Hyatt Regency Orlando Could be Sold for $1 Billion

The DJIA rose 243 points while Nasdaq was up 5, the S&P 500 rose 21 points and the 10-year treasury yield was down .03 to 3.82%. Lodging stocks were higher. SOND led the group with a 29% rise while BHR was up 6%. VCSA fell -11% on the day.

UBS cut their price target on Marriott International to $244 from $267. They maintained their Neutral rating.

Citigroup lowered their rating on Playa Hotels & Resorts to Neutral from Buy. They cut their price target on PLYA to $8 from $12.

Susquehanna cut their price target on Hyatt Hotels to $150 from $160. They maintained their Neutral rating on the stock.

Truist Securities published a report on the Bloomberg story on Monday, saying the 1,641-room Hyatt Regency Orlando could be sold to a private equity investor for about $1 billion. Late yesterday, Baird issued a report that Hyatt was on track to complete the hotel sale this week for Ares and RIDA Development. Baird said the two firms will finance the $1.02 billion acquisition with a $620 million CMBS loan. Hyatt will retain a $265 million preferred equity interest, which could be reduced by $100 million when a renovation is completed, and the hotel does not achieve certain NOI hurdles. Hyatt purchased the hotel in 2013 for $717 million and spent $117 million on renovations in 2016. Baird said the two purchasers are entering into a new 30-year management agreement with Hyatt.

STR reported U.S. lodging data for the week ending 8/10. U.S. hotel RevPAR was up 1.9%, led by ADR, which was up 1.4% year over year. Group RevPAR rose 10.1%.

Marriott International Inc. filed a lawsuit against Pride Hotel for breaching its franchise agreement such that Pride Hotel would operate a dual-branded Aloft and Element hotel property in Jamaica, New York. Instead of fulfilling its obligations under the franchise agreements, Pride Hotel and other defendants never opened the Hotels as Marriott properties and, instead, entered a lucrative agreement with the City of New York to use the Hotels to house migrants and asylum seekers without Marriott’s permission and in violation of the Franchise Agreements. Marriott also accused Pride Hotel of failing to remove the company’s trademarks and branding from its building before converting it into a shelter. Marriott terminated the franchise agreement in March and noted that Pride Hotel allegedly never paid any of its dues. It is seeking $2.6 million.

Kinseth Hospitality Companies and Kingston Hotel Associates announced the hotel planned for Kingston Yard, the mixed-use development in Cedar Rapids, Iowa, is slated to be built next year under the AC Hotels by Marriott flag. The hotel will have 123 guestrooms, 2,800 square feet of flexible meeting space, and the AC Bar. Construction is set for April 2025 at the AC Hotel by Marriott Cedar Rapids.

HCW Development is planning to build a four-story AC Hotel by Marriott on the Aspiria campus in Overland Park, Kansas. The hotel will feature 125 guestrooms, an outdoor pool and a waterfall feature. The hotel is slated to open in 2026.

The Ritz-Carlton Naples, Tiburon announced the grand opening of the Mouratoglou Tennis Center Naples, Tiburon, marking world-renowned coach Patrick Mouratoglou’s first dedicated teaching facility in Florida. The newly opened tennis center features four outdoor tennis courts and a diverse array of programming, including private and group lessons, clinics, youth development programs, tennis camps, and league and Round Robin Tournament. The 295-room resort features an excellent culinary program, an immersive Reservoir boasting a 600-foot lazy river, dedicated family pools, and luxury cabanas; the new tennis center; and two 18-hole championship golf courses.

Aura Hotel Times Square in New York City has opened following an extensive rebranding and renovation project. Formerly Hotel Mela, the hotel’s lobby has been updated, and bedrooms now offer modern furnishings, state-of-the-art technology, and cityscape views. Rebel Hotel Company operates the property.

HVS Brokerage & Advisory announced the sale of the 82-key Hampton Inn & Suites by Hilton Houston North IAH Airport. The property was purchased by RVS Hospitality Group from XE Hospitality.

Europe Highlights 

Whitbread PLC has strengthened its development team in Ireland as it continues to invest in delivering its growth ambitions in the country. Emma O’Shiel has joined the business in a project and program manager role to lead the construction of Whitbread’s pipeline of secured development sites in Ireland. Whitbread currently operates a network of six hotels in Dublin and Cork, offering its guests a choice of more than 1,000 bedrooms with a further 1,000 bedrooms in the pipeline. It has a medium-term growth target for 5,000 Premier Inn bedrooms across the country.

S Hotels and Resorts PCL has formed a strategic alliance with The Ascott Limited to rebrand SHR’s properties in Edinburgh and Leicester under The Unlimited Collection banner. By the close of 2024, the 169-room Mercure Edinburgh City Princes Street Hotel will be rebranded as Mount Royal Hotel Edinburgh by The Unlimited Collection. The 104-room Grand Hotel Leicester is set to be rebranded as The Grand Hotel Leicester by The Unlimited Collectionby the second quarter of 2025.

Radisson Hotel Group announced its debut in the heart of the Champagne region with the opening of Radisson Hotel Reims, marking its second location in France. Radisson Hotel Reims offers 102 guestrooms, an onsite restaurant, a rooftop bar, a fitness center and three versatile event spaces.

Radisson Hotel Group also announced the opening of The View Hotel Folkestone, a member of Radisson Individuals. Nestled in the charming seaside town of Folkestone in the UK. The newly affiliated hotel boasts 46 guestrooms, and The Cliffe Lounge Bar & Kitchen.

Whitbread PLC has opened the doors to its newest investment in London at Paddington Station. The hotel is a first for the capital as it brings together two of Whitbread’s market-leading budget hotel brands into one new building. Featuring 369 Premier Inn and Hub by Premier Inn bedrooms, the hotel is one of the largest Premier Inns in London.

According to The Hotel Property Telescope, a report prepared by EY’s Strategy and Transactions team, almost 600 establishments will be added to Spain’s hotel offering in the next two years. Specifically, 580 new projects will hit the market, a figure that more than doubles the 250 openings that were recorded in 2019, just before the outbreak of the pandemic, or the 270 projects that were recorded last year. 60% of the openings planned for 2024 and 2025 are new developments, another 30% are conversions or changes of use, and the remaining 10% are complete transformations. 40% of the planned openings are concentrated in four-star establishments, compared to 27% in five-star and five-star grand deluxe and 33% in three-star or lower categories.

Core Hospitality is adding Zleep Hotels’ 14 Danish hotels with a total of 2,288 rooms to its operations portfolio. Core now operates 19 hotels across five brands.

Lamington Group unveiled details of its next project under the eco hometel brand, room2, with a York property set to start site development this summer and open in early 2026. This will be the brand’s first in the North of England. Located inside the city’s castle walls, room2 York will offer 116 guestrooms, a meeting space, a laundry room, a gym, and the new Winnie’s café and bar concept.