Earnings Day for Host Hotels, RLJ, Xenia and More 

It seems like half the public hotel companies in the U.S. reported earnings in the last 24 hours, so given that volume and the commentary from the recent survey of subscribers that earnings reports are low on the list of why you read the DLR each day, this will be quick. The best report of the day was RLJ Lodging Trust, beating 3Q estimates. The offset was they gave a somewhat softer 4Q24 forecast. The worst earnings report was from Xenia Hotels, with analysts seeming a bit upset that the miss was pretty much across the board with their results, not just one specific thing. Revenues were only a tad light, but EBITDAre and AFFO were well below consensus.

Host Hotels reported a modest beat, with Group outperformance offsetting any issues from the hurricanes that they were hit with. Hurricanes Milton and Helene impacts will be felt the rest of the year and into 2025.

The two getting the best reaction on their earnings reports were Marriott Vacations and Chatham Lodging Trust. Service Properties Trust didn't get much love, giving back some of yesterday's rebound. Playa Hotels and Hilton Grand Vacations also received applause for their reports.

Jefferies downgraded Choice Hotels to Hold from Buy. Their price target was unchanged at $150. Jefferies believes CHH's valuation now appears appropriately balanced.

Galaxy Hotels Group announced the opening of the company's newly built Courtyard by Marriott Reno Sparks in northern Nevada, representing Galaxy's sixth hotel the state. The four-story Courtyard by Marriott Reno Sparks features 127 rooms and suites, the BISTRO, a market, a communal lobby area, an outdoor courtyard with firepit and relaxed seating, one meeting room, one collaboration room and a self-serve laundry.

Bradford Allen Hospitality has begun a $25 million renovation of its Hyatt Rosemont Chicago/O'Hare hotel to transform it into a Hyatt Centric full-service lifestyle hotel. The extensive renovations of the Rosemont, Illinois hotel entail a full gut rehab of the property, which will result in 206 completely remodeled guestrooms, 12,000 square feet of modernized meeting space, an improved fitness center and a ballroom with a capacity for up to 500 people. In addition, what once was an American eatery will be transformed into an upscale, beverage-forward destination restaurant with outdoor seating. Maverick Hotels & Restaurants will continue to oversee operations of the future Hyatt Centric Rosemont as the management company.

Just two years after a major overhaul of more than 600 guestrooms at a San Antonio River Walk hotel, the same property filed for a $3.2 million renovation of its lobby and downstairs amenities, which appears to be the next step in a total revamp of the downtown hotel. According to a filing with the Texas Department of Licensing and Regulation, the Grand Hyatt on the River Walk in San Antonio, Texas, is set to undergo even more renovations. Starting in December, the hotel will begin renovations, including upgrading its first floor. The project is planned to improve the Hyatt's reception area, Perks Market, Bar Rojo, the bar patio and its downstairs public restrooms. The first renovations to the hotel were done under different ownership. Back in April, it was announced that Sunstone Hotel Investorswould be acquiring the river-front property for $230 million from a Hyatt Hotels Corporation affiliate.

Today marks the grand opening of two new landmarks in East Chattanooga, Tennessee, as LBA Hospitality and 3H Group introduce Candlewood Suites Chattanooga East and Holiday Inn Express Chattanooga East, a 154-guestroom dual-branded property. After welcoming their first guests on September 30, 2024, the hotels held an official ribbon-cutting ceremony.

IHG Hotels & Resorts celebrated the opening of a newly built Holiday Inn hotel in Nashville, Tennessee. Owned by Madesh Hotels, LLC and managed by MNJ Hospitality, Holiday Inn Nashville Airport offers 200 rooms, 5,000 square feet of meeting space, an onsite restaurant, a fitness center and an indoor pool.

St. Johns County Board of County Commissioners approved changes to plans for the Beachwalk Compass by Margaritaville Hotel in St. Johns, Florida. The modified proposal raises the limit of hotel rooms from 150 to 200, including 68 short-term stay cottages. In addition to the cottages, a five-story boutique hotel is planned to have 132 rooms. The cottages can either be owned by the hotel or sold individually. Beachwalk Retail Center LLC, a partnership between PEBB Enterprises and Falcone Group, will develop the hotel and cottages. It owns the land. In exchange for the increase in rooms, plans call for a 7,900-square-foot reduction in commercial use.

Developer Zyyo plans to build a new 27-story, $175 million downtown mixed-use tower in Louisville, Kentucky. According to hotelprojectleads.com, the project, called One Forty West, would include a 300-guestroom hotel that is currently un-flagged. Site demolition & preparation, and building design will soon begin, and the developer is currently in negotiations with multiple hotel brands.

Developer Marcon is proposing a 29-story hotel in downtown Vancouver's West End near Stanley Park. The Rosellen Suites at Stanley Park currently occupy the site. The project would have 292 rooms, including 227 service apartments and 65 hotel rooms; a lounge/restaurant; retail stores; and 74 parking spaces.

Paramount Lodging Advisors announced the sale of the Hampton Inn Dayton/Fairborn, Ohio. The 61-key property is across the street from Wright State University's main campus.

Paramount Lodging Advisors also announced the sale of the Holiday Inn Express Rochester NE - Irondequoit, NY. The 66-room property is unencumbered by third-party management, with an opportunity to retain the Holiday Inn Express brand with an agreement with IHG Hotels & Resorts.

Mesa West Capital has provided a joint venture led by Regent Partners and Mariner Group with $50 million in short-term first mortgage debt to refinance Thompson Savannah, a 193-key luxury hotel in Savannah, Georgia. The five-year, non-recourse financing took out the original construction loan on the hotel developed by joint venture partners Regent, Mariner and Cadre and opened in August 2021. The hotel features a signature restaurant, bakery, two bars, pool with private cabanas, fitness and wellness center and 11,000 square feet of meeting space. Berkadia's Hotel and Hospitality Group arranged the financing.

According to The Real Deal, developer Chateau Group has allegedly defaulted on the 233-key Le Meridien Pasadena Arcadia hotel located in Arcadia, California. The company fell behind on nearly $2.1 million in debt tied to the hotel, according to a default notice. Lender Hankey Capital provided a $29 million loan on the property in 2021. The asset includes a fitness center, pool, 14,000 square feet of event space, a restaurant and a bar.

Ashford Hospitality Trust, Inc. has refinanced its mortgage loan secured by the Marriott Crystal Gateway Hotel located in Arlington, Virginia, which had a final maturity date in November 2026. The new, non-recourse loan totals $121.5 million and has a three-year initial term with two one-year extension options. The loan is interest only and provides for a floating interest rate of SOFR + 4.86%. The refinancing resulted in approximately $31 million of excess proceeds that will be used to pay down the Company's strategic financing. The Company had previously announced a reduction in the exit fee on its strategic financing from 15% to 12.5% of the original loan balance through December 15, 2024, provided that the outstanding loan balance had been reduced to $50 million or less by November 15, 2024. The $31 million pay down, along with an additional pay down the Company intends to make next week, will result in the loan balance below $50 million, triggering the reduced exit fee.