U.S. RevPAR Projected to Jump 4% in 2024

The DJIA was up 204 points while Nasdaq was up 159, the S&P 500 rose 33 points and the 10-year Treasury yield was down .04 to 4.42%. Lodging stocks were higher. HLT traded up to another new high, AHT was up 5% but SOND plunged another -7% to another new low.

Deutsche Bank gave a recap of their recent Gaming, Lodging, Leisure & Restaurant Conference. They said optimism around forward trends varied among the constituents with lodging, Las Vegas and regional gaming operators expressing confidence about their respective domestic outlooks, with caveats around the longevity of the health of the consumer. Operators expect RevPAR to be led by international markets, specifically Asia Pacific which faces easy 1H24 comps. Domestic RevPAR is expected to be led by the continued group segment recovery. Confidence in net unit growth remains high among the lodging C-Corps, given under construction openings and a similar percentage of conversions, led in part by clear lines of sights into conversion brand traction. DB said the Upscale segment is likely to experience the most significant near to medium-term supply growth, given the active pipeline within the chain scale stands at 19.4% of existing supply. As for lodging REITs, things are looking better with moderate upward pressure on wages but they expect property insurance and taxes to grow at above-inflationary rates next year. DBsaid they got the sense most management teams would like to be net buyers of hotels next year and many expect there to be incremental opportunities, based on debt maturities and deferred cap-ex requirements for privately held assets.

STR and Tourism Economics upped their year-over-year growth projections for ADR and RevPAR in their final US hotel forecast revision for 2023. They upped their RevPAR forecast by 0.3 percentage points due to a 0.6ppt lift in ADR growth. Occupancy was lowered by 0.2ppts. They now expect occupancy to be up year over year by 0.6%, ADR to be up 4.2%, and RevPAR to rise 4.8%. That would still be down -5.4% compared with 2019. For next year they are expecting RevPAR to rise 4.1% on a 1% rise in occupancyand a 3% rise in ADR.

MHG acquired the Courtyard by Marriott West Palm Beach Airport for $20.56 million. WSCDEL 101 LLC sold the 103-room hotel to MHG Hotels which plans to start $4 million in renovations to the property. The hotel features a restaurant, fitness center, and a pool.

3H Group Hotels’ conceptual design of a proposed nine-story, 231-room hotel on the site of New World Landing won the unanimous support of the Pensacola Architectural Review Board, clearing the way for the demolition of New World Landing in Pensacola, Florida. 3H is planning to build a new Hilton-branded hotel featuring a rooftop bar, pool, meeting space, a restaurant and bar on the ground floor and space for a potential retail tenant.

Renew Partners LLC and JCI Construction will break ground, on November 30, for a new hotel in Harpersfield, Ohio. The companies plan to demolish part of what was a Motel 6 and reconstruct the new hotel, a Wingate by Wyndham Hotel.

IHG Hotels & Resorts announced the opening of a new Holiday Inn Express & Suites hotel in suburban Phoenix, Arizona. Owned by McDowell Hotel I LLC and managed by Ledgestone Hospitality, the Holiday Inn Express & Suites Phoenix West - Tolleson features 108 guestrooms, 400 square feet of meeting space, a business center, heated outdoor pool and whirlpool, and a fitness center.

Valencia Hotel Group is celebrating their 20th anniversary by rebranding to Valencia Hotel Collection. With seven independent hotels currently operating and substantial growth on the horizon, the company feels the name Valencia Hotel Collection better reflects where their portfolio stands today. In conjunction with the rebrand, VHC is restructuring its leadership team with the appointment of Roy Kretschmer to Chief Operating Officer, Wendy Norris to Vice President of Sales, Marketing & Revenue Optimization, and Trent Freeman to Vice President of Operations. Looking ahead, Valencia Hotel Collection intends to expand its portfolio to new markets and broaden its property management services. VHC has been providing accommodations and service across Texas and California.

Libertyland USA is set to be the largest family entertainment and residential destination in South Dakota and is projected to be completed in time for the nation’s 250th birthday in 2026. The mixed-use development was unanimously approved the Rapid City council members and will include an indoor waterpark, hotel and conference center, an indoor/outdoor amphitheater, a themed RV Resort, and Liberty Village - a mixed-use neighborhood providing housing, retail, and dining.

