NYC Leads U.S. Hotel Occupancy at 87%

Holiday Schedule: The final Daily Lodging Report for 2024 will be on Tuesday, December 24th. The first DLR of 2025 will be January 2, 2025. We wish you all a happy and healthy holiday season.

The DJIA bounced 498 points on Friday while Nasdaq was up 200, the S&P 500 rose 64 points and the 10-year treasury yield was down .05 to 4.52%. Lodging stocks were mixed. SVC was up 6% but VCSA was down -6%. As for SHCO, after an attempt at a rally in the morning, the stock sold off again and closed at $$7.07, nearly 22% lower than the supposed takeover price.

The U.S. hotel industry reported lower performance results from the previous month, according to November 2024 data from CoStar. November 2024 (percentage change from November 2023): Occupancy: 59.4% (+1.7%) ADR: $152.70 (+0.9%) and RevPAR: $90.66 (+2.5%). Among the Top 25 Markets, New York City experienced the highest occupancy level (+3.1% to 86.6%). Markets with the lowest occupancy for the month included Minneapolis (50%) and St. Louis (52.4%). The Top 25 Markets showed higher occupancy and ADR than all other markets.

Marriott Vacation Worldwide said its Board of Directors authorized extending the term of VAC's existing share repurchase program to December 31, 2025.

UNITE HERE said a deal was reached with Marriott workers in San Francisco, ending strike activity at the San Francisco Marriott Union Square on Sutter Street, the Palace Hotel on New Montgomery Street, San Francisco Marriott Marquis on Mission Street and Westin St. Francis on Powell Street. Hotel workers had been striking for three months.

Shamin Hotels plans to build a 12-story Marriott in Richmond, Virginia. The company submitted a plan of development to the city for a project that will include about 250 rooms and restaurants on the ground floor and rooftop. The hotel will have two brands in one building, AC Hotels by Marriott with 133 rooms, and a Residence Inn with 120 rooms. The facility will also have a 10,000-square-foot ballroom and a 253-spot parking deck. Construction will begin in the second half of 2025, and it is slated to open in the end of 2027.

The Courtyard by Marriott Salisbury, owned by BPR Properties and managed by LBA Hospitality, unveiled the completion of its extensive renovation project. Key renovation highlights of the property, located in Salisbury, North Carolina, include revamped guestrooms, a refreshed lobby and renovations to the fitness center and meeting spaces.

Sage Hospitality Group has been retained by Park Hotels & Resorts to manage the Hilton Denver City Center, making it the first partnership between the two companies. Located in the heart of downtown Denver, Colorado, the hotel offers 613 guestrooms and suites, and 35,000 square feet of flexible meeting and event space, including 33 conference rooms. Sage Restaurant Concepts will oversee the management of the hotel's onsite restaurant.

Linchris Hotel Corporation announced the acquisition of the Hilton Kansas City Airport located in Kansas City, Missouri. The Linchris Special Opportunity Fund III acquired the property and represents the Funds fourth investment. The 347-room hotel features versatile meeting space, onsite dining and a fitness center.

Hamak Hotels announced Tropicana Los Cabos, in Cabo, Mexico, will join the Hilton portfolio and is now officially welcoming guests. The property conversion, with construction led by Fortem Capital, consists of renovations to the entire property, expanding the number of rooms to 70, adding a pool and Jacuzzi, incorporating a wellness center and enhancing the food and beverage offerings. Tropicana Los Cabos also offers 8,353 square feet of indoor and outdoor event space.

Tempo by Hilton Raleigh Downtown, the first brand flag to make its debut in North Carolina, has officially opened. The dual-brand hotel is owned by CN Hotels and managed by McKibbon Hospitality. Tempo by Hilton Raleigh Downtown offers 127 guestrooms, a fitness center and a Hydration Bar. Homewood Suites by Hilton Raleigh Downtown offers 134 suites, a fitness center, 3,300 square feet of flexible meeting space and a variety of food and beverage venues.

PM Hotel Group announced the grand opening of Hyatt House Orlando International Drive. The Orlando, Florida, hotel features 175 rooms and suites, an outdoor pool, a fitness center, H Bar, and 800 square feet of versatile meeting and event space.

The Fairmont Olympic Hotel in downtown Seattle, Washington, has been sold to Trinity Investments. Financial terms were not disclosed. Under the deal, the 450-room hotel will continue to operate under the Fairmont banner. The property boasts five dining options, 25,000 square feet of event space, street-level retail, and a Health Club with an indoor heated pool and 6,700 square feet of office space. The Fairmont Olympic Seattle recently completed a $22 million capital renovation to transform the public areas, including the debut of the Olympic Bar, the redesign of The George restaurant and enhancements to all indoor function spaces. Early plans for the hotel include room renovations.

