The DJIA rose 205 points while Nasdaq was up 122, the S&P 500 rose 31 points and the 10 year treasury yield was flat at 4.84%. Lodging stocks were higher. We did see another new low on VCSA but SOND was up 8%.
Baird gave their updated views of the Choice Hotels and Wyndham situation. Baird said the two sides appear far apart and the market is not showing they are buying the deal. Baird said with the broader capital markets a headwind, they hope a lose-lose outcome does not occur for both sets of shareholders. Baird believes CHH must have strategic and/or qualitative changes to the broader deal structure. CHH’s stock dropped -9% since going public with their attempt and the cost of debt has gone up 25-50 bps. We don’t expect WH to give any real update on this with their earnings report but you never know.
According to CoStar’s September 2023 data, Canada’s hotel industry continued a stretch of year-over-year performance growth. September 2023 (percentage change from September 2022): Occupancy: 75.3% (+1.5%); ADR: C$222.02 (+8.1%); and RevPAR: C$167.14 (+9.7%). Among the provinces and territories, Nova Scotia recorded the highest September occupancy level (81.1%), which was 0.7% below 2022. Among the major markets, Vancouver saw the highest occupancy (86.6%), 0.5% ahead of September 2022. The lowest occupancy among provinces was reported in Saskatchewan (63.5%), up 2.6% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+8.8% to 63.8%).
Paradigm Development Partners, LLC celebrated the groundbreaking of TownePlace Suites by Marriott Middleburg in the Clay Town Center mixed-use development in Middleburg, Florida. Anticipated to open in early 2025, the five-story property will feature 124 guestrooms and suites, a pool and pool deck with amble space, and an onsite market. McKibbon Hospitality is charged with operating the hotel.
Hotel Per La, located in Downtown Los Angeles, California, has joined Autograph Collection hotels. Re-imagined by HN Capital Partners and Sage Hospitality Group, the 12-story property features 241 rooms and suites, grand public spaces including 10,000 square feet of event space, multiple restaurants and bars, and a rooftop pool.
Vision Hospitality Group announced the groundbreaking of the Tempo by Hilton Nashville/Midtown. Located in the heart of Nashville, Tennessee’s Midtown district, the 161-room hotel will feature a café and bar, over 1,000 square feet of informal meeting space and a fitness center. The Tempo by Hilton Nashville/Midtown is scheduled to be completed late 2025.
The Hampton Inn by Hilton Harriman Woodbury located in Central Valley, New York, has completed renovations to its 136-room facilities. The 6-month project included a revitalized interior and renewed exterior of the property. The property is operated by USLI Hospitality Management.
Hilton announced the opening of the Hilton Cancun Mar Caribe All-Inclusive Resort. This is HLT’s 90th hotel in Mexico and 10th all-inclusive resort in the Caribbean and Latin America and 14th all-inclusive resort overall. The recently renovated 540 room resort is in the heart of Cancun’s vibrant Hotel Zone and includes spacious ocean view guest rooms and 81 beachfront suites, eight culinary offerings, adult-only and family-friendly pools and a spa with signature wellness treatments. Included in the room count are 41 beachfront Enclave guest rooms and 20 Enclave suites with a private plunge pool or whirlpool, outdoor patio and lounge chairs or hammocks overlooking unhindered ocean and beach views. Enclave is a premium room category available at select Hilton All-Inclusive resorts. All guests of the rooms receive Enclave Lounge access, specialty food and beverage, dedicated concierge services, private pool access and more.
Red Roof announced the opening of the 70-room Red Roof Inn Huntsville in Huntsville, Alabama.
The Omni Homestead Resort in Virginia announced its grand re-opening opening following a $150+ million dollar property-wide renovation project. The extensive renovation began in October 2021 with the $4.6 million rehabilitation of the Warm Springs Pools. The full renovation encompasses 483 guestrooms, a brand-new 4,000 square foot event pavilion, 72,000 square feet of meeting space, an array of fine and casual dining options and more.
