The DJIA fell 400 points on Friday while Nasdaq was down 328, the S&P 500 fell 86 points and the 10-year treasury yield pierced the 4% ceiling and probably is not done yet, rising another .06 to 4.01%. Lodging stocks were mixed. SVC rose another 4.4%. We had to wonder just how long investors will realize by reinstating their quarterly dividend on Thursday, SVC gives them a 10%+ dividend yield even after the two-day 30% surge in stock price.
According to CoStar, boutique hotels are performing well in 2022 and all classes show recovery in ADR, surpassing 2019 peak levels and leading the U.S. hotel industry. Occupancy hasn’t quite recovered to 2019 levels and partially the reason is that lifestyle and upper-upscale independent boutique hotels are slightly behind in RevPAR. Lifestyle hotels also reported very large supply growth through June 2022. Compared to 2019, the strongest RevPAR increases were in the soft brand collection and independent luxury class due to a spike in the average rate. Luxury class hotels across the nation achieved strong RevPAR growth through June 2022 from increased leisure travel.
Hilton and Dittmar Company announced the signing of Hilton at The Key, Arlington-Rosslyn, located just minutes from Washington D.C. in Arlington, VA. The 36-story, 331-room hotel is under development as part of The Key, a project that includes a destination restaurant, retail and 517 luxury apartments. Once completed, Hilton at The Key will feature approximately 28,000 square feet of flexible meeting spaces, including an event space on the 36th floor.
Kimpton Hotels & Restaurants announced it will open its first hotel in San Antonio, TX in late 2024. Located in the Central Business District, the 347-room hotel will be part new-build and part adaptive reuse of an 1850s-original schoolhouse. Owned and operated by White Lodging, the Kimpton in San Antonio will feature a 10-story tower housing an airy lobby, luxurious guest rooms, a rooftop pool and lounge and a fitness center. Two adjacent historic buildings will undergo careful adaptive reuse to become a high-end restaurant, lively lobby bar and several one-of-a-kind hotel suites. Bridging the historic buildings, the courtyard will become an outdoor entertainment and event venue. In addition to the courtyard, the hotel will feature more than 10,000 square feet of flexible meeting and event space. When it opens, the Kimpton in San Antonio will be the boutique hospitality company’s fourth in Texas.
IHG Hotels & Resorts announced the opening of the Candlewood Suites Cincinnati Northeast – Mason located in Mason, OH. The 127-suite hotel offers an outdoor gazebo and grill, fitness center and self-service laundry facilities. The Candlewood Suites Cincinnati Northeast – Macon is owned by TWC Birmingham LLC and managed by Aimbridge Hospitality.
The Mandalay Bay Resort & Casino, in Las Vegas, NV, unveiled the details around the $100 million remodel of its 2.1 million square foot convention center. Reflecting the evolving needs and preferences of contemporary meetings, significant technology upgrades, dynamic digital signage and a fresh, new design complementing Mandalay Bay’s tropical ambiance highlight the remodel. The remodel includes 11 new dynamic digital walls measuring up to 24’ x 13’, 20 double-sided 55’ mobile flexible display units, RFID locks on all meeting rooms doors as well as the installation of 200+ new motion detection cameras throughout all spaces. In addition to the convention center, Mandalay Bay continues to upgrade and add amenities and experiences throughout the resort including the upcoming multi-million dollar room redesign at Four Seasons Hotel Las Vegas, located on floors 35 to 39 of Mandalay Bay Resort and Casino. The room enhancements will be completed in two phases, touching all 424 guest rooms and suites. The first phase will include 404 standard rooms, phase two will focus on the Hotel’s twenty specialty suites. Mandalay Bay will also add Flanker Kitchen + Sports Bar in summer 2023 as well as the complete redesign of STRIPSTEAK is scheduled to debut in early 2023.
The Quoin, a new luxury boutique hotel developed and designed by Method Co., in partnership with The Buccini/Pollin Group, Inc. officially opens this month in the heart of the historic district of Wilmington, DE. The hotel is housed in the former Security Trust & Safe Deposit Company Building. The Quoin features 24 luxury hotel rooms, a lobby café & bar with fireplace, a ground floor restaurant with courtyard dining, a lower-level cocktail lounge, the city’s first rooftop bar and event space, a gym, retail space and bike share program. This is the fourth hotel to open outside of Philadelphia for Method Co.
