetings, events and conferences are expected to remain robust, showing upper-single-digit growth in 2025 and continuing the strong growth of 2024.

STR reported U.S. lodging data for the week ended December 7. U.S. RevPAR was up 4.3% year over year led by a 3.8% rise in rates. Group RevPAR was up 6.2%.

Summit Hotel Properties, Inc., through its joint venture with GIC, is under contract to acquire the Hampton Inn Boston - Logan Airport and the Hilton Garden Inn Tysons Corner for a combined purchase price of $96.0 million. The Hampton Inn Boston - Logan Airport features 250 guestrooms and a 368-space surface-level parking lot, a portion of which is leased to a third-party parking operator creating an ancillary revenue source for the hotel. Located in Vienna, Virginia, the Hilton Garden Inn Tysons Corner offers 149 guestrooms. The transaction is expected to be financed with a mix of cash on hand and a $50 million term loan raised in conjunction with exercising a portion of the accordion option on the GIC joint venture's existing $200 million credit facility.

Roxbury Group announced the Cadillac House in Lexington, Michigan, has joined the Tapestry Collection by Hilton.

Four Seasons and Extell Development Company announced plans for a resort and residential offering in Deer Valley East Village in Park City, Utah. Four Seasons Resort and Private Residences Deer Valley will offer 134 guestrooms and suites and 123 private residences; wellness and fitness facilities comprised of saunas, steam rooms, whirlpools and spa services; an ice rink; an indoor sports court; and indoor and outdoor pools. In addition to a wealth of entertainment options, Four Seasons Resort and Private Residences Deer Valley will house a ballroom, three meeting rooms and an outdoor event terrace.

MCR has acquired Hyatt Regency O'Hare Chicago. The 11-story, 1,095-room hotel located in Rosemont, Illinois, is the company's first Hyatt Regency-branded hotel and its fifth hotel in Illinois. The hotel offers two full-service restaurants, a bar, market, fitness center, business center and 110,000 square feet of meeting space. Hyatt Regency O'Hare Chicago is connected via skywalk to the Donald E. Stephens Convention Center. The sprawling venue boasts more than 840,000 square feet of exhibition space.

AJ Capital Partners welcomes Bathhouse to Wedgewood Village. Bathhouse has signed a lease for a 40,000 square foot space, including 12,000 square feet of outdoor amenities space, in AJ Capital's Wedgewood Houston development. The Nashville location will feature four thermal pools, three saunas, steam rooms, heated marble hammams, locker rooms and a food and beverage program.

Extended Stay America announced the opening of the Extended Stay America Premier Suites - Nashville - Smyrna, located outside Nashville, Tennessee. RREAF Holdings developed the property, which will be managed by McNeill Hotel Company. The three-story, 115-room property features a fitness center, onsite guest laundry and an outdoor yard area for pets.

Construction is officially underway on a long-delayed project to bring a luxury hotel, condos and townhomes to Palm Springs, California. A groundbreaking ceremony was held Tuesday for the Dream Hotel & Residences. The project is expected to be completed in 2027 and will include a 155-room hotel tower, spa, fitness centers, restaurants, bars, 25 hotel/condo residences, three townhomes, and two residential towers with more than 50 condos.

The Hotel at The Moor is now officially open in the Miami Design District in Miami, Florida. Developed by WoodHouse, The Hotel at The Moore only has 13 suites, ranging from 700 square feet to over 1,000 square feet.

StepStone Hospitality announced it is managing the Crowne Plaza North August in North Augusta, South Carolina. The property features 180 guestrooms, over 11,000 square feet of flexible meeting and event space, a rooftop bar and a restaurant. StepStone Hospitality is managing the property on behalf of the new ownership, Flacks Group and Blue Lotus Ventures.

Ennismore and Cain International revealed the first look of Delano Miami Beach, marking the countdown to its reopening in late 2025 following a complete renovation. The revitalized Delano Miami Beach boasts 171 guestrooms and suites, four distinctive restaurant and bar concepts, curated retail and exclusive spaces for events and meetings, a wellness studio and spa, and a ground-floor pool, which will be joined by a new beachfront amenity deck and a second pool on the fourth floor.

Peak Hospitality is planning to build a new Woodspring Suites hotel in Truth or Consequences, New Mexico. The hotel will break ground in the second quarter of 2025 and take 16 months. According to hotelprojectleads, the $12 million, three-story hotel will have 84 guestrooms.

A new 125-room, select-service hotel is being proposed for three buildings on Fruitville Road in Sarasota, Florida. Florida Holdings LLC plans to build a nine-story Tempo Hotel on those three properties.

Vintners Resort is undergoing a $15+ million transformation. Located in Santa Rosa, California, the first phase of new offerings of a 92-acre working vineyard and resort is nearing completion with an expansive resort pool featuring cabanas, day beds, a hot tub, fire pit and a full-service pool bar. Spring 2025 will feature the unveiling of an entirely refreshed lobby, newly appointed guestrooms and bathrooms, and a revitalized culinary experience, along with new event space that will include more than 12,000 square feet of flexible indoor and outdoor meeting space.

WorldHotels continues to grow its presence across North America and Europe with several new properties. These include: City Hotel Gouda, WorldHotels Crafted, Gouda, Netherlands; Elm Hurst Inn & Spa, WorldHotels Crafted, Ingersoll, Ontario, Canada; Flaner Hotel, WorldHotels Crafted, Warsaw, Poland; Hotel Croydon, WorldHotels Crafted, Miami Beach, Florida; Idlewyld Inn & Spa, WorldHotels Crafted, London, Ontario, Canada; and Saga Hotel Oslo, WorldHotels Crafted, Oslo, Norway.

Hunter Hotel Advisors announced the successful sale of the TownePlace Suites Knoxville Cedar Bluff in Knoxville, Tennessee. The 97-key hotel offers a fitness center and an outdoor pool.

RobertDouglas advised Clarion Partners, LLC in securing a $677-million, non-recourse senior mortgage, five-year, fixed-rate financing for the refinancing of CBM Two Hotels LP Portfolio, a portfolio consisting of 52 Courtyard by Marriott hotels.

Chetrit Group is nearing the finish line of a Miami Beach hotel project. The firm refinanced its loan on the Collins Park Hotel at 2000 Park Avenue with Kawa Capital and brought in a new partner, The Real Deal has learned. The new loan from Kawa totals $88 million, and Chetrit Group chipped in a significant amount of capital. Chetrit will now partner with Lotus International. The 280-room Collins Park Hotel in about six months away from opening.

The Hartling Group will reopen The Palms Turks & Caicos on December 14, 2025, following an $18 million renovation. The Palms now features an expansive outdoor experience, complete with a new pool deck, new oceanfront restaurant, and refreshed guestrooms.

The Sandals Ochi Beach Resort in Ochos Rios has completed renovations of both its two-bedroom and four-bedroom butler villas with private pools, according to Caribbean Journal.

Personnel Moves

Davidson Hospitality Group announced the appointment of Brad Barnett as Senior Vice President, Sales, for its lifestyle operating vertical, Pivot, and the elevation of Michael Yousif to the role of Senior Vice President, Acquisitions & Business Development. Brad Barnett previously served as Senior Vice President of Sales & Marketing for HRI Lodging. Michael Yousif joined Davidson's acquisitions and business development team in 2010 as an analyst.