Barclays' Examination of Global Hotel Development

Barclays issued a report on the current state of global hotel development. They see the industry focus continuing to converge on the middle-tier chain scales with higher-end players migrating down to increase exposure to a globally expanding middle class while lower-tier players move upstream toward higher FeePAR rooms, driving more competition for middle chain scale deals, particularly conversions, and in turn driving higher use of key money. Barclays said Hilton remains best in class while they feel Choice Hotels’ growth continues to be most challenged, losing a significant share of the U.S. midscale market over the past two years. Barclays believes both Marriott and Hyatt have been weighed down by their higher-end brand mixes, where a tight financing environment has had the most impact. For HLT and MAR, conversions in 2024 comprised 45%-50% of NUG, up from 20%-25% in 2019. CHH and Wyndham were at 70%-80% in 2024 for conversions versus two-thirds in 2019. Barclays expects key money development from brand companies to remain elevated in 2025 as it continues to be the tool of preference in the competitive landscape.

STR reported U.S. lodging data for the week ended 3/22. U.S. hotel RevPAR was up 2.8% year over year for the week, with ADR up 1.8% and occupancy up 1%. Group RevPAR was down -2.7%.

Bradford Allen announced its investment arm has acquired the SpringHill Suites Indianapolis Fishers, in Indianapolis, Indiana. The 130-room hotel features an indoor pool, meeting room, convenience store, fitness center, laundry room and complimentary onsite parking.

A pair of neighboring hotels in Gahanna, Ohio, have been acquired for nearly $10 million. SpringHill Suites and TownePlace Suites were sold by Helix Gahanna Holdings LLC and Helix Gahanna Lodging LLC. The three-story, 80-unit SpringHill Suites was purchased by Ghotra & Gadria Hospitality for just over $5 million. The three-story, 94-unit TownePlace Suites was acquired for $4.8 million by Ghotra & Gadria Lodging LLC.

The Angad Arts Hotel, in St. Louis, Missouri, has picked up an affiliation with Hilton. The hotel will now go by Angad Arts Hotel St. Louis, Tapestry Collection by Hilton. The 146-room hotel will get upgrades to its 12th-floor check-in desks and fitness center, with the addition of a sundry area, as well as guestroom technology modernization and bathroom wellness additions.

The Hilton Scottsdale Resort & Villas in Scottsdale, Arizona, has completed the first phase of its $24 million resort-wide renovation. The upgrades include redesigning the property’s 25 two-bedroom premium villas. Updated amenities around the villas include a newly renovated pool area, a fire pit, a grab-n-go-market, and a bar. Another phase of renovations is still ongoing at the villas, which is expected to be completed by this fall. The second phase will include the addition of 20 two-bedroom villas, bringing the total number of 2-bedroom villas on the property to 45. The resort has also recently updated its other guest rooms, the Oasis Bar & Grille, outdoor spaces, and the fitness center.

The 119-room Hampton Inn in State College, Pennsylvania, is now managed by Hospitality Asset Management Company, making it the group’s fifth hotel property in the Centre County area. The group manages its State College-area properties under the name Lion Country Lodging. Hospitality Asset Management Company plans to renovate the newly acquired property over the next several months. Upgrades are expected to include improvements to exterior lighting and landscaping and renovations to guest bathrooms, the fitness center, the lobby, breakfast areas, and the front desk. The hotel offers a fitness center and an outdoor pool.

The Crowne Plaza Houston Galleria Area hotel recently began a multi-phase, property-wide renovation under the direction of IHG Hotels & Resorts and owner Joshua Joseph Hotels. Completed earlier this year, the first phase of the project involved an exterior refresh. The following phases, projected to conclude this year, will include a modernization of the central lobby, corridors, and more than 12,000 square feet of flexible meeting space, along with new furniture, fixtures, equipment, and windows among its 207 guestrooms.

The Omni Parker House, located in Boston, Massachusetts, is undergoing a complete renovation. The extensive work, set to be completed by summer 2025, enhances every aspect of the guest experience, with updates spanning all 551 guestrooms, including 57 suites; 23,000 square feet of meeting and function space, including the renowned Rooftop Ballroom; and the hotel’s vibrant lobby.

Canada’s first-ever Hard Rock Hotel is set to open in London, Ontario this June. The luxury hotel will be an integral part of The Factory, which is the country’s largest entertainment complex, situated on the site of the former Kellogg’s cereal factory in London’s Old East Village. Currently in its final construction stages, the hotel features 164 guestrooms, a speakeasy, a year-round indoor/outdoor pool, a fitness center, a lounge, restaurants, and event spaces.

