Short-Term Rental Crackdown in New York City

The DJIA rose 29 points on Friday, losing most of its gains for the day. Nasdaq was up 109, the S&P 500 rose 10 points and the 10-year treasury yield was up .03 to 3.52%. Lodging stocks were higher. SOND was the biggest gainer, up 8% while ABNB and VCSA were both up 6% on the day.

Wells Fargo cut their rating on Hyatt Hotels to Equal Weight from Overweight. WF upped their target price to $113 from $111.

BNP Paribas downgraded their rating on IHG Hotels to Neutral from Outperform.

Citigroup upped their price target on Playa Hotels & Resorts to $9 from $8. They maintained their Buy rating.

Deutsche Bank said they were a bit surprised at ALIS as they realized their views on 2023 RevPAR and margins were more measured than what they sensed from the companies. Most management teams did not seem all that moved by the spate of corporate layoff announcements. DB said they still are more skeptical that corporate travel budgets won’t be reduced in conjunction with layoffs, even if it takes a while to show up in the weekly and monthly numbers. While management teams have a different view than DB, so does their peer sell side group as consensus is baking in about 75bps of margin expansion and DB said that feels aggressive to them.

New York City’s latest plans to crack down on illegal short-term rentals, possibly removing as many as 10,0000 Airbnb listings later this year, is sparking furious debates about housing, hotels, the tourist market and residents’ rights. The new rules will hit those New Yorkers who make extra income by hosting, renting out apartments on Airbnb and similar platforms but flout city laws, while potentially easing the burden on lung-suffering city renters. Local Law 18, passed by the city council last year, will now require short-term rentals to be registered with the city. Under the crackdown, hosts would need to prove that they reside in the rented properties, that the home is up to safety code and other requirements that amount to stronger enforcement of existing laws relating to multiple dwellings and permanent residencies. Platforms that advertise short-term rentals, such as Airbnb and Vrbo would also be required to ensure that all hosts using the app are abiding by city law and are properly registered. Under new rules, any hosts in violation could be fined between $1,000 and $5,000.

Buccini/Pollin Group is bringing the W Hotel brand to Orlando with plans for a 22-story hotel tower next door to Epic Universe. It will also be the company’s first project in Orlando, Florida. Included with the boutique Marriott brand will be a 2,000 seat venue offering concerts and other entertainment. BPG entered into a 99-year ground lease with the owner of the vacant 10-acre site. The W Hotel Orlando will feature five bars and restaurants, including a major restaurant with 400 seats that will be opening its first location in the Orlando market; a pool club and rooftop pool. The company aims to break ground before the end of 2023.

In Richmond, California, the Hilltop District Neighborhood Council is requesting feedback from neighbors on a proposal to replace the former Chevy’s restaurant site with a five-story Homewood Suites by Hilton hotel.

Some hotel rooms will reopen at the former Radisson Hotel Niagara Falls-Grand Island on Grand Island, New York. Haven 100 Project LLC, the new owners of the property, have shifted their plans and will retain 87 of the hotel’s 268 rooms as short-term rental, hotel rooms. Plans for the $25 million project had including converting all of the hotel rooms into 135 apartments. The 87 hotel rooms may reopen this spring as renovation work commences. The hotel will likely be run as an independent but be connected to a larger reservation network. The hotel’s fitness center and pool are also expected to reopen this spring. Apartment renovation work will start in the spring in one of the building’s wings while the hotel will operate in the other wings. The wing will also include a restaurant, bar, banquet and special event space

Construction is expected to begin in February on a Great Wolf Lodge in Mashantucket, Connecticut, next to Foxwoods Resort Casino. Located on 13 acres, the attraction will feature a 91,000 square foot indoor water park, 61,000 square foot family entertainment center and dining. It’s expected to open in 2025. The Great Wolf Lodge will be the Mashantucket Pequot Tribal nation’s twenty-third resort in North America and its third resort in the Northeast. The Mashantucket Pequot Tribal Nation owns and operates Foxwoods. There are several additions underway at Foxwoods including the development of a new $85 million casino in the Grand Ballroom, a 50,000 square foot gaming space with table games, slot machines and a celebrity-chef owned restaurant. Construction began in November. Other recent expansions include a high-stakes bingo hall. Foxwoods’ previous bingo hall is being converted into an expo center, which will offer 75,000 square feet of space for events.

An expansion to Kalahari Resort & Convention’s outdoor pool area will bring more amenities for both parents and kids. The expansion underway will add a water play area featuring nine water slides, a lazy river and a swim and walk bar for adults. The expansion is expected to be completed by this summer. Located in Round Rock, Kalahari Resorts & Conventions boasts the largest indoor waterpark in Texas, offering a variety of resort amenities, including a spa and restaurants.

