Marriott and Choice Report Q3 Earnings

The DJIA fell 258 points while Nasdaq was down 60, the S&P 500 was down 16 points, and the 10-year treasury yield was down .05 to 4.31%. Lodging stocks were lower. SVC traded down to another new low, while SOHO and AHT both gave back some of their gains from last week, down -14% and 7%, respectively.

Marriott and Choice Hotels both reported 3Q results, with investors bidding up CHH while taking profits on MAR. CHH was up $1.49, and MAR was down $4.14 on the day. The report from MAR was a bit noisy, with a $19 million operating guarantee reserve taken on the 2016 Starwood Hotels acquisition and an $11 million litigation reserve. If you back that out, the operating results were in line, but their 4Q guidance was below the Street's. MAR bought back 4.5 million shares for $1 billion in 3Q and $200 million in the month of October. They expect 2024 capital returns to total $4.4 billion versus $4.3 billion previously. MAR has launched a cost-cutting plan that has quite a few analysts paying attention.

As for CHH, they beat and raised a bit. Their optimism is similar to what Wyndham said, although CHH seemed much more conservative. They bought back $352.9 million of stock and now have 4 million shares left on their authorization. They had a $108.1 million item on their balance sheet for the sale of securities, so we assume they sold their WH shares.

CBRE released its Hotel Brand Performance 2024 report. The report provides a detailed analysis of the industry's performance from 2013 to 2023. Key takeaways include the fact that the U.S. hotel industry is experiencing a proliferation of brands, growing from an average of 13 brands per family in 2013 to 25 in 2023. RevPAR growth has slowed, dropping to 1.5% between 2018 and 2023 and from 3% annually between 2013 and 2018, suggesting increasing competition from alternative lodging options rather than just a delayed pandemic recovery. With only 30% of brands examined achieving above-average RevPAR growth over the past five years, selecting the right brand has become increasingly important. The range of performance among brands within the same chain scale can be vast, impacting profitability dramatically. High levels of inflation have suppressed RevPAR growth, with only 3% of brands achieving growth above inflation between 2018 and 2023, indicating a challenging environment for maintaining profitability. Upper-midscale chains have outperformed other chain scales. Free breakfast, strong brand recognition, no resort fees, and such have increased the appeal of select-service hotels. Over the past 10 years, the strongest-performing brand family had RevPAR growth of 2.7% vs. 0.3% for the weakest-performing brand family. On a cumulative basis, the strongest brand family outperformed by nearly 27% between 2013 and 2023.

PM Hotel Group and Sightline Hospitality announced a strategic merger that will combine the two companies under the PM Hotel Group name. PM Hotel Group will add 22 hotels to their portfolio, primarily on the West Coast and mountain regions, but they also will get their first property in Hawaii.

Related Group is joining forces with Rok Acquisitions and Tate Capital for a $2 billion mixed-use development in Fort Lauderdale. The project plans will take almost 40 acres of land and water at the Bahia Mar marina, which is owned by the city. It will consist of condo towers, hotels, and 88,000 square feet of waterfront commercial space, including a park, beach club, boat docking, restaurants, slips marina for yachts, and a pedestrian promenade. St. Regis Hotel, projected to host roughly 200 rooms, will replace the DoubleTree brand at Bahia Mar.

Autograph Collection now plans to open the Asher Adams, in Salt Lake City, Utah, on November 14. The hotel was initially scheduled to open on Thursday but ran into some last-minute delays, according to the company. The restaurants will now open on November 7. The 225-room hotel at the historic Union Pacific Depot will be the brand's first in Salt Lake City and third in Utah.

The DoubleTree by Hilton New York JFK Airport has opened today in Jamaica, New York. The 12-story hotel is a venture between the Vista Hospitality Group and Amaya Hospitality. Overseen by Vista Property Management, the hotel underwent an extensive renovation for the conversion and now features 385 guestrooms and junior suites, a fitness center, restaurant & lounge, versatile meeting and conference space, a guest laundry, and secure and covered valet parking.

Vrancor Hospitality Corporation announced the opening of the new Holiday Inn Express hotel in Hamilton, Ontario. Owned and operated by 1276 Upper James Limited and managed by Vrancor Hospitality Corporation, the new Holiday Inn Express Hamilton - Upper James features 105 guestrooms in six stories, a fitness center, and meeting rooms.

A new 140-room luxury boutique hotel is coming to Traverse City, Michigan. The four-story structure has no name or brand yet. Great Lakes Capital expected construction to begin in the third quarter of 2025, with a grand opening to follow in early 2027. The project is expected to cost about $62 million.

The 97-room Fidelity Hotel, located in downtown Cleveland, is taking reservations for stays starting in late January. The hotel is in the 11-story Baker Building and will feature a full-service restaurant, bar, meeting space, and more. The hotel is the first in Ohio to be managed by New Waterloo.

