Hyatt’s New Las Vegas Deals

When the Fed Chief admits he has no idea what is going on with the economy without coming right out and saying it, you have the DJIA plummeting -3% or 1,123 points, Nasdaq down 716 or -4%, the S&P 500 down -3% or 178 points and the 10-year treasury yield jumping .11 to 4.49%. The Fed lowered interest rates by another .25 but said they would be slowing the rate cuts as the economy and inflation are stronger than they expected. Readers for the past two Presidencies know we are not fans of Jerome Powell, and anyone who has been on the stock market probably is not anymore. Lodging stocks took it on the chin, with SOND and VCSA leading the decliners with -9% drops, AHT down -8%, PEB, PK, SVC, and BHR down 7% each, and HST, CLDT, HGV, RHP, and XHR all falling -6% on the day. As for the Santa Claus Rally, it is pretty obvious who the Grinch is.

STR reported U.S. lodging data for the week ended December 14. U.S. hotel RevPAR was up 18.2% year over year, helped by the Chanukah shift. Group RevPAR was up 55.9%.

Bank of America Securities upped their price target on Airbnb to $159 from $154. They maintained their Neutral rating.

The Federal Trade Commission announced its final “Junk Fees Rule,” which they said will prohibit bait and switch pricing tactics that bury junk fees in the live-event ticketing and short-term lodging industries. In terms of the hotel business, properties will now need to give total hotel room pricing, including resort fees, in their advertised upfront rates. The FTC amendment took two years to come to this conclusion, and now all the U.S. resorts and hotels will have 120 days to include all the unavoidable add-on charges upfront.

Oravel Stays, the parent company of OYO, announced it completed the previously announced acquisition of G6 Hospitality, the parent company of the Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 million. OYO plans to accelerate the growth of G6 Hospitality’s operations, focusing on technology integration, property upgrades, and market expansion. OYO plans to add over 150 hotels in 2025 as part of the Motel 6 & Studio 6 brands. OYO said they will maintain and strengthen the Motel 6 and Studio 6 brands. All existing franchise agreements, including exclusivity rights, will be honored. Technological improvements will include enhanced mobile and web booking experience and options of dynamic pricing capabilities that can optimize rates across room types throughout the year. In the distribution and revenue growth area, OYO plans to develop a broader network of distribution partners beyond traditional online travel agencies, which strengthen direct booking channels and corporate booking demand. Sonal Sinha has been appointed as CEO, while Tina Burnett will remain as Chief Development Officer, as well as several others at G6. Nishant Boorla & Anuj Ladha were named the heads of Brand Performance, while Manas Mehrotra was the Central Operations Head. Subhankar Choudhary is Head of Revenue, E-Commerce & Sales. Leaving G6 will be former CEO and President Julie Arrowsmith, CFO Perry Ping, General Counsel and Chief Compliance Officer Farah Bhayani, Adam Cannon as Chief Brand Officer, Brent Haines as Chief Information Officer, and Mary Fregia as Chief Human Resources Officer.

U.S. hotel conversion activity continues to trend below the long-term average of the 20-year period ending 2019, according to CoStar. As of October 2024 year to date, 1,103 hotels went through a conversion, up from 1,000 hotels at this time last year, but below the 20-year average of 1,424. Of the hotels that made a switch this year, the largest change was with properties that went from branded to independent (391 properties), followed by hotels that have switched to a brand of another parent company (333 properties). Additionally, 251 hotels converted from independent to brand, while 128 changed hands but remained with the same parent company. The largest deficit in the long-term average is among hotels converting from a brand to an independent and vice versa. On average, over the last three years, 250 fewer hotels per year have made that change. 46% of the hotels that have changed brands this year went down the scale with 35% becoming independent. However, 36% of hotels moved to a large chain scale, with the largest majority (22%) becoming Economy or Midscale brands, with most formally independent. Only 15% of this year’s conversions are from a lower-tier brand to an Upper Midscale or higher affiliation. Furthermore, 18% of hotel conversions remained in the same chain scale. Among the hotels that were closed, 307 have reopened this year. Of those hotels, the largest number (224) reopened as the same brand, with the remainder switching to a different brand or becoming independent. Since the beginning of the year, 564 new hotels have opened, which is the most since 2021 (819) but well below the long-term average (797). The largest deficit in openings is among the Upper Midscale segment, which still leads openings, accounting for 30% of all new hotels. Independent hotels make up the next largest percentage (18%), followed by Upscale (16%).

