Deutsche Bank Reveals Possible Concerns for Hotels

The concerns over the impact Trump 2.0 actions will have on the hotel industry accelerated in the past few days, prompting numerous media and analyst reports. Deutsche Bank analyzed the most recent RevPAR data points from STR. Their observations are that the rate of growth in weekday RevPAR has outpaced that of weekend (business versus leisure), while group and business transient RevPAR is predominantly driven by Urban Luxury and Upper Upscale ADR performance. Weekend RevPAR, a proxy for leisure, is being hampered by select service occupancy, which DB says has historically been one of several potential leading indicators of a RevPAR downturn. DB said they are not making the call for a full-bore RevPAR downturn, but they do see elements of the current environment that have tended to foreshadow prior industry downturns.

Baird said the decline in consumer and travel stocks last week followed the 1Q25 guidance reductions by airlines. After meeting with investors, Baird said they believe investors skipped the “slowdown” phase and went directly to “recession” scenarios. Most questions have been asked about Hilton, Host, Marriott, and Wyndham, with Hyatt also being topical.

Vacasa, Inc. announced its Board of Directors approved the acceptance by the company of a proposal from Casago to increase the price of its pending acquisition of VCSA to $5.30 per share in cash. Casago also agreed to remove both purchase price adjustment provisions, which could have resulted in a reduction of the merger consideration due to shortfalls in the company’s liquidity or units under management compared to specific thresholds, as part of the Amended Agreement. VCSA’s Special Committee gave consideration to an offer of $5.75 per share from Davidson Kempner Capital Management LP but determined it was not a “Superior Proposal” nor that it would become one. The DKCM proposal was conditioned upon requiring an amendment to the company’s Tax Receivable Agreement, but VCSA said the Special Committee was also unable to come to an agreement with them on other transaction terms.

The Woodlark Hotel, in Portland, Oregon, has officially become part of the Marriott Tribute Portfolio. The hotel is managed by Azul Hospitality Group.

AC Hotel Pasadena is set to open in Pasadena, California, at the end of April. The hotel will boast 194 guestrooms and suites, The AC Lounge, the AC Kitchen, the AC Café in partnership with Jones Coffee, and over 9,500 square feet of flexible meeting and event space. The hotel will also feature two distinct bar experiences, a main-level bar and the highly anticipated rooftop restaurant and terrace, slated to open in Q2 2025.

According to real estate data company, Vizzda, the five-story, 110-room Holiday Inn Express & Suites, in Pembroke Pines, Florida, was sold to Pines Hospitality Inc. for $16 million. The seller was JDR Hotels Inc., an affiliate of Jasmin Hospitality Management. The transaction was financed by $13.06 million in loans from Celtic Bank Corp.

IHG Hotels & Resorts, in collaboration with Two Notch Hospitality, LLC and management company Premier Resorts & Management INC, celebrated the opening of a newly converted Holiday Inn & Suites hotel in Columbia, SC. The Holiday Inn & Suites Columbia NE – Ft. Jackson Area offers 106 rooms and 1,300 square feet of meeting and events space. Other amenities include an outdoor pool, fitness center, and Jackson’s onsite restaurant.

The Hotel at the Arundel Preserve, located in Hanover, Maryland, has recently completed renovations of all guestrooms on the property. The redesign enhances the hotel’s 2023 renovations of the lobby and meeting and event spaces. The Hotel at Arundel Preserve is owned and operated by Southern Management Companies.

The Elser Hotel & Residences in downtown Miami, Florida, has introduced new meeting and event spaces. The property now offers 10,000 square feet of versatile space spanning six interconnected rooms. Additional event spaces are also available in partnership with the First United Methodist Church of Miami, which is located on the property. In addition to new event spaces, The Elser is home to the newly added ViceVersa, an Italian aperitivo bar. The property offers 646 residential-style accommodations, a rooftop pool deck, a resort-style pool, a hot tub, and a two-level gym complex.

