California

The earnings calendar accelerated in both the REIT and C-Corp section in the past 24 hours. Hyatt received the most attention with a clean beat but then some concerns creeping in. Host Hotels had a lousy two days to issue a great report with a clean and positive beat and raise. Summit Hotels came in just under consensus even with a strong top-line performance as higher hotel-level expenses hurt results.

The stock market experienced a decrease, with the Dow Jones Hotel & Lodging REITs Index down 2.3%. There were several hotel acquisitions, renovations, and new developments announced. There were also announcements of management changes, upgrades, and technology acquisitions in the hospitality industry.

Truist gave their 1Q lodging earnings preview . While they continue to see macro over micro with the main driver/wildcard coming from the economic impact of high interest rates and inflation, at a minimum they expect results to be in-line but more likely ahead. The Kayak Miami Beach hotel could be seized in a $13.68 million foreclosure lawsuit. The ART Hotel Denver, Curio Collection by Hilton announced the completion of its $3 million property-wide refresh to its 165 rooms and suites, 7,500 square feet of flexible meeting and event spaces, fitness center, private dining and public spaces.

Upper upscale hotels, the property types most associated with business travel, are well represented in the U.S. development pipeline . According to the American Customer Satisfaction Index Travel Study 2022-2023, satisfaction across all four industries measured, airlines, hotels, car rentals, and online travel agencies, is up . STR reported US lodging data for the week ended 4/15. US hotel RevPAR was up 8.6% year over year.

B of A Securities initiated coverage on Hilton Grand Vacations with a Neutral rating and $50 price target. OYO plans to expand its market presence in the U.S. with an addition of over 100 hotels in CY2023. Morgan Stanley cut their price target on Park Hotels to $13 a share from $14 while maintaining their Equal Weight rating.

Blackstone announced the final close of its Blackstone Real Estate Partners X fund with $30.4 billion of total capital commitments, the largest real estate or private equity drawdown fund ever raised. Truist lowered their target price on Pebblebrook Hotel Trust, saying they have concerns over 2024 San Francisco conventions along with rising hotel-level costs. Celebrating its five-year anniversary, the Hard Rock Hotel Dayton Beach in Florida debuted a multimillion renovation including refreshed guestrooms and youth club and revamped memorabilia.

Rosewood Hotels & Resorts  announced Rosewood Residences Hillsboro Beach , located two miles from both Boca Raton and Pompano Beach, Florida . The Vinoy Resort and Golf Club, Autograph Collection has completed the initial phase of a comprehensive renovation led by Rockwell Group . Simon Property Group purchased the Hampton Inn & Suites at Phillips Place from Phillips Place Hotel Investors for $42 million.

Sotherly Hotels reported preliminary operating results for 1Q23 for their 10 wholly-owned properties. RevPAR was up 21.4% led by an 11.4% jump in occupancy. Tighter budgets, busy airports, and soaring prices are prompting a more frugal tourist to return . Even high-end travelers are pulling back on their vacation spending, Bloomberg reported. Lightstone announced the April 12 debut of the 37-story, 727-key Moxy & AC Hotels Downtown Los Angeles.

Kimpton’s first-ever resort in the Western Caribbean is officially opening this summer, with the debut of the new Kimpton Grand Roatan in the Bay Islands of Honduras . According to The Wall Street Journal,  Goldman Sachs  is investing between 150 million and 200 million euros in  three seaside resorts  in the northern region of  Halkidiki . Key International  completed the purchase of  The Perry Hotel  on the waterfront in  Key West, FL  as part of an ambitious expansion of its $2 billion portfolio.

Wells Fargo has cut price targets on lodging stocks under coverage due to concerns over regional banks and their impact on the hotel industry. The bank only downgraded two names - Park Hotels and Xenia Hotels - but reduced price targets on many others, including Hilton, Marriott, and Hyatt. STR's global "bubble chart" update shows growing momentum in the Asia Pacific region and more than half of markets globally with better than 20% growth in RevPAR versus 2019. Israel, Switzerland, Singapore, the Dominican Republic, and New Zealand led in RevPAR on an actual basis. HEI Hotels & Resorts has taken over management of the Marriott Jacksonville Downtown Hotel in Jacksonville, Florida, which will undergo a comprehensive renovation in the planning stages with completion anticipated in the first quarter of 2024.