IHG Acquires European Hotel Brand Ruby

The DJIA rose 10 points, the Nasdaq was up 14, the S&P 500 was up 15 points, and the 10-year treasury yield rose .07 to 4.54%. Lodging stocks were higher.  a new all-time high, but the biggest mover of the day was to the downside, with SOND down -9%.

IHG reported 4Q24 results, along with an acquisition, higher dividend, and buybacks, and investors continued their trend of acting like good isn’t good enough for the C-Corps, given their outperformance the past year. IHG announced they are buying the Ruby brand, an urban lifestyle brand located in city destinations such as Dublin, London, Vienna, Geneva, Florence, and Frankfurt. The brand has 20 open hotels and 10 in the pipeline. IHG expects to rapidly grow the brand globally, targeting 120 in 10 years and 250 in 20 years. Initial purchase consideration is $116 million (110.5 million euros). They paid 109 million euros upfront, with the rest payable to at least half the hotels joining IHG’s systems. Potential additional payments could be made in 2030 and 2035 based on the performance of the brand. IHG upped its dividend by 10% and said it will launch a $900 million share buyback this year, expecting to return more than $1.1 billion to shareholders in 2025.

Wells Fargo’s REIT lodging analyst was not in a very good mood this weekend, slashing target prices across the board. In companies that have overweight ratings, WF cut XHR’s target price to $17 from $18, RHP to $128 from $130, and HST to $20 from $22. On the Equal Weight side, MAR’s target was cut to $277 from $285, APLE to $16 from $17, PEB to $13 from $16, PK to $14 from $17, SHO to $12 from $13, and DRH to $9.50 from $10.50. They cut SVC’s PT to $2.50 from $2.75 and RLJ to $9.75 from $10.50 and maintained their Underweight ratings.

Baird upped their target price on WH to $115 from $108 while maintaining their Outperform rating. Truist upped their H price target to $163 from $158 and maintained their Buy rating.

The remodeling of the Hampton Inn Saltillo Hotel is in its last phase and will be completed by mid-March, according to its manager. Located in Saltillo, Mexico, the remodeling began in May 2024. Currently, the 227 rooms have already been renovated, as well as public areas such as the gym, lounges, lobby area, and breakfast area, so only some external work continues in the pool area and some issues such as paving. The remodeling is aligned with the new concept and design dictated by Hilton’s Hampton brand and includes some new areas, such as a specialty café, since the hotel did not have its own restaurant.

According to sources, there is yet another delay in reopening the iconic Waldorf-Astoria Hotel in New York City. Property owner Daija Insurance Group and hotel management company Hilton have been pushing for a “spring reopening, which would have been in May. The hotel’s reservation site lists no guestroom availability until September 1, according to the NY Post.

Extended Stay America announced the opening of the Extended Stay America Premier Suites - Bradenton in Bradenton, Florida. The four-story, 124-room newly constructed hotel features a fitness room, onsite guest laundry, and Extended Stay America Premier Suites’ signature lobby with additional vending options. In addition to the Bradenton property, Sandpiper Hospitality developed the Extended Stay America Premier Suites hotel in Sparks, Nevada.

Choice Hotels International is enhancing its presence in the extended-stay market with the launch of a fresh marketing initiative for Everhome Suites. The campaign, titled “WhenEverhome,” aims to boost brand recognition while positioning Everhome Suites as the go-to solution for guests seeking long-term stays, whether for business travel, life transitions, or unexpected circumstances. With its nationwide footprint growing steadily, Everhome Suites is on track to have nearly 25 locations open by the end of 2025. Currently, eight hotels are operational, while 20 properties are under construction, and 45 more are in development. Everhome Suites is redefining midscale extended stays by offering a blend of modern design and practical amenities, including fully equipped kitchens; spa-style bathrooms; spacious storage options; Homebase Market; multipurpose lobbies; outdoor amenity spaces including firepits, grilling areas, green spaces, and select locations also include pools; fitness centers and onsite laundry facilities.

IHG Hotels & Resorts announced the opening of a newly build Hotel Indigo in West Chester, Pennsylvania. The property offers 108 guestrooms, 1,100 square feet of meeting space and multiple food and beverage venues. Hotel Indigo West Chester - Downtown is owned by West Chester Hotel LLC and managed by Onix Hospitality.

Arriveby Palisociety announced the grand opening of Arrive Albuquerque. Located on the legendary Route 66 in Albuquerque, New Mexico, the hotel is housed in a re-imagined 1965 historic building boasting 137 guestrooms, a seasonal pool and swim club, and a signature dining experience.

