Equity investors were once again willing to give the Federal Reserve Board the benefit of the doubt on the 0.75% rate hike today but then Fed Chief Powell held a press conference and it got ugly pretty quickly. By the close the DJIA was down 522 points, Nasdaq was down 205, the S&P 500 fell 66 points, the 10-year treasury yield was down .06 to 3.51% and lodging stocks went from a modestly weak day to a route. HT fell -9%, AHT, SHO and CLDT each fell -7% while MAR, RLJ, and BHR fell -6%. IHG traded down to a new low, down -5% while PK, HLT, SVC, RHP and HT also fell -5% on the day.
STR reported US lodging data for the week ended 9/17. US hotel RevPAR was up 30.6% year over year. RevPAR was up 12.7% versus the same week in 2019.
A group of hotel franchisees has filed a lawsuit against IHG Hotels and Resorts, claiming a cyber attack on its booking system earlier this month cost them millions of dollars in lost revenue, according to various news sources. IHG said earlier in September it suffered a cyber attack that took down its main booking and other internal communications systems. The attack resulted in a situation where potential guests couldn’t reserve rooms using IHG’s central system or popular third-party systems, such as Booking.com or Expedia, and had to book directly with the hotels for a short period of time. In the lawsuit, three IHG franchise owners from Louisiana, two from Texas and one each from Ohio and Pennsylvania, said the hotel chain was negligent in allowing a second major cyber breach on its systems in less than five years. The new lawsuit is seeking unspecified damages for lost revenue, the return of franchise fees paid during the outage, the cost incurred to rebook guests and handle other paperwork related to the outage, and legal costs. The lawsuit, which claims IHG is breaking anti-trust laws, is led by Vimal Patel, whose company owns about a dozen hotels in Louisiana and Texas, including four IHG franchises.
Hyatt Hotels Corporation announced strategic brand growth in the Latin America and Caribbean region with a strong development pipeline of more than 20 planned luxury and lifestyle hotels and resort openings through 2024, including the expansion of Hyatt brands into new markets. Driven by leisure travel demand, the newly opened and expected hotels and resorts mark significant growth milestones for Hyatt that include new planned openings in the region such as Secrets Tulum Resort & Beach Club, Mexico and Hyatt Centric San Jose – Escazu, Costa Rica. Planned introduction of the first Park Hyatt hotel in Mexico: Park Hyatt Los Cabos and Residences; and the first Andaz hotel in Mexico’s historic capital city: Andaz Mexico City Condesa. Expanded brand presence in new markets throughout Mexico that include: Monterrey with Hyatt Place Monterrey Valle and Hyatt House Monterrey Valle/San Pedro; Thompson Monterrey; and San Miguel de Allende with NUMU, part of The Unbound Collection by Hyatt. As a result of the acquisition of Apple Leisure Group, Hyatt’s Latin America and Caribbean region expected growth includes a nearly 20% expansion of Hyatt’s Inclusive Collection expected by the end of 2024 with the debut of new luxury all-inclusive resorts such as Secrets Impression Moxche, Mexico; Secrets Impression Isla Mujeres, Mexico; Dreams Cozumel Cape Resort & Spa, Mexico; Dreams Estrella del Mar Mazatlan Golf & Spa Resort, Mexico; Dreams Flora Resort & Spa and Secrets Tides Punta Cana, Dominican Republic, Zoetry Marigot Bay St Lucia and Secrets St. Lucia Resort & Spa. Executed managed and franchise deals in Latin America and the Caribbean are highlighted by new Hyatt properties slated to open across its brand portfolio including: Boundless Collection hotels featuring: Andaz Mexico City Condesa, Mexico and Thompson Monterrey, Mexico. Timeless Collection hotels expected to open by the end of 2024 include: Hyatt House Monterrey Valle/San Pedro and Hyatt Place Monterrey Valle, Mexico; Hyatt Regency Mexico City Insurgentes, Mexico; Grand Hyatt Cancun Beach Resort, Mexico; Park Hyatt Los Cabos and Residences, Mexico; and Park Hyatt Mexico City, Mexico. Inclusive Collection is expected to debut 10 new resorts in the region by the end of 2024, highlighted by: Dreams Cozumel Cape Resort & Spa, Mexico; Dreams Flora Resort & Spa, Dominican Republic; Dreams Estrella del Mar Mazatlan Golf & Spa Resort, Mexico; Hyatt Zilara Riviera Maya, Mexico; Secrets Impression Moxche, Mexico; Secrets Impression Isla Mujeres, Mexico; Secrets St. Lucia Resort & Spa, St. Lucia; Secrets Tides Punta Cana, Dominican Republic; and Secrets Tulum Resort & Beach Club, Mexico. Independent Collection offers travelers enriching experiences in distinct and exciting ways, spotlighted by: NUMU, part of The Unbound Collection by Hyatt and Rancho Pescadero, part of The Unbound Collection by Hyatt, both in Mexico. In 2022, several notable Hyatt hotels opened in Latin America and the Caribbean, including: Dreams Karibana Cartagena Golf & Spa Resort, Colombia; Hyatt Centric San Salvador, El Salvador; and Hyatt La Compania, The Unbound Collection by Hyatt.
