Canadian Hotel Investment Exceeded $2 Billion in 2024

It was a rebound day in the financial markets on Friday, a pause in the serious correction the markets are undergoing. The DJIA rose 675 points while Nasdaq was up 451, the S&P 500 rose 117 points, and the 10-year treasury yield was up .03 to 4.31%. Lodging stocks were higher, with the two biggest gainers, SHCO and SOND, both rising 14% on the day.

Global Accommodations Sector Performance

For the Week Ending March 14, 2025

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Truist reported on an investor call they held with Choice Hotels management. While the commentary appeared positive, leaning towards CHH showing how they can be a very defensive play during an economic downturn, with CHH management giving details to back that up, Truist maintained their Hold rating and $136 price target.

Investment in Canadian hotels continued to rise in 2024 with transaction volume exceeding $2 billion - 17% above 2023 levels, according to Colliers 2025 Canadian Hotel Investment Report. Momentum was fuelled by a dynamic rotation of market players driving significant liquidity, cementing hotels as a leading alternative asset class within Canada's commercial real estate sector. Record hotel performance, attractive yields relative to core CRE classes, and improved debt conditions strengthened investor confidence in hotels, driving heightened competition for quality assets, sustaining near-record an average price-per-room metrics with predominantly private capital sources seizing the opportunity to transact. With a mix of domestic and foreign interest buoyed by strong fundamentals, the market outlook for hotel investments in Canada remains optimistic for 2025. There is a focus on quality, with investors prioritizing assets they anticipate will outperform in a dynamic market. Seller motivations range from opportunistic dispositions to strategic rationalization of portfolios.

Canal House of Georgetown, a Tribute Portfolio Hotel in Washington, D.C. has opened and is now accepting reservations for hotel stays. Canal House of Georgetown offers 105 guestrooms, 10 specialty suites, 3 terrace rooms and 2 expansive townhouses, and vibrant social spaces such as a library lounge and private courtyard. Additionally, the property offers a restaurant and a fitness center.

Sol Cypress Hotel, part of the Tribute Hotel by Marriott network, will officially reopen on March 19 following an $11 million makeover. Formerly Wyndham Garden Inn, the San Antonio, Texas hotel is owned by Paradigm Management and offers multiple dining options and more than 4,000 square feet of meeting and banquet space.

A four-story, 111-room hotel planned for Lexington, South Carolina, is closer to becoming a reality nearly a year after the project was given a key approval to move forward. The board unanimously approved changes to the upcoming Courtyard by Marriott planned for 116 E. Main Street, at a March 11 meeting. The changes include removing a metal trellis from a patio near the front entrance of the hotel and expanding the roof of the second-floor terrace to extend across the whole terrace. The hotel comes from local hotel developer Lexington Hospitality. Construction is anywhere from two to six months away from starting. After the project begins, it could take a little over a year to complete.

DoubleTree Suites by Hilton Austin Downtown Capitol, in Austin, Texas, announced the debut of a full renovation across 195 suites and rooms, as well as its public areas. This includes six renovated meeting rooms, totaling over 5,000 square feet of event space, and a stylish lounge and bar. Formerly DoubleTree Suites by Hilton Austin Downtown, the property is owned by RLJ Lodging Trust and managed by Hilton.

The 1,249-room Hilton Atlanta was recently sold at a foreclosure auction after its ownership group defaulted on its nearly $219 million loan, according to Fulton County property records. The hotel remains open. The owners of the loan, Axonic Capital and a subsidiary of Trinity Investments, exercised a "credit bid" of $191 million to take position in a foreclosure auction. Haberhill LLC and Apollo Global Real Estate Management bought Hilton Atlanta in 2015. Axonic and Trinity later acquired a $219 million loan on the property and initiated the March 4 auction. The current debt on the property is a $194 million loan that matures in January 2026. CBRE has been hired to market the hotel for sale.

Pendry Hotels & Resorts announced a collaboration with SomeraRoad and Trestle Studios to develop Pendry Nashville and Pendry Residences Nashville. This new addition to the growing Paseo South Gulch district will break ground immediately, with an expected opening in 2027. Pendry Nashville will feature 180 guestrooms and suites complemented by 146 Pendry Residences. The property will offer various dining venues, a rooftop pool, a fitness center, and adaptable meeting spaces. A dedicated 10,000-square-foot event area will occupy the second floor. In addition to full access to the hotel's amenities, residents will enjoy private offerings, including a residential pool, a whiskey and billiards room, and a dining space. JE Dunn Capital Partners and Clark Construction are key collaborators on this venture, with financing managed by the Walker & Dunlop New York Capital markets team.