The Chickasaw Nation is preparing to open the OKANA Resort & Indoor Waterpark in Oklahoma City. Reservations are now open for stays beginning February 21, with the grand opening scheduled for March 6. The 11-story OKANA Resort Hotel will feature 404 rooms including more than 100 suites. The resort’s conference center will feature 27,000 square feet of event space for conventions, meetings, and corporate retreats and a landscaped amphitheater will offer a venue for outdoor events. Additionally, a 10,000 square foot First Americans retail art gallery is set to open in 2025. The indoor waterpark, which will span 100,000 square feet, will offer family-friendly attractions such as a wave pool, lazy river, and numerous water slides. Other features include a FLY pool for zip-lining and jumping into the water and adults-only areas. For family entertainment, the OKANARAMA! Game Hall will feature laser tag, crafts and other activities. There is also a full-service spa with treatment rooms for massages, manicures and pedicures, saunas, relaxation areas, and a full specialty produce line. OKANA’s dining options include several restaurants and bars throughout the Resort and the waterpark.

Plans for another new hotel in downtown Sacramento, California are being unveiled. Plans call for turning a three-story brick office building in Old Sacramento into a new 14-room boutique hotel with an apartment-style vibe. Developers say the hotel will operate as an independent boutique business rather than a franchise-branded hotel.

The Jung Hotel, a historic Canal Street property, in New Orleans, Louisiana, is under new ownership after it was taken over by a group of creditors in January, according to people with direct knowledge of the situation. It is now clear whether the new owner group is looking to sell or hang onto the Jung, though members have been in discussions to rebrand the hotel. They’re also looking for a new partner to replace Sonder to operate part of the complex.

Blue Suede Hospitality Group announced the opening of Aloha Fridays, a boutique hotel located in the heart of Miami Beach, Florida. Featuring 97 guestrooms and suites, Aloha Fridays offers a simple, no-contact check-in system; a lobby bar and restaurant from Freehold Hospitality; a pool area; and a fitness center.

Grupo Hotelero Fibra Inn will allocate 1.5 billion pesos to acquire new hotels to add to its portfolio, which currently has 41 units. According to Miguel Aliaga Gargollo, Director of Administration and Finance of the REIT, destinations where they will be looking for properties to add to their portfolio are Mexico City, Guadalajara, Monterrey and Tijuana, although he also highlighted interest in destinations with beaches, such as Los Cabos, La Paz, Riviera Nayarit or Riviera Maya.

JLL’s Hotels & Hospitality Group arranged a $29.5 million refinancing for The Maxwell Hotel, a 139-key boutique hotel located in the heart of Seattle’s Queen Ann neighborhood. JLL worked on behalf of the borrower, Staypineapple, to secure the 10-year, fixed-rate loan through a regional credit union. The five-story property features an indoor pool, fitness center, onsite restaurant and bar, and 1,600 square feet of meeting space.

The 292-room Clarion New Orleans Airport Hotel has been sold by a group of local investors and was purchased by Garnet Hotels for an undisclosed amount. As the new owner, Garnet plans to keep the current Choice Hotel brand. The company will manage the hotel as renovations have begun on the asset. HREC collaborated with the Buyer Garnet and Seller on this opportunity.

Europe Highlights

Signum Hotels and Resorts has partnered with Wyndham Hotels to operate hotels in India, the United Kingdom, and the United Arab Emirates. The collaboration aims to add 5,000 keys over the next five years. As part of this collaboration, properties will join under Trademark Collection by Wyndham and will be managed by Signum Hotels.

Cycas Hospitality announced its first signing in Portugal with the introduction of Marriott International’s Autograph Collection resort-style hotel development in Sintra. This landmark project marks Cycas’ entrance to the Iberian Peninsula, expanding the company’s presence within Southern Europe and extends the hotel management company’s operations to over 55 hotels across 13 European countries. The new hotel is being developed as part of a joint venture between Patron Capital and Quest Capital. The JV appointed Cycas Hospitality to manage the hotel. Set to open in summer 2026, the hotel comprises 15 distinct buildings, accommodating up to 260 guests across rooms, suites, and villas, including a signature sea-view wedding suite; a range of dining options; indoor and outdoor reception spaces; expansive sun terraces, outdoor and indoor pools and a spa.

One of the three Yotel brands, YOTELPAD is now setting its sights on a worldwide, extended-stay platform in an effort, according to Yotel executives, to democratize the extended-stay market and offer something unique in a sea of other brands offering long-stay alternatives while keeping costs in check. Instead of fighting the competition where they already are, Yotel is looking for new markets that need attention, according to a Forbes article. It searches for real estate in places where there is both business and leisure demand but is also not afraid to be mutually exclusive if it is a good fit. Coming soon are properties in Brussels and Geneva and the potential for more in Asia, where the brand sees strong potential. Beyond Asia, a dual YOTEL and YOTELPAD will open in Atlanta next.

R Collection Hotels expands its portfolio of luxury five-star hotels with the acquisition of Bianca Relais in Italy. The hotel features ten bright and spacious rooms, ERRE SPA, a restaurant and bar.