The DJIA rose 323 points while Nasdaq was up 210, the S&P 500 was up 57 points and the 10 year treasury yield was mostly flat, up enough to push it to 3.57%. Lodging stocks were higher with AINC up 11%, SOND rising 10% and SVC, AHT and HT up 5% each.
Raymond James cut their price targets on Summit Hotels and Host Hotels. RJ cut their PT on INN to $8.50 from $10 and HST to $19 from $21. They maintained Outperform ratings on both stocks.
STR reported US lodging data for the week ended 3/25. Hotel RevPAR was up 4.1% year over year. When compared with 2019, RevPAR was up 12%.
MCR’s Tyler Morse gave an update on their strategy during the pandemic. He was speaking at the Skift, parent company of this publication, Future of Lodging Forum. He said MCR bought 70 hotels during the pandemic and is closing on four more next week with another 12 in the pipeline. This strategy has made MCR the third largest hotel owner in the United States, with 150 hotels, including the TWA Hotel, High Line Hotel and Pasadena Hotel and Pool, in 37 states. As for what Morse is focused on now, in case you want to follow his lead? Fake grass and fake plants are being put everywhere in MCR hotels. Morse said the technology in fake grass is spectacular and it is better for the environment.
Lawyers for Caesars Entertainment Inc, Treasure Island LLC, Wynn Resorts Holdings LLC, MGM Resorts International, and other defendants operating prominent hotels on the Las Vegas Strip, asked a U.S. court to dismiss a lawsuit filed by tourists accusing them of conspiring to keep room rental rates artificially high through a revenue management platform. Hospitality industry tech company Cendyn Group LLC and subsidiary Rainmaker Group, which the lawsuit said provides the revenue management software products at issue, were also named defendants. The defense attorneys said the complaint did not identify a single communication between hotel defendants, much less one that suggests a conspiracy was afoot.
A $300 million family resort and entertainment district planned for the Lake of the Ozarks region, in Osage Beach, Missouri, will now include a Marriott Hotel property. The planned site is called Oasis at Lakeport and will include rides, attractions, hotels and restaurants, in addition to an amphitheater, marina and boardwalk. SkyView Partners and Tegethoff Development have led much of the planning efforts. SkyView Partners announced that Marriott International has agreed to the construction of a 400-room, full-service Marriott Hotel property as part of the resort. The Marriott Hotel is planning to offer a 26,000 square foot conference center, full-service spa, restaurants, an outdoor pool, fitness center and pickle ball courts. The hotel will be managed by Aimbridge Hospitality. SkyView Partners says resort construction is on pace to begin this summer. The amusement park and other features of it could open by summer 2024. Developers estimate the Marriott and waterpark properties will open by 2026.
More than four years after it was seized in a foreclosure, a Norwalk, Connecticut hotel is being floated for sale, this time via auction, with an ownership syndicate setting a $4 million starting bid. The DoubleTree by Hilton Hotel Norwalk has 265 rooms on eight floors. Paramount Lodging Advisors is representing the DoubleTree by Hilton Hotel Norwalk property owners.
Hilton announced plans to more than double its portfolio in Puerto Rico. The company’s development pipeline in Puerto Rico will bring the company’s supply to 16 hotels and resorts encompassing nearly 4,400 rooms across eight brands in Puerto Rico. The Puerto Rico pipeline highlights include the brand debut of Tapestry Collection by Hilton later this year with the 186-room Condado Palm Inn San Juan, Tapestry Collection by Hilton. Curio Collection by Hilton plans to welcome its first hotel to the island in 2025 with the 332-room San Juan Condado Plaza, Curio Collection by Hilton. The first Hilton Garden Inn hotel in Puerto Rico is expected to debut later this year with the 240-room Hilton Garden Inn San Juan Condado and the 153-room Hilton Garden Inn is slated to join the portfolio in 2025. The first Tru by Hilton property on the island is anticipated in 2025 with the 77-room Tru by Hilton San Juan Condado. Two Hampton by Hilton properties are slated for 2025, the 138-room Hampton by Hilton San Juan City Center and the 120-room Hampton by Hilton Ponce. Homewood Suites by Hilton intends to open its first hotel in Puerto Rico with the anticipated 2025 opening of the 118-room Homewood Suites by Hilton San Juan City Center.
