Ashford Hospitality Trust Slashes Board Compensation

The DJIA jumped 601 points on Friday while Nasdaq finally had a real decent rebound, up 303 while the S&P 500 was up 93 points. The 10-year treasury yield was down -.05 to 42.3%. Lodging stocks were mixed. BHR was the big winner, up 10% while AHT was down -6% and SOND fell another -5%.

DiamondRock Hospitality reported a strong 4Q earnings beat while giving a 2025 guide that was better than expected. RevPAR growth in 4Q was a solid 5.4%. No shares were repurchased in 4Q but they did increase the quarterly dividend to $0.08 per share.

Braemar Hotels reported positive RevPAR growth of 1.9% for 4Q, the first since the first quarter of 2023. BHR said January RevPAR was sensational, up 13%. They are seeing group RevPAR pacing at a +8% pace. BHR said they expect to exercise their franchise conversion option at the Sofitel Chicago with Remington Hotels taking over the management agreement in May of this year.

Barclays upped their target price on Hilton Grand Vacations to $45 from $41 while slashing their target price on Marriott Vacations to $97 from $116. They maintained HGV at Equal Weight and VAC at Overweight. Mizuho upped their HGV target price to $60 from $55 while cutting VAC’s price target to $112 from $120. Mizuho maintained Outperform ratings on both. Jefferies cut their target price on VAC to $85 from $94 while maintaining their Hold rating. Jefferies also maintained their Underweight rating on Choice Hotels International. They upped their target price to $139 from $135.

Ashford Hospitality Trust announced their Board of Directors approved significant reductions to board and management compensation as part of their “GRO AHT” initiative. Compensation for board members was reduced by 50%. The number of members has been reduced to seven from nine. Incentive awards granted to executive management and other associates were reduced by more than 50% in aggregate relative to recent years. AHT expects these changes to result in more than $11 million in incremental EBITDA. They expect to realize more than $14 million in incremental EBITDA towards its $50 million goal.

Hotel Lela Wilmington, a Tapestry Collection by Hilton hotel has opened in Wilmington, North Carolina. The hotel features 97 guestrooms, a fitness center, full-service restaurant, outdoor heated saline pool surrounded by cabanas and firepits, 2,200 square feet of flexible meeting space and two private golf swing suites. The all-new contemporary hotel is connected to Tru by Hilton Wilmington, forming a dual-brand offering.

Cape May Hospitality is planning to build a $17 million, 100-room Hampton Inn Hotel in Cape May Court House, New Jersey. According to hotelprojectleads.com, the project is awaiting final approval.

HEI Hotels & Resorts has added Tapatio Springs Hill Country Resort, in Boerne, Texas to its growing portfolio of more than 100 properties. Owned by L&R Hotels, the resort features 111 rooms, approximately 13,200 square feet of meeting space, two F&B outlets, an outdoor pool and an 18-hole championship golf course. In addition to expanding its long-standing relationship with HEI Hotels & Resorts, L&R has partnered with Troon to oversee Tapatio Springs Resort’s golf operations and membership programs.

Kanai, Riviera Maya, is Mexico’s newest luxury retreat. Kanai is an exclusive sanctuary of refined elegance, comprising three, soon to be four, world-class resorts: Etereo, Auberge Resorts Collection; The Riviera Maya EDITION at Kanai; The St. Regis Kanai Regis Kanai Resort, Riviera Maya; and the upcoming Mandarin Oriental Kanai (2027), spanning 680 acres of the Mayan Yucatan Peninsula. Each property is a masterpiece of its own right, offering a distinct and exclusive experience, from intimate hideaways to expansive, resort-style escapes. At the heart of Kanai lies a community of hotels & luxury residences, where guests are invited to immerse themselves in an array of exceptional offerings and services.

G6 Hospitality announced the signing of a new Motel 6 property located just steps away from the iconic Las Vegas Strip. The 295-room hotel, anticipated to open in May 2024, is one of the largest properties in the company’s history. Owned by S.R.E. Enterprises LLC, the exterior-corridor property will undergo renovations and interior remodeling to provide guests modern and comfortable guestrooms. The hotel also boasts free parking, an outdoor pool, and private access to the OYO Hotel and Casino in Las Vegas.

In Vancouver’s Chinatown, construction on a new 10-story building that will contain the Keefer House hotel is now approaching the final stages. Kalido Hospitality expects to have its grand opening in Summer 2025, with reservations opening in the coming months.

Laurel Real Estate Co., a member of Hotel Brokers International, announced the sale of the Days Inn Columbus East Airport located in Reynoldsburg, Ohio. Laurel Real Estate Co. represented the seller and was the sole brokerage involved in the transaction. The Days Inn Columbus East Airport features 152 units, an outdoor pool, meeting space, and full bar & restaurant.

RIU Hotels reopened Riu Palace Macao in Punta Cana, Dominican Republic, following a full renovation. The common areas are now decorated with the sophistication of the RIU Palace line include the lobby and reception desk; expansion of the bar and lounge, to which a second outdoor stage has been added for smaller performances and a DJ booth, as well as a new RIU Fit area. The All-Inclusive Adults-Only hotel offers 476 fully renovated guestrooms, including the implementation of swim-up rooms with a private pool exclusively for Elite Club by RIU service guests; and a wide variety of restaurants. Riu Palace Macao is within the RIU Complex and shares the Splash Water Park, RIU Parties, Casino, which has also been renovated, Caribbean Street with its shops and Pacha nightclub with the four hotels in the complex. All guests of RIU hotels in Punta Cana will be now be able to use the hotel chain’s largest wellness centre to date. Taking advantage of the renovation of Riu Palace Macao, RIU has built a new space dedicated to its guests’ wellness, beauty and fitness.

Europe Highlights

Kimpton, part of IHG Hotels & Resorts, announced the opening of Kimpton Los Monteros Marbella, reviving one of Spain’s most distinguished hotels, the Hotel Los Monteros - Spa & Golf Resort Marbella. The resort features 195 guestrooms including 60 suites; 5,000 square meters of outdoor space and 700 square meters of versatile spaces including a grand ballroom, a scenic rooftop, and the exclusive beach club; multiple restaurants and bars; spa by Maison CODAGE including an extensive hydrotherapy circuit, daily yoga and fitness sessions, and access to Marbella’s top golf courses; and The Racket Club offering tennis and paddle courts.

Starwood Capital Group and Boscalt Hospitality secured a €111.2 million loan to renovate the former Hotel Majestic Rome into the Baccarat Hotel Rome, according to a news release from Invel Real Estate, which provided the financing. SH Hotels & Resorts will manage the Baccarat Hotel Rome, which will have 87 rooms and open in late 2026, with construction already underway. Boscalt Hospitality bought the property in June 2022 for an undisclosed price. The Baccarat Hotel Rome will be the second property to open affiliated with the Baccarat Hotels & Resorts brand. The 114-room Baccarat Hotel New York opened in March 2015 with additional hotels scheduled to open over the next few years in Florence, Italy; Diriyah, Riyadh; The Maldives; and Dubai.

Millennium Hotels and Resorts added Manchester’s The Lowy Hotel to its Leng’s Collection of independent properties. The 165-property is currently owned by CDL Hospitality Trusts. Facilities include a bar and restaurant, extensive spa and wellness amenities, a fitness center and large meeting rooms and events space. The Lowry will become one of around a dozen properties in the Leng’s collection, including The Biltmore Mayfair, The Bailey’s Hotel London Kensington and Hard Days Night Hotel Liverpool in the UK.