The Origin Hotel Baton Rouge will officially open next month in downtown Baton Rouge, Louisiana. The boutique lifestyle hotel offers 87 chic guestrooms and suites and onsite dining.
La Playa Hotel, in Carmel-by-the-Sea, California, has reopened following a $15 million renovation. The historic 75-key hotel, owned and operated by Marc & Rose Hospitality, is home to a number of meeting and gathering rooms and a newly re-imagined bar.
Capricorn Property Group acquired the historic Carlton Hotel in downtown Atascadero, California, for $10.5 million. The new owners plan to start renovations as early as next quarter by refreshing the lobby and hotel entrance and turning on the food and beverage outlet. The next phase involves renovating the 52 hotel rooms, starting up a two-meal a day restaurant and opening up the lobby into a food and beverage area. The property includes approximately 2,500 square feet of meeting space, a fitness room, business center, retail space and a vacant restaurant space.
Disney announced the transformation of Disneyland’s Paradise Pier Hotel into a Pixar-themed hotel will be completed and open for business on January 30, 2024. The Pixar Place Hotel will be the first fully Pixar-themed hotel in the United States. The Anaheim hotel will offer a rooftop splash pad and pool area with an adjacent play court and pool bar to open later this fall. The hotel’s restaurant will open on the ground floor in November, followed a few weeks later by a coffee shop.
My Place Hotels of America announced the opening of My Place Hotel-Tucson South, AZ, marking the brand’s first property in Tucson and third in Arizona. The extended-stay property is a partnership between Opwest Development and Iridius Capital and managed by Guard Hospitality. My Place Hotel-Tucson South has 86 rooms across four floors, an onsite laundry and a grab-and-go store. The property is located in The Landing, a 65-acre mixed-use development project, and adjacent to the Tucson Spectrum outdoor mall.
HREC Investment Advisors arranged the sale of the 105-room WoodSpring Suites Asheville located in Asheville, North Carolina. The property was acquired by Park Silver Asheville, LLC. HREC Investment Advisors exclusively represented the seller on this transaction.
Berkadia’s Hotels & Hospitality team arranged the refinancing of the leasehold interest in the Hilton Garden Inn-Homewood Suites Jacksonville Downtown Southbank, a 221-key dual-brand hotel in Jacksonville, Florida. Berkadia Hotels & Hospitality secured the financing on behalf of Excel Group. The eight-story hotel offers an outdoor pool, meeting rooms, fitness center and a restaurant.
PMZ Realty Capital LLC arranged a $40M refinancing loan for the Hilton Garden Inn Atlanta Downtown in Atlanta, Georgia. A European bank provided the five-year interest-only loan, and the borrower, Legacy Ventures, will be using the proceeds to pay off the existing debt and contribute to reserves for a future property improvement plan. The 242-room hotel features an indoor pool, outdoor pool, fitness center, business center, and over 11,283 square feet of meeting space.
Personnel News
Sonesta International Hotels Corporation announced the appointment of Bob Gunkel as Chief Financial Officer. Gunkel was most recently an Adjust Professor of Finance at Georgia State University. Before that he had been CFO for the Americas region for IHG.
Lodging Dynamics Hospitality Group announced the appointment of Brian Ehrlich as its Vice President of Business Development. Brian will be pivotal in leading the company’s growth and be a vital part of the executive team, helping shape the company’s strategic direction.
International News
Travelodge announced the commencement of construction for its London Chiswick Travelodge. The 113-room hotel will feature the group’s onsite restaurant and is the company’s fourth hotel currently under construction in London. The funding partner, RTP Global Real Estate Investments, purchased the site and committed to fund the development for £19.4M and retain Travelodge as the development manager for the scheme. The hotel is expected to be completed in Q1 2025 and will be let to Travelodge on a new 35-year lease, with five -yearly, index-linked rent reviews with caps and collars.
