Ashford Hospitality Trust

The DJIA jumped 490 points while Nasdaq surged 327. The S&P 500 rose 84 points and the 10-year treasury yield was down .19 to 4.44%, all on a low inflation report. HLT and HT hit new highs while…

Braemar Hotels (BRH) and Ashford Hospitality Trust (AHT) reported 3Q results, with BRH missing estimates due to its resort/leisure focus, experiencing a -7.1% decline in RevPAR growth. AHT's results exceeded expectations, especially in urban assets, with a 4% growth in RevPAR. Hersha Hospitality shareholders approved a $1.4 billion, all-cash deal for KSL Capital Partners to acquire the hotel REIT, taking them private. The deal, valued at $10 per share, is expected to close in the current quarter. The Global Hotel Investor Sentiment Survey by JLL revealed a surge in lodging demand, with global RevPAR up 10.2% relative to 2019. Key findings include 81% of investors planning to be net buyers, a preference for urban markets (84%), and a focus on luxury and select-service hotels. Investors anticipate a rise in hotel pricing per key and face challenges like the cost of capital, rising insurance costs due to climate risk, and deferred capital expenditures.  

Hilton Grand Vacations is acquiring Bluegreen Vacations for approximately $1.5 billion, expanding its membership base and resort portfolio. HEI Hotels & Resorts takes over management of the Renaissance Times Square hotel in New York. Hyatt is collaborating with Parks Hospitality Holdings to develop four new properties in Mexico, including the Park Hyatt Cancun and Grand Hyatt Mexico Santa Fe.

Stock market rallied as treasury bond yields fell, with DJIA, Nasdaq, and S&P 500 gaining points, while lodging stocks like SOND, AHT, and others saw significant increases. Several hotel-related developments were announced, including renovations, new hotels, and property sales in various locations across the United States. Rosewood Hotels & Resorts will introduce Rosewood Blue Palace in Greece in 2025, while the British Colonial Hotel in Nassau, Bahamas, will reopen on December 12 after a $100 million renovation.

Earnings reports from various hotel and hospitality companies have mixed results, with Marriott International and Hyatt facing disappointment, while Park Hotels, Chatham Lodging Trust, Host Hotels, RLJ Lodging Trust, and Summit Hotel Properties pleased investors. Hyatt Hotels plans to double its brand footprint in Canada with 23 new hotels by 2026, including airport locations and Hyatt Centric and Hyatt House properties. Various hotel acquisitions, openings, and renovations are announced, including the launch of Pendry Tampa and Pendry Residences Tampa, and the renovation of L'Ermitage Beverly Hills. Selina Hospitality faces financial challenges and seeks to restructure its debt.

Hilton Worldwide Holdings Inc has entered into a partnership with Hallmark Channel to create Christmas-themed suites inspired by Hallmark’s “Countdown to Christmas” movies. The Waldorf Astoria Las Vegas has completed phase one of a multimillion-dollar property-wide transformation. This includes a redesign of all 389 guestrooms and suites and upgrades to meeting and event spaces. Margaritaville Resort Lake Tahoe, located in South Lake Tahoe, California, has announced its December 14th opening date. The transformation of the former Lake Tahoe Resort Hotel into a Margaritaville property cost over $70 million.

Top U.S. hotel construction markets in Q3 2023: Dallas, Atlanta, Nashville, Phoenix, and the Inland Empire lead in the number of projects and rooms. Hotel renovation and conversion pipeline activity remains strong with 1,912 hotels and 285,568 rooms currently undergoing renovations. Notable openings and developments include the Candlewood Extended Stay Suites in Kennesaw, Avenue Hotels & Residences in Coral Gables, Hotel Lucine in Galveston, and Radisson RED Helsinki.

PEB reported better-than-expected 3Q results, but concerns arose from their commentary about a cooling US leisure demand and a weak 4Q guidance. Accor anticipates full-year RevPAR growth of over 20%, with strong 3Q RevPAR growth in the Middle East, Africa, and Asia Pacific segments. Various hotel developments were announced, including a Marriott conversion in New Orleans, renovations in Indian Wells, a hotel sale in Boston, and plans for a new luxury brand in San Miguel de Allende, among others.

Choice Hotels has urged Wyndham Hotels to consider a merger, but Wyndham has firmly declined any interest in the proposal. The chairman of Wyndham revealed they almost acquired Choice Hotels 20 years ago. The U.S. construction pipeline shows growth, with over 5,700 projects and 672,000 rooms, driven by a strong upper midscale chain scale presence. Renovation and conversion projects are on the rise, and new hotel openings are expected to increase in the coming years. Several hotel and resort projects are underway, including Westin Washington, DC Downtown, Opry Entertainment Group's renovation in Austin, Four Seasons expanding its Private Retreats collection, and Tommy Bahama's debut resort in California. Additionally, new developments in Florida, Rhode Island, and Indiana are on the horizon.

Choice Hotels made an offer to acquire Wyndham Hotels and Resorts, which was rejected. The situation may lead to a proxy fight. Marriott and MGM's partnership launch delayed to early 2024 due to a cyber attack on MGM and the complexity of the integration, which includes the creation of the MGM Collection with Marriott Bonvoy. Hyatt introduces the Wellbeing Collective, offering tailored wellbeing experiences at 30+ hotels globally, with plans to expand in 2024.