The DJIA fell another 282 points on Friday while Nasdaq was down 105, the S&P 500 fell 43 points and the 10 year treasury yield was up .03 to 3.48%. Lodging stocks were modestly lower. SOND fell -8%, the biggest mover in the group Friday. SLNA traded down to yet another new low.
Both Hersha Hospitality Trust and Host Hotels announced special dividends. HT announced its board of trustees approved a special dividend of $0.50 per common share for the year 2022. That is in addition to their quarterly $0.05 per common share and LP unit. HOST announced a regular quarterly dividend of $0.12 and a special dividend of $0.20 per share, bringing the total dividends for the year to $0.53 per share.
Deutsche Bank said 2022 was a year when the lodging recovery was swiftly realized. Current trends remain firm with green shoots lingering as it relates to group and business transient travel. They are taking a cautious approach to 2023 as they believe current Consensus forecasts embed a continued recovery in both group and business transient demand to and through 2019 levels while valuation multiples resemble earlier cycle multiples, relative to DB’s view the sector is actually late in an abbreviated cycle. Further, DB does not believe macro factors are present in either 2023 forecasts or valuations. That includes corporate cost scrutiny in a recessionary environment or shrinking household savings. DB believes HLT and CHH represent better, relative risk rewards in 2023 even as investors have prioritized operating leverage among H and MAR. DB also questioned the aggressive share repurchase capital return moves by companies like HLT and MAR in this current environment. DB is forecasting 2023 US industry RevPAR growth of 1.6% with demand growth of 3.9% and supply growth of 0.8%.
Delta Hotels by Marriott Vancouver opened on December 15th. The new hotel offers a spa, fitness center, outdoor pool and hot tub, located 20 minutes from the Vancouver International Airport.
Winston Hotels LLC announced the 162-room Element by Westin’s opening date of December 20, marking the final phase of opening for the fully renovated, upscale home of two hotels, AC by Marriott and Element by Westin, and 1Watson Rooftop Bar + Lounge in San Antonio, Texas. Both AC and Element will share amenities including a fitness center, business center, 4,000 square feet of meeting and event space and access to 1Watson.
Marcus Hotels & Resorts clarified that, despite public reports detailing the terms and completion of the sale of the Skirvin Hilton in Oklahoma City, the sale of the Skirvin Hilton was pending and hadn’t closed. Then, a few hours later, they announced the sale of the Skirvin Hilton to Skirvin Hotel LLC for $36.75 million. The buyers include Ortus Hotel Investments, LLC, the Chickasaw Nation, Paul Self and other local investors.
Aimbridge Hospitality has been selected to manage three properties, two destination resorts and a large-scale hotel, for an ownership group led by Dr. Kiran Patel. The properties are: 241-room Westward Look Wyndham Grand Resort and Spa, Tucson, Arizona; 712-room Wyndham Grand Pittsburgh Downtown, Pittsburgh, Pennsylvania; and 316-room Dolce Cheyenne Mountain Resort, Colorado Springs, Colorado.
Harbour Island residents filled Tampa City council chambers fighting to keep a 10-story hotel out of their community. Liberty Hospitality Management requested to rezone its property at 800 South Harbour Island Boulevard to build an AC Hotel by Marriott in a spot currently zoned for a small office. The city council voted against it is May so the developer filed a $6.6 million lawsuit. After mediation, that was put on hold. Liberty revised its site plan, reducing the proposed height from 12 stories to 10, the number of rooms from 150 to 145 and parking spaces from 153 to 116. Ultimately, the city council voted 4-3 to reject the recommendation.
IHG Hotels & Resorts announced the opening of its newest Holiday Inn & Suites hotel in Zumpango de Ocampo, Mexico. The 220-room hotel features nearly 600 square meters of meeting space, a business center and a fitness center. The Holiday Inn & Suites Mexico Felipe Angeles Airport is owned by Promotora Devi S.A. de C.V. and managed by Marca Hotel Solutions.
