Wells Fargo Shows Optimism for U.S. RevPAR in 2025
Skift Take
The DJIA fell 697 points on Friday while Nasdaq fell 317, the S&P 500 was down 91 points, and the 10-year treasury yield continues marching to 5%, up another .08 to 4.78%. Lodging stocks were lower with PK and SOHO hitting new lows, with SOHO down -5% on the day. AHT also was down -5%.
Despite the weakness in lodging stocks, led by the REITs, Wells Fargo expects 2025 U.S. RevPAR to be up 2%, led by group, then improving business transient and leisure. They are overweight Hyatt, and they upgraded Wyndham Hotels to Overweight from Equal Weight with their price target rising to $114 from $103. WF said that by chain scale, they expect the luxury and upper upscale segments to lead (group centric) but said economy/mid-scale has begun inflecting positively and has easing comparisons in 2025, hence the WH upgrade. They also expect Asia (ex-China) to be a bright spot and for Europe to be strong for a third year.
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental sector performance.
De Pere 230 Development Partners LLC announced that plans for the Shopko site, in De Pere, Wisconsin, include a five-story mixed-use building and a five-story hotel. According to the Green Bay Press-Gazette, the two buildings represent the first two of six buildings coming to the site under the multiyear, multiphase redevelopment plan to add hundreds of housing units, commercial space, a hotel, and a parking garage on the four-acre site. Plans call for a 90-room, five-story hotel with a community space, fitness center, pool, food/buffet area, meeting room, and five hotel rooms designed for individuals who might have reduced mobility, impaired vision, or hearing loss. The hotel construction plans indicate the hotel would be a TownePlace Suites by Marriott. De Pere 230 Development Partners are working with a hotel developer that is in discussions with TownePlace Suites now. The five-story mixed-use building would have 60 apartments, retail/commercial space, and tenant amenities.
A groundbreaking ceremony was held for the SpringHill Suites Hotel in Leeds, Alabama. Set to be located at Rex Lake Road, the project will be developed and managed by Jackson Hospitality Services. An opening for the new hotel is projected to be 2026. It will feature 115 guestrooms, a spacious lobby, and a bar.
A hotel developer is planning to build a Hilton-branded hotel at The Heaviest Corner on Earth. Ascent Hospitality is designing a Tempo by Hilton hotel to be located at 1912 First Ave. N. in Birmingham, Alabama. The project is still in a design phase and is slated to open by 2029. Initial plans show the hotel will have approximately 180 rooms, a restaurant, a bar, and a coffee shop.
A developer who specializes in building luxury Four Seasons resorts and residences paid $20 million for waterfront land in West Palm Beach, Florida, across from Mar-a-Lago. The purchase by a limited liability company linked to Fort Partners includes two properties in an area of West Palm Beach that has recently seen a spike in interest after being largely ignored for decades. It is unknown what Fort Partners has planned for the property, but previous projects have included the multiple Four Seasons Private Residences in Coconut Grove, Fort Lauderdale, Miami, Telluride, Colorado, and Marbella, Spain.
Developers have proposed a mixed-use development in uptown Dallas, Texas that would include a full-service hotel. The proposed Chalk Hill Towers development is a partnership between KERA, Kaizen Development Partners LLC, and HN Capital Partners. According to hotelprojectleads.com, the $370 million project would include a 16-story office tower with 420,000 square feet and a 22-story condo and 200-guestroom hotel totaling 470,000 square feet.
Construction is underway at Kalahari Resorts & Conventions Wisconsin Dells as it is expanding its indoor waterpark. The $76 million project includes a glass-enclosed, open-air waterpark with a retractable roof and three new water slides. The plan also includes a spa pool, a watering hole pool, a kiddie slide pool, and a grotto adult swim-up bar. The new indoor waterpark is one of several new amenities and renovations Kalahari has added. Other additions include 237 new rooms, a renovated Spa Kalahari, an all-new splash pad and dry playground, an expansive lobby renovation, and two additional dining options.
