Canadian Hotels Will Return to Pre-Pandemic Revenues in 2023

The DJIA rose 197 points, Nasdaq was up 87, the S&P 500 rose 27 points and the 10-year treasury yield was up .04 to 3.49%. Lodging stocks were modestly higher. AINC was the big mover, up 8%.

Hersha Hospitality is the latest lodging REIT to announce they have reinstated their quarterly cash dividend on the common shares. HT announced its Board of Trustees approved a cash dividend of $0.05 per common share and per limited partnership unit for the third quarter ending September 30, 2022.

According to CBRE, Canadian hotels will return to pre-pandemic revenues next year, two years ahead of its previous forecast. The firm is projecting the Canadian hotels market will end this year at 92% of the RevPAR achieved in 2019. It is forecasting moderate revenue growth will continue into 2023 as hotel operators push for higher room rates. It projects RevPAR will hit $107 next year, a 70% increase from the industry’s 2021 performance. CBRE is also projecting half of the major urban markets in Canada are expected to see a RevPAR above $100 in 2023, with Vancouver reaching $182, Montreal at $135 and Toronto hitting $129. 

Aimbridge Hospitality is building toward 2023 and beyond with an emphasis on acquiring talented industry veterans, expanding its robust portfolio, and evolving its operational approach to bolster its plans for global growth and continued industry-leading innovation. The company’s new hires represent a significant depth of bench, including Mark Tamis, President, Global Operations; Allison Reid, Chief Global Growth Officer; Mark Chloupek, Chief Legal Officer; Tim Pruiett, Senior Vice President of Acquisitions and Investments; and Emily Gerstner, Vice President and Philanthropic Partnership & Community Outreach. The four vertical expertise-driven operating divisions and two geographically focused divisions are: Full Service; Evolution Lifestyle; Enhanced Select Service; Select Service; EMEA; and LatAm. Aimbridge expanded its portfolio of properties in recent months, including a trio of extended-stay properties owned by Three Wall Capital, LLC; the HALL Arts Hotel, located in the Dallas Arts District; Hotel Melby, Tapestry Collection by Hilton located in Melbourne, FL; Eaglewood Resort & Spa outside of Chicago; Mexican destinations AC Hotel Monterrey Valle Aloft Guadalajara Sur; Aloft Playa del Carmen; along with Zibu Guadalajara at JW Marriott Hotel Guadalajara, a world-class restaurant.

Wyndham Hotels & Resorts said their new extended stay brand, operating under the working title “Project ECHO” has achieved 100 hotels signed across the United States. WH said the brand had become their fastest growing in the pipeline. WH said among the most recently signings for developing new construction Project ECHO hotels are Holladay Properties of South Bend, IN and Miami-based Gold Coast Premier. Holladay has 25 Project ECHO hotels signed in the key cities across the Midwest as well as Nashville, TN; Savannah, GA; and Jacksonville, FL. Gold Coast has 10 hotels signed in South Florida and NJ.

Marcus Hotels and Resorts is in preparations to sell the Skirvin Hilton 15 years after teaming up with the city of Oklahoma City, OK to renovate and reopen this historic landmark. Should it sell, a ground lease for the hotel calls for Marcus Hotels to pay 50% of net proceeds of the sale to the city. The city holds a ground lease and mortgage for the property as part of its assistance in the $56.4 million renovation completed in 2006.

The Sheraton Erie Bayfront Hotel, in Erie, PA, is getting $7.5 million in planned renovations. Marriott International is requiring the Sheraton upgrades and will contribute $2 million towards the work. The eight-story, 200-room hotel is connected to the Bayfront Convention Center by an overhead public walkway. Renovations, including a complete overhaul of the Sheraton’s guest rooms, are expected to be completed by early summer 2023. Additional renovations include a revamped lobby with new communal areas and a daytime coffee bar; and new furniture, equipment and an updated layout for the hotel’s restaurant.

Dreamscape Companies announced its first foray into the Phoenix, AZ market with the acquisition of the Residence Inn Phoenix Desert View at Mayo Clinic. Brokered by Newmark Knight Frank, the hotel was sold by the Robert Finvarb Companies for $50.5 million. Residence Inn Phoenix Desert View at Mayo Clinic offers 208 guest rooms, a fitness center, and an outdoor pool with lounge chairs and cabanas.

