U.S. Hotel Construction Booms
Skift Take
STR reported U.S. hotel data for the week ended January 18. U.S. hotel RevPAR jumped 17.4% with rates up 10%. US Group RevPAR was up 44.8%. The week was impacted on a positive basis by the timing of the Martin Luther King Jr. holiday.
Dreamscape Hospitality announced its selection as the management company for the forthcoming Home2 Suites by Hilton in Atlanta’s Buckhead neighborhood. The new-build property, featuring 176 suites, is a collaboration between Phoenix Development Partners, Horizon Capital, and Dreamscape Hospitality. Construction is set to begin in July 2025 with an anticipated opened date in late 2026.
Hotel construction in the United States hit new levels in the fourth quarter of 2024, according to Lodging Econometrics’ latest Hotel Construction Pipeline Trend report. The total pipeline reached 6,378 projects with 746,986 rooms, showing year-over-year growth of 7% in projects and 8% in rooms. Projects currently under construction stand at 1,149 projects totaling 142,238 rooms. Looking ahead, there are 2,259 projects with 259,108 rooms scheduled to break ground between now and the next 12 months. The early planning stage reached unprecedented counts with 2,970 projects and 345,640 rooms. By chain scale, upper midscale hotels lead the pipeline with 2,354 projects and 227,845 rooms. Upscale hotels follow with 1,471 projects and 182,474 rooms, followed by the midscale segment with 957 projects and 80,436 rooms, while the upper upscale chain scale reached 338 projects at the Q4 2024 close. The U.S. hotel industry saw growth in new project announcements during 2024, with 459 projects totaling 58,123 rooms entering the pipeline. Brandconversions reached 1,336 projects with 128,736 rooms at the Q4 close. While renovation activity showed a slight decline in Q4, it remained robust with 661 projects comprising 127,080 rooms. New hotel openings in 2024 were at 583 hotels with 67,995 rooms in the U.S. Lodging Econometrics projects 730 new hotels and 82,538 rooms to open in 2025, and 904 new hotels and 87,328 rooms to open in 2026.
Blackstone is purchased the Kimpton Hotel Eventi in the Chelsea neighborhood of Manhattan for $175 million, Bloomberg reported. The seller is DLJ Real Estate Capital Partners. The hotel has 292 rooms, three restaurants, a 450-spot parking garage, and 45,000 square feet of meeting space.
IHG Hotels & Resorts announced the opening of a newly converted Candlewood Suites in Miami, Florida. The 94-room property features a pool and a gym. Candlewood Suites Miami - Doral operates under the ownership of Palma Hotel Operator, LLC and management of Driftwood Hospitality Management.
The Los Angeles City Council approved plans to expand Hilton Universal City Hotel with the construction of an 18-story building connecting to the main property and providing more amenities to guests. The 18-story building is set to provide 395 guestrooms, a spa, three restaurants, an indoor/outdoor bar, two pools, and a single-level lobby lounge/bar connecting to the main hotel. Additionally, plans detail construction of a meeting room and a three-level parking garage. When complete, the property will provide a total of 890 guestrooms.
A 250-room floating hotel is being proposed for Vancouver’s waterfront. The project is being jointly pitched by Sunborn International Holding and the Vancouver Harbour Flight Centre. They tout the 6-story hotel, which would open in 2027, would be privately funded and built off-site before being moved to the waterfront and connected to the Vancouver Convention Centre.
Universal Orlando’s Stella Nova is slated to open on Tuesday. The 750-room hotel will be Universal Orlando’s ninth hotel and the first part of the Epic Universe area to debut. It will be joined by the neighboring Terra Luna on March 25 and the Helios Grand, which opens alongside the theme park May 22.
RobertDouglas represented, as exclusive advisor, TPI Hospitality on the refinancing of a 770-key, 7-hotel portfolio of premium-branded hotels in the greater Twin Cities submarkets of MapleGrove/Arbor Lakes and North Metro. RobertDouglas secured $70.4 million of floating-rate debt with an institutional balance sheet lender for the portfolio. The portfolio consists of the 96-key Residence Inn Maple Grove/Arbor Lakes; 84-key SpringHill Suites Maple Grove/Arbor Lakes; 115-key Courtyard Minneapolis Maple Grove/Arbor Lakes; 120-key Hampton Inn Minneapolis Northwest Maple Grove; 119-key Staybridge Suites Mpls-MapleGrove/Arbor Lakes; 136-key Holiday Inn & Suites Maple Grove/Arbor Lakes; and 99-key Hilton Garden Inn Minneapolis Saint Paul-Shoreview.
HVS Brokerage & Advisory announced the sale of the 90-key Home2 Suites by Hilton Huntsville, located in Huntsville, Texas. The hotel asset was purchased by Jeetoh Inc. from Shivam Hospitality Inc.
NexPoint Diversified Real Estate Trust, and its partner, Alamo Manhattan, announced the successful refinancing of the Marriott Dallas Uptown, a 255-key hotel located in the Uptown submarket of Dallas, Texas. The new $95 million financing includes $87.5 million in initial loan proceeds used to replace the Property’s outstanding debt, as well as two future-funded earn-out facilities that provide potential to access $7.5 million in additional capital. The financing was provided by KKR. The 14-story hotel, majority owned by NXDT through AM Uptown Hotels, LLC, offers approximately 13,000 square feet of meeting space, a rooftop pool, lounge, and ground-floor restaurant.
