Sternlicht Revives the Starwood Brand

The DJIA, Nasdaq, and S&P 500 was down 141 points on Friday while was down 99, the fell 17 points and the 10-ear treasury yield was down .01 to 4.63%. Lodging stocks were modestly lower. ABNB and SOND were both down -5% on the day.

Barclays is predicting earnings beats across the board for Lodging C-Corps during 4Q earnings season. They expect them to report 3% to 5% RevPAR growth for 4Q. They also expect STR to update their US RevPAR growth outlook at the upcoming ALIS from +1.8% to 2% to 3% growth. Barclays expects large-cap C-Corps to give initial global RevPAR growth guidance in the 2% to 4% area. That being said, Barclays believes the stock performance of the large C-Corps have largely baked in the improving backdrop.

The U.S. hotel industry reported record-high ADR and RevPAR, but the country's growth rate was its lowest since the declines of 2020, according to CoStar's 2024 year-end data. 2024 (percentage change from 2023): Occupancy: 63% (flat) ADR: $158.67 (+1.7%) and RevPAR: $99.94 (+1.8%). Among the Top 25 markets, New York City experienced the highest occupancy level (84.3%). Markets with the lowest occupancy for the year included St. Louis (58.1%), Minneapolis (58.7%) and Detroit (59.1%). The Top 25 Markets showed higher occupancy and ADR than all other markets. Markets outside the Top 25 saw a 0.5% decline in occupancy.

Canada's ADR and RevPAR hit an all-time high in 2024. Data from CoStar reports that 2024 statistics showed a minor increase of 0.1% in occupancy to 65.7%, while ADR rose by 4.3% to CAD208.71. RevPAR also saw an increase of 4.4%, reaching CAD137.17. Manitoba had the highest occupancy level among the provinces at 69.0%. Vancouver led the major markets with the highest occupancy of 78.2%. The lowest occupancy rate was recorded in Prince Edward Island (54.7%) and Edmonton (58.5%).

The NY Times said Barry Sternlicht is bringing back the Starwood Hotels name. The current SH Hotels & Resorts will take on the Starwood name. The article said Sternlicht has been itching to get back into the hotel management industry under the Starwood name since 2015. The new Starwood Hotels plans to open 22 hotels through 2028, including 1 Hotels in Austin, TX; on Crete and in Seattle; Treehouses in Manchester, England, and Miami; and Baccarats in Dubai, UAE; the Maldives and Rome. All three brands are expected to open in Riyadh, Saudi Arabia as well. Read more at Skift (free read for DLR subscribers).

Operated by Donohoe Hospitality Services, the 267-room, dual-brand AC Hotel and Residence Inn by Marriott Reston opened in the Reston Town in Reston, Virginia. The AC Hotel has 147 rooms, while the Residence Inn has 120. Amenities include a restaurant, 11,300 square feet of meeting space, an exercise room, an indoor pool, and a small market. A rooftop bar and lounge will open on the hotel's 16th floor. An opening date hasn't been finalized yet.

Ryman Hospitality Properties, Inc. announced plans to add approximately 108,000 square feet of premium meeting space to its flagship Gaylord Opryland Resort & Convention Center in Nashville, Tennessee. The planned expansion, expected to be complete by Spring 2027, includes a new approximately 31,000-square-foot ballroom, approximately 38,000 square feet of breakout space, and approximately 39,000 square feet of pre-function space, bringing the hotel's total exhibit and meeting space to approximately 756,000 square feet.

Hilton rang in 2025 with new additions to its portfolio, from its first Hilton property in Bonaire to the introduction of Hampton by Hilton in Estonia. As the company looks ahead to 2025, Hilton will be adding new luxury properties abroad as Signia by Hilton goes global with its first hotel outside the United States, while Tempo by Hilton expands its portfolio to five properties with two new hotels in Raleigh and San Diego. Additional Hilton properties to open in 2025 include: Tempo by Hilton San Diego Del Mar, February 2025; March 2025 brings the openings of: Canopy by Hilton Nashville Downtown The Gulch; Graduate by Hilton Dallas; The Printing House Hotel Downtown Nashville, Tapestry Collection by Hilton; Hilton Yuyao; Hilton Garden Inn Jinan Olympic Sports Center; DoubleTree by Hilton Addis Ababa Airport; and DoubleTree by Hilton Nathiagali.

