The DJIA jumped 337 points, Nasdaq was up 247, the S&P 500 rose 62 points and the 10-year treasury yield fell by .13 to 4.11%. Lodging stocks were higher. VCSA was up 10% while SOND and BHR both rose 6% on the day.
Deutsche Bank gave its first broad-based downward revision to hotel REIT estimates since the travel recovery began in spring 2021. DB is going to have some company as we sense more analysts are beginning to believe that we just saw the best environment for the space as the return to work is taking away the big leisure push and they are not sure it is going to be completely replaced by an increase in business travel. DB said the industry, including the REITs, over-earned relative to what could reasonably be expected by any traditional metrics in 2Q and now we may be entering the first phase of an industry correction with occupancy slippage in the leisure segment. If an individual is spending more time back at the office or traveling for work, that person is not traveling for pleasure. While the pickup from groups and business transient is masking it right now, they expect the corporate segment to be impacted by layoffs and other budget cuts starting to add up. DB continues to see RHP as the single best way to navigate the current environment but remains attracted to the NAV aspects of HST and PK. While modest, DB cut price targets nearly across the board while maintaining their ratings.
The growing demand for luxury branded residences is stronger than ever, especially in Florida. Edition has found success in Miami with its hotel and newly announced stand-alone residential tower, but as Miami becomes crowded with new residents, construction and skyrocketing prices, many developers are looking to Fort Lauderdale. Fort Lauderdale is home to 300 miles of inland waterways and Edition Residences Fort Lauderdale is capitalizing on the waterfront opportunity by developing along the Intracoastal waterway. Edition Residences Fort Lauderdale are housed within two 11-story towers. The ultra-modern towers features 65 residences ranging from two to four bedrooms along with nine villas and four penthouses. All residents will enjoy resort-like amenities, like 20,000 square feet of outdoor space that includes tropical landscaping, an outdoor meditation walkway, an Intracoastal river walk, temporary dockage for small boats, a moonroof, sunroof, outdoor summer kitchen, movie screen and fire pit. There will also be two pools; a Health and Wellness center, with a Turkish-style hamman, steam shower; and quiet rooms. There’s also an eat-in lounge with a kitchen, designed for socializing or hosting private events.
The historic Madison Hotel, in Washington D.C., has joined Marriott Bonvoy. Located just four blocks from the White House, the boutique-styled hotel boasts 356 rooms, including 60 suites; multiple food and beverage venues including the newly renovated lounge, Club Madison; and a total of 18,105 square feet including a two-story ballroom and 25 meeting spaces.
A new hotel is coming to Fort Worth, Texas, near the Medical District. A five-story Cambria Hotels will be the Choice Hotels brand’s first property in Fort Worth. Similar to other Cambria Hotels, the new Fort Worth location will feature an on-site restaurant and bar, meeting and events rooms, and a fitness center. It is unclear whether the new location will feature a pool like some other Cambria properties.
Club Med is celebrating its seventy-second birthday as it expands to even more places around the globe. Carolyne Doyon, president and CEO of Club Med North America and the Caribbean, shared in Forbes where the brand is headed in a post-pandemic vacation world. In 2025, Club Med Utah will become the first new resort in the U.S. for the brand in more than 20 years and the first-ever Exclusive Collection mountain resort in North America. Club Med wants to make winter sports more accessible and cost-effective for American travelers. With the brand’s all-inclusive mountain vacation model, everything is taken care of from lift passes, group ski or snowboard lessons, and guided hiking groups to all-day dining, childcare, and family activities, which are all included. The plan is to grow by adding three to five new resort openings or renovations per year, seeking destinations that are ideal for both families and upscale travelers. The Club Med Exclusive Collection portfolio has 19 of Club Med’s most luxurious five-star accommodations, growing to 25 properties by 2025. Travelers can expect to see 10 new Club Med resorts and 13 renovations or extensions of existing resorts by 2024, including Club Med Pragelato-Sestriere in Italy and Club Med Gregolimano in Greece. This December, travelers have three new all-inclusive mountain resorts, Club Med Tignes and Club Med Val d’Isere in the French Alps and Club Med Kiroro in Japan. Next year, Club Med will open its third Japanese property in Hokkaido and a new resort on the Malaysian side of the island of Borneo. The Joyview brand is a hotel-style concept in China with resorts situated an hour outside major cities for guests to enjoy a weekend away. The concept includes more flexibility like daily room rates or an option for an all-inclusive package.
Pacifica Hotels unveiled the latest addition to its portfolio with the debut of Hotel Virginia Santa Barbara, Tapestry Collection by Hilton. The Santa Barbara, CA hotel opens following an extensive remodel and rebrand, offering 61 guest rooms and suites and a new on-site eatery.
Red Roof announced the opening of the dual-branded Red Roof Inn and HomeTowne Studios Georgetown located in Georgetown, KY. The dual-branded hotel has a combined 85 rooms, comprised of 51 standard rooms and 34 extended-stay suites along with onsite washers and dryers.
CorpHousing Group Inc. plans to open the Lafayette Hotel powered by LuxUrban in New Orleans, LA on November 1 and The Washington powered by LuxUrban in downtown New York City on November 19. As previously announced, CHG acquired the Lafayette Hotel and The Washington via separate 15-year Master Lease Agreements. The Company will operate these properties under its LuxUrban hospitality brand. The 60-unit Lafayette is CHG’s first property in New Orleans and The Washington is a premier, 217-unit luxury hotel in downtown Manhattan and is CHG’s fourth property in New York City.