MMI Hotel Group’s affiliated investment arm completed the acquisition of the 175-key Mission Inn Resort & Club in Howey-in-the-hills, Florida, 35 miles NW of Orlando. The resort offers full-service conference facilities with 30,000 square feet of function space including 19 separate meeting rooms, two large ballrooms, outdoor patios, a lakeside pavilion and four dining venues. The company plans a refresh of the hotel and expansion of its amenities. The property will be managed by MMI Hotel Group.
Harwood International announced the company’s flagship boutique hotel property, Hôtel Swexan, set to open in the summer of 2023 in Dallas, Texas. Hôtel Swexan will serve as the crown jewel of the 19-city block Harwood District. Operated by Harwood Hospitality, the 22-story tower features 134 guestrooms including ten suites; multiple food and beverage venues; 12,000 square feet of meeting and event space including 2 grand ballrooms and three private meeting rooms; a rooftop infinity-edge pool; and a wellness and fitness center.
Work is continuing on an $8.8 million hotel in Cullman, Alabama. Cobblestone Hotels is building a four-story, 63-room hotel slated to open in the fall of 2023. The hotel design will include a Wissota Chophouse restaurant.
Personnel Moves
KSL Resorts named Thatcher Dilley its senior vice president, development west. In this newly created role, Dilley is charged with overseeing all capital planning and development for the company’s western properties. Dilly was most recent senior vice president of construction and development for the San Manuel Band of Mission Indians.
Dorchester Collection appointed Arabella El Barkouki as global director of sales, effective immediately. This appointment marks a return for Arabella to Dorchester Collection as she first joined the company in 2008. Most recently she was the vice president of global sales partners at Mandarin Oriental Hotel Group.
Europe Highlights
Hyatt Hotels Corporation announced the integration of 20+ European Inclusive Collection resorts into the World of Hyatt loyalty program, as well as the rebranding of AMR Collection to Inclusive collection, part of World of Hyatt. Hyatt’s portfolio of nine global all-inclusive brands will continue to bring exceptional and immersive experiences to guests and members with Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels & Resorts and Sunscape Resorts & Spas brands.
Tennis player, Rafael Nadal and Gabriel Escarrer, CEO of Meliá Hotels International, announced the launch of ZEL, a new brand of resort and urban leisure hotels that will first operate in Spain, and expand in key destinations throughout Europe, the Middle East, Asia and the Americas. The growth plan includes more than 20 ZEL hotels in five years, focusing on destinations in key regions where Meliá Hotels International operates. The brand will open its first hotel in Mallorca in 2023, with plans to open in destinations on the Mediterranean coast and in major cities such as Madrid, Paris and London.
Ennismore announced Mondrian Cannes, the first Mondrian hotel in France, will open in March 2023. Following an extensive renovation, the former Grand Hotel Cannes will feature 75 guest rooms including three suites, meeting and event facilities, private beach concept Hyde Beach Cannes, and a soon to be announced new culinary concept.
Ennismore, along with Grupo Azul Mar Cala Llonga owned by Apollo, announced the expansion of its global collective in Spain, with two new Mondrian and Hyde hotels on the island of Ibiza. Mondrian Ibiza will be a luxury lifestyle hotel offering 154 spacious guestrooms, three dining destinations and two pools overlooking the ocean. Located adjacent to Mondrian Ibiza will be Hyde Ibiza, which will have 401 guestrooms, a vibrant pool scene and live music venue, and five distinct food and beverage locations. Set to open on the bay of Cala Llonga in June 2023, both Mondrian Ibiza and Hyde Ibiza will operate seasonally from June through mid-October.
IHG Hotels and Resorts opened its latest Hotel Indigo property in the UK in the southwest city of Exeter. Housed within a former House of Fraser department store, the 104-room hotel offers multiple food and beverage venues and The Retreat Spa with four treatment rooms, two hydrotherapy pools, fitness center, sauna, steam rooms, nail bar and a lounge serving champagne. Hotel Indigo Exeter is operated by Castlebridge Hospitality.