The local group under contract to buy Akron’s Quaker Square complex plans to turn the site back into a hotel and retail Quaker Station as a banquet facility. Additional plans include office space, restaurants, and retail. The University of Akron has agreed to sell the property for $800,000 to Ohio River Investments II, LLC. The group plans to start renovations soon after receiving approval from the Ohio Controlling Board.

After an expansion last year, Camp Margaritaville in Crystal Beach, Texas, is getting ready for a $10 million third phase. NewCoast Properties originally opened the RV resort as the Bolivar Beach Club in May 2022 before it entered into a franchise agreement for the property and reopened as Camp Margaritaville in November 2022. Last year, the resort added 15 acres with 92 RV sites with full hook-ups, fire pits and picnic tables, bringing the number of sites to 266, as well as 30 sites with RVs for rent. The next phase will include 24 two-bedroom, two-bathroom bungalows close to the beach. Earlier this month, Camp Margaritaville opened the new Dreamsicle Sugar Shop. The company broke ground on its new 14,000-square-foot event pavilion in January and expects to open it on April 1. Existing resort amenities include two lakes, a pool with cabanas, a stage, playing turf, the License to Chill Bar, and the Fins Bar & Grill.

The Giacomo Hotel in Niagara Falls, New York, is planning a $500,000 renovation. According to Buffalo Business First, owner/operator Ellicott Development signed a 20-year contract extension as a member of the Ascend Collection. The boutique hotel operates with 24 upscale apartments, 45 hotel rooms, and a two-story Airbnb suite on the 17th and 18th floors. Besides updating furnishings, flooring, mattresses, and bathrooms, the renovation plan calls for several improvements to public spaces. Those include a new breakfast area and changes to the first floor Giacomo Lounge + Bar. Work is expected to begin soon, with a completion goal of June 1.

Cronheim Hotel Capital has secured $47M for the acquisition of the SpringHill Suites and Marriott Atlanta Northwest at Galleries. The financing features full-term interest only for five years on a non-recourse basis.

Access Point Financial has provided a total financing commitment on a fully funded loan amount of $126.0 million to American Hotel Income Properties REIT LP. The monies will be used to refinance, renovate, and upgrade a portfolio of 12 premium-branded, select-service hotels totaling 1,233 rooms across the U.S.

Archipelago introduced Aston Rubi City Suites, the latest addition to its growing portfolio, located in the Naco neighborhood of Santo Domingo, Dominican Republic. The hotel features 179 apartment-style rooms.

Archipelago introduced Aston Rubi City Suites, the latest addition to its growing portfolio, located in the Naco neighborhood of Santo Domingo, Dominican Republic. The hotel features 179 apartment-style rooms.

Personnel Moves

Vision Hospitality Group announced the company has named Mary Beth Cutshall as Chief Growth Officer. In her new role, she will be responsible for helping expand the company’s portfolio of owned and operated hotels throughout the U.S. Most recently, Cutshall was managing partner and founder of Amara Capital Group.

First Hospitality announced the promotion of Jenna Fishel to Chief Commercial Officer. Jenna has been with First Hospitality since 2004. Most recently she has served as the Senior Vice President of Commercial Strategy since 2021.

Cindy Pritzker, the widow of Hyatt Hotels founder, Jay Pritzker, passed away. She was 101 years old.

B&B Hotels has appointed Jan Grossmann as Chief Operating Officer for Central and Northern Europe. In his new role, Grossmann will oversee operational processes, focusing on hotel openings, regional optimization and talent development through the future launch of B&B Hotels Academy. Prior to this role, he was HR Director for Central and Northern Europe at B&B Hotels.

Europe Highlights

Plans for a new hotel at Cornwall Airport Newquay in the UK was agreed open with the Cornwall Council approved the deal to build a Courtyard by Marriotthotel. A planning application is expected to be made during the course of 2025 which will complement the current hotel and accommodation provided in the Newquay area.

Bob W has signed a long-term lease agreement with Blend Development to transform 4,500 square meters of an Athens office building into 130 serviced apartments. Located in the heart of Athens, Greece, the former office will undergo a full conversion. Bob W Stadiou will be its third property in Athens.