Wells Fargo Ups Price Targets on Lodging Stocks

The DJIA ended the day up 86 points, a bit of a disappointment after this morning. Nasdaq was up 158, the S&P 500 rose 33 points and the 10-year treasury yield plunged -.12 to 3.86%. Lodging stocks for the most part were lower on the day. SOHO was the big mover, up 13% while MAR traded up to a new high before ending the day with some profit-taking.

Wells Fargo upped target prices on the lodging stocks in their coverage while maintaining their ratings. RHP was upped to $107 from $96, APLE was upped to $18 from $17, HST was upped to $21 from $18 and DHR was upped to $10 from $9, all Overweight rated stocks. Among the lodging names rated Equal Weight, RLJ’s price target was upped to $11 from $10.50, PK went to $15 from $13, SHO was upped to $11 from $9.50, PEB was upped to $15 from $14.50 and XHR’s PT was raised to $14 from $13.50.

STR reported US lodging data for the week ended 7/8. US hotel RevPAR fell -1.2% for the week with occupancy down -2.3%.

AdVenture Development LLC plans to build a new Hampton Inn & Suites hotel in the North Hills in Pittsburgh, Pennsylvania. Prospera Hospitality will manage the Hampton Inn when completed. Construction is expected to begin in mid-2024.

The Courtyard Louisville Airport in Louisville, Kentucky announced the completion of an extensive renovation. The hotel has undergone a variety of transformations, boasting a contemporary exterior design. The courtyard has been elevated with a modernized fire pit and landscaping. Inside the hotel is a completely revamped lobby featuring new furnishings, including media pods. The updated meeting facilities offer 1,350 square feet of event space and enhanced amenities. Additional highlights of the property’s renovations include the indoor pool area and public spaces. The property also features an onsite restaurant. Courtyard Louisville Airport is managed by Aimbridge Hospitality.

Hyatt Hotels announced an affiliate has entered into a management agreement with Grupo Murano for two new properties: Hyatt Vivid Grand Island, an adults-only resort, and Dreams Grand Island, a family-friendly luxury resort. Both properties are expected to open in Cancun, Mexico, in early 2024 within the Inclusive Collection. Hyatt Vivid Grand Island marks the first Hyatt Vivid property in the Inclusive Collection portfolio. Hyatt Vivid Grand Island will house 400 guestrooms and guests will have access to the adjacent 616-room Dreams Grand Island. Together, the resorts will offer 19 culinary concepts, a spa complete with 25 treatment rooms, a fitness center, multiple pools and a beach club.

HEI Hotels & Resorts assumed management of the 202-key EVEN Hotel Brooklyn, New York, the 167-key EVEN Hotel Rockville, Maryland, and the 128-key EVEN Hotel Norwalk, Connecticut. The properties are owned by a joint venture between Taconic Capital Advisors and 6R Capital Group. 

CoralTree Hospitality added the Everline Resort & Spa to its growing management portfolio. Located in the heart of Olympic Valley, California, the 405-room resort boasts more than 47,000 square feet of flexible indoor and outdoor meeting space, The Links at Everline, five restaurants, three outdoor heated pools and a shopping promenade. The Spa at Everline includes a fitness center, dry saunas and steam room as well as 10 treatment rooms. In winter, guests enjoy ski-in/ski-out access to Palisades Tahoe, a private ice skating rink and a Nordic center. 

The LaFayette Hotel is reopening in the University Heights neighborhood of San Diego, California. The $31 million hotel project, purchased by CH Projects for $25.8 million in 2021, was under renovation for 10 months. The LaFayette will feature eight new dining and drinking venues, an upgrade pool area, bowling alley and more.

A new 62-suite boutique luxury hotel is to be opened inside The Battery on Beach Street in Fishtown by the Rivers Casino in Philadelphia. Riversuites will be a four floor waterfront hotel with unobstructed views of the Delaware River. Guest suites will average 854 square feet each with options up to 2,266 square feet with each including a full kitchen and several including patios or bi-level lofts with sleeping rooms upstairs and living rooms and kitchens below. Reservations could be accepted as early as Fall 2023.

The Rocky Mount, Virginia Town Council is working with developer Om Shree Suites LLC to build a new 85-room, business-class hotel on a 7-acre parcel. Om Shree Suites LLC is investing $14 million in the project.

The Menlo Park, California Planning Commission has approved four architectural plans for Willow Village in San Mateo County, the town square, the office campus, hotel and two apartment buildings. Signature Development Group is the project developer of the 59-acre master plan comprising 1.2 million square feet of offices, and around 1,700 units of housing interlaced with retail, a hotel, and public open space. Construction of Willow Village is expected to last over several phases and many years.

The Grand Traverse Resort and Spa, in Traverse City, Michigan, has added two new junior suites, bringing its total room count to 242 rooms and suites, as part of its recent $10.5 million renovation of its 6-story hotel section. Grand Traverse Resort and Spa is Northern Michigan’s largest conference and convention center. The 900-acre resort boasts three championship golf courses, a large spa and a restaurant & lounge.

