U.S. Hotel Owners Optimistic About Group Sales

CoStar said U.S. hoteliers are predicting a substantial rise in group sales by 2025, driven by demand growth from the tech, healthcare, and construction sectors. CoStar said resorts and upscale properties had witnessed larger bookings due to demand from the tech, medical, and healthcare industries. Construction and infrastructure activities have increased group business at midscale and economy hotels. We don’t know if there has been any change since nearly every C-Corp projected an increase in 2025 group bookings during their 4Q24 earnings report/conference calls. CoStar said despite concerns about potential reductions in federal spending by the Trump Administration, hotel companies remain optimistic about continued growth in group demand throughout the year. Group sales at resorts appear to be experiencing the fastest growth.

Citigroup cut their price target on Host Hotels to $19 from $21. They maintained their Buy rating on the stock.

Financing seems to be in place for Hyatt to complete the purchase of Playa Hotels & Resorts. Hyatt issued $1 billion of senior notes. Baird reported on new disclosures from Hyatt as they get closer to the completion. $149 million of their Class A shares have been repurchased since mid-February. Negotiations for the sale of PLYA real estate no longer appears exclusive with one potential buyer. Termination fees will be $29 million to re-flag the third party branded hotels. They will be converted to H brands or sold.

MHG Hotels announced the opening of the Residence Inn by Marriott Noblesville, located in Noblesville, Indiana. The newly constructed, all-suite hotel offers a mark, fitness center and an indoor pool.

Partners Capital purchased the Courtyard by Marriott Atlanta Buckhead for $24.25 million from RLJ Lodging Trust, according to property records. The 181-room hotel has 1,500 square feet of meeting space.

The Washington Dulles Marriott Suites has completed its comprehensive renovation. The renovation included all 254 guest suites, meeting spaces and restaurant. Managed by Pinnacle Hotel Management and located adjacent to Worldgate Centre, the 11-story hotel offers a restaurant and bar, lobby lounge, fitness center as well as five newly appointed meeting rooms with 2,600 square feet of functional venue space with modern amenities.

Crystal Lagoons announced its first-ever project inside a Central U.S. resort destination: a two-acre lagoon at Hyatt Regency Hill Country Resort and Spa in San Antonio, Texas. The groundbreaking for the lagoon took place in June 2024, with a projected completion and open date of Q4 2025. Part of a significant redevelopment plan, the lagoon is a collaboration between Crystal Lagoons and Woodbine Development Corporation. Since opening the resort, Woodbine has invested in a series of enhancements, including guestroom renovations, meeting space upgrades, and new dining options. The project also includes five stand-alone villas with private patios and fire pits and a 5,600-square-foot meeting venue. The lagoon complements existing amenities such as traditional pools, a water slide, a lazy river, a FlowRider surf experience, a spa, a fitness center, and a 27-hole golf course.

Crystal Creek Capital announced the acquisition of Planters Inn, a landmark boutique hotel located in the heart of Charleston, South Carolina’s Historic District. CCC will also take over the day-to-day management of the 64-room hotel. The property features 5,500 square feet of indoor/outdoor meeting and event space, including a private courtyard and an onsite restaurant.

stayAPT Suites announced a franchise agreement with Capstone Stay, LLC, to develop five new hotel locations. Under the agreement, Capstone Stay, LLC will open the hotels in key Midwest markets including Rossford, Ohio; Evansville, Indiana; Gardner, Kansas; Wentzville, Missouri, and Liberty, Missouri. stayAPT Suites continues to grow rapidly, with 40 hotels expected to open by April 2025.

Sai Krupa Management Co. LLC purchased the 72-room Extended Stay America Select Suites – Birmingham-Inverness, located in Birmingham, Alabama. According to public records, the buyer took out a $4.5 million mortgage on the property from GBank.

Corinthia Group, in partnership with Action Real Estate Company, has acquired two boutique hotel properties totaling 100 keys in Beverly Hills, California. The hotels will be operated in the immediate term by Palisociety under current branding arrangements, under the supervision of Corinthia’s development arm, Corinthia Real Estate Ventures. C-REV will also handle asset management and explore opportunities for future value creation.

Palm Springs Preferred Small Hotels, an association of independently owned boutique hotels in California, has announced the launch of several new boutique hotels and revamped properties. These properties include The Stardust Hotel, The Cactai, Terra Palm Springs, El Noa, and Casa Oliver.

Cobblestone Hotels announced their continued growth in Alabama with the signing of the coming soon Cobblestone Hotel & Suites Main Street in Bay Minette, Alabama with Bay Minette Hotel Group, LLC. This will be the third Cobblestone location in the state. The new location will host 54 guestrooms across four floors, an onsite convenience store, a meeting room, onsite pool, and a business center.

RREAF Holdings announced the formation of MxR Hospitality, a strategic partnership with hospitality investor Philip McNeill, Sr. The collaboration aims to develop extended-stay hotels nationwide and create a hospitality management company dedicated exclusively to the extended-stay market. With the extended-stay sector experiencing exponential growth over the past three years, MxR Hospitality aims to leverage decades of combined hospitality and ownership expertise to enhance both existing economy extended-stay assets and those currently under development.

HVS Brokerage & Advisory completed the sale of the 65-key Days Inn by Wyndham Natchitoches, located in Natchitoches, Louisiana. The transaction saw the property change hands from N.M.I., Inc. to Mahabali Hospitality LLC.

Personnel Moves

Highgate announced the appointment of Ben Thomas as Chief Operating Officer for Europe. In this role, Thomas will oversee Highgate’s operations across Europe, drive strategic growth initiatives, and optimize performance across its expanding portfolio. Prior to joining Highgate, Thomas served as Chief Operating and Commercial Officer at Penta Hotels.

Crescent Hotels & Resorts named Elie Khoury as their new Chief Operating Officer. Elie has a long career in the hospitality industry, including being Executive Vice President of Operations at Aimbridge Hospitality. Crescent said Elie brings valuable asset management expertise from his roles at Preston Hollow Community Capital and Murphy Asset Management as well.

Europe Highlights

Oxford United Football Club, in the UK, has appointed Cycas Hospitality to operate a new hotel within its proposed new stadium near Kidlington. The 180-room hotel will be part of a wider development that includes the stadium, as well as a conference and exhibition center. The hotel is said to be Cycas Hospitality’s first UK-based Radisson-branded hotel under management.

Six Senses has signed a hotel management agreement with VIC Properties and the new Pinheirinho coastal estate located in Comporta, Portugal. For decades, the 400-hectare Pinheirinho estate was privately owned and accessible by invitation only, with much of its remaining a protected nature reserve. Six Senses was chosen to introduce a 70-key hotel and 58 branded residences with various dining venues and the Six Senses Spa Comporta with an indoor/outdoor pool, steam and sauna, a range of hydrotherapy facilities, and The Alchemy Bar. Six Senses Comporta is slated to open in 2028.

Radisson Hotel Group announced the signing of four new conversion properties and 519 guestrooms in the city of Bergen, Norway, as part of their partnership with Magic Norway AS. Two of the properties will be Radisson Individuals hotels, and the others will be under the Group’s Prize by Radisson brand. All four properties have strategic locations and are set to open in the coming months. The properties include the 157-key Magic Kloverhuset Harbour Hotel, a member of Radisson Individuals; Magic Hotel Bergen City Center, a member of Radisson Individualswith 90 guestrooms; Prize by Radisson Solheimsviken Bergen with 217 keys; and the 55-room Prize by Radisson Xhibition Bergen City.

art’otel announced the opening of art’otel Rome Piazza Sallustio, the brand’s first venture into Italy.