Timeshare Stocks See Mixed Ratings Amid Growth Concerns

The DJIA was down 26 points but Nasdaq was up 243, the S&P 500 rose 33 points and the 10-year treasury yield was up .02 to 4.62%. Lodging stocks were mixed. AHT was the big winner, up 13% while SOND was the big loser, down -13%.

It was a big day for the timeshare industry as Morgan Stanley initiated coverage on the group with overweight ratings on Travel + Leisure and Hilton Grand Vacations while Marriott Vacations was started at Underweight. MS said they feel timeshare companies are often misunderstood businesses currently trading at some of the highest FCF yields across the gaming/lodging/leisure space. MS warned that anemic industry growth plus pressures from higher interest rates warrant a tactical view of the space & individual stories. They have a $67 price target on TNL, $47 on HGV, and an $87 PT on VAC.

Marriott International, Inc. announced the 147-room Courtyard by Marriott San Mateo Foster City had completed renovations to its guest rooms, meeting rooms, public spaces, fitness center, and Bistro. The newly refreshed hotel, located in Foster City, California, is owned by Clarion Partners and managed by Marriott International, Inc. The three-story hotel offers two meeting rooms plus a boardroom with a combined 1,728 square feet of functional event space, a market, and a courtyard area with a fire pit.

The Marriott SpringHill Suites hotel across from Mayo Clinic’s Saint Marys Campus in Rochester, Minnesota has been purchased by Second Street Hotel Group LLC for $7.8 million. The seller is Carpenter and Torgerson SSMR LLC.

Terratron is checking into the Rochester, Minnesota market with a $29.5 million purchase of a dual-brand hotel property. Terratron purchased the Homewood Suites and Courtyard by Marriott hotels and related parking areas. The hotels house a combined 225 rooms plus the Saints On Second restaurant. Carpenter and Torgerson II, LLC sold the pair of hotels, which were operated by TPI Hospitality. Terratron plans to operate under the same hotel brands.

Timbri Hotel San Francisco has opened as the latest addition to the Curio Collection by Hilton. The 12-story, 236-room hotel was developed by Group in collaboration with New Ceremony. The re-imagined hotel features a rooftop bar and terrace; four distinct dining spaces; a fitness center; and 6,250 square feet of flexible indoor and outdoor meeting and event space, including a rooftop solarium and a 2,000-square-foot hospitality suite with an adjoining terrace. Timbri Hotel San Francisco is managed by Highgate.

The future Signia Hotel and Indiana Convention Center expansion will be 38 stories high when it is finished. Crews have built 9 of its 38 stories since work started in June and the tower’s glass façade will start to be assembled later this month. Located in Indianapolis, Indiana, the Signia Hotel and Indiana Convention Center expansion is planned to open in fall 2026.

Sonesta International Hotels Corporation announced the grand opening of Signature Inn San Jose, a 47-room, upper-economy property located in San Jose, California.

Sonesta International Hotels Corporation also announced the opening of Sonesta Simply Suites Houston Brookhollow. The 85-room hotel is located in Houston, Texas.

The 232-room Niagara Fallsview Hotel & Suites, located in Niagara Falls, Ontario, is now owned and operated by Sudbury Regent Street Inc. (a Vrancor Group company) and managed by Vrancor Hospitality Corporation. Hotel amenities include an indoor pool, fitness center, a restaurant & bar, and 860 square feet of meeting space. The property will be part of IHG and will undergo a transformative property refresh, following which it will be rebranded to become voco by IHG in Spring 2026.

The Bower Coronado is now accepting reservations ahead of its grand opening on February 28, 2025, in Coronado, California. Located on the grounds of a former Japanese tea garden, the 39-room boutique hotel features Coronado’s first rooftop bar and restaurant. J Street has worked closely with Coronado residents and stakeholders to transform this historic site.

Nobu Hotel Caesars New Orleans has opened, the third in partnership with Caesars Entertainment. Located within the newly re-imagined Caesars Tower, Nobu Hotel Caesars New Orleans occupies two floors and features 54 guestrooms and suites.

Indigo Road’s Hotel Richemont is to open in Charleston, South Carolina in early 2025. A key element of the 25-room Hotel Richemont is the Two Bit Club, a Vietnamese restaurant.

Developers are planning to build a mixed-use hotel condo in Steamboat Springs, Colorado. The proposed development, named The Stockman, would be built on a vacant lot and would include 204 multi-family condominiums, 41 hotel rooms, and more than 24,000 square feet of commercial space. The hotel is being proposed by Majestic Realty Co., which is partnering with Alterra Mountain Co. on the project. The development would include multiple restaurants, bars, and a day spa.

A limited liability company affiliated with Buffalo-area hotel investor Jayesh Patel bought the former Ramada by Wyndham in Salina, New York, for $3.3 million, according to a deed recorded in the Onondaga County Clerk’s Office. Patel also bought the attached Staybridge Suites hotel for $7.7 million, which is directly behind the former Ramada. Both properties were sold by First Republic Building Corp. Patel plans to keep both properties operating as hotels. Patel, president of Rudra Management, said the former Ramada will reopen in the coming months and initially operate as an independent hotel while a new national brand affiliation is sought. After a brand is signed on, the 197-room hotel will be renovated and reopen under its new flag once the renovations are complete. The hotel’s sizable conference facilities will also be reactivated, but likely under a separate operator. The Staybridge will continue to operate as a Staybridge but will also undergo renovations.

Advocates in Vancouver’s tourism sector are urging real estate giant Cadillac Fairview to include hotel rooms in its plans for a tower on a site it owns at the northeast corner of West Georgia and How Streets. Cadillac Fairview has applied for city permission to demolish the former Four Seasons Hotel building on that site. Multiple Cadillac Fairview senior vice presidents of retail have told BIV that the company’s expectation was to have at least part of the site to be a hotel.

Trestle Studio, the lead investor renovating the El Tropicano Hotel, in San Antonio, Texas, recently attained a $79 million construction loan to push the property’s revitalization forward. The firm received the variable interest rate loan from Fortress Credit Co. LLC, an entity connected to Fortress Investment Group. An updated renovation timeline has not been disclosed, though the firm has said it’s aiming to reopen the hotel in 2026.

Access Point Financial announced the company was involved in more than $2.0 billion in hotel financing in 2024, a record year for the company. The transactions were a combination of approximately $0.5 billion in direct bridge and mezzanine loan commitments, as well as participating in $1.6 billion of SASB hotel originations via the purchases of HRR/G/H and bond classes for hotel-specific CMBS refinancing. 2024 transactions included: Marriott Portfolio, Mid-Atlantic: $53mm; Hilton Portfolio, Florida: $44mm; Marriott Portfolio, South Carolina: $60mm; IHG Portfolio, Illinois: $35mm; Construction Loan / Extended Stay Brand, California: $18mm; MCR Portfolio, Nationwide: $90mm/CMBS; and Atrium Portfolio, Nationwide: $133mm/CMBS.

Personnel Move

Peachtree Group announced that Josh Rubinger has joined as senior vice president of national accounts for its broker-dealer affiliate, Peachtree PC Investors. Rubinger’s role will focus on business development, overseeing relationships with broker-dealers and registered investment advisors, and supporting the distribution of the firm’s investment offerings. Prior to joining PCCI, Rubinger served as senior vice president and head of national accounts for Ashford Securities.