How Hotel Stocks Fared Amid Sell Offs

The DJIA fell 890 points, down just over -2%, Nasdaq plunged 728 or -4%, and the S&P 500 was down nearly -3% or 156 points. The 10-year treasury yield fell .11 to 4.21%. Lodging stocks were lower, but they fared a lot better than their gambling-related cousins. SOND was down -10%, SVC fell -9%, HGV was down -7%, and WH fell -5% on the day.

Compass Point lowered their ratings on both Host Hotels and Pebblebrook Hotel Trust to Neutral from Buy.

Baird said hotel stocks declined -2% in February, following the broader market’s pullback. Their Hotel REIT Index was down -5.1%, while the Global Hotel Brands Index was down -1.8%.

Travel + Leisure Co declared their quarterly dividend. TNL upped that to $0.56 a share, up 12% year over year.

Peregrine Hospitality has broadened its platform with the addition of 26 select-service properties to its management portfolio. Over the past year, Peregrine has taken on the management of the majority of Mission Hill’s portfolio, with five transferred assets in February: the 133-key Hilton Garden Inn, Temple, Texas; the 192-key, dual-branded Residence Inn Waltham and Fairfield Inn & Suites Waltham, Waltham, Massachusetts; the 100-key Inn of Naples, Tapestry Collection by Hilton, Naples, Florida; and the 114-key SpringHill Suites Truckee, located near Lake Tahoe, California. Peregrine’s portfolio of high-quality, select-service hotels is located across 17 states.

Hampton Inn & Suites Maui North Shore, a newly built 136-key hotel in Kahului, is slated to open May 1, the first for the brand on the island. Hampton Inn & Suites Maui North Shore will have two four-story wings connected by a lobby. It will feature a fitness center, office space, a bar, and an outdoor pool. The hotel, owned by Argosy Real Estate Partners, Peachtree Hotel Group, and Blackridge Group, is managed by Springboard Hospitality.

The Lum Hotel Los Angeles Stadium District, part of PM Hotel Group’s luxury and lifestyle collection Modus, has joined Hilton’s portfolio and will be undergoing renovations to become a Tapestry Collection property by late 2025, according to a release obtained by Hotel Dive. Owned by Chartres Lodging Group, the 179-room hotel includes an outdoor pool, fitness center, a restaurant, and a rooftop bar. With renovations currently underway, The Lum Hotel Los Angeles Stadium District will be primed for upcoming events, including the NBA All-Star Game in February 2026and Super Bowl LXI in February 2027. The hotel will remain open during the renovations.

Residents are moving into Rosewood Residences Beverly Hills, the first standalone residential project by Rosewood Hotels & Resorts. Developed by Nahla Capital and GPI Cos., the five-story building is a collection of 17 residences, linked by shared amenities and outdoor spaces. Shared amenities include a rooftop with a 50-foot pool, Jacuzzi, fitness center, and outdoor recreation areas, plus a lounge, bar, and dining room.

The Last Hotel STL in Downtown West, St. Louis, Missouri, has closed suddenly. According to bizjournals.com, majority owner Michael Qualizza attributed the closure to a contentious, ongoing legal dispute stemming from a sale of the hotel. The Last Hotel opened in July 2019 after a $60 million redevelopment of the former International Shoe Co. building. Fe Equus Development developed the property but sold its stake to a group including Qualizza of Urban Development Group. The 142-room hotel is independent and doesn’t have an affiliation agreement with a hotel brand. Qualizza had previously listed the property for sale. He said a sale agreement was reached with a buyer but claims his partner and co-manager Neil Freeman wanted an exclusive review period with non-refundable, upfront funds from the buyer, who balked at those terms, leading to a legal dispute. The court appointed Robert Habeeb of Maverick Hotels and Restaurants as receiver of Last Hotel, said Qualizza. Qualizza believed there were conflicts of interest between Maverick Hotels and Freeman, claiming Maverick had formerly managed a hotel owned by Freeman in Rockford, Illinois. He alleged Habeeb, as receiver, mismanaged operations at Last Hotel, with more than $1 million in vendor debts and taxes owed, leading to the court removing Habeeb and Maverick Hotels from the receivership. Qualizza is seeking to reopen Last Hotel but doesn’t have the capabilities right now.

Highland Resources Inc. broke ground on the infrastructure for Magnolia Landing, a planned mixed-use community in Charleston, South Carolina. Consisting of 192 acres, the community will offer a blend of parks, a marina, residential offerings, hospitality offerings, office space, retail shops, restaurants, waterfront docks, and a variety of entertainment options, all set against more than a mile of river frontage. Magnolia Landing will include a mix of residential options along with affordable housing. According to hotelprojectleads.com, the first phase includes a high-rise waterfront community and a mid-rise community, both developed by Woodfield Development, offering a total of 600 rental residences. Additionally, the community will have 158 luxury townhouses.