Through its Capital Advantage program, Capital Vacations continues to expand its impact in helping Independent Timeshare resorts address opportunities of today’s marketplace. In the most recent 60-day period, another 21 VRI Americas Associations have signed on to the Capital Advantage to benefit their resort and owners. Capital Vacations will provide these 21 resorts with tools and programs from the Capital Advantage suite of services to improve overall financial health and achieve goals set forth by each Association. Some of the services include sales of delinquent inventory, enhanced rental distribution, and inventory recovery. By employing Capital Advantage, the Associations will receive guaranteed revenues to support the guest experience and financial stability of the resort.
Ramsfield Hospitality Finance and funds managed by AB CarVal have teamed up to provide a $50,500,000 mortgage loan secured by the fee simple, 114-room ModernHaus SoHo hotel in New York City. The property underwent a transformative renovation and reopened in 2021 as a contemporary luxury boutique hotel featuring four food and beverage outlets.
Sonder Holdings announced Sean Aggarwal has joined Sonder’s Board of Directors, effective immediately. Aggarwal is currently the Chair of the Board of Directors at Lyft, Inc., as well as a board member at Arlo Technologies, Inc. Thumbtack, Inc, and HomeLight, Inc. He is the former Chief Financial Officer of Trulia.
Pineapple Hospitality Company, owner and operator of the Staypineapple brand of hotels in the Pacific Northwest, announced the appointment of Todd Boysen as the company’s new President and Chief Executive Officer. Todd joined Staypineapple as CFO in 2013 and became COO in 2019.
Mainsail Lodging & Development announced the promotions of Tom Haines to Vice President of Operations and Transitions; and Charles Albanos to Vice President of Operations. Tom Haines has served, for the past five years, as Vice President of Operations for Mainsail, providing operations oversight of existing and future hotel projects. Haines will continue to oversee pre-opening and conversion activities, from overall programming and activations to collaboration of hotel design and food and beverage concepts. Haines began his Mainsail career in 2021. Charlie Albanos has been Corporate Director of Operations with Mainsail for the past two years. In his new role, he will oversee operations at all hotels in the Mainsail Lodging & Development portfolio and work closely with general managers on hotel and outlet functions through strategic staffing, guest satisfaction and profitability. Albanos came to Mainsail from Marriott International.
Governor Albert Bryan signed a fully negotiated and executed lease agreement between the Government of the Virgin Islands and Christiansted Harbor Resort and Marina LLC for the redevelopment of the historic Hotel On The Cay property. Mr. Bryan is also in the process of transmitting the lease agreement to the V.I. Legislature for its approval and ratification. Once approved, the developers are ready to go. Under the terms of the agreement, the company will receive a 60-year lease and will undertake a two-phased $25 million renovation of the resort. The redevelopment agreement includes renovation of the 55 existing hotel units, along with upgrades to the pool and existing restaurants. It also includes the construction of 60 additional hotel units, dock extensions and improvements to the ferry. Construction improvements and renovations will take place in two phases at estimated costs of about $8 million for Phase 1 and $17 million for Phase 2. The estimated timeline for the completion of the Christiansted Harbor Resort and Marina project is about 34 months for Phase 1 and about 30 months for Phase 2.
Lodging Dynamics Hospitality Group announced the appointment of Jo Anna Lebo as Vice President of Human Resources. Her most recent role was a Vice President of Human Resources at Diamond Resorts International.
Europe Highlights
Preferred Hotels and Resorts welcomed 14 new member properties to its global portfolio between July 1 and September 30 this year. Highlights include the 373-room Salamander Washington D.C. in Washington, D.C.; the 100-room Pinares Panorama Suites Spa and Convention Center in Cordoba, Argentina; the 109-room Hotel Dame des Arts in Paris, France; the 35 guestroom Son Net in Mallorca, Spain; the 453-room Serry Beach Resort in Hurghada, Egypt; and the 129 guestroom The Claridges, New Delhi in New Delhi, India. Other member properties to join Preferred Hotels & Resorts’ portfolio during the quarter include: Passalacqua, Lake Como, Italy; El Fuerte Marbella, Marbella, Spain; The Claridges Nabha Residence, Mussoorie, Mussoorie, India; Dusit Thani Laguna Singapore, Singapore; The Hotel HIGASHIYAMA by Kyoto Tokyo Hotel in Kyoto, Japan; Fulton Lake Inn, Charleston, SC; Pendry Washington D.C.-The Wharf, Washington D.C.; and The Benson Hotel and Faculty Club in Aurora, CO.
The 5D Group announced the launch of OYA Resorts, a new chain of exclusive membership-only longevity resorts worldwide. OYA Resorts are based on a new pioneering model in hospitality, where visitors are required to have a NFT membership, either Local, Global or Business. Minting will be taking place the first week of December after the project’s official launch at Art Basel in Miami. Several OYA locations are set to open this month, in Upstate New York, Virginia and the Dominican Republic, with additional resorts in Greece, Rwanda and Mongolia scheduled to open in 2023. All the resorts will have boutique settings with maximum 60 guests, spread through vast land between 100-250 acres to ensure privacy to all members. Although OYA location offer all the luxuries of traditional resorts, including private chefs and exclusive spa services, the longevity retreats offer an experience a “traditional” resort does not including cabins built to experience how nature and its elements work, an outdoor spa, holistic chefs, and a team of experts introducing visitors to the latest and greatest techno goes available to achieve one’s longevity goals. Global NFT member will also have access to the exclusive OYA Private, with two currently available locations, in the SoHo neighborhood of Manhattan, as well as in the Hamptons.