Canadian Business Travel to Boom in 2024

The DJIA rose 154 points on Friday while Nasdaq was up 316, the S&P 500 rose 52 points and the 10 year treasury yield was down .04 to 4.67%. Lodging stocks were higher. The biggest gainers included SOND with a 10% rise, VCSA up 9% and BHR rising 6% on the day.

Business travel in Canada is poised for a strong, evolving future, according to the takeaways and forecasts unveiled during the Global Business Travel Association Canada Conference 2024. GBTA released the Canada-specific forecast from its Business Travel Index Outlook report along with other research highlights, insights and trends ahead for the industry. For 2024, GBTA forecasts indicate Canadian business travel spending is anticipated to reach $25.9 billion USD, representing annual growth of 13.5%, outpacing both global (11.8%) and United States (9.2%) growth forecasts.

Other key GBTA research takeaways for the Canadian business travel sector included: 59% of Canadian travel buyers expect to spend more on business travel in 2024. Nearly 65% of Canadian travel buyers expect their company will take more business trips this year compared to last year, but 18% expect the same volume of business trips. When asked about challenges, Canadian buyers and suppliers cited financial concerns at the top of their list, namely the rising cost of travel, overall economic conditions and corporate budgets not keeping pace with needs.

Shamin Hotels will build two hotels and two restaurants adjacent to the Henrico Sports & Events Center, the latest piece of a large redevelopment at the former Virginia Center Commons mall site in Glen Allen, Virginia. The company will build a 4-story Residence Inn and a 5-story Home2 Suites. The hotels will be the 21st and 22nd Shamin Hotels in Henrico County and are scheduled to open in 2026. Operators for the restaurants haven't been announced.

Autograph Collection Hotels announced the opening of Hacienda del Mar Los Cabos, Autograph Collection. The resort boasts 270 rooms and suites; the Cactus SPA offering a gym and personal training facilities, steam room, sauna, and showers; a Kid's Club; outdoor children's pool; babysitting services; souvenir boutique shops; tour services; outdoor hot tubs; five sparkling pools; various restaurants; four bars; a convention center and eight event rooms with a total of 31,073 square feet; and an exclusive golf course.

Marriott's Sheraton Suites Galleria Atlanta announced the completion of its $12 million renovation. The renovation enhanced every facet of the guest experience. The guest rooms received new carpeting, beds, bedding, furniture, artwork and upgraded bathrooms. The lobby and restaurant now have a refreshed, modern aesthetic with ample seating. The hotel is located near The Battery and Truist Park. The hotel is owned by Highline Hospitality Partners and managed by StepStone Hospitality.

In Ohio, the Cincinnati City Council approved a development agreement with Keystone Hotel Group to redevelop the Chong Building, two buildings with one façade spanning 614-616 Race Street, into a Home2 Suites by Hilton. The Cincinnati Center City Development Corp. currently owns the property and will sell it to Keystone for $3.25 million. By summer 2027, the Chong Building will be a 109-room hotel. Keystone plans to add four stories to 614 Race Street and two stories to 616 Race Street. Building the Home2 Suites is expected to cost $28 million.

A hotly contested plan to add dining, retail, offices and hundreds of new hotel rooms to the TradeWinds Resort, in St. Pete Beach, Florida, was approved by the City Commission. The project, headed up by 1754 Properties, will be built in four phases, will take 20 years to complete, and is estimated to cost around $500 million. The plan includes: 629 new hotel rooms spread across 3 towers; a two-story, beachfront restaurant; a 12th floor rooftop viewing terrace open to the public featuring a glass-floor balcony and food and beverage options; three new outdoor pools; and three new public beach access points.

Hotel Sector Stock Index Performance April 20-26, 2024

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Personnel Moves 

Soho House & Co. Inc. appointed Eric Deardorff as a director, effective immediately. Deardorff has more than 35 years of financial and overall leadership experience, including having served as CEO at Garrad, Nicole Farhi, BLK DNM and Wolsey, and as CFO at Waterworks. Deardorff qualifies as an independent director. Deardorff has also been named as Chair of the Company's Audit Committee, effective immediately, replacing Mark Ein who has served as Chair since July 2021. Mr. Ein will continue as a director of the Company.

Colliers hired Bradley Burwell as an Executive Vice President to join the firm's rapidly growing Hospitality Practice Group as part of U.S. Capital Markets. In his new role, Burwell will work alongside group leader Mark Owens. Prior to joining Colliers, Burwell led CBRE's New York hotels team.

International News

Following the successful launch of the inaugural hotel under its new brand, SIRO, Kerzner International Holdings Limited announced the signing of two new SIRO hotels. Properties in Riyadh, Saudi Arabia and Los Cabos, Mexico will join recently opened SIRO One Za'abeel in Dubai, and forthcoming SIRO Boka Place in Montenegro, set to open in Q4 2024. Developed by Fortem Capital and set to open in 2027, SIRO Palmilla will be located in Los Cabos. Comprised of 120 keys and a cluster of SIRO-branded residences, of which 14 will be standalone villas, the site is part of a new master plan development, Palmilla Reserve. Set to open in 2028 in the city's prestigious business and residential district of Olaya, SIRO Olaya Riyadh will be developed by 80 Real Estate Company. SIRO Olaya Riyadh will feature 200 guestrooms, alongside comprehensive fitness and recovery facilities, unrivaled in the city to date.

Following the success of Numo Ierapetra in Crete, Numo Hotels & Resorts introduces its second project, this time in the Cyclades. Numo Mykonos will debut in Q2 2024 on the east of the island at Kalafati. The resort offers 27 rooms, a restaurant and bar, Etherea Boutique Spa, Ensoma Fitness Area and Mosaique boutique.

Abu Dhabi's sovereign wealth fund wants to give a new lease of life to Madrid's historic Reina Victoria, known as the bullfighters' hotel. Abu Dhabi Investment Authority, owner of the property since last year, is negotiating with Accor the landing in Madrid of its brand The Hoxton. In this way, Melia would lose the management, which it has controlled for decades. This asset is the crown jewel of a Spanish portfolio acquired by ADIA last year. The Emirati fund acquired 17 hotels operated by Melia, which were in the hands of Equity Inmuebles.

The opening of a new flagship Sheffield city center hotel with a rooftop bar and restaurant has been delayed. The new Radisson Blu hotel, in Sheffield, UK, was scheduled to welcome its first guests on June 10. The Sheffield City Councilhas confirmed that the opening of the 154-bedroom hotel has been rescheduled until later in June. The property will boast extensive conference and events facilities.

The Address, in Sligo, Ireland, has undergone an extensive makeover. Part of The Address Collective, it is the fifth property opened under the renowned brand. After an €8 million, investment, the newly updated 61-bed hotel features five restored stories, a wellness spa complete with gym, plunge pool, heated loungers and a Himalaya salt rock sauna, steam room, secret garden outdoor hot tub and two treatment rooms. The property is owned by Brian and Ciara McGettigan.

The Trevone Hotel, a 24-bed seafront hotel in the popular North Wales seaside resort of Llandudno, UK, went up for sale back in April 2022 with a guide price of £995,000, later reduced to £895,000. It has now had another reduction in its price and is on the market with Christie and Co for £750,000.

Pygmalion Capital has partnered with Gemini Group to provide a mezzanine loan for Kennedy 89 in Frankfurt. Kennedy 89, an Unbound by Hyatt hotel, is expected to open in late 2024, offering 180 rooms including 67 suites. SIC Properties represents the hotel's owning entity. The property will be owner operated. CMS Germany advised Pygmalion Capital and Gemini on the transaction.