The DJIA rose 32 points on Friday while Nasdaq was up another 209, the S&P 500rose 37 points and the 10-year treasury yield was down another .02 to 3.81%. Lodging stocks were higher again with MCG up 11%, HT up 8%, ABNB up 7%, SLNA up 6% and SVC up another 5%. SOND fell -9% on the day.
Both Marriott International and Hilton announced an increase in their share buyback authorizations. MAR said their board of directors upped their quarterly dividend to $0.40 per share from $0.30 and increased the authorization to repurchase the company’s Class A common stock by an additional 25 million shares, for a total of 30.8 million shares currently authorized for repurchase. Year to date through November 9, MAR has repurchased 11.6 million shares for $1.8 billion.
Hilton announced its board of directors authorized the repurchase of an additional $2.5 billion of common stock under its existing stock repurchase program. That brings the total amount authorized for future repurchases to approximately $3.4 billion.
China-based hotel chain Atour Lifestyle Holdings made its trading debut. They raised $52 million in an IPO of 4.8 million American depositary shares offered at $11, the low end of the previously announced range. ATAT ended Friday’s session at $12.88, up 17.09% in their first day of trading.
At the close of the third quarter of 2022, Lodging Econometric analysts reported the New York City market has a total of 102 projects/17,805 rooms in the construction pipeline. Of the top 50 markets in the U.S., the New York market has the greatest number of hotels presently under construction at Q3, standing at 69 projects/11,781 rooms. Projects scheduled to start construction in the next 12 months stand at 10 projects/1,733 rooms, and those in early planning are at 23 projects/4,291 rooms. The three New York markets tracts with the largest hotel construction pipelines are the greater New York City area, which includes Brooklyn East, the Bronx, and State Island, with 28 projects/2,073 rooms; the East River area, including Queens and Brooklyn West, with 14 projects/2,622 rooms; and the JFK area, which includes the area by the airport and Jamaica, with 14 projects/2,248 rooms. The markets tracts with the most projects presently under construction are the NYC area with 18 projects/1,228 rooms; the JFK/Jamaica area with 12 projects/1,924 rooms; and the East River area with 10 projects/1,948 rooms. For the first three quarters of the year, the New York market has ranked first among the top 50 U.S. markets for the number of new hotels opened in the U.S., with 20 new hotels/2,537 rooms. LE’s forecast for new hotel openings predicts that New York City will lead the nation for new hotel openings in 2022 with 38 projects/5,066 rooms. In 2023, New York City is again forecast to top the list of new hotel openings in the U.S. with 39 projects/7,208 rooms.
Pathfinder Hospitality announced the grand opening of the Aloft Austin Southwest. Located in the heart of South Austin, Texas, the Aloft Austin offers 140 rooms, the WXYZ bar and restaurant and the 24/7 shop, Re:fuel. Outdoor spaces include a full backyard with a pool, Jacuzzi, fire pit and seating areas and the meeting space is specifically designed to support mid-sized meetings.
Continental Hospitality Group acquired the 136-room Hyatt House within the South Side neighborhood of Pittsburgh. Plans for a comprehensive renovation are underway, including significant changes to public spaces.
IHG Hotels & Resorts announced the opening of its newest avid hotel in Fort Wayne, IN. The hotel features 83 rooms, grab and go breakfast bar, fitness center and more. The hotel is owned by VIDHI 4 LLC.
LD&D unveiled plans this week to build a 28-story, 365-unit luxury apartment building in downtown Tampa’s Encore redevelopment district. The project will also include a 178-key hotel, ground-floor retail and a 586-space parking podium.
The Elser Hotel & Residences, a new luxury property in the heart of downtown Miami, is set to open this fall. The 49-story tower has 646 rooms; a café; a new dining concept with 55 seats and a full-service bar; a two-story fitness center; open-air fitness deck; sauna and hot tub; sun deck with a pool, daybeds and chaise lounges, electric grills, an outdoor bar and an expansive event lawn. The property is developed by PMG and Greybrook, is a member of the Preferred Hotels & Resorts Lifestyle Collection and is managed by Highgate.
Ikenakea Hokele plans to replace an existing parking lot and vacant warehouse, in Honolulu, Hawaii, with a 240-room hotel adjacent to Aloha Tower Marketplace. The hotel will include about 31,000 square feet of meeting and flex spaces, as well as a rooftop bar and restaurant with outdoor seating. The $128 million project still has some other regulatory approvals to clear. Construction is anticipated to take about two years.
The Grand Hotel & Ballroom and Harvest, located in Historic Downtown McKinney, Texas, are changing part of projects underway by their owner, the Wells Group. The Grand Hotel’s rooms have been restored and renovated. Previously renovated restaurant Rick’s Chophouse, serves as the hotel’s food and beverage partner. Wells Group also purchased the Masonic Lodging building which is set to be the future home of the group’s restaurant, Harvest Seasonal Kitchen following renovations. Wells anticipates the restaurant to move to its new location in May 2023.
Level Hotels & Furnished Suites began construction on a 56-room hotel in the Fulton Market District of Chicago, Illinois. Onni Group, Level’s parent company, is the developer for the new hotel. The Fulton Market hotel will include 177 parking spaces and is planned for a spring 2023 completion.
Construction has begun on a $15 million plan to transform the former Solon Manufacturing mill in downtown Waterville, Maine, into a brewery, housing and a hotel. Jeff and Pam Powers, owners of Bigelow Brewing Co., sold the property to High Tide Capital LLC. High Tide plans to have the Bigelow brewery and tap room anchor the ground floor along with a 15-20 room hotel. In addition, 45 apartments are planned on the second through fourth floors.
In Lower Macungie Township, Pennsylvania, planners reviewed a plan and zoning text amendment request for a 45-acre mixed-use development. The project, called Lehigh Valley Town Center, is offered by Jaindl Land Co and calls for 350 apartment units; a Topgolf entertainment venue; 164,500 square feet of new retail space including a grocery store and a 4,500 square foot convenience store with 12 pump gas units; a 40-room hotel; and more than 2,000 parking spaces.
The Lobby Lounge at the JB Duke Hotel on the Duke University campus, in Durham, North Carolina, has been in a soft-open mode but is now fully operating, following its closure since the early days of the pandemic. The 198-room hotel’s Marketplace restaurant is also open.
Sandals has an opening date for its highly-anticipated new resort in Ocho Rios, Jamaica. The new Sandals Dunn’s river is officially opening on May 24, 2023. The resort will be a dramatic re-imagining of the former Jewel Dunn’s River resort. The new Sandals will include unlimited dining at 12 different eateries; nine bars, including a swim-up bar; a PADI-certified dive operations, five pools and two “lengthy” river pools. The resort will also have a collection of Coyaba Rondoval villas.
Personnel Move
Arch Amenities Group announced the appointment of Susan Grey as senior vice president of spa. Grey will be responsible for leading the creation of wellness programs within Arch’s Spa Division and across the organization. Grey will collaborate with the senior leadership team on long-term strategic planning to further enhance Arch’s financial performance, guest experiences and operational excellence of its wellness services. Grey formerly was vice president of operations for The Well.
Europe Highlight
A brand new hotel operator, Legendary Hotels and Resorts, will enter the Icelandic hospitality market over the next two years, with ambitious plans to construct, purchase, or rebrand a portfolio of 12 hotels. The first hotel was purchased in Southern Iceland, with a full rebrand to begin in early 2023.