Baird Projects Tariffs to Negatively Impact New Construction

The DJIA was down 349 points, the Nasdaq was up 15, the S&P 500 was down 12 points and the 10-year treasury yield was up .17 to 4.16%. If you take out the big move in the 10 year, it almost looked like a normal day but there was a whole lot of volatility in there. Lodging stocks were lower but the list of big movers was much shorter, which is a good thing. We won’t even bother with the new 52-week lows list until the world gets back to normal, or something close to normal. SVC was down another -7% while BHR, PEB and SOND fell -6% on the day.

Truist took a crack at what all this uncertainty means for the U.S. hotel sector, saying every lodging cycle is distinct but said assuming this is another demand slowdown for the hotel/travel industry, what they are calling the “Trump Slump” could create a stagflation environment which could have a distinct impact on the hotel sector.

Baird said they expect tariffs and higher development costs will negatively impact new construction signings and starts domestically for the hotel brands. They expect projects already under development to finish but could have delayed openings. They believe pipelines for Hyatt and Wyndham are the least at risk. They don’t see direct tariff-related P&L impacts for the Global Hotel Brands or OTAs but demand and cross-border uncertainties are a bigger driver of near-term earnings outlooks and investor sentiment rather than any direct or indirect tariff-related cost impacts.

A Home2 Suites by Hilton has opened in Conway, South Carolina. The five-story, 100-room hotel features a heated pool, combined laundry and gym, meeting spaces, outdoor grilling area, and self-serve beer on tap. The property was developed by Shiv Properties, LLC and is managed by Crossroads Hospitality.

The Mandarin Oriental, Miami, on Brickell Key is set to permanently close on May 31, paving the way for Swire Properties’ massive redevelopment that will transform the site into a $1 billion two-tower residential project. Swire plans to replace the existing hotel with The Residences at Mandarin Oriental, Miami, a luxury condominium-hotel complex with an 800-foot tower dedicated to residents and a neighboring tower for short-term travelers. The project will feature more than 220 condo units and over 100,000 square feet of amenities. It is expected to reopen in 2030. Shared amenities include a spa, fitness studio, wellness lawn, kids’ playroom, multiple pools, dining venues, and meeting spaces. Residents have access to an indoor golf simulator, tea garden, hammock forest, screening room, wellness facilities, fine dining, and a dog grooming spa.

Hyatt Hotels Corporation announced the opening of TOOR Hotel, the second JdV by Hyatt hotel in Toronto, and the third in Canada. As reported on April 6, the TOOR Hotel offers 232 guestrooms and suites, a variety of event spaces, and onsite dining.

IHG Hotels & Resorts announced the opening of a new-build Holiday Inn Express & Suites hotel in Meridian, Mississippi. The hotel features 104 guestrooms, 375 square feet of meeting space and an outdoor pool. Holiday Inn Express & Suites Meridian I-20 is owned by Astro Alliance LLC and managed by Lala Enterprises.

Great Wolf Lodge Mashantucket will open earlier than expected and will begin welcoming guests during a soft opening beginning April 25. Located in Mashantucket, Connecticut adjacent to Foxwoods Resort Casino, the 549-room Great Wolf Lodge represents a $300 million investment by Blackstone and Centerbridge Partners and is developed in partnership with the Mashantucket Pequot Tribal Nation.

Outrigger Hospitality Group will soon debut an oceanfront chapel in a former restaurant space at its flagship hotel in Waikiki. Slated to open in June, the Kahawai Chapel at the Outrigger Reef Waikiki Beach Resort is in the final touches of renovation. According to Outrigger, adding a chapel complements the property’s offerings and strategically positions the property as a premier destination for the romance and wedding market in Waikiki. The indoor venue, located up against the shoreline, is more than 4,000 square feet. In addition to the main wedding space, the venue includes a family waiting room, three private changing and preparation rooms, and a dedicated office space. The total cost of the project is not being disclosed by Outrigger.