After a year and a half of renovations, Solaz, a Luxury Collection Resort, Los Cabos, in Baja California, Mexico, reopened on January 15. The sprawling hotel debuted property-wide upgrades, including the addition of 21 luxury suites, bringing the total number of guest rooms to 145, and a new dining and entertainment spot. Guests can now book two dedicated wellness suites complete with a double-bed massage table, a steam room, and heated loungers. In addition, the Ojo de Liebre Spa, will continue to provide guests with the same range of amenities that made it a premium wellness destination on the Baja coast. Another noteworthy addition is Mako Beach, the beachfront outpost of the resort’s signature grill restaurant. The new venue joins six more dining spots at the resort. 

Rebel Hospitality announced the reopening of the Egyptian Motor Hotel in Phoenix, Arizona following the completion of a renovation. The retro hotel still features the iconic sign and other touches from the 1950s, but it has been retooled to include modern amenities, such as smart TVs and free Wi-Fi. The 49-room hotel will also be the first permanent home of Valley Mexican street food pop-up Chilte. The makeover added a 250-seat outdoor entertainment venue. Other outdoor offerings include games, a fire pit, and a bar.

StayAPT Suites is building a property in Killeen, Texas at the cost of $5.2 million. The 2-story, extended-stay hotel features a secure outdoor courtyard, fitness center, and on-site laundry. 

Marcus & Millichap Capital Corporation arranged a $9.1 million loan to refinance The Hilton Garden Inn McAllen Airport in McAllen, Texas. The property features an outdoor pool and fitness center. The MMCC Miami office secured a five-year term with a 65% LTV and a 30-year amortization. Additional funding was also provided for the Property Improvement Plan. 

CBRE announced the sale of Aetna Springs, a planned wine country resort in northern Napa County, to Weller Development partners. CBRE’s Golf & Resort Group represented the seller Mosaic Real Estate Investors. Weller Development Partners will continue with the proposed plans to develop the property as an upscale wine country resort focusing on heath and wellness, operated by Six Senses.

RJA Hotels announced the sale of the 251-room DoubleTree Suites by Hilton Hotel Anaheim Resort Convention Center. The resort features a restaurant and bar, heated outdoor pool on the second-floor, spa, fitness center, sundry & gift shop and over 7,600 square feet of meeting space. The new owner of the hotel is planning an extensive renovation throughout the entire property.

ibis introduced three new concepts, Agora, Plaza and Square, created through a competition that engaged creatives from around the world. Each concept offers a unique take on modern comfort and hospitality, while retaining ibis’ signature style elements such as multi-functional spaces and guestrooms that feel like home. The Agora design concept can be experienced at select hotels around the world including ibis Barcelona Plaza Glories. Here, the social hub/lobby is styled as an urban café, open to the city - a place to gather, connect, and share ideas, like an agora of ancient times. The Plaza design concept is exemplified at ibis Sao Paulo Barra Funda. In the open-air lobby, a central bar dominates the space, inviting guests to gather around and mingle about the social hub, free from visual boundaries. The Square design concept, in Thailand, comes to life in a sublime way at ibis Béthune. With a calming spirit of Zen and loads of natural light, the Square lobby concept feels like an airy loft with a comfortable at-home vibe.

Personnel Moves

Société des Bains de Mer announced the term of office of Mr. Jean-Luc Biamonti ended after its Board meeting. Mr. Stéphane Valeri, director, takes over as Chief Executive Officer, appointed by the Board of Directors. Valeri served as president of the National Council of Principality of Monaco and has been able to follow the development of Société des Bains de Mer on a regular basis. He became Director of SBM by co-option of the Boar do Directors on September 23, 2022.

Europe Highlights

New luxury hotel The BoTree announced its grand opening in July 2023. Located in the heart of London’s West End, The BoTree will feature 199 rooms with 29 suites, dynamic bars, two destination restaurants, a live music club, a screening room, and a fitness center. Sister property to Middle Eight and The Guardsman hotels, The BoTree will open as a member of Preferred Hotels & Resorts’ Legend Collection.

Maybourne Hotel Group announced a new addition to the group with the opening of The Emory, its fourth hotel in London. The Emory will be located on Knightsbridge and is set to open in Winter 2023. The all-suite hotel will boast 60 suites set over nine floors, a culinary offering, and a newly created innovative wellness space with a 22-meter pool set across four floors.