DiamondRock Beats Preliminary Results

North America
8 minutes

The DJIA did what it has been doing the past few Fridays, jumping 402 points while Nasdaq was up 132, the S&P 500 rose 51 points and the 10 year treasury yield was up .03 to 4.16%. Lodging stocks were mixed. SLNA plunged another -20%, quickly becoming the biggest disaster in a long line of SPAC disappointments in the past year, SLNA hit another new low as did BHR. VCSA was up 7% while MCG was up 5%.

DiamondRock Hospitality reported 3Q results, beating the preliminary results they announced two weeks ago. DRH said they bought back $12.3 million worth of stock in October, post-3Q. Service Properties Trust followed up their resumption of a $0.20 per share quarterly dividend with a 100% increase in normalized FFO in 3Q. SVC said business continues to recover with increased bookings at their urban and suburban select service hotels. They expect to benefit further in the coming quarters from the continued business travel recovery. Playa Hotels beat estimates and is trying to do their part in propping up their stock price, buying back 973,000 shares in 3Q and another 2.67 million shares so far in 4Q. The 3Q result is impressive given the impact of Hurricane Fiona.

Jefferies cut its rating on Xenia Hotels & Resorts to Hold from Buy. Jefferies has a $17 price target on XHR.

Vision Hospitality Group, Inc. announced the acquisition of the Bohemian Hotel Celebrationan Autograph Collection Hotel, in Celebration, FL. The 115-room property offers an upscale restaurant, outdoor pool and 4,835 square feet of meeting space spread across 8 rooms as well as an expansive patio. Hodges Ward Elliottarranged the sale of the hotel.

The RADCO Cos. purchased the Courtyard by Marriott St. Petersburg Downtown, in Florida, from The Blackstone Group for $29.1 million. The 128-room hotel features a restaurant and bar, fitness and business centers, indoor pool and meeting space. CBRE Hotels represented Blackstone in the sale.

IHG Hotels & Resorts announced the opening of its first dual-branded avid hotelsand Holiday Inn & Suites property in Mt. Juliet, TN. The five-story hotel is owned by Image Hotel Management. The dual-branded property features 72 avid hotel rooms and 96 Holiday Inn & Suites rooms, a heated indoor pool, fitness center, 1,800 square feet of meeting space and outdoor common areas. IHG recently opened and soon-to-open dual-branded properties include: the 250-room Even Hotels/Staybridge Suites Rochester – Mayo Clinic Area in Minneapolis; the 319-room Staybridge Suites/Holiday Inn Express Houston – Galleria Area; and the 500-guest-room voco hotels/Holiday Inn Chicago Downtown – Wolf Point.

IHG Hotels & Resorts also announced the opening of its recently converted Holiday Inn Express & Suites St. Augustine Dtwn – Historic hotel. Owned by Vista Hotel IX, Inc., the 51-room hotel provides and onsite business center and an outdoor pool.

Loews Hotels & Co announced the opening of the Loews Coral Gables Hotel in Coral Gables, FL. The property includes 242 guestrooms, including 21 suites; a spa; fitness center; pool; and four restaurants and lounges. Additionally, 30,000 square feet of indoor/outdoor meeting spaces includes a 9,000 square foot ballroom and a 9th floor event deck. In partnership with Agave Holdings, Loews Coral Gables is part of The Plaza Coral Gables, which also include class “A” offices, street-level shopping and dining areas, and residential lofts and apartments.

Life House has been tapped to operate Hotel Ella, a storied property with 46-keys, front veranda and courtyard pool, located in the heart of Austin, adjacent to the University of Texas. The owner, Peter Rex, has filed initial plans for a $100 million expansion of the property that would encompass 213 rooms with 172 parking spaces. 

MCR announced the reopening of the historic Pasadena Hotel & Pool following an extensive restoration of the hotel’s public spaces. The hotel is the company’s second hotel in California. MCR purchased the hotel, formerly Hotel Constance, in February 2022. MCR closed the purchase, which included an adjacent office building and invested $4 million of incremental capital in renovations and building system upgrades. The Pasadena Hotel & Pool offers 161-rooms, an outdoor rooftop pool, a lobby bar, courtyard, multi-level parking and a fitness center.

Newbond Holdings announced the acquisition of the Hotel Tampa Riverwalk, formerly the Sheraton Tampa Riverwalk Hotel, in partnership with investment funds managed by an affiliate of Apollo. The ownership team has selected Schulte Hospitality Group to run the day-to-day operations and management of the hotel. The 277-room property was delivered unencumbered of the Sheraton flag and management and will undergo an operational and namesake rebrand as Hotel Tampa Riverwalk. Ownership plans to implement a comprehensive renovation to guest rooms and public areas, as well as introduce a re-conceptualized waterfront restaurant.

