In a rare close for January, the DJIA was up 202 points, Nasdaq was up 200, the S&P 500 was up 42 points, and the 10-year Treasury yield was up 0.04 to 4.14%. Lodging stocks were modestly higher. AHT traded down to a new low but bounced, ending the day up 5%. AINC also hit a new low but was down -5% on the day. SOHO also traded down to a new low.
Truist Securities upped their target price on Pebblebrook Hotel Trust to $16 from $15. They view 2024 as a transition year for PEB, driven by improved macro in some lagging urban markets and by the eventual EBITDA expansion of several repositioned/renovated hotels. They expect more significant incremental EBITDA growth in 2025-2026.
STR reported US lodging data for the week ended 1/13. US Hotel RevPAR was up 3.3% with rates up 6.3%. Group RevPAR was up 13.6%.
Hilton Grand Vacations Inc. completed the previously disclosed acquisition of Bluegreen Vacations. The all-cash transaction, with total consideration of approximately $1.5 billion, inclusive of net debt, broadens HGV’s offerings, customer reach, and sales locations, creating a premier vacation ownership and experiences company. The combination adds approximately 200,000 members and expands HGV’s resort portfolio to nearly 200 properties in 14 new geographies and eight new states.
IHG Hotels & Resorts said they strengthened their leading position in the Luxury & Lifestyle segment. Expansion, expertise, and enterprise investment propel their momentum in the Americas across six renowned brands. IHG’s six Luxury & Lifestyle brands account for more than 800 open and pipeline hotels, with soon-to-open properties across a host of resort, metropolitan, and natural destinations.
- Six Senses has 23 hotels open around the world and a 43-property pipeline that will nearly triple its current global reach.
- Regent Hotels & Resorts will see the brand’s Americas reintroduction, Regent Santa Monica Beach, in mid-2024.
- InterContinental Hotels & Resorts‘ fantastic openings include InterContinental Dominica Cabrits Resort & Spa, InterContinental Bellevue at the Avenue in Seattle in early 2024, and InterContinental Indianapolis set for a fall opening.
- Vignette Collection openings include Oregon’s wine country and Mexico’s Yucatan Peninsula.
- Kimpton Hotels & Resort’s growing portfolio includes anticipated openings in Mexico City and Denver Tech Center, a signing in Monterey Bay’s Pacific Grove, California, and new brand extensions such as Kimpton’s first all-inclusive property along Mexico’s Riviera Maya.
- Hotel Indigo is seeing rapid global growth with more than 150 properties open and another 130 in the pipeline. New hotels coming soon include offerings in neighborhoods surrounding Washington D.C., Barbados, and Grand Cayman.
Aimbridge Hospitality closed 2023 with a strong mix of deals, new market entries, and property reopening in its global portfolio, continuing to fuel growth and build momentum going into 2024. Renovations and construction projects continue to be an ongoing part of Aimbridge’s managed portfolio, with dozens of properties receiving major renovations or undergoing PIP updates under the purview of the Aimbridge team. In 2023, this included breaking ground on the Grand Hyatt Cayman and the Autograph Collection Curacao, both new builds set to open in 2025; overseeing the Millennium Hotel Minneapolis through a major PIP project and rebrand; and rebranding a recently transition portion of its LATAM portfolio to international flags like Sheraton and Holiday Inn. More projects are on the horizon in 2024, including a 2023 deal naming Aimbridge as the operator of the Rugby Football Union’s Twickenham Stadium Hotel, which will transition to a Radisson RED property this year.
SH Hotels & Resorts is embarking on a significant worldwide expansion of its portfolio across four continents and 13 countries and territories between 2024 and 2028. Upcoming developments in the 1 Hotels portfolio include in Melbourne, Copenhagen, Seattle, Austin, Crete, Paris, San Miguel de Allende, Cabo, and Riyadh. Baccarat Hotels expansion includes Rome, Florence, Dubai, Miami, Riyadh, while Treehouse Hotels’ looks to expand to Sunnyvale, Manchester, Miami Adelaide, and Riyadh.
Choice Hotels International, Inc. announced higher-than-expected brand growth across its revenue-intense segments in 2023. Choice drove a 1.4% increase in the number of hotels in its domestic upscale, midscale, and extended stay brands in 2023, including the rapid and seamless integration of Radisson Hotels Americas brands. Growth of the Choice legacy brands represented a nearly 2% increase in the number of domestic properties. Additionally, Choice grew the number of hotels in its international portfolio by 2%. Choice opened a total of 61 extended stay hotels in 2023. Suburban Studios opened 25 hotels; WoodSpring Suites opened 24 new hotels; and Everhome Suites expanded its pipeline to 66 properties, with a total of 16 hotels under construction. In the upscale segment, Choice continued its growth in 2023 with the opening of 19 properties in its Ascend Hotel Collection. Cambria Hotels grew its portfolio to 74 properties, with 9 new hotels opened in 2023. Regarding its commitment to the upscale and upperscale segments in 2024, Choice plans to expand development efforts of the Radisson Blu brand. In 2023, Choice focused on the continued growth of its core brand offerings. Comfort opened 33 new hotels; the Quality Inn brand had 35 openings and awarded 64 franchise agreements and new properties added to the Econo Lodge and Rodeway Inn brands last year generated more revenue on average than properties that exited the brands. Choice awarded 10 new franchise agreements for the Country Inn & Suites brand, pushing the total number of agreements in 2023 to 19. Choice is poised to accelerate its development growth and performance in 2024, with a global pipeline that includes 1,032 properties as of year-end 2023.
