The DJIA fell 8 points while Nasdaq was down 39, the S&P 500 fell 12 points and the 10 year treasury yield was up .08 to 3.78%. Lodging stocks were mostly lower. SOND was up 6% but that was pretty much it for any type of positive movement. MCG fell another -11%, SLNA was down -7%, SOHO and ABNB both fell -5% and VCSA traded down to a new low.
JP Morgan lowered their rating on Membership Collective Group to Neutral from Overweight. JPM said their downgraded was based on MGC’s exposure to Europe, where they expect a weaker consumer backdrop, its lowered unit growth expectation, JPM’s expectation that inflation will impact non-membership house revenues as well as profitability, and its CEO transition, all of which they think merits a lower multiple. JPM lowered their target price to $7 from $9.
Los Cabos Tourism Board announced unprecedented growth in tourism arrivals is expected by the end of 2022 with more than 3.3 million visitors, a more than 20% projected growth when compared to 2021 and a 32% compounded growth over the last five years with 800 thousand more passengers than 2017. Los Cabos has over 1. million seats from the United States scheduled for October 2022 to March 2023, representing a 35.2% increase when compared to the same period in 2019. In the Canadian market, the destination also projected 19.3% more available seats for the next six months, an in the domestic market the increase in available seats is 95.8%, both compared to the same period in 2019. With more than 1,500 new hotel rooms expected from 2022-2024, Los Cabos continues to attract renowned hotel brands. Upcoming openings include Rancho Pescadero of the Unbound Collection, expected to fully open by the end of 2022; St. Regis Los Cabos at Quivira in 2023; Four Seasons Resort and Residences Cabo San Lucas at Cabo del Sol in late 2023; Park Hyatt in 2023; Vidanta East Cape in 2024; Amanvari in 2024; Soho House & Beach Club in Q3 and Q4 of 2024; and Casa Vela in 2023.
Marriott Hotels will construct a new Courtyard by Marriott at the location of the old Plaza Hotel next to the Pine Bluff Convention Center in Pine Bluff, Arkansas. The price tag for the project is estimated to be between $20 million and $22 million, including the demolition of the five-story, 200-room Plaza Hotel. The P3 Group is seeking investment firms for financing. Marriott will utilize Beechwood Pinnacle Hotels for architecture and contractor work. Financing of the project is expected to finalized by the first quarter of 2023 and the hotel will take roughly 16 to 18 months to complete. When complete, the hotel will have 125 guest rooms and a bistro.
After breaking ground in spring 2021, the Georgia World Congress Center Authority’s long-planned major hotel component is beginning to make its mark on downtown’s skyline. The world’s first ground-up Signia by Hilton hotel has eclipsed the halfway point of vertical construction of its 40 stories, and once complete, it promised to dwarf Atlanta’s largest sports coliseum in terms of height. The Signia project, which will be owned by the GWCCA, calls for 75,000 square feet of meeting space, a restaurant, bar, and wellness amenities.
IHG Hotels & Resorts announced the opening of its newest Holiday Inn Express & Suites in Moose Jaw, Saskatchewan, Canada. The 89-room hotel offers an indoor pool, sauna, hot tub and waterslides. The Holiday Inn Express & Suites Moose Jaw is owned by Shir Brar Investments, Inc. and managed by Western Star Group of Hotels.
The Omni Tempe Hotels at ASU is accepting reservations for stays beginning April 28, 2023. Located in the heart of Tempe, Arizona, the hotel will feature 330 guest rooms, including 11 suites, four dining outlets, a spacious pool deck, retail and nearly 36,000 square feet of flexible indoor and outdoor meeting spaces. The hotel is a $125 million investment and part of a public-private partnership with Arizona State University and the City of Tempe.
AKA announced the December 1 opening of its second South Florida location, AKA West Palm. Located in the heart of West Palm beach’s central business district, the five-story property features 215 brand-new hotel residences, and indoor/outdoor lounge and bar, a resort-style pool and deck, a Technogym, an executive conference room and smaller conference nooks, and the brand’s first-ever pet spa.
Extended Stay America celebrated today’s official groundbreaking of the Extended Stay America Premier Suites Duncan property located in Duncan, South Carolina. The franchised property is being developed and managed by VMV Capital. The four-story, 88-room hotel features a fitness room and onsite guest laundry and is the first of its kind in the VMV Capital portfolio. Construction is already underway and the Extended Stay America Premier Suites in Duncan is expected to open in Summer 2023.
Loden Properties has partnered with Greystar and Greystone Affordable Development on a project with 560-590 multifamily units, a 135-room hotel, grocery store, retail and dining space, and a new building for Raleigh Rescue Mission, in the Moor Square area in Raleigh, North Carolina. Loden’s proposal includes a 150-160 boutique hotel, 25,000 square feet of co-working space, audio/recording production and art studios and a reuse concept for Esso Station. It also includes the relocation of the Norwood House. Loden partnered with Northpond Partners and Summit Hospitality for this portion of the project.
Curator Hotel & Resort Collection marks its second anniversary with incredible growth, expanded offerings, and industry recognition for its hotels throughout the U.S. Curator now boasts a total of 88 members in its distinctive collection of independent lifestyle hotels and resorts. This year, Curator established partnerships with travel-focused consumer brands to further enhance the guest experience. The company recently signed a preferred partnership with Travelzoo, BabyQuip, and Bounce, allowing Curator members to quickly adopt and leverage new products and gain direct and increased access to partners to elevate their guest experience and improve business performance.
Sherman Associates is planning a $7 million renovation for the Hotel Zamora in St. Pete Beach, Florida. The company purchased the 72-key boutique hotel in September for $38 million. The acquisition also included a former bank building and land adjacent to the hotel. It also took out a $28.5 million mortgage on the hotel through MidWestOne Bank. Sherman Associate plans to renovated the guest rooms, lobby and reception area, pool bar, rooftop deck and event space. The Hotel Zamora also has a fitness center, whirlpool spa, a restaurant and a private dock.
A new hotel is planned for the historic square in Medina, Ohio. Jim Gerspacher, the developer, is tentatively calling the property Hotel Medina. The 4-story building will include 75 guest rooms, and an enclosed rooftop lounge. It will offer breakfast and bar food, but will not have a full-service restaurant. Construction could start in mid-2023 with an opening in mid- to late 2024.
JLL’s Hotels & Hospitality Group has closed the $55 million sale of six Hyatt Place branded select-service hotels totaling 754-keys across Southeast Texas and Kansas. JLL worked on behalf of Argentic Services Company LP, as a special servicer for the seller’s two CMBS Trusts, in the sale of the properties to HKB Hotel Group, LLC. Each hotel features 126 guest rooms, except for the hotel in Georgia which has 124 rooms. The portfolio consists of: Hyatt Place Atlanta Alpharetta North Point Mall, Alpharetta, Georgia; Hyatt Place Charlotte Arrowood, Charlotte, North Carolina; Hyatt Place Dallas Park Central, Dallas, Texas; Hyatt Place Greenville Haywood, Greenville, South Carolina; Hyatt Place Roanoke Airport Valley View Mall, Roanoke, Virginia; and Hyatt Place Topeka, Topeka, Kansas.
HVS Brokerage & Advisory announced the sale of the 74-key Comfort Suites Houston Chinatown, located in Houston, Texas. The select-service hotel property was purchased by GN Hospitality Inc. from PA Hospitality.