EAST Miami hotel owners, Trinity Investments and Certares, are considering selling the property with the news report suggesting a price of more than $325 million. The owners have engaged JLL as an advisor to facilitate the marketing of the hotel, according to Bloomberg. They purchased the hotel in 2021 from Swire Properties in a transaction valued at $174 million. Swire Hotels has continued managing the hotel following that transaction. The hotel has 352 guest rooms, eight suites and 89 residence suites, F&B options, including the 40th-floor Asian-inspired rooftop bar and 20,000 square feet of event space, along with other amenities.

Banyan Tree Mayakoba, located in the heart of Mexico's Riviera Maya, is redefining the family travel experience with its newly renovated portfolio of two and three-bedroom Family Residences. These multi-bedroom, standalone homes mark the completion of the first phase of $45 million work of extraordinary renovations that are taking place throughout 2025. By the end of 2025, every guest accommodation at Banyan Tree Mayakoba will have undergone a stunning transformation. This marks the culmination of over 5 years of work done to the property, capping off a total of nearly $100 million invested in the hotel's refurbishment since 2019.

R.D. Olson Construction announced the beginning of the expansion of the iconic Lido House hotel landmark in Newport Beach, California. The expansion will include five additional cottages, alongside expanding meeting rooms and adding The Cotton Pavilion, a new 600-square-foot event space. The expansion of Lido House will be conducted in three phases. First will be the demolition of an old fire station that has remained vacant for years. Concurrently, construction will begin on the Glass Pavilion Building, the Meeting Space addition and the Private Dining space at the Mayor's Table Restaurant. Lastly, the new cottages will be constructed, marking the entire expansion to be finishe by the summer of 2026.

An LLC tied to hotelier Rajesh Aggarwal is eyes a 12-story hotel on Music Row in Nashville, Tennessee. The hotel is slated to rise at 1407 Division Street adjacent to the Best Western Plus Music Row hotel, documents show. The development is referred to as Division Street Hotel on Metro records. No brand was specified in the application, but specs for the project include a 191,150-square-foot building with 222 hotel rooms. Rajesh Aggarwal owns the 1.27-acre property through RNA LLC, which according to Metro records, that entity acquired the site, which includes the existing Best Western Plus, through a quitclaim deed in 1998.

In Texas, the Round Rock City Council approved an economic development agreement with the Ruby Hotel to construct a special events center. The project will cost an estimated $5 million. The economic development agreement also authorizes a $2.65 million loan for project improvements, which the Ruby Hotel must pay back in full within four years. Per the agreement, the city would have five days annually to utilize the event center.

Reconstruction and rebranding of a Shreveport, Louisiana hotel that's been ongoing for six years is progressing, just not as fast as one city councilman would like. Galaxy Hotels stated work has been underway for the past two weeks to make the property less of an eyesore. The former Wyndham Garden Hotel closed about six years ago for what was supposed to be a two-year renovation. Galaxy expects the hotel project to be completed by the end of the summer. Then that triggers another phase where Galaxy Hotels, which is the owner and manager, will engage with a brand. That could take 30 to 60 days. However, Galaxy expects signs to go up by month's end so the public will know the facility will be known dually as the SpringHill Suites and TownePlace Suites. The hotel also will include a Boston Pizza restaurant, according to ktbs.com.

Europe Highlights

Ricardo Arranz has entrusted JLL with the search for a buyer willing to put on the table the 150 million euros Villa Padierna Palace is valued at before the end of this year. The luxury hotel is located in Marbella, Spain.

The new Tivoli Kopke Porto Gaia Hotel offers travelers a unique experience that combines the heritage of Tivoli Hotels & Resorts and Kopke, the oldest Port Wine House in the world. Located in the city of Vila Nova de Gaia, Portugal, the hotel boasts a collection of 149 guestrooms and suites, a refurbished Kopke Port wine cellar, multiple dining options, an outdoor heated pool, Tivoli Spa and Tivoli Shape fitness center, outdoor gardens and 1,750 square meters of flexible indoor and outdoor meeting spaces.