With Fontainebleau Las Vegas pushing ahead on its debut next year, its developer is also expanding the original Fontainebleau hotel in South Florida. Jeffrey Soffer’s Fontainebleau Development announced plans for a new 50,000 square foot events center at the iconic Fontainebleau Miami Beach. Construction is underway on the project, which is scheduled to open in 2025. Plans call for two ballrooms, 10 breakout rooms and a 9,000 square foot rooftop deck, adding to the hotel’s existing 200,000 square feet of indoor and outdoor meetings and events space. In Las Vegas, NV, Soffer reacquired the property in February 2021 in partnership with Koch Industries, and later remained it Fontainebleau Las Vegas. The 67-story hotel-casino is scheduled to open in the fourth quarter of 2023 with 3,700 rooms, more than 550,000 square feet of indoor and outdoor meetings and conventions space and a retail district.
The former Standard hotel, in West Hollywood, CA, is in the process of being sold to Ian Schrager and Ed Scheetz. In March they struck a deal with the property’s current owner, Rittersbacher Sunset. The deal included $30 million in signage rights for the billboard. Osik Media leased the billboard in 2011 from the Ferrado Group, which once owned the hotel, and the company claims its lease is valid through 2027. Rittersbacher and Osik Media are currently duking it out in L.A. Superior Court, according to The Real Deal, which reported According to The Real Deal, that Osik had agreed to give up the lease initially. Rittersbacher says it has accumulated $5 million and counting in fees related to the delay.
The city of Lauderdale-by-the-Sea, FL approved a site plan for Sea Glass Beach Place, a three-story, 31-room hotel that would replace the aging one-story Dolphin Harbor Inn, which is owned by 4245 N Ocean LLC.
Canyon Partners Real Estate LLC has provided a $51.5 million senior loan to TMGOC Ventures, a partnership between The Montford Group and Opterra Capital, for the construction of a 13-story, 208-room Moxy Hotel located in Charlotte, NC. The Moxy Charlotte is scheduled to open in September 2024. Managed by Aimbridge Hospitality, the hotel will include a rooftop terrace, a Starbucks coffee shop, and a bar on the top floor.
Mumford Company announced the sale of The Sleep Inn & Suites of Gulfport, MS. Mumford Company represented the seller, Southeastern Realty Holdings, in the transaction. The purchaser, Prahar Ian Gulfport, LLC, plans extensive renovations and will continue to operate the hotel as a Sleep Inn & Suites.
HREC Investment Advisors arranged the sale of the 98-guestroom Inn at Santa Fe, SureStay Collection by Best Western located in Santa Fe, NM. HREC Investment Advisors exclusively represented a private California-based seller on this transaction. This is HREC’s second transaction with the buyer, Concept Hotels.
Wyndham Hotels & Resorts promoted Shilpan Patel to executive vice president, North America Franchise Operations, and Gustavo Viescas to president, LATAMAC, and elevated both to the Company’s Executive Committee effective immediately. In his new role, Shilpan now oversees Franchise Operations, Brand Operations, Franchise Services and Managed Operations with a team spanning North America. Based in Buenos Aires, Gustavo takes on the day-to-day management and success of Wyndham’s LATAMC region consisting of approximately 250 hotels in nearly 30 countries.
Ennismore revealed Carte Blanched, a specialist in-house team of operators, chefs, mixologists and creatives who create bespoke, forward-thinking, authentic and culturally relevant food and beverage concepts for Ennismore’s lifestyle brands. Unique to Ennismore, Carte Blanched creates new and develops F&B brands for hotel owners, overseeing everything from conception through to opening and beyond to deliver extraordinary destinations for both locals and international guests. Across Ennismore’s 100 lifestyle hotels, there are 190 restaurants and bars that generate approximately 50% of total revenue. Within its portfolio, Carte Blanched has over 40 brands, and since 2021, it has opened 17 new outlets in Europe and the Middle East. The Carte Blanched team includes: Sharan Pasricha, Carte Blanched Leader and Ennismore Founder; Jules Pearson, VP of Creative; Wayne Brown, VP F&B Development-Culinary; Alex Ghalleb, VP of Operations; Nick Comaty, VP of Operations and Development for MEA, Turkey & India; Gareth Evans, Beverage Director; Micaela Philippo, Brand Director; Caroline Strauss, Director of F&B Openings & Special Projects; Carmen Tomasic, Director F&B, Asia Pacific; and Peter Macias, Global Executive Chef.
Europe Highlights
Bespoke Hotels announced the opening of Sun Street Hotel, located on the borderline of Shoreditch and the City of London. The property offers 41 expertly designed guest rooms, including 7 suites and an onsite restaurant.