Peachtree Group announced the origination of $114.6 million in bridge loans to recapitalize two prominent hotels owned by McWhinney. Peachtree originated a floating-rate bridge loan with a 48-month term for the 246-room Hyatt Centric Congress Avenue Austin in Texas. Peachtree originated a fixed-rate bridge loan with a 60-month term for the 226-room Hyatt Place Denver Pena Station in Colorado.
Access Point Financial provided $195 million refinancing for The Beekman, A Thompson Hotel in Manhattan, New York. The 287-room luxury lifestyle hotel was meticulously transformed by GFI Capital Resources Group from the historic Temple Court building and features a 9-story atrium lobby and food and beverage offerings.
Cronheim Hotel Capital has secured $25MM+ to refinance the existing debt and capitalize planned improvements on the Sound View and Harborfront boutique hotels located in Greenport, New York, on the North Fork of Long Island. The Sponsor, Eagle Point Hotel Partners, has transformed the two properties into upscale boutique assets.
Europe Highlights
Minor Hotels said they are on track to surpass 850 properties by 2027. Entering 2025, they have a robust pipeline of almost 300 new hotels slated to open over the next three years. They already have more than 560 properties and 81,000 keys in operation worldwide, with the pipeline of hotels having nearly 47,000 keys on the way to adding to their total. More than 50% of Minor’s existing portfolio is currently concentrated in Europe, but the addition of more than 100 properties in Asia, more than 60 in the Middle East & Africa, and 40 in Australia and New Zealand will lead to a more balanced global portfolio distribution. Minor is also looking to expand its presence in several priority markets, especially in North America and North Asia. Markets such as Morocco, Egypt, and Turkey have also been identified as priority destinations for entry, while efforts continue to accelerate the momentum in India following the recent opening of Anantara Jewel Bagh Jaipur Hotel. 2025 will bring the launch of two new hotel brands, targeting conversion opportunities. Branded residences will also be an important element of the group’s future, with pipeline projects in more than a dozen countries featuring a residential component.
Personnel News
Sunstone Hotels Investors, Inc. announced the departure of Chief Operating Officer Chris Ostapovicz as part of a management restructuring effort. The company has decided to eliminate the COO position from its executive team, and effective January 21, 2025, Ostapovicz’s responsibilities will be redistributed among the President and Chief Investment Officer, along with other executive team members. In connection with his departure, Ostapovicz has entered into a separation agreement with Sunstone Hotel Investors. Under the terms of this agreement, he will receive a cash payment equivalent to two times his base salary and target bonus for the year 2024.
Marriott International, Inc. announced the election of Sean Tresvant, Chief Executive Officer of Taco Bell Corp., a wholly owned subsidiary of Yum! Brands, Inc., as an independent director of the company, effective February 12, 2025. Mr. Tresvant is expected to be included in the company’s slate of nominees for election at its upcoming 2025 annual meeting of stockholders. With the election of Mr. Tresvant, the Marriott International board will expand to 13 directors, 10 of whom are independent.
Concord Hospitality announced the promotion of Patti Cameron to Senior Director of Talent Acquisition. Cameron joined Concord in 2019. In her new role, Cameronwill lead and manage the recruitment and hiring processes for diverse teams across multiple hotel properties, ensuring the selection of talent to drive performance and exceed sales targets.
The American Hotel & Lodging Association announced its 2025 officers, Executive Committee, and Board of Directors. Vision Hospitality Group Founder and CEO Mitch Patel will lead the board of directors as chair; Marriott International Group President, U.S. & Canada Liam Brown will serve as vice chair; Davidson Hospitality Group CEO & President Thom Geshay will serve as secretary/treasurer; and Hilton Supply Management President & Global Head Anu Saxena will serve as chair for the AHLA Foundation Board of Trustees. Patelsucceeds Hilton Chief Financial Officer & President, Global Development Kevin Jacobs, who served as AHLA’s board chair in 2024 and will continue on the board as immediate past chair. Pebblebrook Hotel Trust Chairman and CEO Jon Bortzcontinues as chair of the HotelPAC Advisory Council.
AHLA Foundation announced its 2025 Board of Trustees, welcoming Anu Saxenaas the new chair. Saxena, who serves as the President of Hilton Supply Management, will champion the Foundation’s mission to support the hotel industry’s workforce through innovative programs, research, and career development initiatives. The Foundation also welcomed several new trustees to its board, adding diverse perspectives and extensive industry experience to the organization’s leadership. The new board members include Elliott Estes from Woodmont Lodging; Kristie Goshow from KSL; Marie Griffin from Wyndham; Harshil Patelfrom Champion Hotels; Liz Perkins from Apple REIT; Stephanie Piimauna from Seminole Hard Rock; and Eric Terry from Virginia Restaurant, Lodging, and Travel Association.
The IHG Owners Association announced the appointment of Mark Zipperer as the Chair of its Global Board of Directors for 2025. Zipperer is the President & CEO of Pride Hospitality, LLC. Zipperer’s long-standing involvement with the Association began in 1997, and he rejoined the Global Board of Directors in 2020 after previously serving for six years.