Agora Realty & Management confirmed they closed escrow on the 73-acre site at Lake Mead Boulevard and Rancho Drive, the three parcels in Las Vegas where Texas Station and Fiesta Rancho once stood. Agora is paying Station Casinos $59 million. They are planning a mixed-use facility featuring a hotel with at least 150 rooms, an outdoor recreational space, retail, restaurants, and a remodeling of the hockey facility that was part of the Fiesta Rancho. The southeast corner of the property will sit 665 residential units, a convenience store, and childcare center.

Owners of the Historical Fortney Hotel in Viroqua, Wisconsin, celebrated its grand re-opening following the completion of a renovation. Renovations include new windows, fresh exterior paint, and commercial spaces available for small businesses. Brian Wrobel, and the rest of the property’s owners, did their best to preserve as many of the original elements of the hotel as possible including original flooring, tin ceilings, and the lobby desk from 1899.

Bunkhouse Hotels debuted a new restaurant and brand-new suites at the Hotel San Cristobal Baja in Todos Santos, Mexico. About 45% of the food served on the property is prepared with produce grown there and six of the 32 guest rooms at Hotel San Cristobal Baja now have private saltwater plunge pools, sweeping ocean views and build-in shaded outdoor sofas and sunbeds.

Paramount Lodging Advisors announced the sale of the 134-key Red Roof HomeTowne Studio Independence Kansas City, Missouri.

Blue Diamond Resorts has opened the adults-only Hideaway at Royalton Blue Waters, An Autograph Collection All-Inclusive Resort in Montego Bay, Jamaica. The Hideaway at Royalton Blue Waters spans 352 rooms, 11 bars, and 12 restaurants. Blue Diamond Resorts has a total of five resorts in Jamaica.

The Westin Punta Cana resort in the Dominican Republic has unveiled a new look, following a refresh project. The Punta Cana property has newly refreshed rooms, along with a pair of new eateries and bars, a new-look lobby, and new additions to its meeting space.

The Hato Rey Center, located in the heart of the Golden Mile sector of San Juan, Puerto Rico, is being converted into a condo-hotel that will fly the Autograph by Marriott flag. According to News is my Business, the 16-level property will feature 168 hotel rooms and 32 residential apartments, preliminarily being identified as Oro Residences. The initial investment for the property is estimated at around $120 million. Owned by HRC Holding QOZB LLC, the building includes four levels for parking with a capacity for 292 vehicles.

Grupo Pinero officially inaugurated a hotel in Cayo Levantado (Samana, northeast) in the Dominican Republic, that combines luxury, wellness, sustainability and the promotion of local culture. The 218-room Cayo Levantado Resort has completed a US$54 million renovation of the complex.

Melia Hotels announced the opening of the new Melia Trinidad Peninsula in Trinidad, Cuba. The property features 401 guestrooms, pools, 14 restaurants and bars, the YHI Spa and 4 spacious venues that can accommodate over 1,400 attendees. On December 15, Melia Hotels International will also open Sol Turquesa Beach, a resort located on Yuraguanal Beach in Holguin, Cuba.

Kempinski Hotels has been named operator of a unique new luxury beachfront residences and resort, located on Grace Bay Beach, in Providenciales, Turks and Caicos Islands. Kempinski Grace Bay, developed by JTRE, offers 4 beachfront villas and 72 condominium residences, three dining venues including a beach club, two resort-style pools, a luxury spa and fitness center, tennis and paddle courts, a kids club, as well as an indoor golf simulator.

The Financial Times has reported that Brookfield has abandoned its attempt to sell holiday resort chain Center Parcs after failing to secure a deal at the £4 billion sale price. Moving forward, Brookfield is still considering offloading a minority stake or capitalizing Center Parcs, but could also opt to hold the resort group for several more years.

Europe Highlights

Marriott International opened its first Four Points by Sheraton hotel in Budapest. The new hotel is part of the €75 million Duna Pearl mixed-use property development project carried out by Polat Group. The cost of the hotel development was €20 million. The hotel offers 105 guestrooms, a medium-sized conference facility, and a rooftop bar. It is operated by Accent Hotel. The mixed-use project includes 193 apartments, retail outlets, cafes, and restaurants.

Plans have been submitted for a Hotel Indigo to be built next to Coventry Station, located in the Friargate district of Coventry, UK. Work has started on the new 100 bed hotel which will feature a restaurant/bar and gym. It will be operated by Castlebridge Group.

Noel Hayden, and a group of his childhood friends, announced that Broadwick Soho, an independent luxury hotel, has opened in London’s West End. The 57-room retreat includes an eclectic range of restaurants and bars and a collection of artworks.