The DJIA rose 377 while Nasdaq was up 158, the S&P 500 rose 43 points and the 10-year treasury yield was down .03 to 3.72%. Lodging stocks were higher. ABNB led the group with a 7% rise while MCG was up 5%.
Raymond James upped their price target on Hilton to $165 from $150. They maintained their Outperform rating.
TownePlace Suites by Marriott is developing at least two area hotels. Clay Town Center, in Middleburg, Florida, is adding a five-story TownePlace Suites by Marriott. Construction will start in the second quarter of 2023 with an estimated opening in late summer of 2024. The hotel will feature 126 rooms, a pool, fitness center, indoor-outdoor dining, barbecue grills, a lakefront fire pit, a convenience store and guest laundry facility. The hotel is a partnership between Clay Town Center Hospitality and Kellogg & Kimsey Inc. The City of Jacksonville is reviewing a permit application for a three-story TownePlace Suites by Marriott on Mayport Road. The developer of the 93-unit, $7.9 million project is Neptune Beach Lodging LLC, an affiliate of Shivam Property Management LLC.
HEI Hotels & Resorts assumed management of the 270-room Hyatt Regency Boston Harbor Hotel in Boston, Massachusetts. Owned by Pebblebrook Hotel Trust, the Hyatt Regency boasts over 20,000 square feet of meeting space, a restaurant, lobby lounge, a Grab & Go, and an outdoor patio.
Twenty-Four Seven Hotels announced the grand opening of the Hyatt House Sacramento/Midtown, in Sacramento, California. The adaptive reuse project, owned and developed by Hume Development, Inc. offers 128 guestrooms, a restaurant and bar, grab-n-go sundry shop, 700 square feet of flexible meeting space, a business center, fitness center, and a guest laundry.
Ian Schrager and Ed Sheetz have stepped in to possibly partner with Chetrit Group, to rescue its landmark Bossert Hotel, located in Brooklyn Heights, New York, from foreclosure. According to the Commercial Observer, the joint venture is looking to raise $26 million to reposition and rebrand the property as Schrager’s Public Hotel. The deal is in the early stages and dependent upon more money being raised. Schrager and Sheetz would split ownership with Chetrit, but the hoteliers would be responsible for managing the 282-ley hotel. Chetrit’s $80 million equity interested would be reduced to $11 million. Schrager, Sheetz and Chetrit are working with Trimont, the special servicer, to modify and extend the hotel’s defaulted $112 million loan for two more years.
The Omni Tempe Hotel at ASU is now accepting group booking requests in advance of its opening on April 28. Located in the heart of downtown Tempe, Arizona, the hotel will feature nearly 36,000 square feet of flexible indoor and outdoor meeting space and a rooftop lounge and terrace. The hotel is a $125 million investment as part of a public-private partnership with Arizona State University and the City of Tempe.
Crescent Hotels & Resorts announced the addition of The Market to its portfolio of more than 100 hotels and resorts in the U.S. and Canada. The Market, near the world-famous Union Square in San Francisco, features 208 guestrooms including 42 suites, a bar-driven restaurant, a fitness center, and 12,000 square feet of flexible event space.
Virgin Hotels New York City opened to guests beginning February 2023 and will have an official grand opening in Spring 2023. The newest addition to the Virgin Hotels collection sits at the heart of New York City’s Nomad neighborhood. This is the sixth Virgin Hotel in the United States and the seventh in the brand portfolio. The hotel features 460 Chambers, Suites and Penthouses, more than 19,000 square feet of meeting and event spaces, multiple culinary destinations on the third and fourth floors, a heated pool, gym and business center.
Paladin Equity Capital plans to develop a 117-suite Everhome Suites hotel in San Bernardino, California. Paladin Equity Capital purchased the 1.7-acre site from NHOS Enterprises. Slated to break ground in summer 2023, the hotel will feature 117 guest rooms, a fitness center, and a self-service marketplace with a variety of food and beverage options.
Despite a city review board’s denial in December, plans for a hotel and new parking garage at Jungle Island are moving ahead. ESJ Capital Partners has submitted plans for the garage to the city and the team is working on the design of what is to be a 300-room hotel. Jungle Island, formerly Parrot Jungle, was a zoological park re-launched as an eco-adventure park on Watson Island. The City of Miami, Florida owns the island and leases about 19 acres to ESJ JI Leasehold LLC.
In Ogden, Utah, a grove of trees has been felled in anticipation of the construction of a new 130-room hotel affiliated with Marriott International. The Ogden City Council rezoned the parcel in 2020 and Pillar Investment Group has preliminary site plan approval for the construction of the four-level, 130-room Element Ogden South.
Great Wolf Resorts announced the opening date for the Great Wolf Lodge in Perryville, Maryland, will now open July 15, three weeks ahead of schedule. This will be the largest resort in Great Wolf’s portfolio and the twentieth location in North America. The property offers a 750-room hotel and 128,000 square foot indoor recreational water area that includes water slides, a wave pool, lazy river, splash pad and outdoor pools along with a rope climbing center, bowling alley, gift shop, several restaurants and an ice cream shop.
In Cincinnati, Ohio, a demolition ceremony officially started a major re-development project in the West End. The 4300 million, 8.5 acre mixed-use district will include a hotel, apartments, office space, stores, restaurants and a privately owned public green space, on the front steps of FC Cincinnati’s home field.
McGraw Capital announced the grand opening of The Kress on Friday, in downtown Brunswick, Georgia. The project to renovate the historic Kress Building started in November 2021. At the grand opening, eight of the 12 hotel rooms will be open. Four rooms, a grand lobby and a piano lounge on the first floor are coming later along with tuxedo-clad door attendants and a suite concierge. Brunswick Rocks will occupy part of the first floor while an unannounced restaurant tenant will occupy a rooftop venue. The other two businesses will open on their own timeline.
JLL’s Hotels & Hospitality Group closed the sale of the Element Basalt Aspen, a 113-key extended-stay hotel in Basalt near Aspen, Colorado. JLL represented the seller, Silverwest Hotels, LLC and its partners and procured the buyer. JLL also secured acquisition financing for the buyer.
LuxUrban Hotels Inc. entered into an amended Revenue Share Agreement with Greenle Partners LLC Series Alpha P.S. and Greenle Partners LLC Series Beta P.S., that will immediately increase the company’s growth capital by $5 million through the elimination and conversion of certain payment obligations, as the Company shall issue to Greenle an aggregate 2,456,002 shares of unregistered common stock at specified dates and amounts ending January 1, 2024. As a result, the Company is increasing 2023 EBITDA projections by $5 million. For the year ending December 31, 2023, the Company is increasing its guidance for net rental revenue to a range of $115 million to $120 million, and EBITDA to a range of $21 to $25 million, an increase from the Company’s prior guidance for net rental revenue in a range of $100 to $110 million, and EBITDA in a range of $16 to $20 million. The company also reiterated its previously issued guidance for the year ended December 31, 2022 for net rental revenue in a range of $42 to $46 million and EBITDA in a range of $7 to $9 million.Lodging stocks were higher. ABNB led the group with a 7% rise while MCG was up 5%.
Personnel Move
Main Street Hospitality announced the appointment of Jennifer Usaty to its leadership team. As the new Vice President of Finance, Jennifer is responsible for all financial operations and related matters for Main Street Hospitality including financial oversight for all eight of Main Street Hospitality’s managed hotel properties located throughout the Northeast. Most recently, Jennifer served as the Regional Director of Finance at Auberge Resorts.