American Hotel Income Properties REIT LP announced the completion of a non-recourse debt refinancing and repayment in full of its senior Credit Facility. The initial gross loan proceeds are $85.0 million secured against eleven hotel properties, with additional advances of up to $41.0 million available, comprised of $16.3 million upon the addition of a further hotel property and up to $24.7 million for renovations and improvements to these twelve hotel properties. AHIP used the net proceeds from the Portfolio Loan to fully repay the outstanding loan under the credit facility revolver and credit facility term loan and this facility is now terminated.  The Portfolio Loan has an initial principal amount of $85.0 million, a two-year term with the option to extend the term for another one-year period subject to the satisfaction of certain conditions, and bears interest at SOFR plus 4.65% per annum.

Hampton by Hilton announced a new hotel set to open in late 2025 in Santiago de los Caballeros, Dominican Republic, marking the brand’s first venture into the area.

Rafael Nadal and the Melia hotel group inaugurated the first Zel hotel in the Americas in the Dominican tourist resort of Punta Cana, where work also began on the construction of the first Rafa Nadal Tennis Academy in the Americas.  The Zel Punta Cana has 190 rooms and suites designed for couples, groups and families with a focus on relaxation, sports, nature and wellness.

Playa Hotels & Resorts N.V. announced the grand opening of Wyndham Alltra Punta Cana in the Dominican Republic. The newly re-imagined, all-inclusive property, managed by Playa Hotels & Resorts, features 620 rooms, a fitness center, full-service spa, kids club, Splash Island Water Park, five a la carte restaurants, a buffet, pizzeria, café, and nine bars and lounges.

Personnel Moves

Service Properties Trust announced Chris Bilotto has been appointed as a Managing Trustee, President, and Chief Executive Officer of SVC, effective March 10, 2025. Mr. Bilotto is an Executive Vice president of The RMR Group.  Mr. Bilotto succeeds John Murray as Managing Trustee, and Todd Hargreaves as President and Chief Investment Officer, both of whom resigned from their positions with SVC, effective March 9, 2025. 

Julien Mattei has been appointed as the new Chief Investment Officer of a&o Hostels. Mattei previously served as Investment Director at The Social Hub. Mattei will work with a&o’s team of real estate and finance experts.  The primary focus for a&o is acquiring existing hotels, as well as office and commercial buildings suitable for conversion. Together with its owners, StepStone Group and Proprium Capital Partners, a&o will invest approximately €500 million in the construction, renovation and modernization of existing and new properties by 2030. 

Europe Highlights

Marriott has unveiled The Palace, a Luxury Collection Hotel, Madrid, which has rebranded from The Westin Palace, Madrid following a two-year renovation and refurbishment project. The 470-room property offers a restaurant, cocktail bar, fitness center, and 20 meeting and events spaces. 

IHG Hotels & Resorts continues to deliver accelerated growth across its UK & Ireland market with the signing of eight hotels, adding more than 900 rooms in key locations such as Leeds, London, and Reading. The hotels span brands such as Hotel Indigo in IHG’s Luxury & Lifestyle portfolio and Crowne Plaza in its Premium space, to the market’s first signings for IHG’s Garner hotels.  The signing notable increase IHG’s UK&I footprint, where it has 362 open hotels and a pipeline of 25 properties. 

La Cala Resort, located on Spain’s Costa del Sol, has unveiled a series of renovations and new experiences. The resort, which is owned by FBD Hotels & Resorts, undertook an extensive renovation project over the winter, transforming half of its 107 rooms with a modern and stylish redesign.  La Cala Resort has also introduced a golf simulator in the Sports Lounge, located in the clubhouse and continues to deliver exceptional dining options with the newly renovated La Terraza restaurant and a new Steakhouse restaurant.

Andras House has acquired the Travelodge hotel in Belfast, Northern Ireland in a GBP8.75m deal with seller Tifco Hotels Group. The 90-room Travelodge will continue to trade under the budget hotel brand, with Tifco Hotels Group responsible for the franchise agreement under which the property will operate.  Under new ownership, the hotel will soon commence a significant refurbishment, upgrading the guest rooms and common areas to the latest Travelodge quality and brand standards. The acquisition was supported by lender Danske Bank.  Andras House will soon open the Marcus Hotel in Portrush, as part of Hilton’s Tapestry Collection.  A further development that is planned is the conversion of a building in the city into a 136-room Adagio Aparthotel.  Further ahead, plans are being prepared for Andras House to develop a 165-room hotel for the Yotel brand.  Yotel Belfast will be a new build in Belfast’s Shaftesbury Square, the brand’s eighth UK property, and its first on the island of Ireland.