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North America
Morgan Stanley Prefers C-Corps Over Hotel REITs for Strong Growth Outlook
Morgan Stanley favors C-Corps over hotel REITs for their growth potential and downside protection, while Barclays upgraded Park Hotels and Resorts due to its high dividend yield. Choice Hotels missed estimates, and the potential acquisition by Wyndham remains uncertain, with suggestions for possible negotiation tactics. Various hotels reported earnings and developments, with openings, auctions, and construction plans in different regions, including California, Texas, and North Carolina. -
North America
Hilton Grand Vacations to Buy Bluegreen Vacations
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. -
North America
Hyatt’s Heavy Canadian Expansion
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. -
Asia-Pacific
Ultraluxury Resort Boom in Japan
Asian ultraluxury resort companies are expanding into Japan to cater to wealthy overseas travelers and take advantage of the weak yen, with Soneva Holdings planning to open resorts in Japan by 2027 and investing 100 billion yen in new properties. Foreign investment in Japanese hotels increased significantly in recent years, with 2022 seeing a sixfold increase compared to the previous year, and an expected total of 128.5 billion yen in investments in the first six months of the current year. International hotel brands like InterContinental, Wyndham, Marriott, Hyatt, and Accor are actively expanding their presence in various regions, including India, Vietnam, China, Thailand, and Australia, offering a diverse range of accommodations and amenities. -
North America
Accor Forecasts Robust Revenue and Profit for 2023
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. -
North America
Hilton’s Stellar Earnings Season
Hilton outperforms in US lodging earnings season, with impressive results and a strong development pipeline. Dream Las Vegas project shows signs of revival as financing issues are being resolved. Club Med announces a series of exciting international resort developments and a shift to exclusive 4 and 5-star offerings. -
North America
$133 Million Margaritaville Hotel Approved in Kentucky
HSBC initiates stock coverage in the leisure and travel sector, including Buy ratings for Hyatt, Marriott, Hilton, and Host Hotels, along with Hold ratings for Park Hotels, Choice Hotels, and Service Properties Trust. Several hotel projects and acquisitions are highlighted, including the opening of the Ritz-Carlton Hotel in Portland, a new property by Maverick Hotels and Restaurants in Rockford, and North American Properties’ approval for a Margaritaville hotel in Newport, Kentucky. Notable developments and changes in the international hotel industry, such as Adrian Messerli’s promotion at Four Seasons, Hilton’s plans to open Italy’s first LXR Hotels & Resorts property, and Riu Hotels and Resorts opening a new all-inclusive resort in Jamaica next year. -
North America
Truist Discusses Challenges in Choice Hotels and Wyndham Deal
JP Morgan expects strong international performance in 3Q23 RevPAR, net rooms, and pipeline growth, particularly driven by ADR gains. Truist discusses potential challenges and concerns in the Choice Hotels and Wyndham Hotels deal, including antitrust issues and franchisee resistance. US hotel industry reports a modest 0.8% YoY increase in RevPAR, with ADR compensating for soft occupancy; group RevPAR up 0.9% for the week ending 10/14. -
North America
Choice Hotels Makes Hostile Bid for Wyndham
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. -
North America
Kempinski Debuts in North America
Morgan Stanley adjusted price targets for several hotel companies, maintaining Overweight ratings for Hyatt, Hilton, Marriott, and Wyndham, but lowered the price target for Park Hotels. They also raised the price target for Choice Hotels and maintained an Underweight rating on Pebblebrook Hotel Trust. Marcus Hotels & Resorts’ new Chief Investment Officer, Tiffany Leadbetter Donato, aims to expand the company’s hotel portfolio beyond the Midwest for greater geographic and customer diversity. Hotel del Coronado, part of Curio Collection by Hilton, is investing over $160 million to restore and revitalize its historic Victorian building in Coronado, California, with a target completion date in Spring 2025.