According to documents filed with the city of Walla Walla, Washington, Paine Building LLC outlined plans to build 12 hotel rooms with seven rooms on the second floor and five rooms on the third of the historic Paine Building. The proposal also includes a potential spa, a designated business area, and a restaurant.
Construction on the Cambria Hotel and Conference Center in Northlake, Texas is on track for completion in March 2025. The hotel will have 111 rooms and the conference center will have 8,000 square feet of usable space. Town officials will purchase the conference center from the developer, Lodging Host, when it is completed.
The High Country Inn, in Banff, Canada, is undergoing a massive transformation. The hotel is being rebranded as The Kenrick Hotel, with its grand re-opening set for Spring 2025. The hotel has been closed since last year for extensive renovations including updates to its guestrooms, lobby, pool area, corridors, and more.
According to Naples Daily News, the goal for completion of the new “Old Naples Hotel” targets by the end of 2025. Site work began in April by Ocean Properties Hotels & Resorts, which has partnered with the Camalier family on the Collier County, Florida project. The hotel is replacing what was originally Third Street Plaza, which was demolished in late 2021. Plans call for 109 hotel rooms, two retail shops, an indoor café with outdoor dining, a rooftop pool, a spa, and a sundry shop.
HVS Brokerage & Advisory announced the sale of the Johnson Square Business Center in Savannah, Georgia. The historic property was purchased by The Montford Group and Opterra Capital from Expansive. New ownership plans to convert the asset to a Ritz-Carlton hotel.
JLL’s Capital Markets group arranged a $300 million refinancing for the Omni Nashville Hotel, an 800-key luxury hotel in downtown Nashville, Tennessee. JLL worked on behalf of the borrower, TRT Holdings, Inc., to secure a fixed-rate, seven-year loan through a U.S.-based insurance company and AllianceBernstein Commercial Real Estate Debt, in its capacity as advisor to Equitable Financial Life Insurance Company. The 21-story Omni Nashville Hotel features over 80,000 square feet of meeting space, multiple dining options, Mokara Spa, rooftop pool, and a fitness center.
Dreams Curacao Resort, Spa & Casino, part of Hyatt’s Inclusive Collection, has announced the opening of II Mare Adults-only Preferred Club, a new, 52-bungalow section creating a unique, luxury beachfront experience. The Preferred Club Mare BeachFront Bungalows feature exclusive amenities and dedicated areas such as a private infinity pool, a restaurant, poolside bar, dedicated programming, and live music and entertainment.
Personnel Moves
Jumeirah announced the appointment of Thomas B. Meier as its new Chief Executive Officer. As CEO, Thomas will spearhead Jumeirah’s bold plans to double its portfolio by 2030, focusing on international expansion. Thomas, who served as Chief Operating Officer since October 2021, most recently served as Interim CEO. Read more about this at Skift (free read for DLR subscribers).
Cycas Hospitality appointed Philip Steiner to Chief Operating Officer across the UK, Ireland, Netherlands, and Portugal. Steiner’s career with Cycas Hospitality began in 2018 as Director of Accommodations & Serviced Apartments. Most recently he served as General Manager at London’s Bankside Hotel, part of the Marriott Autograph Collection.
Europe Highlights
JMK Group has secured a loan from OakNorth and REL Finance to acquire an office site in the City of London and convert it into a hotel. The company plans to use the £16.6 million to fund the acquisition of a five-story Grade II listed office block and convert it into a 185-key hotel. JMK’s hotel portfolio comprises seven properties across Dublin, Cork, and London.
Situated within the historic former Palace of Justice, Rosewood Amsterdam is now accepting reservations from June 1, 2025, marking the brand’s debut in the Netherlands. The hotel includes 135 guestrooms and suites, along with five signature suites; a 2,400 square foot ballroom; Asaya Spa; fitness center, and an indoor pool.