Canada's Average Daily Rates Go Up in January

The DJIA rose 33 points, but Nasdaq dropped another 1.2% or 237 points, while the S&P 500 was down 30. The 10-year treasury yield fell again, today down -.03 to 4.39%. Lodging stocks were modestly lower on the day.

NexPoint Hospitality Trust said all their nominees were elected as trustees at their annual meeting. Resolutions were also passed at the AGM, approving the Agreement and Plan of Merger among NHT and NexPoint Diversified Real Estate Trust, pursuant to which NHT will be dissolved and its subsidiary entities merged with and into entities owned by NXDT. Shareholders of NHT will receive either US$0.36 per share in cash or one share of NHT, which will be converted into the right to receive a number of common shares of NXDT.

Toronto faced an ADR of $203.70, or $0.43 more than the $203.27 that Vancouver hotels charged on average during the month of January, according to CoStar. In contrast, Edmonton’s average hotel room rate in January was $136.94. Vancouver’s ADR in January increased more than 5.55% year-over-year, while Toronto’s rose more than 4.75% from January 2023. The ADR rate for hotels across the country was $175.38 in January, up about 4.3% year-over-year. Higher hotel room prices and inflation in general may have prompted some people to put off traveling. Hotel occupancy across the country declined 1.7%, according to CoStar. Toronto had the highest hotel occupancy rate in January, at 61.4%, followed by Vancouver at 61.1%. Edmonton had the lowest occupancy rate in the country in January at 44.3%.

In 2024, the Hyatt Centric brand saw unprecedented growth, with hotel openings in Cairo, Egypt; Shanghai, China; San Jose, Costa Rica; Santo Domingo, Dominican Republic and more. The brand plans to introduce over 35 new hotels worldwide by the end of 2028. This planned expansion will bolster the brand’s portfolio by 50% and reach over 100 Hyatt Centric hotels globally by 2029. The next three years are expected to see substantial regional growth in Asia Pacific, increasing the brand’s footprint in the region by over 75%, with several new hotels across the Americas, Europe, and the Middle East. As part of its strategic brand realignment and bringing more focused expertise and support to five distinct brands in its portfolio, the Hyatt Centric brand is part of Hyatt’s Classics Portfolio. Several planned openings will accelerate the brand’s strategic growth following its 2024 debut in new markets, including Hyatt Centric San Jose Escazu, the first Hyatt Centric hotel in Costa Rica; Hyatt Centric Malta, the first in Malta; Hyatt Centric Santa Domingo, the first in the Caribbean; and Hyatt Centric Zhongshan Park, Shanghai, the first in Shanghai.

The Indianapolis Airport Authority Board has approved plans for a brand-new hotel to connect directly to Indianapolis International Airport. With a budget of $205.85 million, the Marriott Westin brand hotel will feature 253 rooms, a full-service restaurant, a rooftop bar, a fitness center, and meeting space. A groundbreaking ceremony is set for this spring, with the hotel slated to open its doors by December 2027.

Peachtree Group announced the opening of the dual-branded, 51-suite TownePlace Suites and the 62-suite Fairfield Inn & Suites in Paris, Texas. Peachtree will operate the hotel on behalf of TEKMAK Development Company. The hotels provide shared amenities, including a full lobby bar, outdoor pool, fitness center, and 535 square feet of meeting space.

Hilton is adding three more hotels to its collection of hotels in Hawaii: two on Maui and one on the Big Island of Hawaii. On Maui, the low-rise, 183-room Maui Seaside Hotel is being converted to the Hilton brand as the Maui Seaside Hotel, Tapestry Collection by Hilton. It is expected to open as a Hilton in the summer of 2026 and will offer a lobby bar and an outdoor pool. Hampton Inn & Suites Maui North Shore is currently being built at the former location of the Maui Palms Hotel and is expected to open in April. The 136-room Kahului hotel will feature an oceanfront pool and a fitness center. On the Big Island of Hawaii, the former Uncle Billy’s Kona Bay Hotel, which has sat empty for years, is being renovated into the new Hampton Inn Kona Bay. It is expected to open this summer and will feature 123 rooms, a pool, a fitness center, and a pavilion for entertainment and cultural activities.

In the spring of 2025, the doors to Ottawa’s very own Hard Rock Casino & Hotel are opening. The new development is a $350 million investment and years in the making. The new Hard Rock Casino & Hotel Ottawa will include: 150 rooms; 1,500 slot machines; 40 live-action table games; over 10 restaurants, bars, and lounges; and a live theatre with a capacity for 3,000 guests.

IHG Hotels & Resorts opened a newly built Holiday Inn Express & Suites hotel in downtown Waco, Texas. Featuring 100 rooms and more than 300 square feet of meeting space, the Holiday Inn Express & Suites Waco Downtown is owned by MLK Hotel Partners, LP, and managed by KB Hotels.

Casetta has transformed the old Indian Hills Motel in Taos, New Mexico, into a chic boutique hotel named for Willa Cather. Inside the newly renovated façade of Hotel Willa are 51 guestrooms, a bar and restaurant; a huge gallery and art space including a gift shop; and a central courtyard with a poolhouse, pool, steam room and sauna. Hotel Willa expects to open in early April. 

INNSiDE by Melia announced a new hotel in Costa del Este, Argentina. Currently under construction, the INNSiDE La Reserva Costa del Este will have 88 rooms and 60 residences by the sea, as well as an extensive range of services, including several gastronomic spaces, a pool, spa, co-working area, meeting rooms, and its own parking. In addition, this future hotel becomes Melia’s third project with Grupo Almarena in Argentina, following the recent signing of two hotels in Buenos Aires.

Personnel Moves

Kempinski Hotels announced a new executive leadership team tasked with developing and repositioning Europe’s oldest luxury hotel group. Two key senior leadership positions have been appointed, with Gordon Drake to begin as Chief Financial Officer and Rasha Lababidi starting as Chief Product Officer. In his new role as CFO, Gordon will oversee the company’s financial operations, analysis, and risk assessment. Gordon will also play a vital role in the company’s strategic initiatives moving forward and ensure the effective utilization of financial resources to enhance profitability and drive growth. Gordon joins Kempinski and has over 30 years of global experience in corporate capital markets, asset management, risk management, and the development and implementation of operational and financial strategy. In the newly created role of Chief Product Officer, Rasha will lead product innovation, design, and guest experience across the brand’s luxury global portfolio. Rasha previously held the position of Senior Director of Marketing at Emaar and Head of Marketing at Al Maabar International Investments.

Europe Highlights

The Peppermill Hotel in Devizes, UK, has relisted at a lower price amid its ongoing sale. Originally listed for £1.8 million, the property is now available for £1.75 million as the owners, Philip and Amanda O’Shea, prepare for retirement.

Limestone Capital announced the acquisition of the Nobu Hotel London Shoreditch, located in the heart of East London. The property offers 164 guestrooms, a restaurant, fitness and wellness facilities, and over 3,000 square feet of event space. Terms of the deal were not disclosed.

Firmdale Hotels has sold a 20% stake in the business for a rumored £300 million to Swedish pharmaceuticals tycoon Lennart Perlhagen. The majority of Perlhagen’s stake reportedly came from new shares issued by Firmdale, which is still controlled by the Kemp family trust. The Kemps have not yet confirmed the sale.