The DJIA surged 520 points but Nasdaq was down 32, the S&P 500 was up 17 points and the 10-year treasury yield was up .08 to 4.35%. Lodging stocks were modestly higher. SOHO was the biggest mover, down -6% and VAC traded down to another new low.
Truist gave their latest observations on forward-looking bookings and pricing trends for mid and higher end US hotels. Truist said they are not seeing any signs of newly emerging pullback in demand and their RevPAR projections of +3-4% in 4Q23; +2%-4% in 1Q24 and +3%-5% in 2Q24 are all slightly above consensus. They see group/convention business at or above the high end of those ranges while individual business is at least at the midpoints and leisure is at or below the low ends of the ranges. They believe this is enough for C-Corp stocks like HLT, MAR and H to work but not enough for the REITs. Hyatt is their favorite C-Corp and Ryman Hospitality is the REIT they like.
Hotel Equities detailed what they called a year of success. Highlights that have made the year outstanding for them include: With the addition of two new strategic partnerships, National Hospitality Services and Maximum Hospitality, the HE portfolio of hotels and resorts grew in the U.S. and Canada, with nearly 9,000 associates and 30,000+ rooms in their portfolio. HEreceived industry accolades and recognition for outstanding performance in operations and remains at the top of all the major brand lists of Top Management companies based on Intent to Recommend scores. HE achieved exemplary performance growth in 2023 YTD, significantly surpassing 2019 benchmark levels. By expanding recruiting efforts, HE’s Manager in Training program has built relationships with top-tier schools including Florida State University, Penn Station, Indiana University, and the University of Washington. This year, HE made significant investments into technology to enhance investor and guest experiences, streamline operations, and improve efficiencies enterprise wide.
All-Inclusive by Marriott Bonvoy officially welcomed Marriott Hotels to its portfolio of immersive getaways, beginning in early 2024 with Marriott Cancun, An All-Inclusive Resort. While programming and activities will evolve throughout the year, standout experiences include: The Greatroom as the hub of the resort experience; novice-to-expert artist workshops; elevated amenities such as the dynamic pools and water slides, unique pop-up cinema moments, nightly entertainment and beachside family picnics; and well-rounded restaurant offerings available at every resort. The debut property, Marriott Cancun, An All-Inclusive Resort, will offer 450 guestrooms, nine specialty restaurants, unique daily pop-up experiences, exciting water features, and a variety of special entertainment. Additional Marriott Hotels All-Inclusive Resorts are set to debut throughout 2024 and 2025, including Marriott Puerto Vallarta, An All-Inclusive Resort and Marriott Djerba, An All-Inclusive Resort – Tunisia.
Hilton announced the signings of two franchise agreements for the upcoming conversions of the 90-room Perla La Paz, Tapestry Collection by Hilton and 70-room Tropicana Los Cabos, Tapestry Collection by Hilton in San Jose del Cabo, marking the debut of Tapestry by Hilton in Baja California, Mexico. Onirius Hospitality Advisors served as the principal advisor for the development and launch of both hotels. The historic Hotel Perla recently underwent a $10 million renovation and is expected to join the Hilton portfolio in early 2024 as Perla La Paz, Tapestry Collection by Hilton. The property features multiple food and beverage venues, a gym, spa, and third-level pool. The Tropicana Inn is scheduled to debut as Tropicana Los Cabos, Tapestry Collection by Hilton in early 2024. The property features 70 rooms including two suites and a restaurant and bar.
Hyatt Hotels Corporation marked Hyatt’s entry into upper-midscale lodging in the Americas with the groundbreaking of the first Hyatt Studios property, set to open in Mobile, Alabama in early 2025. Hyatt has entered into a franchise agreement with 3H Group Inc. for Hyatt Studios Mobile/Tillman’s Corner. The brand’s growth is further evidenced by a newly executed deal for a Hyatt Studios hotel in Portland, Main, slated to open in 2025. Hyatt’s first franchise agreement with Giri Hotel Management is for a 122-room Hyatt Studioshotel at Portland International Jetport. Each Hyatt Studios hotel will have innovative self-service amenities and a 24-hour market.
IHG Hotels & Resorts announced the opening of a new avid hotel in Elkhart, Indiana. avid hotel Elkhart North features 90 guestrooms, a heated indoor pool and a fitness center. The property is owned by GH of Elkhart North LLCand managed by Ganesh Hotels.
Sonesta International Hotels Corporation announced the grand opening of Hotel 11, MOD, a Sonesta Collection in Calgary, Alberta, Canada. The 155-room hotel provides a business center, indoor heated pool, hot tub and a fitness center.
RESET, a new hotel brand, has broken ground on its first property on 180 acres of private desert next to Joshua Tree National Park. The 65-room property will serve as the flagship for the brand co-founded by Ben Uyeda. Sightline Hospitality has signed on as the operator. RESET Hotel, Joshua Tree, will feature 65 rooms including 25 suites, and a pool surrounded by a terraced garden.
The 141-room Global Ambassador is scheduled to open in Phoenix on December 6. The hotel boasts more than 36,000 square feet of event space including a pavilion and an event lawn. Additionally, the property will feature five food and beverage outlets and an entire floor dedicated to wellness including a fitness center with a yoga studio, a Pilates room, a spin studio and two outdoor decks, and a spa. Owned by Sam Fox, the Global Ambassadorhas joined the Preferred Hotels & Resorts Legend Collection.