Raines added the Fairfield Inn & Suites by Marriott Pensacola West 1-10 to its growing portfolio of hotels. This deal marks the company’s first property in Florida and is the company‘s sixth third-party management agreement. Season 21, LLC owns the property and marks the first time Season 21 and Raines are doing business together. Upgrades to the 87 guestrooms and public spaces, and improvements to the property’s curb appeal are expected.
Hilton Hotels & Resorts completed a months-long renovation of the Dallas/Southlake Town Square hotel in Southlake, TX. The hotel received furnishing updates to areas including guest rooms, lobby and public areas, meeting center and outdoor pool. The fitness center was expanded and the hotel’s onsite restaurant also received renovations and design updates with a new oyster bar slated to open fall 2022. A 3,000 square foot venue is being constructed into the hotel’s meeting rooms. Dallas/Southlake Town Square’s redesign was an investment by Driftwood Capital.
Extended Stay America launched Extended Stay America Select Suites, a new extended-stay brand, for guests staying on average 30+ nights. At Extended Stay America Select Suites, guests only pay for what they need, resulting in deeper savings and extended value. For Franchisees, the new brand delivers a value proposition of low costs and financial efficiency. Extended Stay America Select Suites features essential amenities like spacious, apartment-like suites, fully equipped kitchens, and on-site guest laundry. More than 100 hotels acquired by Blackstone and Starwood Capital are being converted to the new Select Suites brand.
SureStay Hotel Group announced the opening of The SureStay Plus Hotel by Best Western Minot in Minot, ND. The hotel recently completed a renovation of its third-floor guestrooms and all 61 guest rooms received new pillow top beds, Best Western bedding and pillows and TVs, microwaves and mini fridges. The SureStay Plus Hotel by Best Western Minot offers an indoor pool, business center and guest laundry.
Accurate held a groundbreaking on Ash Creek Boulevard, in Fairfield, CT, marking the beginning of work on the mixed-use project at the Fairfield Metro Station. The development aims to build 357 apartments, a 118-room hotel, 70,000 square feet of office space and 40,000 square feet of retail space.
WorldHotels Collection announced the expansion of its hotel offerings in premier destinations across Europe and North America. The addition of these properties is part of the brand’s larger effort to strategically expand its footprint in key destinations across the globe. Select hotels joining the portfolio include: Modern Times Hotel, WorldHotels Elite Collection, Vevey, Switzerland; TheSTRAT Hotel Casino, WorldHotels Elite Collection, Las Vegas, NV; Peppermill Resort Spa Casino, WorldHotels Elite Collection, Reno, NV; The Crown London WorldHotels Distinctive Collection, London, England; and Hotel Mulino di Firenze, WorldHotels Crafted Collection, Florence, Italy.
Radisson Hotel Group announced the opening of Radisson Blu Hotel, Perth, located in Perth in Central Scotland. Radisson Blu Hotel Perth features 75 guest rooms and suites, a restaurant, lobby bar, garden bar, fitness gym, treatment rooms, as well as two ballrooms and five large meeting and conference rooms.
The family that owned Butlins for 21 years has bought back the holiday resorts business from its private equity owner in a £300 million deal. Blackstone, which bought Bourne Leisure for £3 billion last year, has carved out the tourism group’s Butlins offshoot, removed its property interests and sold it back to the family headed by Peter Harris, the Bourne co-founder. Butlins owns holiday resorts in Skegness, Lincolnshire, Minehead, Somerset, and Bognor Regis in West Sussex.