Marriott International, Inc. broke ground on its inaugural StudioRes brand hotel, as Concord Hospitality began construction of its first property in Fort Myers, Florida. The Fort Myers property is projected to open in Spring 2025 and is being developed by Concord Hospitality with its long-time partner Whitman Peterson. Concord expects to develop around 50 StudioRes properties, spanning several dozen submarkets in major U.S. cities, with several more slated to break ground in the coming months. At 124 rooms and 54,000 square feet, the StudioRes prototype is expected to be Marriott’s most affordable cost-per-key project to develop and build. Public spaces will offer daily coffee service, a fitness center, laundry room, vending area, communal table, and covered patio.
JONO Developments Ltd. and Hotel Equities announced the official opening of Moxy Halifax Downtown. The 160-room hotel, owned by JONO and operated by Hotel Equities, is the first Moxy hotel to open in Canada.
PM Hotels Group announced a strategic alliance with TQP Capital Partners, led by industry innovator Thomas Prins, to enhance and accelerate its business development platform. Under Prins’ leadership, TQP Capital Partners is charged with securing new business for PM Hotel Group, reinforcing the company’s position as a leading player in the hospitality sector. In addition to originating mergers and acquisitions, TQP Capital Partners will lend their expertise in sourcing new third-party management contracts, actively engaged to pinpoint off-market opportunities and identify capital groups interested in acquiring hotels. The partnership also allows for the potential of PM Hotel Group and TQP Capital Partners to co-invest equity.
Noble House Hotels and Resorts announced the completion of an extensive revitalization of Teton Mountain Lodge & Spa, located in Teton Village, Wyoming. The multimillion-dollar renovations include the main lobby, reception area, concierge and retail spaces, new Black Diamond Bar, and a full renovation of the Spur Restaurant & Bar. Teton Mountain Lodge & Spa also offers the SpaTerre, a fitness center, both indoor and outdoor pools and hot tubs.
The Ronto Group announced construction of Rosewood Residences Lido Key in Sarasota, Florida is underway. The collection of 65 private beachfront residences over eleven stories is being developed by Ronto and Wheelock Street Capital with residential services by Rosewood Hotels and Resorts. Rosewood Residences Lido Key includes a secluded beach level pool area with a zero-edge pool with sun shelves, day cabanas, and lounge seating. A shaded pool pavilion will offer food and beverage service, two fire pit seating areas, and paddleboard and beach toy storage. The third-floor amenity level, from the Owner’s Lounge to the Fitness Center and Spa; Game Room; Bistro Café; and main dining area, will open to a collection of gathering spaces.
HCW announced the commencement of hotel reservations for Caesars Republic Scottsdale. The 11-story, 265-room luxury hotel is set to open its door on March 6th, 2024 in Scottsdale, Arizona. Caesars Republic Scottsdale will offer two restaurants by Chef Giada De Laurentiis, Luna by Giada and Pronto by Giada; Seven, an elevated pool lounge and fine dining concept operated by the Riot Hospitality Group, 20,000 square feet of event space including a 7,000 square foot ballroom opening onto the hotel’s second pool, Cleopatra’s Pool & Bar. The hotel is owned and managed by HCW. Financing for the project was arranged by Walker and Dunlap, with the National Bank of Arizona supporting the endeavor.
The Laramar Group recently added the Royal Palace Motel to its portfolio. Situated in Denver, Colorado, the motel was purchased for $7.3 million. Laramar Group plans to replace the outdated structure with a contemporary six-story apartment building, comprising at least 153 units.
Mumford Company finished 2023 with a flurry of closings and anticipates 2024 to be a banner year based on current deal flow. According to the company, buyer sentiment, demand growth, and upward ADR pressures are setting a positive tone for this year.
Berkadia Hotels & Hospitality announced the sale at bankruptcy auction of Holiday Inn Clearwater US 19 North, a 119-room property in Clearwater, Florida. The property features a business center, outdoor pool, and fitness center. The closing represents the ninth hotel bankruptcy transaction closed by Berkadia in 2023.
JLL’s Hotels & Hospitality ground arranged construction financing for the 296-key AC Hotel / Element by Westin hotel in Boise, Idaho. The AC Hotel consists of 175 guestrooms and the Element by Westin has 121 rooms. The 15-story hotel features a rooftop bar and restaurant. JLL worked on behalf of the borrower to secure the conventional loan through a national bank.
HVS Brokerage & Advisory announced the sale of the 56-key Kemah Edgewater Hotel in Seabrook, Texas. The property was purchased by Krishna PS LLC from Pineda Hospitality.
Cronheim Hotel Capital secured $15.425M to refinance the existing debt on the Hampton Inn Manhattan/Downtown-Financial District. The NYC hotel is owned and operated by Shamin Hotels.
Personnel Move
IHG Hotels & Resorts announced the appointment of Leanne Harwood as its new Senior Vice President, Managing Director, Luxury & Lifestyle Americas. Upon assuming her role on March 1, Harwood will oversee the daily operations of the LLA organization, drive performance and operations of IHG’s six Luxury & Lifestyle brands, and support their growth in the region. Harwood currently serves as SVP, Managing Director for IHG’s Japan, Australasia, and Pacific region.