Chancellor’s House Hotel, located in the heart of Oxford, Mississippi, announced its transformation and rebranding as The Oliver Hotel. The management company will continue to be Oliver Hospitality, who purchased the hotel in April 2022. The Oliver Hotel, Oxford will expand into 40 appointed rooms and suites and will be introducing three new unique dining options.

JLL Capital Markets arranged the sale of Home2Suites by Hilton, a 103-key hotel in Blacksburg, Virginia and the sale of the Residence Inn Tuscaloosa, a 111-key hotel in Tuscaloosa, Alabama. JLL represented the seller, KM Hotels and procured the buyer, Mission Hill Hospitality.

Personnel Moves

Aman appointed Ben Trodd as Chief Operating Officer. In his role, Ben will oversee all facets of Aman’s hotel and resort operations, to deliver the brand’s vision and strategy, while ensuring the unique characteristics and exceptional levels of service, for which the collection is recognized, are retained. Ben previously served as Senior Vice President, Sales & Hotel Marketing at Four Seasons. 

Brittain Resorts & Hotels announced the addition of Christy Jernigan as chief development officer. In her new role, Jernigan will lead all aspects of business development at BRH focusing on expanding Brittain’s third-party management platform by sourcing new deals, acquiring properties and spearheading efforts to expand the network of investment partners. Jernigan previously served as the vice president of business development at Aimbridge Hospitality.

Springboard Hospitality announced the hiring of five new executives. Jason Pirock joins the team as Corporate Director of Marketing, where he will be responsible for Brand and Performance Marketing of Springboard, its brands, and collection of properties. Most recently, Pirock was Head of Marketing for Aparium Hotel Group. Casea Rose joins the team as Chief Experience Officer for Springboard Hospitality. In her new position, Rose will lead experience design, strategic partnerships, and community for Springboard’s collection of hotels. Prior to Springboard, Rose worked as an advisor and consultant for bespoke hotels, conferences, and organizations around the world.

Springboard also welcomes Dan Olsen as the new Director of Digital Marketing. Olsen will oversee Springboard’s digital marketing strategy including paid and organic efforts and portfolio website health, amongst other initiatives. Elena Schroth joins Springboard as the new Area General Manager, based in Jackson, Wyoming, overseeing the Anvil Hotel. Previously, Schroth held management positions across the county. Springboard’s new Regional Director of Revenue, Ashley Moore joins the team following an impressive tenure with Viceroy Hotel Group where she most recently served as Area Director of Revenue Management. 

Choice Hotels EMEA has appointed Marielle Vroemen as its Director of Franchise Performance and Revenue Management. Based in Amsterdam, Marielle will lead Choice Hotels EMEA’s Franchisee Performance Department, which combines the company’s revenue and operational expertise to enhance and help drive revenue performance for franchisees. Marielle joins Choice Hotels EMEA from Marriott International, where she most recently served as the company’s Market Director of Revenue Strategy. 

Europe Highlights

Sonder Holdings Inc. continues to expand in Europe, adding 5 new properties to its existing portfolio of 54 properties across the EMEA. The properties are as follows: Quintinie, opened in June in Paris, France becoming Sonder’s fourth live property in the city. In Nice, France, Yelo Promenade joins the Sonder portfolio, and also opened in June. In Italy, Sonder has opened Atelier in Milan and Antinoo in Rome. The fifth new property Los Arcos, opened in the heart of the Gothic Quarter of Barcelona, Spain.

Roseate Hotels & Resorts promoted by Bird Group, is seriously looking at expanding their portfolio through management partnerships. According to Kush Kapoor, CEO of the hotel company, they have already started talks with owners who share a similar approach to luxury hospitality and a breakthrough is expected soon. If everything goes as planned, Kapoor expects the first managed property under Roseate Hotels & Resorts by next year. Roseate Hotels & Resorts currently has seven hotels under operations, three in India and four in the UK. 

Borealis Hotel Group and Aimbridge Hospitality EMEA announced the opening of the Aparthotel Adagio Antwerp City Center, Belgium. The eight-story, 70-room property features a communal bar area, fitness room, library, marketplace and laundry room.

Avani Hotels & Resorts announced its debut in Spain and Italy with the opening of the 101-room Avani Alonso Martinez and Avani Palazzo Moscova, located in Madrid and Milan respectively. These properties provide AvaniFit gyms and convenient grab-and-go dining options. Avani Palazzo Moscova presents a collection of 65 rooms and suites and in addition to The Pantry and AvaniFit gym, the property is home to the AmiTi Spa and a signature seafood restaurant. These new openings mark Avani’s expansion in the European market, with additional properties set to launch in key cities across Italy and Germany in the coming months and the Netherlands next year.

Mandarin Oriental Hotel Group will open its third London hotel in the British capital in 2028. Situated on London’s South Bank, the hotel will be part of the larger Bankside Yards development. The overall property is being developed by an international real estate consortium including Hotel Properties Limited, Native Land Limited and Amcorp Properties Berhad. The development will comprise a contemporary standalone building, expected to have 171 guestrooms and 70 branded Residences at Mandarin Oriental. The hotel will offer wellness and fitness facilities at the Spa at Mandarin Oriental, and four distinct culinary outlets. The Residences at Mandarin Oriental will feature a sky lobby lounge, private roof garden and parking.