Choice Hotels International, Inc. has opened its 70th Clarion Pointe hotel in Milwaukee, Wisconsin as the company continues to invest and innovate in its booming midscale portfolio. The brand has 43 additional hotels in the pipeline and 27 expected to open this year in cities such as Galveston, Texas and Gettysburg, Pennsylvania.

LivAway Suites commenced construction on a new location in Surprise, Arizona, marking the third groundbreaking for the brand in the state within three months. The first three under-construction locations, in Tolleson, Glendale, and now Surprise, mark the beginning of LivAway Suites’ growth plans for the valley. LivAway Suites, in conjunction with the recent opening of West77 Partners offices in Scottsdale, has firmly established the greater Phoenix market as a hub for the brand.

Universal Orlando Resort celebrated the grand opening of its newest hotel, Universal Terra Luna Resort. The hotel, co-owned and operated by Loews Hotels & Co, adds 750 guestrooms to Universal Orlando’s growing hotel portfolio. The new resort features a variety of dining options, a resort-style pool with a hot tub and fire pit, a fitness center, a game room, and a Universal Orlando Resort Store.

ARC Tampa Development LLC announced Hotel ORA & Private Residences, their $675 million premier condominium-hotel project, sold out Phase One in the first 40 days since launching in Tampa Bay. The project offers 31 private residences and 627 condo hotel units, a private rooftop infinity-edged pool with live music, hot tubs, private gazebos, a poolside rest bar, a signature steakhouse, an upscale lobby bar and patisserie, spa, and fitness center with his/her change rooms/saunas/plunge tubs. The Hotel ORA & Private Residences is being developed by ARC Realty Group, Sunwest Construction, and Prosper Group.

Therme Group plans to invest $800 million to build its first U.S. resort near downtown Dallas, Texas. The firm has an agreement to purchase 24 acres from Matthews Southwest. Therme will seek planning and zoning approval from the city later this year. The wellness facility will anchor the 24-acre development. The Georgetown Co., which owns a 25% equity stake in Therme U.S., plans to build a hotel on the site as well. Therme Dallas would offer thermal baths, 20 different kinds of saunas, wet rooms, mineral pools, water slides, and multiple restaurants. The development includes a 450,000-square-foot indoor climate-controlled facility and roughly five acres of outdoor pools and other attractions. If approved, the facility could open as soon as 2030. Therme operates two wellness resorts in Romania and Germany, with plans for additional facilities in Europe, Dubai, Canada, and the U.S. 

One&Only announced the upcoming opening of its first resort and private homes in the United States, One&Only Moonlight Basin in Big Sky, Montana. The resort will begin welcoming guests on November 18, 2025, and is currently accepting reservations. One&Only Moonlight Basin’s newly unveiled ski lodge, One&Only Sky Lodge, is home to a restaurant and bar concept, a retail space, and an alpine equipment center. The resort also features a state-of-the-art gondola system, the One&Only Gondola, providing direct mountain access to the Madison base area of Big Sky Resort. One&Only Moonlight Basin comprises guestrooms, suites, cabins, and an exclusive community of One&Only Private Homes, six bars and restaurants, a fitness center, and a restorative spa. 

A new luxury hotel is launching this summer on the East End Montauk, New York. Rising where the former Sands Motel once stood, Offshore Montauk becomes the latest to replace a budget-friendly Montauk motel, according to Side Dish. Enduring Hospitality Group purchased the property last year for $23.5 million. The 43 rooms have all be gut renovated and Offshore also offers a spa, pool and a gym. A restaurant and bar with a rooftop space will launch next summer.

Personnel News

Lily Hotels announced the return of Mr. Michael Wieser as the company Chief Executive Officer. Mr. Wieser will be overseeing the development and growth of the two resorts under the Lily portfolio, Lily Beach Resort & Spa and Hideaway Beach Resort & Spa. Under his leadership the resorts are poised to reinforce their position as premier properties in the Maldives. 

Europe Highlights

Christie & Co is facilitating the sale of The Resolution Hotel in North Yorkshire, UK. Listed for £3.2m, the hotel has recently undergone extensive refurbishments to feature modernized suites, bedrooms, and dining facilities. The Resolution Hotel features 38 bedrooms, with ten individually designed suites across its five floors.

IHG Hotels & Resorts announced plans to introduce its Garner Hotels to Scotland with the upcoming launch of Garner Hotel Haymarket Edinburgh. Backed by Palm Holdings, the 195-room property is slated to open in the latter half of 2025