Marriott International announced substantial growth in its branded residences portfolio across the EMEA region, with a total of 70 projects in development. This expansion includes 43 signed projects and 27 properties already open. Over the past two years, Marriott has signed 26 agreements to introduce its branded residences throughout EMEA, more than doubling the number of agreements signed in the previous two-year period. New additions include The St. Regis Residences, Casares on Spain’s Costa del Sol, and the W Residences at Dubai Harbour. By the end of 2024, Marriott plans to unveil several notable projects, including Nujuma, a Ritz-Carlton Reserve Residence in Saudi Arabia, the first of its kind in the EMEA region; The Residences at the St Regis Al Mouj Muscat Resort in Oman; The Residences at the St Regis Belgrade in Serbia; and The Ritz-Carlton Residences in Baku, Azerbaijan.

The Delano at Mandalay Bay on the Las Vegas Strip officially became the W Las Vegas today. MGM confirmed the booking and reservation system transfer to Marriott International will be completed this week. The W Las Vegas has 1,117 rooms, all considered suites. The 41-story non-gaming hotel tower also includes two restaurants, a spa, beach club, and the top-floor Skyfall Lounge.

Not to be outdone, The Venetian/Palazzo on the LV Strip and Hyatt Hotels announced a long-term licensing agreement to make the two properties bookable through Hyatt channels in the near future. World of Hyatt members and eligible meeting and event planners will be able to earn and redeem loyalty points on stays and enjoy additional on-property benefits.

Hilton announced the opening of Canopy by Hilton Sioux Falls Downtown, marking the Canopy by Hilton brand’s debut in South Dakota and Hilton’s first lifestyle hotel in Sioux Falls. The property features 216 guestrooms and suites, two culinary outlets, a fitness center, nearly 20,000 square feet of event space, and the brand’s signature complimentary Canopy bikes.

Hilton Hawaiian Village Waikiki Beach Resort announced the renovation of its Rainbow Tower. The extensive makeover will modernize guestroom interiors, corridors, and amenities.

IHG’s 19th brand, Garner Hotels, celebrates the one-year anniversary of its inaugural property opening in Auburn, Washington, and is building momentum with more than 90 properties open or in the pipeline by the end of the year, specifically six in the U.S. Ensuing properties in Oklahoma City, Macon, Georgia, Clarksville, Tennessee, and Aiken, South Carolina, precede recent and planned upcoming openings in additional U.S. markets, including Garner Gillette South, Gillette, Wyoming; Garner Augusta West, Augusta, Georgia; Garner Topeka West, Topeka, Kansas; Garner Phoenix - Surprise, Surprise, Arizona; Garner Virginia Beach North, Virginia Beach, Virginia; and Garner Longview South, Longview, Texas. 58% of the 76 properties signed in the first half of 2024 came from the European market, extending the brand’s presence to Germany, the Netherlands, Austria, the U.K., and Turkiye. Garner Hotels will also debut in Japan with the upcoming openings of Garner Hotel Osaka Honmachi Station, Garner Hotel Osaka Honmachi Midosuji, and Garner Hotel Osaka Honmachi Kita Semba.

San Antonio’s iconic The St. Anthony, a Luxury Collection Hotel, has named Crescent Hotels & Resorts as the property’s new management company. The historic property offers a rooftop infinity pool complemented by plush cabanas, and multiple upscale food and beverage venues. Sid Greehey, a majority investor in the property, has been named Managing General Partner of the hotel ownership group.

