City Express by Marriott to Expand Into the U.S. and Canada

Due to Hurricane Milton, the Daily Lodging Report service could be disrupted this week.

In its 2024 Global Midyear Hotels Outlook, CBRE forecasts U.S. RevPAR growing by 1.2% in 2024, down from its earlier expectation of 2% growth. Despite the reduced full-year expectations, RevPAR growth is expected to improve in H2 2024, increasing by 2% versus 0.5% in H1 2024. The second-half growth expectations are underpinned by demand from election-related and other special events. Easier prior-year growth comparisons. More inbound international travelers. Slight uptick in both group and individual business travel demand. Although CBRE had expected a slowdown in 2024, growth has been more modest than anticipated despite a resilient economy. Headwinds such as record outbound overseas international travel, a weaker consumer, and increased competition from short-term rentals, cruise lines, and other lodging alternatives have offset the recovery in inbound international travel and a modest pickup in both group and individual travel. Given these dynamics, CBRE expects urban and airport location hotels to outperform and resort locations to continue underperforming as return-to-office policies and pent-up demand for travel post-pandemic normalize. The outlook for Northern Latin America (Colombia, Costa Rica and Mexico) remains strong, with occupancy in Costa Rica this year to surpass its 2019 level of 67%. In Colombia, an improving economy, lower inflation, interest rate cuts, and government initiatives to bolster the hospitality sector could potentially attract more than 6 million tourists this year. Tourism in Mexico is expected to remain strong, attracting foreign investors and boosting the country's status as a leading global tourism market.

Ashford Hospitality Trust reported that they expect to report an occupancy rate of approximately 71% for the third quarter of 2024, with an average daily rate of approximately $187, resulting in RevPAR of approximately $132. That would be a decrease of -1.6% compared to the third quarter of 2023. While July's Comparable RevPAR was up 0.3% year over year, August and September resulted in declines in RevPAR of -2.1% and -3%, respectively.

Marriott International, Inc. announced the expansion of the City Express by Marriott brand into the United States and Canada, marking the company's entry into the affordable midscale transient segment in the region. In May 2023, Marriott announced the acquisition of the City Express brand portfolio in CALA, which marked the company's entry into the affordable midscale segment. With over 17,000 rooms across Mexico, Costa Rica, Colombia, and Chile, the deal increased Marriott's footprint in the region by approximately 45%. Since the acquisition, consumer and owner interest has fueled the growth of the brand, with expansion plans extending beyond the original markets, such as Bolivia and Nicaragua. Additionally, the company recently announced plans to expand City Express by Marriott in Brazil. Marriott has already received extensive interest from owners and franchisees, and the company anticipates having signed agreements, with possible hotel openings, in the U.S. & Canada under the City Express by Marriott brand over the next few months.

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Aimbridge Hospitality was selected to manage the Courtyard Culver City Los Angeles. Owned by BRE Hotels & Resorts, the hotel features 266 renovated guestrooms and over 12,000 square feet of meeting space.

A Marriott Aloft hotel in the El Dorado Hills Town Center has a finish line in sight. Core Hotels LLC said construction progress on the 115-room hotel in Eldorado Hills, California, should allow it to open in spring 2025.

The Pennyweight Hotel Boston Curio Collection by Hilton opened on October 1, 2024, in Boston, Massachusetts. The hotel, owned by Boylston Properties, features 112 stylish guestrooms and suites, a fresh food and beverage concept, and a locally curated art program.

IHG Hotels & Resorts broke ground on a new dual-branded EVEN Hotels and Staybridge Suites property in Orlando, Florida, in collaboration with owner Daiwa House Group. Scheduled to open in 2026, EVEN Hotel and Staybridge Suites Orlando Universal Blvd. will offer a combined 288 guestrooms, more than 4,000 square feet of meeting space, an outdoor pool, EVEN athletic studio, and a range of food and beverage options.

In Tennessee, the Collierville Planning Commission unanimously approved a preliminary site plan for a new 101-room Candlewood Suites hotel. Aveer Hospitality, LLC is the developer of the hotel project, which will be the third hotel in the Price Farm Area 8, a mixed-use development at Houston Levee Road and Tennessee 385.

Amrit Ocean Resort in South Florida has launched the much-anticipated Amrit Wellness & Spa, an expansive, four-story wellness facility located on the beaches of Singer Island in Palm Beach County. Highlights of Florida's first and only indoor-outdoor hydrothermal therapy circuit, 25 treatment rooms, a salt inhalation chamber, an arctic chill fountain, and effusion showers. This holistic retreat includes five dining options, over 10,000 square feet of event space, and 155 wellness-inspired guestrooms. Amrit Ocean Resort is part of the Preferred Hotels & Resorts L.V.X. collection and is managed by Highgate.

Hodges Ward Elliott arranged the sale of The Beeman Hotel, located adjacent to SMU University in the heart of the Dallas market. The 296-key property boasts over 11,000 square feet of meeting space.

Sonder Holdings Inc. received a letter from the staff of the Listing Qualifications Department of Nasdaq Stock Market LLC notifying the company that it remains delinquent in filing its Forms 10Q for the periods ended March 30 and June 30, 2024, respectively. On October 2, 2024, the company submitted an appeal to Nasdaq requesting a hearing before the Hearings Panel, at which it intends to present its plan to regain and thereafter maintain compliance with all applicable Nasdaq listing requirements. The appeal automatically suspends any potential delisting through at least October 23, 2024. In connection with its request for a hearing, however, the company has also requested a stay of suspension of trading and delisting of its common stock and warrants, pending the later hearing and decision of the Hearings Panel.

Sonesta International Hotels Corporation has finalized an agreement with Master Franchisor GHL to launch Sonesta Hotel Miraflores in Lima, Peru. The 133-room hotel will open early in 2025 with an onsite restaurant and a well-equipped gym.

Personnel Moves

Braemar Hotels & Resorts Inc. announced that Jay Shah, a seasoned hospitality and real estate executive, has joined the Board of Directors as a new independent director. Mr. Shah has been a Senior Advisor to Hersha Hotels & Resorts since November 8, 2023, and has been a trustee since 2006.

Robert Douglas represented, as exclusive advisor, MetLife and Marriott, in arranging a $100 million refinancing of the Sheraton New Orleans through an international bank balance sheet lender. Further details of the transaction were not disclosed. The 1,110-key flagship Sheraton New Orleans features 106,000 square feet of meeting facilities. The hotel is co-owned and jointly-ventured by affiliates of MetLife Inc and Marriott International, Inc.

Europe Highlights

A Hilton hotel under construction for seven years has found a prospective new buyer, according to the Peterborough City Council. The council said a firm offer had been made from an interested party to purchase and complete the nine-story Hilton Garden Inn hotel in the Fletton Quays development in Peterborough, UK. If the new purchaser is approved, it would mean the council would recover a GBP17m loan it made to the original developer.

ACHM Hotels by Marriott has been selected to manage a newly built hotel complex in Madrid. The four-star hotel will be located between Terminal 4 of Brajas-Adolfo Suarez Airport and Valdebebas. Construction work will begin at the end of 2024 with the aim of opening the hotel in the second half of 2026. This will be the fourth hotel of the Sheraton brand in Spain.