Castle Peak Holdings announced the grand opening of Trailborn Rocky Mountains. The brand’s debut property will open on December 1st in the heart of downtown Estes Park, Colorado. The sprawling campus includes 86 hotel rooms across two properties, a restaurant, bar, café, two retail markets, extensive outdoor public areas, including two seasonal pools, patios, porches and communal fire pits. Next year, Trailborn will open additional properties at the Grand Canyon; Highlands, North Carolina; Wrightsville Beach, North Carolina; and Mendocino, California.
NexGen Hotels announced the acquisition of the Best Western Plus Ambassador Suites Venice located in Venice, Florida. The 83-room hotel will be managed by Genuine Hospitality Group. Hotel amenities include a heated outdoor pool, sundeck and a fitness center.
Cogswell Realty is planning a boutique hotel at 1016 W. Lake in Chicago, Illinois. The all-electric building will include solar panels on the roof as well as bird-friendly glass with bird fritting. The hotel tower will rise 15 floors with 143 guestrooms and will include a rooftop sky lounge and three floors of amenity space at the base of the building.
The Columbus Inn and Suites in Columbus, Mississippi, is under new ownership and is receiving a makeover. PGV Capital purchased the 96-room property and is renovating it into an extended stay hotel.
A shuttered CBS Pharmacy in Midtown Sacramento will give way to a six-story hotel with 154 rooms, though no apparent brand is given at this point. The unnamed hotel will be at 1701 K Street. The six-story structure, with five stories above a single-level concrete podium, will offer a fitness center, meeting rooms and a bar. 1701 K St. LLC, listed as the property owner, said the property is in escrow to be sold.
HREC Investment Advisors arranged the sale of Bear Valley Mountain Resort, which includes a 1.740 acre Ski Resort, a Lodge, multifamily units, and additional acreage that can be developed into a 200-unit hotel as well as a 14-acre Village Center with 350 residential units and 40,000 square feet of retail/commercial space in a pedestrian village. The property was purchased by a private local buyer. HREC Investment Advisors exclusively represented the seller, Skyline Investments Inc. on this transaction. Bear Valley Mountain Resort is a ski area on the western slope of California’s Sierra Nevada.
JLL’s Hotels & Hospitality group arranged financing for The Copley Square Hotel, a FOUND Hotel in Boston, Massachusetts. JLL worked on behalf of the borrower, Hawkins Way Capital, LLC. The Copley Square Hotel, A FOUND hotel is a seven-story boutique hotel with 164 guestrooms, a fitness center, communal kitchen, laundry services, valet parking, restaurant/bar areas and over two stories of F&B retail space.
Three big banks are suing Ashford Hospitality Trust over claims the company breached its contracts in defaulting on loans tied to 14 hotels in eight states. The banks are asking the court to appoint a receiver to ensure the hotels remain in compliance with their Marriott-brand agreements and retain their value. The collection of hotels is among the 19 the REIT is seeking to hand back to lenders in an effort to shore up its balance sheet. Morgan Stanley, Barclays Bank and Bank of America originally provided $293.8 million backing the 14 hotels. An attorney representing the special service for their loans, Wilmington Trust, National Association, acting on behalf of Trimont Real Estate Advisors, has requested the court appoint a receiver to maintain and preserve the value of the hotels until a foreclosure process, which is expected to take several months, is completed.
Personnel News
Accor announced appointments within its luxury & lifestyle division. Gilda Perez-Alvarado will remain Chief Strategy Officer of the Accor Group and in January 2024, she is also appointed CEO of Orient Express. As part of Gilda’s role, she is in charge of overseeing global strategy, relations with hotel owners, and strategic partnerships. Prior to Accor, her most recent role was Global CEO of JLL Hotels & Hospitality. Maxime d’Angeac will be appointed Artistic Director Orient Express in January 2024. Since 2021 Maxime has designed new Orient Express trains and the future boat Orient Express Silenseas. In March 2023, Omer Acar joined Accor as CEO Raffles & Orient Express and serves as a member of the Group’s Luxury & Lifestyle Executive Committee. In January 2024, he takes the lead of Raffles & Fairmont. He also has the responsibility of representing Accor in the North American market.
Rachel Newns has been promoted to global hotel practice lead at FCM Consulting as part of the company’s strategic expansion. Previously head of hotel program management for EMEA, Rachel will be focusing on supporting customers in the strategic management of their hotel programs and the global strategic direction of hotel practice.
Europe Highlight
Accor and Allenort Group signed an agreement for a new hotel and service complex in Gdynia. Accor is boosting the Swiss brand’s portfolio in Poland with this new partnership. The complex, will consist of two buildings connected by an above-ground walkway, Movenpick Hotel Gdynia with 176 rooms, and Waterhall Residence apartments. Movenpick Hotel Gdynia, equipped with an underground parking lot, is planned to have space for two restaurants, a sky bar, a 460 square meter conference center, and a spa area with an indoor pool and treatment rooms. The newly built hotel will welcome its first guests as early as 2026.
