Optimism About 2023 Deal Volume

The DJIA rose 387 points on Friday while Nasdaq was up 226, the S&P 500 rose 64 points and the 10-year treasury yield eased, down .11 to 3.96%. Lodging stocks were higher. The only major mover was SOND, up 12%, still trading below a buck. Skift, parent company of this publication, published an article on Sonder, saying the company is going through another round of layoffs, this time another 100 that they said will lead to a $10 million annual cost savings. The Skift article described SOND as a prime example of a company that shouldn’t have gone public, but the SPAC trend enabled it to start trading. They said the story is lots of hype to a penny stock. Citigroup doesn’t seem to want to admit they were wrong, they maintained their Buy rating on SOND but cut their price target to $2 from $3.50.

Wyndham Hotels & Resorts Inc. upped their quarterly dividend by 9%, announcing a quarterly cash dividend of $0.35 per share up from the $0.32 a share quarterly dividend they paid during 2022.

CoStar said that most Lodging Industry Investment Council members expect full-year lodging real estate transactions in 2023 to exceed the volume in 2022. In a survey conducted at a private roundtable of members, 67% said they believe transactions will be up, while 27% believe the count will be roughly the same and only 6% predict down. This was according to Hospitality Real Estate Counselors. Lodging Capital Partners feels the distress on the capital market side is going to force sellers (to dispose of hotels) and cap rates are going to move up roughly 100 basis points.

A joint venture of NewcrestImage and Hospitality Capital Partners completed the acquisition of 11 hotels in seven states with a total of 1,551 rooms, in a transaction handled by CBRE in Atlanta. The properties are 10 Courtyards and one Residence Inn hotel in Georgia, Massachusetts, New York, Oklahoma, Pennsylvania, Texas, and Virginia.

The Luxury Collection Hotels & Resorts, part of Marriott Bonvoy’s global portfolio of 30 extraordinary hotel brands, announced the reopening of Solaz, a Luxury Collection Resort, Los Cabos in Mexico. Enhancements to the property include the addition of 21 new luxury suites increasing the resort’s total room count to 145 guest rooms and suites. Another distinct enhancement to the property is the addition of Mako Beach, an exclusively designed Airstream serving delicious cuisine with live entertainment and DJ sessions on the beach. In addition to Mako Beach, the resort’s culinary offerings include six additional restaurants, lounges and/or cellars. Its fitness center, a spa, infinity pools and children’s and teen club The resort has over 20,000 square feet of meeting and event space including a ballroom and expansive 11,000 square foot outdoor Calypso Ocean Front Deck.

AC Hotels, Marriott International and Briad Hospitality announced the opening of the new AC Hotel San Diego Downtown Gaslamp Quarter in San Diego, California. The new eight-story hotel features 147 rooms, a fitness center and the band’s signature AC Kitchen and AC Lounge. Coming early summer, the hotel will offer a rooftop bar and restaurant by Briad Hospitality.

Twin Bridges Hospitality, Asset Management announced The Steward, a Tribute Portfolio Marriott Hotel, will debut this spring in Santa Barbara, California. The 87-suite boutique hotel sits on nearly five acres of gardens. Upon completion, the hotel will feature a lobby library and intimate market, 1,835 square feet of meeting and event space, a cozy bar, serene pool, daybed swing, outdoor dining and fitness and artistic benches scattered among the gardens.

Two months after suing the Chetrit Group over its unfinished 33-story, 323-key hotel near Penn Station in New York City, Maverick Real Estate Partners has seized control of the project. It’s not clear what Maverick’s end game is for the Garment District property. It filed to foreclose in November and had planned to hold an auction on January 18, approximately two weeks before it took control of the project.

BWH Hotels Group is partnering with Midas Hospitality, for the management of its upscale boutique Vib hotel in Tempe, Arizona. The hotel joined BWH Hotel Group’s Vib portfolio in 2022. The hotel features a modern lobby for socializing or working and multiple food and beverage offerings.

The long-vacant former Zahn’s Department store in downtown Racine, Wisconsin will soon be the Hotel Verdant following months of renovations. Dominion Properties, and its partners on the project, Grey Hospitality and Charlestowne Hotels, announced that the hotel is slated to open this summer. The 80-room Hotel Verdant will feature a first-floor restaurant, a rooftop bar and restaurant and a fitness center. The development will also include a meeting/banquet space capable of hosting events up to 200 people.

Personnel Moves

hihotels by Hospitality International launched its first ever advisory council. The group is comprised of five franchisees, a vendor representative and President & CEO Chris Guimbellot. The Advisory Council will meet once a quarter to help shape the future direction of the franchise system. hihotels Advisory Council Members, in addition to Chris Guimbellot, include: Jill Atfield, Owner, Highland Hills Cabins - Master Hosts Resort, Boone, North Carolina; Laurie Bechler, Area Vice President & General Manager, Sabre Hospitality Solutions; Mayur Mahant, Owner, Scottish Inns & Suites, Houston, Texas; Jaimesh Patel, Owner, Red Carpet Inn, Gibbstown, New Jersey; Pravin Patel, Owner Scottish Inns, Sturbridge, MA; and Tejal Patel, Owner, Scottish Inns & Suites, Hitchcock, Texas.

Apple Hospitality REIT, Inc. announced the appointment of Carolyn Handlon to its Board of Directors. Ms. Handlon will stand for election as a Board-recommended nominee at the Company’s 2023 Annual Meeting of Shareholders, on May 18, 2023. With the addition of Ms. Handlon, the Company’s Board comprises nine directors, three of whom are women directors, which is more than 30% of the Board. Prior to her retirement in April 2022, Ms Handlon served as Executive Vice President, Finance and Global Treasurer of Marriott International, Inc. 

Vail Resorts, Inc. appointed Executive Vice President and Chief Operating Officer Bill Rock as President of the company’s Mountain Division, effective May 1, 2023 and announced that current President James O’Donnell will no longer be with the company, effective March 3, 2023. Rock joined Vail Resorts in 2010 as Chief Operating Officer of Northstar California Resort. Until Rock is effective in his new role, the company’s Chief Operating Officers of the West, Rockies and East divisions will report to Vail Resorts’ CEO, Kirsten Lynch as the company’s mountain resorts finish the Winter 2022-23 season.

Europe Highlights

The Hampton by Hilton, London Docklands has been put up for sale. The 209-bedroom hotel is being marketed by Christie & co on behalf of joint administrators Ian Corfield and Simon Carvill-Biggs of FRP Trading Advisory.

The Meininger Venezia Mestre has opened in Venice as the fourth Meininger hotel in Italy. The Meininger Venezia Mestre has 434 beds divided into 112 twin and multi-bedrooms. The hotel features a guest kitchen, large common areas, game zone with pool table, lobby, bar, lockers and a washing machine and dryer. The seven-story building, which previously housed a hostel, has been partially remodeled, and the interior has been completely redesigned.

Roseate Hotels & Resorts announced the opening of The Roseate Edinburgh. Previously known as the Dunstane Houses, the boutique hotel offers 35 luxurious rooms and suites and a restaurant and bar. The Roseate Edinburgh is also well suites for corporate meetings and events. The meeting room, Club Prive, can hold up to 36-50 guests. The hotel also has a conservatory garden, Club Prive Conservatory & Garden which can hold up to 10-12 guests.