The SkyBeach Resort, a new beachfront resort on the southern tip of St. Petersburg, Florida, has unveiled a series of enhancements. The upgrades include the re-imagined lobby and the 6,260-square-foot SkyBeach Event Center as well as the addition of Paradeco Coffee Roasters, the second location of the downtown St. Petersburg café. Later this year, the resort will also introduce SouthSeas Tapas. Acquired in 2022 by Willner Realty and Development Company, SkyBeach Resort underwent a comprehensive renovation before reopening in July 2024 with 113 redesigned guest rooms. Existing hotel amenities include: SouthSide Sports, featuring 12 pickleball courts, four professional beach volleyball courts, and one tennis court; the newly renovated SkyBeach Marina offering 29 boat slips; and SkyBeach’s signature live entertainment venue, Azibi Stage and SkyBar + Grille.

The former Kahler/Hibbing Park Hotel, in Hibbing, Minnesota, is receiving an overhaul under its new owner. Midwest Partners LLC purchased the property nearly four years ago with a goal to return it as an icon to the mining community, renaming it Red Rock Hotel & Suites. The first phase of the almost $7 million project consisted of 56 rooms, a breakfast room, and two conference rooms. A banquet room, bar, restaurant, and 34 more rooms are anticipated to be completed by early 2026 as part of phase two. The third phase consists of an extension to add two or three fast food restaurant chains. Once complete, there will be 90 rooms, as well as a large banquet room, arcade, hot tub, pool, and sauna.

Dominic Ciliberto has resumed restoration work on a boutique hotel and restaurant in Lockport, New York. The former Tuscarora Club is to become an 18-room hotel with restaurant/banquet center.

Hunter Hotel Advisors announced the sale of the Fairfield Inn & Suites Memphis Southaven. Jalaram Sleepy Hollow LLC (Jalaram Hotel Group) purchased the property from Helix Hospitality. The 91-key Fairfield Inn & Suites Memphis Southaven includes a fitness center, meeting space, and an outdoor pool.

Personnel News

Omni Hotels & Resorts announced the appointment of Adam Hayashi as its Chief Revenue Officer. Hayashi will be responsible for helping Omni achieve strategic goals related to maximizing topline revenue performance and capturing a greater market share. Prior to joining Omni, Hayashi served as the Global Vice President of Revenue Management, Distribution & BI at Accor.

Grand Metropolitan Hotels announced Jacques Oudinot as Chief Executive Officer of Voile d’Or Hotels and Resorts. Oudinot previously held senior leadership roles with Rosewood Hotels & Resorts. Additionally, Edouard Deschepper has been appointed as board director. With his expertise in corporate finance, he is expected to play a key role in further developing the brand.

Europe Highlights

The Standard hotel brand will debut its newest hotel in Belgium’s capital this spring. The Standard, Brussels is part of the ZIN redevelopment project in the Northern Quarter, a dynamic mixed-use complex combining apartments, shared spaces, offices, and the hotel. The Standard, Brussels features 200 rooms and suites across 28 stories, including their first-ever extended stay Suites and three dining destinations.

Treehouse Hotels announced that Treehouse Hotel Manchester opened on March 19, 2025, the second UK outpost of the brand. The hotel opened with 200 treehouse-inspired guestrooms with more rooms including nine suites and the Treetop Suite queued up for later this year. The Treehouse Hotel Manchester offers a trio of destination restaurants and bars, a 43-seat private cinema, Misfits Market, and the Playground gym.

Grand Metropolitan Hotels has acquired the iconic luxury hotel collection brand Voile d’Or Hotels and Resorts. In the strategic move, Grand Metropolitan Hotels gains full brand and IP rights, as well as all management contracts associated with the 100-year-old luxury brand, with future expansion plans in additional destinations already in place. Voile d’Or Hotels and Resorts currently operates a collection of luxury flagship Hotels and Residences in six prime locations: London, Paris, New York, Saint Jean Cap Ferrat, St. Barths, and Courchevel. An extensive reopening of Hotel La Voile d’Or in Saint Jean Cap Ferrat is scheduled for 2029. As part of the purchase, Grand Metropolitan Hotels owns not only the brand but also the long-term management contract and the development management function for this iconic landmark property. The purchase price remains undisclosed.