CBRE Raises Hotel Performance Forecast for 2023

The DJIA ended Friday down 109 points while Nasdaq was down 31, the S&P 500fell 6 points and the 10-year treasury yield was up .04 to 3.69%. Lodging stocks were modestly lower. SOND was down -14% after rising in the past week on heavy insider buying. SLNA traded down -8% to another all-time low.

STR reported US RevPAR for the week ended May 13 was down -1.3% year over year, possibly impacted by Mother’s Day timing. 

CBRE is again raising its forecast for hotel performance this year. The company has revised its forecast for 2023 RevPAR to $97.89, up 6.0% YOY and an increase of $0.43 from its previous forecast. ADR is now expected to increase by 3.7% in 2023, down from the previous forecast of 4.2%. The uptick in US economic growth led to Q1 record U.S. RevPAR of $88.33, up 15.5% YOY from Q1 2022. RevPAR growth was driven by a 9.6% increase in ADR and a 3.1% increase in occupancy YOY. CBRE forecasts hotel supply will increase at a 1.0% compound annual growth rate over the next five years, below the industry’s 1.6% long-term historical average.

Hilton announced the opening of Canopy by Hilton San Francisco SoMA. The 12-story property includes 194 guestrooms, rooftop lounge, street-level coffee shop, fitness center and five meeting rooms offering 4,400 square feet of event space.

Quorum Hotels & Resorts announced the Inn at the Pier in Pismo Beach, California has joined the Curio Collection by Hilton. Owned by Somera Capital Management, the Inn is the first lifestyle Hilton property in the Pismo Beach market. The 104-room hotel received a multi-million-dollar renovation of its guestrooms and suites, 1,200 square feet of meeting space, fitness center, and lobby which includes the addition of a new full-service lobby bar.. A new rooftop restaurant and bar will debut later this summer. 

Shaner Hotels announced the acquisition of the 86-room Hampton Inn & Suites by Hilton Hershey in Pennsylvania. Shaner also will operate the property and plans to implement $1.2 million in renovations to completely remodel guest rooms. The property offers a Sweet Shop, fitness center and heated indoor pool. Additionally, the company announced it will break ground on another hotel, a TownePlace Suites scheduled to break ground in the coming months. 

A joint venture between Gencom and GD Holdings announced the acquisition of the newly constructed, 192-key St. Regis Chicago, located in the city’s Lakeshore East Loop community of Chicago, Illinois. The hotel occupies the first 11 floors within the three interconnected towers comprising the hotel and branded-condominium mixed-use project. The hotel features nearly 12,000 square feet of meeting space, five unique dining venues, St. Regis Spa, fitness center, rooftop terrace and indoor pool. Magellan Development Group has overseen the development of the hotel. As part of the acquisition by Gencom and GD Holdings, Magellan will be retaining an ownership interest in the project. The acquisition marks the first addition of a St. Regis brand to each of Gencom and GD’s portfolios. JLL Capital Markets arranged $76 million in acquisition financing for the St. Regis. JLL represented the borrowers, Gencom, GD Holdings and Magellan, to arrange the loan through the lender, Varde Partners.

Lightstone announced the opening of its dual-branded hotel tower in Downtown Los Angeles, California. The 37-story tower, the first component of a two-tower project, includes 727 guestrooms divided between the Moxy Downtown Los Angeles and AC Hotel Downtown Los Angeles. The high-rise also includes 12 food and beverage venues and roughly 13,000 square feet of meeting space. The AC and Moxy hotels are the initial component of the larger Fig + Pico development, which would see the construction of a smaller 27-story tower containing 378 guest rooms. A Hilton Garden Inn had previously been slated for that building.

Commonwealth Hotels announced the completion of a major renovation to the 94-room Courtyard by Marriott Dayton Beavercreek located in Beavercreek, Ohio. The $6.5 million renovation included all guestrooms and public spaces, including the lobby, Bistro, breakfast area, bar, meeting space and fitness center.

The Dixon City Council approved plans for a Fairfield Inn by Marriott to be built in the Gateway Project commercial development in Dixon, Illinois. The hotel, by Dixon Lodging LLC, will be four stories with 79 rooms and an indoor pool.

