Dallas Leads the U.S. Hotel Construction Pipeline
Skift Take
The DJIA was up 408 points while Nasdaq rose 44, the S&P 500 was up 32 points, and the 10-year treasury yield was up .04 to 4.64%. Lodging stocks were mixed. IHG traded up to a new high.
The latest United States Construction Pipeline Trend Report from Lodging Econometrics revealed Dallas is leading the nation’s hotel construction pipeline with 204 projects totaling 23,669 rooms. Atlanta follows with 168 projects/19,431 rooms, then Nashville with 130 projects/17,029 rooms, Phoenix with 130 projects/16,824 rooms, and the Inland Empire with 122 projects/12,234 rooms. In the under-construction stage of the pipeline, New York City leads with 36 projects/5,928 rooms, followed by Phoenix with 31 projects/4,788 rooms, Dallas with 31 projects/3,467 rooms, Atlanta with 27 projects/3,211 rooms, and the Inland Empire with 19 projects/1,962 rooms. Dallas continues to dominate planned construction starts within the next 12 months with 78 projects/8,856 rooms, followed by Atlanta with 62 projects/7,545 rooms, Austin with 53 projects/6,663 rooms, and Nashville and Phoenix each with 48 projects planned with 6,533 and 6,272 rooms, respectively. In the early planning stage, Dallas leads with 95 projects/11,346 rooms, followed by Atlanta with 79 projects/8,675 rooms, Nashville with 64 projects/7,840 rooms, Los Angeles with 56 projects/9,243 rooms, and Austin with 55 projects/5,874 rooms. Washington, D.C. leads renovation and conversion activity with 34 projects comprising 5,204 rooms, while Chicago and Charlotte each report 31 projects with 7,514 and 3,384 rooms, respectively; Houston follows with 30 projects/4,335 rooms, and Atlanta with 28 projects/3,595 rooms. New project announcements are led by Dallas with 20 projects/2,061 rooms, Phoenix with 12 projects/1,376 rooms, and Raleigh-Durham with 10 projects/1,146 rooms. Las Vegas and Nashville each have eight projects with 4,556 and 991 rooms, respectively. The U.S. market saw 583 new hotel openings, accounting for 67,995 rooms through Q4 2024. New York topped the list of new hotel openings with 16 hotels/1,824 rooms, Dallas 14 hotels/1,847 rooms, Nashville 13 hotels/1,770 rooms, Orlando 11 hotels/1,908 rooms, and Phoenix 10 hotels/1,230 rooms.
Host Hotels & Resorts Inc. is exploring the sale of more than 10 properties as the company seeks to trim its holdings. Host is working with an advisor to market a portfolio of hotels valued at more than $1 billion, according to Bloomberg. Potential buyers have been invited to bid on individual properties, which include the Grand Hyatt San Francisco, W Seattle, and the Coronado Island Marriott in California. According to CEO Jim Risoleo, if pricing is attractive, they will sell. If it’s not, they will pull back and invest in the assets ourselves.
W Hotels and Opry Entertainment Group, a subsidiary of Ryman Hospitality Properties, Inc., announced the completion of a multi-million dollar transformation of W Austin. This new chapter for W Austin is marked by detail-driven design and elevated service and will introduce an all-new restaurant concept, Serenade American Brasserie, 2nd & Roast coffee shop, Blue Room cocktail bar, along with a re-imagined Living Room and 251 fully redesigned guestrooms.
City Express by Marriott announced its planned entry into four new markets across the Caribbean and Latin America region - Argentina, Bolivia, Nicaragua, and Peru. City Express by Marriott Iguazu, Argentina is expected to begin operating with 87 rooms in the second quarter of 2025. City Express by Marriott Santa Cruz d la Sierra, Bolivia, is slated to start construction in the first quarter of 2025, and the 100-room hotel is anticipated to open in early 2027. City Express by Marriott Managua, Nicaragua has an anticipated conversion slated for Q3 2025. The 100-room hotel will be part of a mixed-use development with the Las Americas shopping mall and the HEX Convention Center. City Centro by Marriott La Recoleccion, Nicaragua, is expected to convert in Q3 2024, featuring 50 hotel rooms. City Express Plus by Marriott and City Express Suites by Marriott, Casma, Peru are anticipated to open in 2027 as part of a dual-brand property development within a project known as the Peruvian Miami Beach. City Express Plus will feature 120 rooms, while City Express Suites by Marriott will offer 80 guestrooms.
