Takeaways From Hotel Earnings Season

The DJIA was up 294 points while Nasdaq rose 167, the S&P 500 was up 54 points and the 10 year treasury yield was up .10 to 3.89%. It was better than the last few days but 5 days like that are needed. Lodging stocks were modestly higher. VCSA and APLE both traded down to new lows. SOND was up 6% while SHCO was down -6%.

Compass Point upgraded DiamondRock Hospitality to Buy from Neutral. Their price target is $10.

Hyatt Hotels picked a good day to report a 2Q24 EBITDA miss. Given the decline in stocks the past week, it looked like investors were either already discounting the miss and the guide down, or it was just overshadowed by a rebounding stock market. Regardless, H lowered its full-year RevPAR growth target to 3% to 4% from 3% to 5%. After Marriott lowered, we doubt anyone was surprised. During 2Q24, Hrepurchased 906,875 shares for $134 million.

IHG Hotels & Resorts said their US business offset a slow China, also probably not unexpected given MAR had warned about the China hotel business climate. IHG reported a record 57,100 new rooms signed across 384 hotels, an increase of 67% from 2Q23. They also upped their dividend.

Apple Hospitality reported in line 2Q24 while reducing 2H24 guidance, the main theme of this current earnings season. APLE said they repurchased 1.6 million shares for $23.1 million during 2Q24 and so far in 3Q.

Playa Hotels reported a 2Q24 adjusted EBITDA beat, but guidance was a question mark given the impact of Hurricane Beryl. Guidance is still in the range but is now on the low end. They did not see physical damage from the hurricane but a $6 million to $8 million impact on bookings. PLYA bought back 4.1 million shares for $37 million in 2Q and another $12 million worth in July.

Noble Investment Group announced the acquisition of the Courtyard by Marriott Jacksonville Beach Oceanfront. Located on the shores of Jacksonville Beach, Florida, the hotel will undergo a comprehensive enhancement to all hotel guestrooms and suites, public areas, and meeting and event spaces.

NGC Hospitality is embarking on its fourth hotel in the sports and entertainment district in Glendale, Arizona. The developer plans to build a seven-story Moxy Hotel by Marriott adjacent to its three existing hotels in Westgate. The Moxy will feature 209 guestrooms, an outdoor patio, a resort-style pool, bars, and more.

Maximum Hospitality, an affiliate of Hotel Equities, announced the completion of the Sheraton Nashville-Brentwood’s extensive renovation and conversion. The transition to the premium Sheraton brand signifies a substantial investment by owner Eagle Hospitality, Inc., encompassing enhancements to every aspect of the guest experience. The guestrooms have been re-imagined with new tools for productivity, and the guest bathroom has been completely redesigned. The Sheraton Club Lounge will be a new feature, and guests will also find updated food and beverage offerings, premium amenities, and enhanced connectivity. The Sheraton Nashville-Brentwood also features the Community Table, The Studios, flexible gathering spaces, and soundproof booths strategically placed around the lobby.

The Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch expects to unveil its highly anticipated $115 million property-wide renovation and rebrand to Grand Hyatt Scottsdale Resort in early October 2024, marking the first Grand Hyatt hotel in Arizona. The newly re-imagined resort offers six elevated dining experiences, an expanded pool and cabana offerings, and a refreshed Spa Avania with 19 treatment rooms, a Himalayan Salt Room, and exercise facilities. In October, the Grand Hyatt Scottsdale Resort will unveil its fully renovated existing meeting space, which includes a revitalization of the 14,000-square-foot Vaquero Ballroom, as well as the remaining 52,000 square feet of existing indoor/outdoor function space. Set to debut in January 2025 is the resort’s grand Arizona Ballroom, which will have nearly tripled in size to 24,000 square feet. In total, the Arizona Ballroom will join the completely renovated meeting and event spaces to house a total of 90,000 square feet of indoor/outdoor function space.

On the Big Island of Hawaii, the OUTRIGGER Kona Resort & Spa just completed a $60 million renovation. The sweeping renovation includes updates to 511 guestrooms and suites, revisions to the 100,000-square-foot Kaleiopapa Convention Center, and the addition of the Piko Coffee & Wine Bar.