Mandarin Oriental Hotel Group is set to manage a new luxury resort and branded residences on Puerto Rico's southwestern coast at Boqueron Bay in Cabo Rojo. Mandarin Oriental Esencia, Puerto Rico, is expected to open in 2028 and will be the Group's third property in the Caribbean. The project is part of Esencia, a new cosmopolitan coastal community owned and developed by Reuben Brothers and Three Rules Capital.

A new hotel is set to be built in Bradenton Beach, Florida. The land owner, Shawn Kaleta, told ABC7 that what is now a vacant lot on Bridge Street will be the home of 106 hotel rooms, parking and a restaurant.

IHG Hotels & Resorts continues to build momentum across its Luxury & Lifestyle portfolio. Recent highlights include Six Senses' expansion in the U.S., Regent Hotels & Resorts' return to the Americas, and exciting new InterContinental, Vignette Collection, Kimpton, and Hotel Indigo properties across sought-after destinations globally.

Cobblestone Hotels' proposal for a hotel in Waukesha, Wisconsin, at the site of a former Associated Bank brand is moving forward. The initial plan was to open in the second half of 2024. However, delays in securing financing put a hold on development. According to bizjournals.com, with financing now secured, construction is expected to begin this spring and the hotel is planned to open in summer 2026.

The Los Alamos, New Mexico Planning and Zoning Commission approved a site plan for a new extended-stay hotel and conference space. Plans call for a three-story, 60-room hotel with 1,000 square feet of conference space. According to hotelprojectleads.com, Dekker Designs, Ocean Rock Capital Partners, and Grand Mesa Partners, LLC are designing/developing the hotel.

The Line Hotel, located in D.C.'s Adams Morgan neighborhood, was sold at auction to the property's lender, Acore Capital, Bisnow reported. Acore submitted a $1 million credit bid, which therefore included the value of the $86 million loan it holds on the property. Acore tapped JLL to market the 220-key hotel ahead of the auction. Developers of the project included the Sydell Group, Foxhall Partners and Friedman Capital. Square Mile Capital, ultimately folded into Affinius Capital, was an investor.

JLL's Hotels & Hospitality Group announced the $123 million sale of the Courtyard Boston Downtown in Boston, Massachusetts. JLL represented the seller, Ashford Hospitality Trust.

Viva Miches by Wyndham, an all-inclusive resort in Miches, Dominican Republic, is now open. The resort comprises 538 rooms, an infinity pool with a swim-up bar, a kids' club, and five restaurants. Viva Miches marks the ninth property for Viva Resorts by Wyndham and the sixth in the Dominican Republic.

Rosewood Hotels & Resorts announced plans to establish its first property in the Dominican Republic, marking its expansion in the Caribbean. The new resort, Rosewood Punta Cana, will open in 2029 in collaboration with Grupo Puntacana. It will be located within the Puntacana Resort, a 15,000-acre master-planned community with luxury residences, resorts, retail, and recreational facilities.

Personnel Moves

IHG continues to strengthen its dedicated Luxury & Lifestyle team with leaders and experts across its six segment brands, most recently naming Raj Khubchandani as its new Vice President of Hotel Operations, Luxury & Lifestyle Brands for the Americas region.

Magna Hospitality Group has appointed Jeff Baltzer to the newly created position of Chief Development Officer. Baltzer returns to Magna after a nine-year stint from 2013 to 2022.

Kempinski Hotels announced two strategic appointments to its leadership team. Gordon Drake is Kempinski Hotels' newly appointed Chief Financial Officer and Rasha Lababidi is the company's Chief Product Officer.

Elena Black has been appointed as Senior Vice President of Marketing at Rocco Forte Hotels. Prior to joining Rocco Forte Hotels, Black spent more than 13 years at Six Senses.

