The DJIA fell 38 points, Nasdaq was down 53, the S&P 500 fell 6 points and the 10 year treasury yield was up .04 to 3.56%. It was nice to have a calm day in the markets for a change. Lodging stocks were modestly higher. AHT was up 8% while VCSA was down -5%.
TD Cowen upped their price targets on Hilton to $142 from $140 and Marriott to $172 from $170. They maintained their Outperform ratings on both.
HVS gave their findings from the Hunter Conference. HVS said early 2023 comparisons continue to look favorable with easy comparisons in 1Q due to last year’s Omicron outbreak. Year over year comps will begin to normalize into April and May but ADRs are expected to remain notably above last year’s levels due to inflation and the strength of travel overall. HVS said short term rental environments are tightening with many cities and municipalities enacting new zoning codes that restrict their proliferation. With the hybrid workweek taking firm hold, HVS sees the lodging industry experiencing a return of midweek travel. Leisure trips remain strong. Hotel value discussions were front and center at the conference with financing constraints the big concern. HVS said if someone is under pressure to sell within a quick timeframe right now, it is more like liquidation value and not market value. They expect more sellers to meet the market this year in order to get deals done but not at that extra-urgent liquidation point. The expectation that interest rates may decline later this year is fading, with the dream shifting to mid-to-late 2024. More private equity groups are entering the lending space this year as an alternative method to earn yield. HVS said these groups are offering creative financing options such as bridge loans, mezzanine debt, construction loans and PIP loans. HVS’ summary was their clients desire to get deals done and urge to develop more hotels are as strong as ever, particularly in the extended-stay segment, albeit in a new financing market and high construction-cost reality.
Canada’s hotel performance increased from the previous month, with February RevPAR exceeding C$100 for the first time on record, according to STR’s February 2023 data. February 2023 (percentage change from 2019): Occupancy: 59.2% (+0.7%); ADR: C$174.62 (+16.5%); RevPAR: C$103.33 (+17.3%). Among the provinces and territories, Manitoba recorded the highest February occupancy level (70.4%). Vancouver (74.4%) reported the highest occupancy level among the major markets. New Brunswick (48.1%) saw the lowest occupancy among provinces. At the market-level, the lowest occupancy was report in Edmonton (51.3%).
5 Senses Hospitality Management announced the grand opening of the AC Hotel Frisco Colorado by Marriott, nearly two years after the hotel’s acquisition in 2021 and subsequent renovation. The property features 133 rooms, a fitness room, outdoor hot tub with a fire pit, game room, private dining and meeting rooms, locker room, indoor pool, library, business center, and an AC Restaurant and AC Lounge.
The first phase of vertical construction at the $1 billion Bellefield at Historic Hyde Park, the Inn at Bellefield by Residence Inn, in Hyde Park, NY, is scheduled for completion in the fourth quarter of the year. The inn will contain 137 rooms in a $52 million project being developed by T-Rex in partnership with Shaner Hotel Group, LP. It is the first of two hotels to be constructed there. The next phases of construction include 400,000 square feet of retail and commercial space including restaurants, breweries, grocer, daycare, co-working space, a film production studio, and specialty shops. There will also be some 600,000 square feet of residential space that includes 344 rental units and 129 condominiums.
Hilton announced the opening of the Hilton Monterrey, located in the business and financial district of Nuevo León, Mexico. The property includes 225 rooms; eight meeting spaces spanning over 12,000 square feet, with venues including an outdoor terrace and ballroom; and three onsite dining experiences.
Hyatt Hotels Corporation announced the strategic growth of its brand portfolio in Mexico with new luxury and all-inclusive hotels and resorts reinforcing Hyatt’s commitment to thoughtful growth in key markets. The continued expansion of Hyatt’s Mexico brand portfolio is expected to increase by 30% through 2025. Coming in spring 2023, Hyatt Regency Mexico City Insurgentes will be a new capital-city hub for business and leisure travelers – and notable planned openings in 2024 include Park Hyatt Los Cabos at Cabo del Sol, marking the first Park Hyatt hotel in Mexico; and Grand Hyatt Cancun Beach Resort. With Hyatt’s recent acquisition of Dream Hotel Group, Hyatt is expanding The Unbound Collection by Hyatt brand with three new luxury Chatwal-branded hotels. Joining The Chatwal in New York and The Chatwal Lodge in the Catskills of New York, The Chatwal San Miguel is slated to debut in 2024, featuring 44 freestanding villas and 125 branded residences in San Miguel de Allende. In 2025, Thompson Monterrey is set to expand the brand’s presence in a new market in Mexico, and Park Hyatt Mexico City is expected to welcome guests to Mexico’s first urban Park Hyatt. Offering one of the largest portfolios of luxury all-inclusive resorts in the world, the Inclusive Collection’s expected resort openings in 2023 is spearheaded by the recent launch of Secrets Impression Resorts & Spas. The new line extension expects to unveil its second property, Secrets Impression Isla Mujeres, later this year. Upcoming Mexico openings include intimate, adults-only hideaways such as Secrets Tulum Resort & Beach Club and Dreams Estrella Del Mar Mazatlan. By the end of 2023, the Inclusive Collection is expected to have more than 45 resorts, representing more than 16,000 rooms, throughout Mexico.