The Midland Hotel, owned by Park Hotels & Resorts and managed by Pyramid Global Hospitality, is undergoing a thoughtfully planned two-phase revitalization. Located in Chicago, Illinois, the first phase focuses on revitalizing public spaces, including a re-imagined lobby and arrival experience, while the second phase will transform the hotel’s 403 guestrooms and suites. Enhancements to public spaces and the signature restaurant will infuse modern vibrancy, while the 12,589 square feet of versatile meeting and event space will be upgraded.
Bloom Tulum, the first Apartments by Marriott branded residences in Mexico, has officially begun operations. Managed by Aimbridge Hospitality and owned by BCG Realtor Trust, the residence includes 137 keys across 95 units.
Azul Hospitality announced the opening of the AC Hotel Detroit at the Bonstelle and the conversion of the Cadillac House to become part of the Tapestry Collection by Hilton. The newly constructed AC Hotel Detroit is the first AC Hotel in southeast Michigan. Developed by the Roxbury Group in partnership with Peachtree Group, the 10-story, 154-room property features a lobby bar, a rooftop venue, and the restoration of the historic Bonstelle Playhouse, slated to open this summer. The Cadillac House, a historic property in Lexington, Michigan, has been converted to the Tapestry Collection by Hilton. Ownership tapped Azul to manage the 23-room property’s transition. The property also features the Hidden Cavernevent venue and the Cadillac House Tavern & Bar.
First Hospitality announced it has expanded into Oklahoma, Georgia, and the Bahamas while continuing growth in its existing markets, plus opening three new development lifestyle properties. First Hospitality expanded its business into Atlanta, Georgia, by assuming management of the Atlanta Airport - DoubleTree by Hilton Hotel; Oklahoma City with the opening of a new development, the lively Hotel on OAK - Tapestry by Hilton; and internationally with the opening of Carnival Bahamas in Nassau, Bahamas, on Paradise Island. First Hospitalityalso grew its current markets, including the opening of a new development, the Tempo by Hilton Louisville Downtown NuLu, while growing its footprint in Wisconsin by assuming management of The Abbey Resort & Avani Spa in Fontana on Geneva Lake, Wisconsin. Coming soon, First Hospitality will open a new development, Hotel Ardent - Tapestry by Hilton, in Dayton, Ohio, in February 2025. With this growth, First Hospitality announced the launch of two new company verticals: Full Service and Lifestyle Hotels and Premium Select Service Hotels. The Full Service and Lifestyle Hotels vertical will focus on curating unique, experiential properties catering to travelers seeking distinctive and immersive stays, blending exceptional design, personalized service, and innovation. Meanwhile, the Premium Select Service Hotels vertical will emphasize delivering elevated hospitality experiences in the select service segment, combining efficiency with high-quality amenities to meet the needs of modern and value-focused travelers.
IHG Hotels & Resorts, in collaboration with owner and management Hart Family Hotels - Marion LLC, announced the opening of a new-build Holiday Inn Express & Suites hotel in Marion, Iowa. Holiday Inn Express & Suites Cedar Rapids NE - Marion features 93 guestrooms, 350 square feet of meeting space, an indoor pool, and a fitness center.
Four Seasons unveiled its new residential project, Four Seasons Private Residences Tamarindo, in Jalisco, Mexico. This new venture is a partnership with Paralelo 19 Desarrollos. The development includes a collection of 25 luxury villas and estates, following the success of the Four Seasons Resort Tamarindo, which opened in November 2022. Residents will have access to the services and amenities of Four Seasons, including the 18-hole El Tamarindo Golf Course and Club, a spa, wellness center, fitness and recreation facilities, and multiple restaurants and bars.