The Caesars Republic Scottsdale has been open for less than a year but is already in the process of making significant changes to address issues the hotel has been facing. According to HCW, the company that owns and manages the Scottsdale, Arizona hotel, it will be changing its relationship with Caesars and becoming a Hilton soft-branded hotel. The 11-story, 265-room hotel includes several eateries, but the focus of the change will be on Seven, the restaurant on the hotel's seventh floor operated by Riot Hospitality Group. The restaurant will be closed in May for a revamp and remodeling into a different exciting venue.

The Maron Hotel & Suites in Danbury, Connecticut, is on the market for $6.25M. The three-story, 86-room hotel was built by Albert Salame, who passed away last year. The property boasts 18,000 square feet of retail space.

The Barnsely Resort in norther Georgia is celebrating its 25th anniversary with extensive renovations and new additions, enhancing guest experiences and introducing fresh amenities. The hallmark of the Barnsely Resort is its 39 free-standing cottages, inclusive of 84 guestrooms and suites. The resort's village setting is receiving a re-imagined and newly built Biergarten and the Beretta Shooting Grounds by High Adventure Company offers an enhanced experience for sporting clays, including a new five-stand station along with the installation of two new 15-station clays courses adjacent to the sporting ground's Clubhouse which also received an expansive new deck for outdoor events. The resort's already impressive roster of recreation activities also expanded with the addition of six new pickleball courts. The resort's ownership team has invested in several infrastructure projects, including the construction of a new storage building.

Cronheim Hotel Capital secured $26.4M to refinance the existing CMBS debt and capitalize an upcoming PIP on the Hampton Inn & Suites located in downtown Columbus, Ohio. The fixed-rate, non-recourse loan was provided by an insurance company-backed financing facility. The Hampton Inn & Suites is part of Indus Hotels' portfolio.

Hermitage Bay, nestled on the rolling hillside of Antigua's west coast, is set to open today following a multi-million dollar renovation project. Recently inducted to the Small Luxury Hotels of the World portfolio and under the ownership of Luxury Hotels Partners, the resort offers 30 fully redesigned guest villa suites, an increased number of private pools, a refreshed spa, and newly landscaped gardens. The guest experience has been reinvigorated with a new beach club concept and bar and a host of captivating activities.

Princess Hotels & Resorts announced the opening of two luxury all-inclusive properties, Princess Senses The Mangrove and Princess Grand Jamaica, marking the company's first openings in Jamaica. Princess Senses The Mangrove is an adult-only, all-inclusive resort with 401 ocean suites and 14 overwater villas; 14 restaurants; 15 bars; and a spa. Princess Grand Jamaica is an all-inclusive, family-friendly resort complete with 59 spacious suites, three pools with water slides, eight bars, and nine restaurants. In addition to the two resorts, Princess Hotels & Resorts is building staff facilities that will accommodate up to 450 members.

Personnel Moves

Noble House Hotels & Resorts announced the appointment of Ryan Kingston as the Area Managing Director for its three Wyoming properties: Hotel Terra Jackson Hole; Teton Mountain Lodge & Spa; and the newest addition to its portfolio, Snake River Sporting Club. In this pivotal role, Kingston will oversee the strategic direction and operational excellence of these premier properties. Kingston brings a wealth of experience from various sectors, including iconic hotels, destination resorts, luxury cruise ships, and urban residential developments, including 11 years with Hilton Worldwide.

Dream Golf has named Olivia Herrick as Creative Director and Chad Turner as Director of Retail. Herrick is a renowned designer and branding expert joining Dream Golf after over nine years of running Olivia Herrick Design. In her new role, she will be responsible for creating brand and design directions for both Dream Golf and its new destinations, working with resort teams on brand and identity initiatives, and, broadly, enhancing the experience of guests and enthusiasts across the Dream Golf collection. She will also oversee the production of the annual Dream Golf Magazine. Turner brings 13 years of extensive and valuable experience in golf and retail from his tenure at Brandon Dunes in Oregon. His new position entails taking charge of the portfolio's retail strategy, developing and managing strategic partnerships, and overseeing all aspects of retail planning and operations.

Europe Highlights

Hilton plans to expand its presence in Italy, with the signing of DoubleTree by Hilton Naples Oriente and Hampton by Hilton Rome St Peter's, set to open next year. Following a franchise agreement with Italyhotelmanagment Srl, 124-room Hampton by Hilton Rome St Peter's will be the brand's first hotel in central Romeand is due to open in March 2025. Through a franchise agreement with F.G.N Horn Srl, Hilton will expand its full-service property portfolio with the debut of Naples' first DoubleTree by Hilton hotel, which is set to open in the spring of 2025 with 112 guestrooms.

Kolpin Hotels announced their partnership in the development of a new brand called Roberta's Society, a high-end, low-key budget hybrid concept. The transformation will take place in Aarhus, Denmark, at a former Main Library. The project consists of a 455-bed hybrid where a fusion of a hostel and a 3-star hotel will emerge - consisting of 53 double rooms and 355 beds in dorms and mega dorms.