Work has started on the site of a planned four-story hotel on the south end of the Channel Islands Harbor in Oxnard, California. Plans call for the Hyatt House to be built in the spot of the former Casa Sirena, which was razed nearly three years ago. A developer now plans to build a 210-room hotel and standalone restaurant. The Hyatt House is expected to include meeting rooms, a fitness center, outdoor decks and an outdoor lap pool.

Sandpiper Hospitality announced it is managing the newly opened Everhome Suites Cheyenne, in Cheyenne, Wyoming, for Choice Hotels International and Highside Companies. The newly constructed hotel features 114 suites, a fitness center, multipurpose lobby and a market. Sandpiper Hospitality is also partnering with Choice Hotels International and Highside Companies to manage two additional hotels opening in Texas in early 2025.

Rockbridge announced the acquisition of three lifestyle Hotel ZaZa properties in Texas, including Hotel ZaZa Austin Downtown, Hotel ZaZa Dallas Uptown, and Hotel ZaZa Houston Museum District. Hotel ZaZa Austin Downtown features 159 rooms, 6,840 square feet of meeting space, a restaurant, a fitness center, spa, and 7th-floor rooftop pool with a bar. Hotel ZaZa Dallas Uptown has 166 rooms, 5,528 square feet of meeting space, a restaurant, a fitness center, spa and outdoor pool. Hotel ZaZa Houston Museum District boasts 315 rooms, 15,400 square feet of meeting space, a restaurant, fitness center, spa and outdoor pool.

LivAway Suites and West77 Partners announced the groundbreaking of its inaugural Texas location in San Marcos. The San Marcos LivAway Suites will be located in close proximity to attractions across the city.

3CDC and Portman Holdings plan to start construction on a $480 million convention center hotel in Cincinnati, Ohio, during the first quarter of 2025. The new 800-room hotel will have 80,000 square feet of meeting rooms and 45,000 square feet of ballroom space. The project will take 33 months to complete.

The Gunter Hotel, in downtown San Antonio, Texas, is expected to reopen in the spring after undergoing an extensive renovation. Owner Axle Capital Group is putting more than $50 million into the 12-story hotel's makeover. The number of rooms at the hotel will be reduced from 322 to 312 to make space for 30 suites. All of the rooms are being refurbished and a recording studio is in the works. Axle Capital is also sprucing up the Gunter's hallways, lobby and about 25,000 square feet of event space. The renovation encompasses infrastructure upgrades, including adding a new roof and improving plumbing, fire and air-conditioning systems. After renovations are completed, The Gunter Hotel will be part of Marriott's Tribute Portfolio of hotels.

The Latitude Suites, BW Premier Collection, has opened in Tinton Falls, New Jersey. The newly renovated property offers an onsite restaurant and bar.

Driftwood Capital has secured $62.5 million in total refinancing for the Wylie Hotel Atlanta and the Sheraton Pittsburgh Hotel at Station Square, two full-service hospitality assets located in the central business districts of Atlanta, Georgia and Pittsburgh, Pennsylvania. Funds managed by affiliates of Fortress Investment Group have provided a 36-month, $28.5 million loan at a competitive interest rate to refinance the Wylie Hotel Atlanta. Starwood Mortgage Capital and Greystone Commercial Mortgage Capital have provided a 5-year, $24.0 million CMBS loan at a competitive interest rate to refinance the Sheraton Pittsburgh Hotel at Station Square.

An affiliate managed by Range Equity Management, L.P., Lodging Capital Partners, and funds managed by Oaktree Capital Management, L.P. originated a $99 million loan secured by the 254-key Viewline Resort and 158-key Wildwood Hotel located in Snowmass, Colorado. The Ownership group is a partnership between High Street Real Estate Partners, the ACRON Group, and RGP Partners. The loan was used to facilitate the refinancing of the properties.

The St. Regis Aruba, located in Palm Beach, is now accepting reservations for stays as of January 22, 2025. The property will have 252 keys, multiple pools, a spa, fitness center and multiple food and beverage venues.

Solidus Corp and Marriott International plan to build a St. Kitts and Nevis resort. The 135-room Ritz-Carlton Resort Hotel and Residences resort will feature 125 guest suites, 10 branded villas and 15 branded condominiums. Public areas will include a spa, multiple pools, multiple dining options and Ritz-Carlton beach and kids' clubs. The resort's construction is slated to commence in the fall of 2025 and the opening is planned for 2028.

International Highlights

Melia Hotels International's brand, INNSiDE is unveiling a new project in Costa del Este, Argentina. The new hotel, currently under construction, will feature 88 rooms and 60 residences, several dining options, a pool, co-working spaces, meeting rooms, and parking facilities. INNSiDE La Reserva Costa del Este marks the third collaboration between Melia and the Almarena Group.

Auberge Resorts Collection will assume the management of The Woodward in Switzerland starting February 1, 2025. The hotel, owned by The Bastion Collection, offers 26 suites, an array of dining experiences, and two floors dedicated to wellness, centered around The Guerlain Spa.