North Iowa Development Partners LLC plans to develop a new Cobblestone Inn & Suites in Calhoun County, IA. Construction of the 45-room hotel is expected to begin in 2023. The site is located in the Calhoun County Business Park. Cobblestone will be responsible for management of the hotel.

In West Des Moines, IA, developers announced plans for The Grand Experience, a proposed $600 million, 226-acre entertainment district that could include a 100,000 square foot indoor water park, a 400-room hotel and business conference center, a family entertainment center, a variety of dining options, new retail and office space and 1,200 housing units with emphasis on affordable homes for workers. Riley Hogan, senior vice president for CBRE told the Des Moines Register that the centerpiece of the proposed development would be a water park two-and-a-half times the size of the Great Wolf Lodge water park in Kansas City, KS. He called the proposed West Des Moines version the “Great Wolf Lodge on steroids.” Developers plan to break ground in fall 2023. The Grand Experience is being developed by WDM Entertainment.

Avison Young Hospitality Group announced that over the last two weeks the firm has closed several hotel transactions that include: the 106-room Home2 Suites in York, PA; the 100-room Hampton Inn & Suites in York, PA; the 120-room Holiday Inn Cary, NC; a Hampton Inn in central Illinois; the 100-room Comfort Inn & Suites in Tallahassee, FL; and a 120-room bank owned hotel in Nacogdoches, TX

Hunter Hotel Advisors announced the sale of the Trianon Old Naples in Naples, FLOcean Properties purchased the 58-room property. Hunter’s Miami office arranged the sale on behalf of the seller.

HVS Brokerage & Advisory announced the sale of the 123-key Four Points by Sheraton Houston Intercontinental Airport, located in Houston, TX. The select-service hotel was sold via an online auction on Tex-X. It was purchased by Auerbach III Houston-Hospitality I LLC from Pari LLC. 

Crystal Investment Property announced the successful sale of the Birch Glen Lodge & Motel in Cascade, ID. CIP represented the Seller in the Sale and the final sale price is confidential. The 27+-key motel includes access to space for 50+ camping/self-contained RV spaces, a large lawn area for events, a fire pit, barbecues, picnic tables, and horseshoe pits. The main lodge building features indoor gaming and lounge area and a kitchen for guest use. 

Personnel Moves

Great Wolf Resorts, Inc. announced John Murphy will serve as the company’s next Chief Executive Officer, taking over for Murray Hennessey who is retiring but will continue to serve as an advisor to the company. 

Virgin Hotels appointed Leslie J. Shammas as Vice President Development Services. Shammas will be responsible for garnering partner relationships with key stakeholders on an international and domestic level. Leslie will spearhead various initiatives with the goal of ensuring hotel projects are successfully achieved with brand, in budget, and on schedule. Prior to Virgin Hotels, Leslie served as a Development Services Consultant at Montage International. 

Twenty Four Seven Hotels named Phil Norman executive vice-president of people resources & development. In the newly created position, Norman will oversee and provide executive oversight for talent management, including leadership development, organizational capability and change management. Most recently, Norman was chief human resources officer with Canyon Ranch.

Palladium Hotel Group announced the appointment of Kelly Fagan as Business Development Executive across the United Kingdom and Ireland. Kelly will work to promote the Palladium Hotel Group and grow brand awareness amongst agents. 

Europe Hightlights

Hyatt Hotels Corporation announced the opening of Hyatt Place Krakow, the first Hyatt Place hotel in Poland. Hyatt Place Krakow offers 216 guest rooms and suites; a restaurant, lounge & bar, Market, fitness center, and 1,582 square feet of meeting and events spaces. 

Hyatt also announced the opening of Hyatt Regency Lisbon. The hotel boasts 204 guestrooms and suites, four restaurants and bars, six meeting areas, a gym, two fitness studios, and an on-site spa, managed by Portugal’s top wellness brand, “Serenity – The Art of Well Being”.

Whitbread Plc has strengthened its property acquisition team to drive the expansion of Premier Inn and hub by Premier Inn across the UK and Ireland. Jill Anderson, who joins the business as a property acquisition manger from Costa Coffee, will lead the expansion of Premier Inn in the north of England, Scotland, and Northern Ireland. The appointment follows Whitbread’s announcement of a new long-term network target for Premier Inn in the UK and Ireland of 125,000 bedrooms.

UMusic Hotels announced bookings are now available at the brand’s first property to open worldwide, UMusic Hotel Madrid. Located within the bustling Centro district of Madrid, Spain, the property, which includes 130 rooms, has undergone a comprehensive renovation, two stylish lobbies, meeting rooms, a bar restaurant, outdoor pool, rooftop bar and renovated historic theatre with 898 seats.