Velas Resorts announced Grand Velas Boutique Los Cabos, a new resort and concept in the all-inclusive space. Opening in late 2023, the boutique hotel will be Velas Resorts’ third property in Los Cabos. Guests of the adults-only property will have access to sister property Grand Velas Los Cabos’ five gourmet dinner restaurants and four bars with no additional charge. The beachfront Grand Velas Boutique features 79 suites, casual and fine dining restaurants, a wellness center with both gym and spa, event spaces, infinity pool, and a private beach.
A developer is crafting plans and using a state grant to help rehab the old Chattanooga Bank Building in downtown Chattanooga, Tennessee. Chattanooga Hotel LLC is receiving $300,000 for the historic renovation of the 96 year-old vacant bank building, where developer Robert Lubin of R& R Capital Funding last year laid out a plan for a hotel with a Tapestry Collection by Hilton nameplate. Lubin estimated the makeover of the 10-story building, which will include about 140 rooms, at about $40 million.
In Tucson, Arizona, the Omni Tucson National Resort announced the completion of its multi-million dollar transformation. The iconic resort has now been upgraded with a suite of luxury accommodations; a vibrant lobby transformation; a destination spa and wellness retreat with an all-new fitness center; a fully re-imagined dining experience comprises three new restaurant and lounge concepts, several refreshed spaces, and local favorites; and more than 25,000 square feet of indoor and outdoor meeting spaces with thirteen unique meeting offerings including a ballroom and 6,000 square foot lawn.
Crystal Investment Property, LLC announced the sale of the SureStay Plus Moses Lake in Moses Lake, Washington. CIP represented the Seller in the sale and the final sale price is confidential. The 100-key SureStay Plus Hotel by Best Western Moses Lake offers meeting/event rooms and business amenities including a business center; a guest laundry; fitness center and indoor pool.
Personnel Moves
Hyatt Hotels Corporation announced the appointment of Cristiano Gonçalves as vice president, development dedicated to leading Hyatt’s expansion in South America. Gonçalves is responsible for leading a strategic expansion plan specific to South America while continuing to establish relationships with potential investors for new projects in markets that matter most to guests, customers and World of Hyatt members. Gonçalves comes to Hyatt from InterContinental Hotels Group where he was in charge of overseeing the direct execution of several high-profile management and franchise agreements for InterContinental Hotels Group in Latin America and the Caribbean.
Peachtree Group announced the appointment of Adam Greene as executive vice president of the company’s newly launched EB-5 program. Green serves as an executive officer and board member for Invest in the USA, the national EB-5 Regional Center trade association that represents dozens of companies that are designated by U.S. Citizenship and Immigration Services to facilitate job creating EB-5 investments.
Duetto made two senior appointments to its Americas sales team, as the company continues to enjoy healthy growth in the region. Patricia Alton joins Duetto as Director of Sales for Latin America. Prior to Duetto she spent nine years at Expedia working on strategic accounts. Terri Lester joins Duetto as Director of Sales for North America. Lester brings to the role experience in cloud-based software, most recently with Intrado.
Accor appointed Anne-Laure Kiechel as director at next general shareholder meeting, which will be held on May 17. If approved, Kiechel would qualify as an independent director. The Board of Directors of Accor also proposed the renewal of Sebastien Bazin as Chairman, CEO.
Kempinski Hotels appointed Jean-Marc Dizerens as vice president food and beverage. Dizerens joins Kempinski from his most recent assignment as Vice President – Hospitality, Food and Beverage of SJM Resorts in Macau.
Europe Highlight
Meliá Hotels International announced the development of the Meliá Becici Budva Resort on the coast of Montenegro. Expected to open in 2025, the new hotel will operate under the Meliá Hotels & Resorts brand. The resort will have 294 suites, of which 140 will be apartments; an outdoor infinity pool and an indoor pool; a wellness center with a gym and spa; two a la carte restaurants, a buffet restaurant and a bar and a rooftop serving a selection of food and drinks; meeting and event rooms; and a large car park with 100 spaces.