LOGE Camps and Schulte Hospitality Group announced the formation of a new partnership that is focused on the brand and operational growth of LOGE Camps’ existing 18 hotels and its expanding portfolio of hotels across the United States. LOGE Camps offers a variety of accommodations, including traditional guestrooms and cabins, along with a wide selection of outdoor gear and amenities. This partnership will help enhance the mission of providing unforgettable outdoor experiences across its growing portfolio of properties while also continuing to uphold its core values of sustainability and local engagement.
The Grand Hyatt San Antonio River Walk is undergoing a nearly $9 million renovation to upgrade the hotel’s lobby and add higher-end food and beverage offerings. The 1,003-room hotel’s Bar Rojo is being replaced by an Italian restaurant, and its Perks Coffee café is being turned into an upscale coffee house. A lounge, complete with a bar, is slated to open at the west end of the lobby. In addition to the lounge, the west end of the lobby will also have new check-in desks and an open layout. Construction is expected to be finished in March.
The Chatwal, New York, located in the heart of Manhattan’s famed Theater District, is debuting a one-of-a-kind immersive suite inspired by the musical, The Outsiders. The newly launched Stay Gold Suite offers an experience package (per stay) including two tickets for The Outsiders, one complimentary Stay Gold cocktail at The Lambs Club, and $100 property credit.
Miami Beach’s The Raleigh, A Rosewood Hotel & Residences, announced residential construction milestones. The phase of construction is centered on the foundational processes of excavation and piling and marks the start of construction on the new 17-story residential tower at The Raleigh. As this next phase of residential construction commences, SHVO has enlisted Newmark to recapitalize the project. The Raleigh will ultimately unveil a condominium tower with 40 private residences as well as a 60-room Rosewood hotel. The Raleigh will offer two distinct residential lobbies, a fitness center, Asaya Spa, and four pools. The 3-acre estate is on track for completion in 2027.
Choice Hotels International, Inc. and Westgate Resorts announced that 21 Westgate properties are now available to book on ChoiceHotels.com, including The Westgate Lakes Resort & Spa in Orlando, Westgate River Ranch Resort & Rodeo in River Ranch, Florida, and the Westgate Park City Resort & Spa in Park City, Utah.
Urban Street Development and Berkadia secured $38.5 million in permanent and construction financing to fund the expansion of the Hotel Indio Tallahassee - CollegeTown, located near Florida State University. The hotel is expanding from 143 rooms to 237 and 5,500 square feet of prime ground-floor retail. Berkadia Hotels & Hospitality arranged the financing package on behalf of Urban Street. Synovus Bank provided the five-year loan, which includes funds to refinance Phase 1 of the seven-story, mid-rise hotel (143 rooms completed in 2020), as well as the construction of Phase II, which includes 94 keys slated to deliver in 2026. Construction of Phase II has already commenced.
D2 Capital Advisors arranged $23,500,000 in construction financing for the development of a new Residence Inn by Marriott in Chestnut Run Innovation & Science Park in Wilmington, Delaware. The 127-key hotel is being developed by CRISP Hotel Partners, LLC, a joint venture between MRA Group and Gulph Creek Hotels. The financing was provided by WSFS Bank and Nuveen Green Capital. Construction is set to begin this month, with a projected delivery date in the summer of 2026.
Hunter Hotel Advisors announced the sale of the Fairfield Inn & Suites Atlanta Vinings/Galleria. VP Hospitality purchased the 142-key property from an institutional seller.
Personnel Moves
Lodgco Hospitality announced its strategic expansion into third-party hotel management. To spearhead this expansion, the company has welcomed Scott Stuart as President in August 2024. Lodgco Hospitality’s comprehensive suite of services includes sales & marketing, operations, revenue management, finance & accounting, development, and human resources.
RevPAR International, Inc. announced the promotion of Christopher Cylke, ISHC, to President. Chris previously served as Chief Operating Officer.
Pacifica Hotels announced the appointment of Scott Roby as President to oversee all portfolio assets and operations moving forward. Roby was most recently the founder and principal at Storyteller Hospitality.