LBA Hospitality announced that Home2 Suites by Hilton Jacksonville, NC has completed its renovation. Located in Jacksonville, North Carolina, the 105-room hotel has undergone a complete transformation of its guestrooms and public spaces. The hotel is owned by Apple Hospitality REIT, Inc. and managed by LBA Hospitality. Home2 Suites by Hilton Jacksonville, NC offers inviting communal spaces, a fitness center, business center, a meeting room, an indoor pool and a large outdoor area equipped with barbecue grills and a fire pit.
MD Hospitality, along with partners Bedford Lodging and Five Senses Hospitality, are planning the 153-room Nobleman Hilton Tapestry Hotel in Fort Worth, Texas. The four-story, $26.5 million project will include meeting spaces, a restaurant, bar, and an outdoor pool and lounge area. The development also includes the renovation of a historic fire station. Construction is set to start April 2023 with an opening date planned for late 2024.
Sonesta announced the grand opening of Signature Inn Houston Galleria in Houston, Texas. The new, exterior corridor hotel features 51 rooms, a lounge and an outdoor pool.
Pebblebrook Hotel Trust closed on the sale of the 157-room Hotel Colonnade Coral Gables, Autograph Collection in Coral Gables, FL for $63.0 million to a third party. Proceeds from the sale will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing common and preferred equity shares.
A $44 million redevelopment project of the historic Broadview Hotel broke ground in Downtown East St. Louis, Illinois. When completed, the hotel will have 110 apartments and 20,000 square feet of retail and commercial space. The project is expected to be completed in 18 months.
CenterPoint Energy and Radisson Blu Mall of America, in Bloomington, Minnesota, announced the groundbreaking installation of a carbon-capture technology unit, CarbinX, developed by CleanO2. This marks the first hotel in the world to use this innovative system that captures greenhouse gas emissions from heating equipment. The installation is part of a program by CenterPoint Energy, Minnesota’s largest natural gas utility, to explore the potential of new, cleaner energy technologies.
According to a news story on CNBCTV18, the latest hospitality industry trend that is altering the game for both tourists and hotel owners is flat-pack hotels. Flat-pack hotels, as opposed to typical hotels, provide pre-fabricated, modular rooms that can be quickly constructed on-site. This novel building process is not only cost-effective, but is environment-friendly and portable. The use of flat-pack hotels is expanding for many reasons. They are quick and easy to construct, making them perfect for pop-up events and transient installations. They are also typically constructed using environmentally friendly and sustainable materials, making them a great option for anybody wishing to travel while minimizing their impact on the environment. Flat-pack hotels are also the ideal response for emergency situations requiring temporary housing. Imagine being able to arrange someplace to stay during emergencies like any natural disaster.
Personnel Move
SH Hotels & Resorts announced Erik Eveleigh’s appointment as Vice President of Development, Americas. Eveleigh will spearhead new business opportunities for the company’s distinct portfolio of hotel brands, as well as provide expert oversight for development projects as the company pursues its expansion throughout the region. Eveleigh comes to SH Hotels & Resorts from Hilton Inc.’s North American Luxury Team.
Europe Highlights
OYO’s UK operations saw a 140% uplift in revenue or Gross Booking Value in 2022, surpassing pre-pandemic levels of 2019. London emerged as the best-performing market showing strong Y-o-Y growth followed by other regions such as Brighton, Cornwall, Great Yarmouth, Devon, Portsmouth, Plymouth, and the Midlands. OYO UK has 150+ small hotels in over 65 cities in its network in the UK. It has added 40 new hotels in 2022.
JW Marriott unveiled its first property in Spain with the opening of JW Marriott Hotel Madrid. Located in the heart of the city, the new 139-room hotel offers a fitness room and wellness area, a dining and cocktail concept and a patio garden.