The DJIA rose 477 points, Nasdaq rose 83, the S&P 500 was up 44, and the 10-year treasury yield was down 0.4. HST was up 5%, PK was up 15%, and Xenia up 10%. Marriott, Hilton, and Hyatt were up modestly.
The Financial Times reported the owners of the CitizenM boutique hotel chain are exploring a sale of the company. The owners of the Netherlands-based CitizenM include the Dutch pension provider APG, Singaporean wealth fund GIC and the founder Rattan Chadha. They are being advised by Morgan Stanley and Eastdil Secured. GIC took a 25% stake five years ago in deal valuing CitizenM at 2 billion euros including debt. They are now expected to fetch 4 billion euros if a sale does take place. Five years ago they had 15 hotels and now they have more than 40 locations and 10,000 rooms across North America, Europe and Asia.
STR reported US hotel data for the week ended 3/23. Hotel RevPAR was up 3.2% year over year on the back of a 2.5% rise in ADR. Occupancy rising 0.7% may very well be the first time this year that we can remember occupancy being higher. Group RevPAR was up 11.8%.
Hilton announced the opening of Hilton Garden Inn Guadalajara Airport, the only hotel located within the city’s international airport and the brand’s 15th hotel in Mexico. Owned by Grupo Aeroportuario del Pacifico and managed by Hilton, the 180-room hotel is Hilton’s 5th hotel in the city of Guadalajara. The hotel offers onsite dining, a multifunctional fitness center, a ballroom and three event rooms.
Capital Hilton has completed a multi-million dollar renovation to its 559-room property, located in the heart of Washington, D.C. Owned by Ashford Hospitality and managed by Hilton, Capital Hilton features two onsite dining options, a fitness center and a business center.
Apple Hospitality REIT, Inc. acquired the 234-room AC Hotel by Marriott Washington DC Convention Center for approximately $116.8 million. The hotel offers modern guestrooms, a fitness center, rooftop bar and restaurant and ground floor retail space. As previously announced, the Company continues to have two additional hotels under contract for purchase: Embassy Suites by Hilton currently under development in downtown Madison, Wisconsin; and a Motto by Hilton to be developed in downtown Nashville, Tennessee.
The Roxbury Group has rebranded and expanded the number of guestrooms at the old David Whitney Building in Detroit, Michigan. The culmination of a two-year process, the building has reopened as a mixed-use development including a hotel that is part of Marriott’s Autograph Collection. The latest project brings a total of 160 guestrooms and 80 apartments, multiple food and beverage venues, and a fitness center.
Kimpton Hotels & Restaurants announced the April 1, 2024 opening of a new boutique luxury resort, Kimpton Mas Olas Resort & Spa, located on Mexico’s Baja Sur peninsula, in the town of Todos Santos. Operated by Highgate, Kimpton Mas Olas boasts 102 tranquil guestrooms, including 12 oceanfront villas, spread across 27 buildings. Amenities include three distinct restaurant and bar experiences, Botanica Spa, and peaceful outdoor pools. Kimpton Mas Olas marks the brand’s third property to open in Mexico.
Avion Hospitality has assumed management of the 314-room Windsor Court Hotel in New Orleans, Louisiana.
Red Roof announced the opening of the Red Roof Inn Dunn in Dunn, North Carolina. Owner Premier Hospitality LLC invested approximately $750,000 in renovations to the 100-room property.
Auberge Resorts Collection has been appointed by Witkoff and Monroe Capital to manage The Shore Club Resort & Residences, Auberge Resorts Collection in Miami Beach, Florida. The re-imagining of this icon is set to open in 2027. As an Auberge Resorts Collection property, the property will encompass not only the original Shore Club and its Cromwell Hotel, but also a new 18-story residential tower and a free-standing residential villa. The Shore Club features 73 rooms and suites, including a luxurious penthouse. The eight-story Cromwell Hotel will be transformed into a discreet private residential entrance where homeowners will access the 49 exclusive residences. The Shore Club Resort & Residences will feature an Auberge Spa and fitness center, a Beach Club, three pools and onsite dining.
The Boca Raton, in South Florida, announced a $100 million complete re-imagination of Beach Club. When Beach Club is unveiled in January 2025, guests and club members will discover an entirely redesigned arrival, new restaurants, a completely refreshed lobby featuring a new bar and café, a new fitness facility and oceanside event spaces, and a stunning renovation of the hotel’s 207 guestrooms and suites.
Construction of Pendry Tampa is set to go vertical in the next few months. The 38-floor, 220-room hotel will take up the first 12 floors. Levels 13 through 37 will be home to 212 residences, with two penthouses on the 37th floor and an owners-only rooftop pool on the top level. Construction on the first Pendry property in Florida is slated to be completed in late 2026.
LivAway Suites started construction on their next project in Renton, Washington, just minutes from SeaTac International Airport and downtown Seattle. LivAway Suites has aggressively expanded nationally with six groundbreakings over the last nine months and has plans to break ground on two more locations over the next month.
Expansion is due at the Hotel Roanoke & Conference Center, where a unique use of state law can fund construction bonds worth up to $14 million. The facility, located in Roanoke, Virginia, is planning to expand by 10%, which will be around 9,600 square feet. Plans include enclosing the north courtyard with a glass enclosure. An then building an addition on the front lawn: indoor and outdoor recreation, and conference space. Hotel Roanoke is jointly owned by the city and Virginia Tech.
Zavala Capital has purchased the Mountain Vista Inn, in Murphy, North Carolina, with plans to convert it into an extended-stay venue with 40-50 upscale efficiency units. The 30,000 square foot building will have an onsite manager, 24-hour maintenance, a gym and a business center.
The Lindner Hotel Group has taken over the operation of five hotels previously managed by the 12.18 Group. LHG’s portfolio will grow from two to four brands. The takeover strengthens LHG’s position as an operator and lessee of hotel real estate. In addition to expanding its brand portfolio, it is now active in three other countries: Italy, UK and USA. LHG will now operate 25 hotels in eight European countries and the USA, with six additional hotels in the pipeline. 12.18 will now focus on acquiring, developing, and repositioning hotel real estate and providing asset management services to its capital partners.
Marcus & Millichap Capital Corporation arranged $8,855,000 in financing for the acquisition of the 81-key Hampton Inn & Suites Artesia hotel, located in Artesia, New Mexico. The firm’s Phoenix office secured the financing on behalf of a private client. Terms of the 10-year loan include 3-years fixed interest with 25-years amortization and a 70% loan-to-value.
Personnel Moves
Hospitality America has transitioned Ben Campbell from Chief Operating Officer to President and Chief Executive Officer. The Company Founder and CEO Chris Cargen has retired and will assume the newly created position of Chairman of the Board.
Expotel Hospitality announced Bret Chittenden, formerly the firm’s Chief Operating Officer, has become its new President. Chittenden has been part of the company since its inception in 1999. As President, Bret will be responsible for driving the overall development and growth of the company.
WATG announced the appointment of John Page as Principal and Senior Director of Business Development for the Americas. In his new role, Page will be responsible for supporting WATG’s growth strategy in The Americas in gaming, entertainment, hospitality and residential sectors. Prior to rejoining WATG, Page held business development positions with Yates Construction, Balfour Beatty Construction, VallyCrest Companies and Tutor Perini Building Corporation.