Marriott International, Inc. announced the completion of the renovations to the Courtyard by Marriott Denver Tech Center in Greenwood Village, Colorado. The 155-room hotel features a Topgolf Swing Suite with two interactive bays. The transformation also includes renovations to the exterior, guestrooms, fitness center, lobby, courtyard and Bistro. The hotel is owned by Clarion Partners.

The Vinoy Resort and Golf Club, Autograph Collection, in St. Petersburg, Florida, welcomed the new Vinoy Spa as part of its renovation. The Vinoy Spa features four treatment rooms, a salon, whirlpool, sauna and steam bath.

Reservations are now open for the Hyatt Regency Conroe, located in Conroe, Texas. The 250-room hotel will officially open on May 25, 2023. The property will offer multiple dining options, more than 30,000 square feet of flexible meeting and event space, and a fitness center.

The Hyatt Place Houston Medical Center and Hyatt House Houston Medical Center are now open near the Texas Medical Center in Houston. The 14-story tower has a total of 298 rooms, 5,900 square feet of meeting and event space, a rooftop pool deck with an accompanying bar, a market, fitness center and guest laundry. The new hotel marks the first time Hyatt Hotels Corp. has opened a dual-branded hotel in Texas. The project team includes TMC Hotel Ltd, an entity of Satya, as owner and developer; Aimbridge Hospitality as the hotel management company and IBC Bank provided financing for the project.

Pyramid Global Hospitality announced the Wayfinder Newport hotel in Newport, Rhode Island, as the latest addition to the company’s management portfolio. Continuing its longtime partnership with Dovetail + Co, owner of the Wayfinder Newport, Pyramid Global has assumed management of the 197-room hotel with immediate plans underway to rebuild and revitalize the property following extensive damage in a catastrophic fire. Wayfinder Newport is anticipating reopening this year.

Sage Hospitality Group announced the addition of Yotel San Francisco to its growing portfolio. The 203-room property becomes the 19^th in the Sage Independent Hotel Collection and brings the total number of hotels Sage operates in San Francisco to four.

Life House has been selected to manage three new hotels in Texas, Hotel Dryce in Fort Worth; The Flats at St. Mary in San Antonio; and a third property that will be announced soon.

The Claremont Club & Spa, a Fairmont hotel located in the Oakland and Berkeley Hills, in California, has been sold to Ohana Real Estate Investors for $163.3 million in an all-cash deal. The 276-room hotel was sold by an affiliate of Blum Capital Partners and Fairmont Hotels & Resorts.

Auberge Resorts Collection has been selected by MSD Partners, Trammell Crow Company, Highland Park Village Associates and The Retail Connection to manage The Knox, Auberge Resorts Collection and The Knox Residences, Auberge Resorts Collection, in the heart of Dallas’ Knox Street neighborhood. Set to open in 2026, The Knox, Auberge Resorts Collection will feature 105 hotel rooms and suites, as well as 53 private luxury residences; a bar and lounge; sunroom; fitness center; indoor pool; restaurant; expansive event spaces; outdoor pool bar, spa and movement studio.

First Hospitality has added the Holiday Inn Express Milwaukee West, in Wisconsin, to its national management portfolio. The three-story property offers 121 guestrooms, a fitness center and 475 square feet of meeting and event spaces.

Springboard Hospitality announced the addition of Hotel St. Michael in Prescott, Arizona to its portfolio. The hotel offers 70 guestrooms, Bistro St. Michael and several boutique shops.

LuxUrban Hotels has signed a 15-year master lease with Chetrit Group to operate the nine-story, 179-room Trinity Hotel in Downtown Los Angeles, California.

Cambria Hotels announced the opening of the Cambria Hotel Orlando Universal Blvd in Orlando, Florida. The property features multi-purposed indoor and outdoor spaces including a rooftop lounge and swimming pool, two onsite restaurants, multi-function meeting spaces and a 3,650 square foot event space, a fitness center and business center. The Cambria Hotel Orlando Universal Blvd was developed by Supreme International Hotels Inc.

Sunflower Development Group has plans to build a Margaritaville-themed hotelwith 230 guestrooms, as a central piece of the $838 million Homefield project in Kansas City, Kansas. 

Tatamy9 is proposing to build a WoodSpring Suites hotel for the Chrin Commerce Center in Palmer Township, Pennsylvania. The design calls for a four-story, 122-room building with 127 parking spaces.

