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North America

Equity Markets Make a Dramatic Recovery

Alan Woinski and Kim Woinski

September 1st, 2022


Skift Take

  • The equity markets made a dramatic recovery considering investors in Treasuries gave the Fed a no-confidence raspberry, not liking the comments from one of the Governors today at all.
  • Finishing touches are wrapping up on the Virgin Hotel, a 28-story tower in Midtown, Manhattan.
  • K&K Hotel Group is planning to build a new Hampton Inn & Suites in Shenandoah, TX.

The equity markets made a dramatic recovery considering investors in Treasuries gave the Fed a no-confidence raspberry, not liking the comments from one of the Governors today at all. The DJIA rebounded from losses to end the day up 146 points while Nasdaq nearly came all the way back, down only 31 by the close. The S&P 500 was up 12 points but the 10 year treasury yield was up .13 to 3.27%, a 3 year high. MCG was the big loser, down another -9% to another all time low. PLYA also traded down to a new low.

K&K Hotel Group is planning to build a new Hampton Inn & Suites in Shenandoah, TX. The five-story property would include 106 guestrooms, 1,000 square feet of meeting space, a fitness center, lobby workstation, laundry room, dining area with a full bar and an outdoor pool. Hall Structured Finance has originated a new first lien construction loan totaling $15.3 million to finance the development of the Hampton Inn & Suites. Construction is slated to start in the 4thquarter 2022 and be completed in late 2023.

Finishing touches are wrapping up on the Virgin Hotel, a 28-story tower in Midtown, Manhattan. Developed by Lam Group, the 460-room property will be managed by Virgin Hotel Group. Hotel amenities include an outdoor pool with lounge areas atop the multi-story podium. The mini golf franchise “Swingers: The Crazy Golf Club” has opened in the building’s cellar levels. YIMBY predicts the hotel will wrap up work and open before the end of the year.

Red Roof announced the opening of the Red Roof PLUS+ Suites Birmingham – Bessemer, located in Bessemer, AL. Formerly a Red Roof Inn, the 66-room hotel features a business center, coin laundry and a snack center.

Roundhouse plans the Saltbox hotel, apartments and a restaurant in Boise, ID. The site for the 12-story building is between two other projected developed by Roundhouse and is the latest in the evolution of Boise’s Central Addition neighborhood. The Saltbox Project would start with a large underground parking garage with 130 parking spaces. As it comes out of the ground, it would then have three individual builds, each shaped to surround a central plaza area in the middle. The 12-story hotel would have 180 guestrooms, a ground-floor restaurant and bar, second floor conference center and a rooftop pool as well as dining on the top floor. The second and third buildings would form a new apartment project with a total of 100 apartments.

The Hayes Mansion San Jose announced the completion of its transformative renovations that includes 214 revamped guest rooms and suites, 33,000 square feet of upgraded event space, a remained lobby and the all-new Palm & Ember with a completely new bar area. Hayes Mansion is owned by a joint venture lead by JMA Ventures, LLC, and operated by Aimbridge Hospitality. Hayes Mansion is part of the Curio Collection by Hilton. 

Paspaley Group of Companies announced the opening of The Wall Street Hotel,housed in the historic Tontine building in Manhattan’s Financial District. Developed by Actium Development Company the property features 180 guestrooms and suites, an elegant lobby lounge, rooftop ballroom, fitness center and soon-to-be-announced restaurant and bar concepts. 

The Setai Resort & Residences condo association is seeking a re-hearing of Miami’s historic preservation board vote in favor of Monroe Capital and Witkoff’s plans for the Shore Club, a historic oceanfront resort just south of the Setai. Setai entities, as well as others, filed a petition with the city to reconsider the May 10thapproval. The Miami Beach Historic Preservation Board will vote at its Sept. 13 meeting on allowing a new hearing. The Setai association alleges that the board voted on the Shore Club’s last-minute change to reduce the width of the planned tower, denying the public the opportunity to know the ultimate decision and participate in the public hearing process. Witkoff and Monroe plan to renovate and redevelop the Shore Club into a luxury condo and hotel complex. HFZ Capital previously planned to redevelop the Shore Club, but lost the property through an alleged crooked and secretive land grab orchestrated by Monroe Capital and Witkoff. Two years ago, Monroe acquired HFZ’s interests in the Shore Club entities that owned the property in 2020, and brought Witkoff on as a partner.

Hotel Granduca Austin has been undergoing a renovation this summer and plans to reveal the results, along with a repositioning, this fall. Hotel Granduca’s transformation includes the addition of a new spa, an overhaul of the restaurant and bar, and a renovated pool deck and lobby. The renovated lobby will have a lounging area and a small boutique market. In addition to its services, a new, second-floor spa will include a relaxation lounge, men’s and women’s locker rooms with steam rooms and saunas, a couple’s suite, and a private spa suite with an experiential shower and hydrotherapy tub. Hotel Granduca has 194 rooms, including 38 suites, meeting space and a newly designed chapel. The resort is part of the Meritage Collection of Pacific Hospitality Group.