Sherman Associates said work on the $7.5 million renovation project at the Hotel Zamora in St. Pete Beach, Florida, is expected to be done this fall. The company says the work includes major upgrades to pieces of the property as well as transforming an adjacent former bank branch it also bought into a wedding venue.

The Hotel Zamora is a 72-room boutique property that has private dock access, an upscale full-service restaurant, and a rooftop deck. In addition to the work, the restaurant will be rebranded in the coming months. The renovation includes upgraded and remodeled guestrooms and upgrades to the lobby, pool deck, pool bar, fitness center, and new exterior signage and landscaping. As for the former bank, the 2,500-square-foot space is being converted into a wedding and event venue.

NexGen Hotels announced the acquisition of The Cole Hotel in Palm Springs, California. The boutique hotel will be managed by Genuine Hospitality Group. The 30-room, adults-only hotel features an outdoor pool, an outdoor courtyard with firepit, an outdoor bar, as well as a modern bistro.

Everhome Suites is advancing plans to build a four-story hotel near 37th and Rock Road in northeast Wichita. Developed by Highside Development, the 123-room hotel is expected to open in November 2025. Onsite amenities include a fitness center, a self-service marketplace, and guest laundry facilities. The Wichita Everhome Suites will be the company’s first in Kansas.

Hodges Ward Elliott arranged the sale of the leasehold interest in the Residence Inn Tampa Wesley Chapel. HWE represented the seller in the deal. The 123-room Residence Inn Tampa Wesley Chapel features the Skybox Rooftop bar, an outdoor pool, 450 square feet of meeting space, onsite parking, and a fitness center.

One Beverly Hills, an ultra-luxury resort developed by Cain International and OKO Group, is seeking $5.25 billion in financing to complete most of the project in time for the 2028 Olympics set to be held in Los Angeles. The new money will help with construction and replace a $2 billion loan package led by JPMorgan Chase & Co.that originated earlier this year. The new debt on One Beverly Hills will be a floating-rate stack of junior and senior financing with a five- to seven-year term, raised from a combination of banks, private debt funds, insurance firms, and other institutional capital sources. Newmark Group Inc. is the project's capital adviser. When complete, the resort will have two towers with as many as 200 Aman-branded residences, a 78-suite Aman hotel, and retail space in a 17.5-acre setting.

Personnel Moves

Aimbridge Hospitality announced Christopher Tatum as the new divisional president of its Full Service division. Tatum will be a member of the company’s executive leadership team. As President - Full Service, Tatum will provide oversight and leadership for the entire Aimbridge Full Service division portfolio, which includes Full Service, Evolution Lifestyle, Luxury and Resort properties in some of the most iconic and sought-after destinations in the U.S., Canada and the Caribbean. Most recently, Tatum managed a portfolio of hotels at Davison Hospitality.

Marriott International announced Federico Greppi as Chief Operations Officer for the Caribbean and Latin America. In this role, Greppi will lead operations in the CALA region. Greppi’s most recent position was Chief Financial Officer and Head of Franchise Operations and Owner Relations of Marriott International in the CALA region.

European Highlights

Hilton announced plans to open three new hotels in Portugal in 2025 and 2026 under three brands, Canopy by Hilton, Tapestry Collection by Hilton, and DoubleTree by Hilton, as part of the company’s plans to continue expanding its presence in the country. Following a franchise agreement with Arrow Global Group, Canopy by Hilton Vilamoura Marina will offer 155 guestrooms, a restaurant and bar, a spa, an outdoor pool, and a fitness center. The property is due to open in 2026. Set to open in 2025, Santo Andre Beach Hotel, Tapestry Collection by Hilton, will be the first Hilton property in the Santiago do Cacem region. Signed as part of a franchise agreement with Mercan Properties Group, it will have 44 guestrooms, a restaurant and bar, a gym, and a rooftop pool. Following a franchise agreement with Mercan Properties Group, DoubleTree by Hilton Lisbon Airport will consist of 199 guestrooms and 20 suites and is set to open in 2025. The property will offer a restaurant and bar, ample facilities for meetings, conferences, and events, and a modern fitness room.