Bluegreen Vacations Holding Corporate announced its expansion into the Nashville, Tennessee market with the acquisition of two properties in the historic Printers Alley district. One of the properties, previously a 15-story hotel, contains 86 rooms and two penthouse suites, will be sold as vacation ownership interests; the second property, an adjacent two-story building will be converted into a sales preview center. Bluegreen will refresh the 86 guestrooms, add a new lobby, fitness center and owners’ lounge.

A 240-acre master-planned community, The Village at Frieden, with a four-star resort hotel is being developed in the historic City of Fredericksburg, Texas. The Village of Frieden includes Frieden, a luxury residential gated community, the Artisan, a destination resort hotel, and the Verandas at Frieden, a rental community. The Artisan features 108 suites plus 40 private cottages; a wellness center; 30,000 square foot indoor/outdoor private event areas; restaurant; rooftop lounge; bakery and butchery; and a lagoon pool with lazy river and swim-up bar. 

The Trade Hotel Milwaukee celebrated its grand opening. Part of the Autograph Collection, the properties features more than 200 guestrooms, a ballroom and meeting space, gym, rooftop restaurant, lobby bar, cocktail lounge and a gastropub.

The Manchester, a new independent hotel in Lexington, Kentucky’s Distillery District is opening on June 2, 2023. Hoteliers Nik Feldman and Hank Morrisdeveloped the Manchester on the site of the historic Ashland Distillery. The hotel includes 125 guestrooms, a bottle shop, lobby bar and lounge, and two unique dining and drinking spaces. 

My Place Hotels of America announced the opening of My Place Hotel-Jacksonville/Camp Lejeune, North Carolina in Jacksonville, marking the brand’s second property in North Carolina. Managed by Cornerstone Hospitality, the 85-key property features a business center, My Store, and a grilling pavilion.

Queens Development Group, a joint venture between The Related Cos., Sterling Equities, and New York City Football Club revealed the images for a 25,000-seat stadium and the city’s largest 100% affordable housing development. The team expects to play its firm games in the new venue in 2027. The soccer stadium project will include the stadium, 2,500 housing units, open space, a public school, a 250-key hotel, and retail and business space.

InterContinental Hotels Group announced Jolyon Bulley will succeed Elie Maalouf as IHG’s Americas CEO. Jolyon is currently IHG’s Chief Executive Officer for the Greater China region, and also the Group’s Transformation Lead for Luxury & Lifestyle.

Bob van den Oord has been named Chief Executive Officer for Langham Hospitality Group, stepping up from his current role as Regional Vice President, Europe, Middle East and North America from September 1, 2023. He will succeed current CEO, Brett Butcher, who is stepping down from this role, but will retain responsibilities within Great Eagle as well as CEO of the Listed Langham Hospitality Investment Ltd.

Marriott International, Inc. appointed Brian Povinelli to Senior Vice President, Global head of Marketing and Brand. Povinelli, who has been with Marriott since its acquisition of Starwood Hotels, will lead the company’s overall marketing strategy as well as the end-to-end guest experience for Marriott’s 22 Premium, Select & Longer-stay brands. 

Noble Investment Group announced recent promotions across its investment, capital markets, finance and asset management teams. Dan Konzelmann has been promoted to Vice President. He is responsible for executing strategies across Noble’s investment platforms. Emily Feeney has been promoted to Senior Director. She is responsible for financing new asset acquisitions, managing capital market relationships, and asset sales. Jeff Pennington has been promoted to Senior Director. He is responsible for internal and external reporting, fund modeling, and valuations. Bo Zhang has been promoted to Senior Associate. He is responsible for information, data, and analytics for the company’s asset management team and investment management strategies.

Mandarin Oriental announced two senior leadership appointments. Amanda Hyndman has been promoted to the position of Chief People Officer from Group Director of Quality & Rooms. Francesco Cefalu has been promoted to the role of Chief Development Officer from Regional Development Director for EMEA.

Phil McAveety, former executive vice president and chief brand officer of Starwood Hotels and Resorts Worldwide, has joined Iberostar Hotels & Resorts as CEO of the hotel company.

Highgate announced Mike Kass has been appointed as Area Managing Director for the Hawaii region. In his new role, Kass will serve as GM at ‘Alohilani Resort Waikiki Beach and support Royal Lahaina Resort & Bungalows. Kass joins Highgate from Marriott International where he most recently served as GM for The Westin Maui Resort & Spa.