Highgate is handing over the 686-room Hyatt Regency San Francisco Downtown SoMa to its lender, according to public property records. Per the deed-in-lieu of foreclosure filing on December 11, Highgate transferred the deed to an affiliate of Blackstone Mortgage Trust for forgiveness of a little over $290 million in unpaid debt and associated costs.

A D.C. investor plans to convert a downtown office building that was sold in a November foreclosure sale into a 122-room hotel. Calco Hospitality Principal Alex Vespoli presented his plan earlier this month to Advisory Neighborhood Commission 2C to transform the building, once known as the Bob Hope Building, into a 10-story hotel with a penthouse and a small indoor/outdoor restaurant and bar area, according to UrbanTurf.

Brookmere, Bonacio Development’s $30 million-plus transformation of the former Longfellows Hotel & Restaurant, is welcoming its first guests this week as it nears completion. The 9-acre resort in Saratoga Springs, New York, includes an 88-room hotel, a restaurant, a ballroom, and a spa. Arch Amenities manages the spa, which has four treatment rooms. Brookmere is owned by Sonny and Julie Bonacio and investment partner Mark Haworth.

Caesars Entertainment and the Eastern Band of Cherokee Indians celebrated the grand opening of Caesars Virginia. Caesars Virginia boasts 90,000 square feet of gaming space, a 320-room hotel tower, 50,000 square feet of meeting and convention space, a full-service spa, a pool, and a wide variety of dining options.

The new Island Tower at Disney’s Polynesian Villas & Bungalows has officially opened its doors. The 10-story waterfront haven expansion includes 268 rooms and a variety of new amenities, including the Cove Pool area with a zero-entry pool, Moana’s Voyage splash zone, four tropical terrace gardens, and the Wailulu Bar & Grill.

Barings has provided a $115 million loan to refinance the Renaissance Boston Seaport Hotel in Boston, Massachusetts. A joint venture between affiliates of Rockpoint, Highgate, and hotelAVE (its asset manager) has owned the hotel since 2015. The 471-room hotel features 21,000 square feet of flexible meeting space, a 10,700-square-foot ballroom, a club lounge with harbor views, a recently renovated fitness center, an indoor pool, and several food and beverage outlets. Eastdil Secured advised the sponsorship on the financing from Barings.

Seven Hills Realty Trust announced the closing of a $45.0 million first mortgage floating-rate bridge loan to finance the acquisition of Club Quarters Hotel, a 178-room hotel located in Boston, Massachusetts. The loan has a three-year initial term with two one-year extension options. SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by JLL, which advised Arch & Devonshire LLC, the borrower.

Hilton announced its entry to Bonaire with the debut of Delfins Beach Resort Bonaire, Tapestry Collection by Hilton. The opening underscores Hilton’s accelerated growth in the Caribbean, where the company has more than 45 open hotels and approximately 35 additional hotels in various stages of development. The 148-room, oceanfront Delfins Beach Resort Bonaire offers an on-resort dive center, two outdoor pools, a pristine beach, elevated dining, a beach spa, a gym, and versatile meeting spaces, including a ballroom and a boardroom.

Blue Diamond Resorts announced the completion of a $32 million transformation of Royalton Punta Cana, An Autograph Collection All-Inclusive Resort & Casino, and the adjacent Hideaway at Royalton Punta Cana, An Autograph Collection All-Inclusive Resort & Casino - Adults Only. Royalton Punta Cananow features beautifully redesigned rooms and suites that merge enhanced comfort with contemporary style and amenities. The resort’s shared spaces, including the lobby, the exclusive Diamond Club lounge, and the Convention Center, have also been significantly upgraded. Hideaway at Royalton Punta Cana now boasts upgraded rooms and peaceful public areas. Dining at the resorts has been transformed as well, with extensive updates to the food and beverage facilities.

Personnel Moves

Hospitality America announced Kellie Hanselman as its new Vice President of Sales. Hanselman is committed to building a sales team that delivers exceptional outcomes for the company’s partners, associates, and guests. Before joining Hospitality America, Hanselman held multiple leadership roles in the industry, including Director of Sales & Marketing for the Waldorf Astoria in Park City, Utah.