The Kessler Collection appointed Phil Wade to the new role of Chief Investment Officer. In his new role, Wade will help guide strategic leadership decisions, deal sourcing, closing transactions, asset management, contract negotiation, forecasting, and investor relations.

Remington Hospitality appointed Randy Jones as the company's new Chief Accounting Officer. In this role, Jones will oversee the company's comprehensive accounting and financial reporting operations at both the corporate and property levels. Jones recently served as Vice President of Accounting & Corporate Controller at Dave & Buster's Inc.

On January 16, 2025, Hilton Grand Vacations Inc. informed Mr. Pablo Brizi, its Executive Vice President and Chief Human Resources Officer, that he would be separated from the Company effective April 1, 2025.

International Highlights

Hyatt Hotels Corporation announced that Hyatt's current pipeline across Europe, Africa and the Middle East is set to expand its brand presence in 13 new markets where there are no Hyatt hotels currently between 2025 and 2028. Hyatt's pipeline in EAME includes projects set to debut in new European and African markets like Estonia, Iceland, Romania, Cape Verde, and Mauritius. Hyatt's portfolio in Spain has expanded significantly over the last five years, growing from four hotels with just over 1,000 rooms in 2020 to 55 hotels spanning more than 14,500 rooms as of December 31, 2024. Hyatt's pipeline in Spain includes the Thompson Sevilla, which will bring one of Hyatt's most iconic lifestyle brands to Spain's fourth-largest city by 2026.

Blackstone is preparing to sell its 6.5 billion Spanish hotel company, Hotel Investment Partners. HIP has 71 establishments and 22,000 rooms. Most of these assets are in beach holiday destinations, and only 5% are urban. 45% of the portfolio is located in the Canary Islands, 38% on the Spanish mainland coast, Portugal and the Balearic Islands, and 17% in Greece and Italy.

IHG Hotels & Resorts revealed the future-ready Holiday Inn Express Generation 5 public space design set to attract and excite travelers and owners across Europe, the Middle East, Asia & Africa when it's launched later this year. Holiday Inn Express Next Generation 5 will make its debut in the Kingdom of Saudi Arabia when Holiday Inn Express Riyadh opens in 2026.

BWH Hotels has set ambitious plans to expand its portfolio by adding 850 new hotels, representing a 20% increase from its current total of 4,300 properties, within the next five years. Recent additions to the WorldHotels brand include the Grand Jiaxing Hunan in Changsha, China; The Pearl of Africa in Kampala, Uganda; and a forthcoming project in Kobuleti, Georgia, set to open in 2028 with 1,100 keys. Other notable additions are the City Hotel Gouda in the Netherlands, Elm Hurst Inn & Spa in Ontario, Canada, and the Saga Hotel Oslo in Norway.

Palladium Hotel Group reported a positive balance for 2024. Highlights for this year include the opening of The Unexpected Ibiza Hotel in April. Starting in January, Grand Palladium Select Costa Mujeres joined the exclusive selection of hotels under the Grand Palladium Hotels & Resorts brand. It will be followed by Grand Palladium Select Palace Ibiza in April and Grand Palladium Select Bavaro in Punta Cana at the end of 2025. The group is targeting Southeast Asia, specifically Singapore, Vietnam, Bali, and Thailand, as well as the Middle East, as key areas for the coming years. Additionally, the group is exploring opportunities in the United States, Mexico, major Latin American capitals, Europe and Mediterranean tourist hotspots, including Morocco, Greece, and Croatia, among others.

Palladium Hotel Group to open doors of The Unexpected Ibiza Hotel for the 2025 summer season. Following a series of renovations, The Unexpected Ibiza Hotel will replace The Ushuaia Tower in Playa d'en Bossa. The Unexpected Hotel, a new brand that evolved from the iconic Ushuaia Ibiza Beach Hotel, is set to debut with two planned openings: Ibiza and the United Arab Emirates. The Unexpected Al Marjan Island in Ras Al Khaimah in 2026.