EOS Hospitality appointed Nicholas Farina as Vice President of Operations. In this new role, Farina will focus on operational strategy and support for the over 40 hotels in the EOS Hospitality portfolio.

Hard Rock International appointed Ragheb “Raj” Dajani as the new Senior Vice President of Development. In this role, Dajani will be responsible for leading the maintenance of new real estate development projects, directing real estate development strategy and overseeing the brand’s strategic business growth plans and goals. In his most recent role, Dajani was the Head of Planning for Galaxy Entertainment Group.

InnVentures, a division of Highgate, appointed David Montrose as Executive Vice President of Operations - Head of InnVentures. In this role, Montrose will lead operations for the InnVentures portfolio of 70+ well-positioned hotels across the country. Montrose most recently served as Executive Vice President of Operations at Highgate Hotels’ Select Division.

Lodging Dynamics Hospitality Group announced the appointment of Cassie Bond as its Vice President of Commercial Strategy. 

Jim Murren, the former chairman and CEO of MGM Resorts International, has been named CEO of the Ritz-Carlton Yacht Collection. He replaces company founder Douglas Prothero, who will continue to serve as a board member and strategic advisor to Murren. 

HREC Investment Advisors arranged the sale of the 80-room Holiday Inn Express & Suites Prattville South in Prattville, Alabama. The buyer was a joint venture between ACRE Holdings LLC and Harmony Hospitality Service. HREC Investment Advisors exclusively represented Omni Hospitality on this transaction. 

HREC also arranged the sale of the 117-room Best Western University Inn and 111-unit Park Plaza Self Storage in Tuscaloosa, Alabama. The property was acquired by a private buyer and will be managed by Baron Hospitality. HREC Investment Advisors exclusively represented a local seller on this transaction and worked through Expotel Hospitality.

JLL Hotels & Hospitality announced the sale of a 75% interest in the Mandarin Oriental, New York, to affiliates of Reliance Industries Ltd. Has been completed. JLL represented the sellers in the sale of their ownership stake. The 244-room hotel occupies floors 35 through 54 of the Deutsche Bank Center at Columbus Circle and features over 9,000 square feet of meeting space, a spa, and a fitness center with an indoor lap pool. 

Mumford Company completed the sale of the Baymont Inn & Suites in Madisonville, Kentucky on behalf of the Seller, Skyann Corporation. The purchaser was Paras 1891, LLC. The property will remain a Baymont Inn & Suites after upgrades to the guestrooms and public areas.

Mumford Company also completed the sale of the Red Roof Inn in Holton, Kansas. Mumford Company represented Future Rain, LLC in the sale to RadhaSoami Hospitality, LLC. RadhaSoami Hospitality, LLC plans extensive cosmetic renovations to the property followed by continued operations under the Red Roof Inn franchise. 

Marcus & Millichap announced the sale of Days Inn & Suites Kill Devil Hills Mariner, an 80-room property located in North Carolina’s Outer Banks in the City of Kill Devil Hills. Marcus & Millichap’s Columbia, South Carolina office had the exclusive listing to market the property on behalf of the seller. The three-story hotel was franchised at the tine of sale but will likely be operated and renovated as an independent hotel in the future.

JLL’s Capital Markets Group arranged a $585 million refinancing for The Ritz-Carlton Paradise Valley, The Ritz Carlton Residences and The Palmeraie in Paradise Valley, Arizona. JLL worked on behalf of the borrower, Five Star Development, in securing the loan with Madison Realty Capital. 

Verakin Capital passed the $350M investment mark with its investment in three hotels in various stages of development through the first quarter of 2023. The hotels include the 181-room Moxy in downtown Atlanta, Georgia; the 223-room Hampton Inn/Home2 in downtown Nashville, Tennessee; and the 117-room Courtyard by Marriott in Pittsburg, California. Verakin is the lead developer of the Courtyard by Marriott and co-investing in the other two projects alongside RevPar Development and Emerge Hospitality Group.

Cronheim Hotel Capital secured $12,500 for the Residence Inn & Emerald Event Center in Avon, Ohio. The Sponsor is a subsidiary of Nimbus Investment Fund, LP. The loan was provided by a regional bank and allowed the Sponsor to lock a fixed rate below 6% while also providing a return of capital that was committed during the pandemic.