Berkadia announced the $13.8 million sale of the Hotel Indigo Pittsburgh East Liberty, a 135-room hotel in Pittsburgh, PA. Berkadia completed the sale on behalf of the seller.

Berkadia also announced the $3 million sale of the Red Roof Plus Wichita East, a 97-unit hotel in Wichita, KS. Berkadia completed the sale on behalf of the seller, RR Wichita Owner, LLC.

Crystal Investment Property announced the sale of the Wingate by Wyndham Great Falls in Great Falls, MT. CIP represented the seller in the sale. The final price is confidential. Wingate by Wyndham Great Falls, MT is a 62-key select service property featuring a front lobby, lounge area, breakfast area, business center, convenience store/sundries mart, guest laundry and a heated indoor pool.

Mag Mile Capital recently arranged a $63 million CMBS loan on behalf of their client, A&R Hospitality, for the purpose of refinancing a portfolio of nine limited/select and extended-stay hotels, which featured a large amount of cash out proceeds. The hotels are located in the cities of Gulf Shores, AL; Mobile, AL; Daphne, AL; and Pensacola, FL. A& R will leverage the cash-out proceeds to launch its own LP-GP fund. Mag Mile Capital put together a syndicate of 3 powerhouse lenders: Sociètè Gènèrale, Bank of Montreal and Goldman Sachs, creating strong demand for the loan in the secondary market. 

Colebrook Financial Company provided financing to Vacatia Inc. to acquire Liberté Management Company. Liberté Management Group, a Vacatia Company, manages six Florida properties located on St. Pete Beach, Redington Shores, Madeira Beach, Treasure Island and Belleair Beach. Including the Liberté properties, Vacatia now manages 4,750 units in eight states. 

Hotel Equities appointed David Scharfstein as chief financial officer. In his new role, Scharfstein will lead and support all functions and go forward financial strategy for HE’s finance and accounting discipline with an elevated focus on mergers and acquisitions. Scharfstein joined Hotel Equities from EmployBridge where he spent the past 4 years as Vice President of Financial Planning & Analysts and later Vice President of M&A Integration and Enterprise Initiatives. 

Dream Hotel Group announced the appointment of Marc Marrone as corporate chef overseeing culinary operations, menu development, creative concepting and strategic execution of proprietary dining and nightlife offerings at new locations worldwide. Dream Hotel Group recently broke ground on Dream Las Vegas, where Chef Marrone currently resides and will oversee culinary operations for the 531-room hotel’s seven new restaurants and bars set to open in 2025. He will also oversee food and beverage programming for three international projects currently under construction: Cas en Bas Beach Resort by Dream Hotel Group in Saint Lucia, Dream Doha Hotel & Residences in Qatar, and Dream Valle de Guadalupe in Mexico. Chef Marc Marrone also owns and operates Nice Hospitality with his business partner Reed Slobusky.

NexPoint Hospitality Trust appointed Jerry Patava to the board of trustees of the REIT to serve until the next annual general meeting of unit holders of the REIT or until a successor is appointed. Patava has also been appointed to serve on the REIT’s Audit Committee and Compensation, Governance and Nominating committee. Jerry Patava currently serves as the Chair of Great Gulf Group and the Chair of Ashton Woods USA LLC. 

Accor opened today two locations in Münster, Germany. Positioned in the mid-scale sector, the new Novotel Münster City features 117 spacious rooms, a modern lobby, a restaurant, and six conference rooms. The company’s economy hotel portfolio will be expanded with the new ibis Budget Münster City, which ahs more than 123 modern rooms and a generous lobby offering a range of snacks and drinks. The franchise partner for both hotels in Investhotel Gruppe, which already operates 18 hotels under various Accor brands. 

Alan Woinski and Kim Woinski

September 1st, 2022

Companies: A&R Hospitality, Accor, Colebrook Financial Company, Curio Collection by Hilton, Dream Hotel Group, Dream Hotels, Hampton by Hilton, Hilton Hotels & Resorts, Hotel Equities, Hotel Indigo, ibis Budget, IHG Hotels & Resorts, NexPoint Hospitality Trust, Novotel, Red Roof, Red Roof Plus+, Vacatia Inc., Virgin Hotels, Wingate, Wyndham Hotels & Resorts

Locations: Alabama, Austin, Birmingham, Boise, Florida, Germany, Las Vegas, Miami, Montana, Pittsburgh, Texas, Wichita

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