The City Council of Garden Grove, CA unanimously approved the sale of city land to a developer for a 23-story, Nickelodeon-themed hotel with 500 guestrooms, a spa, restaurants, and a 600-seat theater. The $277 million resort will also feature a 9,490 square-foot ballroom, a fitness center, 528 parking spaces, Nick Studio, A Studio Hall, and a Kid’s Lounge. The resort will feature water slides, splash zones, a pool, and a lazy river. 

A local business owner, in Callaway, FL is in the works of taking an empty plot of land and turning it into an extended stay hotel. Diviya Patel, part-owner, said the hotel will have 91 rooms, each with a kitchenette, free laundry, a meeting room, a fitness room, a pool, and electric charging stations. Patel said they are expecting the doors of the hotel to open sometime between a 1 ½ years and two years from now.

Hotel Equities continues to grow its Development Services platform for new hotel builds and property improvement plans to meet the demands of an industry challenged with supply chain issues and labor shortages. HE’s Development Services specialists assess needs to assemble the right team for each build, manage timelines, and collaborate with brand ambassadors, designers, architects, general contactors, and operations and procurement staff. This benefits owners and operators in many ways such as: Optimal efficiency, flow and functionality of guest rooms and public spaces. Direct access to brand decision makers and exposure to the latest trends and design packages. Compliance with brand standards, local codes, permits and ADA requirement. Ability to negotiate large scale pricing for furniture, fixtures, and equipment; and attention to process, pricing, and approvals to keep projects on schedule and within budget. 

Hyatt Hotels Corporation announced Apple Leisure Group President & CEO Alejandro Reynal has decided to pursue opportunities outside of Apple Leisure Group, which was acquired by Hyatt in November 2021. His last day with Hyatt will be September 30, 2022. Following Reynal’s departure, Mr. Hoplamazian, President and CEO, Hyatt, will assume leadership of Apple Leisure Group effective October 1, 2022. To support him, Ray Snisky, Group President of ALG Vacations, will take on additional responsibilities related to the business coordination and other operational matters, effective October 1, 2022.

Anantara Hotels, Resorts & Spas brings its experiential luxury to the Netherlands with Anantara Grand Hotel Krasnapolsky Amsterdam. The property is in the final stage of an extensive renovation as part of its transition to the luxury Anantara brand and now offers new guest rooms and suites, a brand-new Anantara Spa and fitness facilities. The 402-room hotel is home to multiple food and beverage options, meeting and conference facilities, and a charming interior garden.

Radisson Hotel Group plans to further expand its portfolio in Poland. Just this year, the Group opened the Andersia Hotel & Spa Poznan, a member of Radisson Individuals and Radisson RED Gdansk hotel already in the country. Further openings are planned for the coming months. Radisson Hotel Group holds a portfolio of 23 hotels, representing more than 5,200 rooms, in operation and under development, in Poland. In early 2023, Radisson Blu Resort & Conference Center, Ostoda will open. Summer 2023 will see the opening of Radisson RED Krakow and Radisson Apartments Krakow, both part of the Unity Centre business complex in Poland’s second-biggest city. In 2024, the Group plans to open another upper-upscale resort on the Baltic coast with Radisson Blue Resort, Miedzywodzie. Radisson Resort & Suites Ustronie Morskie will be the Group’s 23^rd property in Poland and its eight resort, reinforcing Radisson Hotel Group’s position as the leading international resort operating in the country. It is scheduled to open in 2025.

Two of the most high-profile Ramada properties in the UK, Birmingham City and Manchester Salford Quays, will be changing to a Marriott brand. Once refurbished, they will become the first UK hotels to be operated under the AC Hotels by Marriottbrand.

Meininger hotel group announced its third opening this year. The Meininger Hotel Dresden Center at Wiener Platz is the second hotel in Saxony and the fourteenth location in Germany. The four-story hotel offers 173 rooms with 719 beds and a roof patio with sun loungers. In addition, the building also houses a grocery store on the ground floor, which has been open since September 2021.

In the first quarter of 2026, Deutsche Hospitality is scheduled to open a hotel under the new House of Beats banner in the Hanseatic city of Hamburg, Germany. The opening of the House of Beats in Hamburg is a milestone for Deutsche Hospitality on its way to establishing a modern new hotel brand in its portfolio. Boasting 263 rooms, the hotel is being built as part of the Meltingport real estate development taking place in HafenCity. In addition to 200 apartments for students and trainees from GBI’s SMARTments brand family and about 4,600 square meters of office space, House of Beats is at the heart of a construction project being carried out by GBI and NORD PROJECT and the project controller Reos.