The DJIA rose 75 points, Nasdaq was up 117, the S&P 500 gained 12 points and the 10-year treasury yield was down another .09 to 3.41%. Lodging stocks were mixed. SLNA had the best day in a month or so, up 14% while SOND was down another -6% to another new low.
Pebblebrook Hotel Trust gave a 1Q operating update, showing the quarter is in line with their recent guidance. PEB said ADR was up 20% in February versus 2019 but that was down -5% versus 2022. Same property Hotel EBITDA was up 5.4% versus 2022 to $19.4 million as the ADR decline was being offset by occupancy gains from rated customer segments. Meanwhile, CEO Jon Bortz continues buying stock on the open market every week.
Tourism to and from the U.S. has gradually recovered in 2022 without fully returning to pre-pandemic levels, according to the Commerce Department. For the year as a whole, more than 50.8 million people visited the U.S., up 128% from 2021. The total, however, is just under two-thirds of the number of visitors who came to the U.S. in 2019. The level of visitors is slowly approaching its 2019 levels, with December 2022 entries representing nearly three-quarters of the level seen in December 2019. Americans, on the other hand, traveled abroad more extensively, with just over 80 million short-stay departures over the past year. In December, the level of departures nearly returned to pre-pandemic levels, as the 8.3 million trips out of the country accounted for nearly 94% of the number of Americans who went on vacation in December 2019.
The U.S. hotel industry reported higher performance from the month prior, according to February 2023 data from STR. February 2023 (percentage change from February 2019): Occupancy: 60.0% (-2.8%); ADR: $152.01 (+17.7%); and RevPAR: $91.22 (+14.3%). Among the Top 25 Markets, Tampa experienced the highest occupancy level (82.7%). Markets with the lowest occupancy for the month included Chicago (50.1%) and St. Louis (52.7%). San Francisco reported the steepest decline in occupancy when compared with 2019 (-28.4%). The Top 25 Markets showed higher occupancy and ADR than all other markets.
Manhattan’s iconic Waldorf Astoria Hotel, which has been closed since February 2017, will not reopen until at least 2025, according to sources at The Post. The ongoing delays to reopen the property has been frustrating for the Hilton brand, which is launching “Waldorf Astoria”- named properties around the world while the flagship remains a construction zone. One insider said work just started on it, referring to the hotel portion of the larger job, which involves converting much of the landmark building to luxury condos. According to The Post, a Hilton spokesperson vowed the renovations will be done by next year. The re-launched Waldorf hotel is to have 375 guest rooms, down from the original 1,400, although new rooms and suites will be twice as large as the original ones. The 352 planned condos will take up the larger share of the building.
Located within the thriving uptown epicenter of Houston, Texas, JW Marriott Houston by the Galleria unveiled the last multi-million dollar renovation phase of the guest rooms, suites and corridors to finalize the hotel’s complete transformation. The enhancements join the refreshed meeting and public spaces, lobby and executive lounge which were finished in 2019. Owned by Host Hotels & Resorts, Inc., JW Marriott Houston by the Galleria features 516 guest rooms; 41,500 square feet of meeting space; an outdoor pool; fitness center; JW Market; and the popular Stray Horse Restaurant.
IHG Hotels & Resorts continues to see strong growth in the Americas and worldwide, notably among its Suites brands and the Holiday Inn brand family and through the addition of exceptional Luxury & Lifestyle properties and brand debuts in key markets. Notable milestones across IHG Hotels & Resorts’ growing Americas and global portfolio include: 110 signings globally added to the Holiday Inn Express pipeline; sixty-two newly opened Holiday Inn hotels; avid hotels maintaining a 140+ property Americas pipeline; 11 new Americas signings have expanded the Atwell Suites regional pipeline to 30+ properties; Staybridge Suites’ 142-hotel Americas pipeline equals nearly half its current regional portfolio; and Candlewood Suites is on track to increase its portfolio by one-third with 124 hotels in the pipeline. voco hotels recently opened hotels in Chicago, Niagara Falls and Guadalajara and will join forthcoming U.S. properties in Flushing, Destin and Laguna Hills and Mexico properties in Queretaro and Saltillo. Crowne Plaza Hotels & Resorts’ global pipeline will expand the brand’s current reach by 26%; three-quarters of the Americas portfolio will be new or have been recently renovated before the end of 2025, with 20 planned for completion in 2023. EVEN Hotels is on pace to double its Americas presence with 10 hotels in the pipeline; Six Senses Hotels Resorts Spas’ strong emergence in the Americas includes six signings; Regent Hotels & Resorts is scheduled to open its first Americas property in late 2023; InterContinental Hotels & Resorts has 200+ open hotels 90 in the pipeline with 10 Americas pipeline hotels including planned openings in Dallas, Grenada, Bellevue and a recently signed resort on Dominica. Vignette Collection will expand the brand’s presence to more than a dozen countries, with 100+ properties globally expected to join during the next decade. Kimpton Hotels & Restaurants’ first all-inclusive resort in Mexico among 10 new global singings increased the brand’s global pipeline to 41 properties, five new Americas openings are planned for 2023. Hotel Indigo is on pace to reach 200+ hotels in the next three years including eight Americas hotel openings in 2022; and Iberostar Beachfront Resorts’ global pipeline includes five properties planned for the coming years.
Hotel Indigo has expanded its offering in the northwestern United States with the opening of Hotel Indigo Vancouver Dtwn – Portland Area in Washington’s Vancouver Waterfront Park. The 138-room property is developed by Kirkland Development and managed by MKM Hotels. Hotel Indigo Vancouver Dtwn – Portland Area features multiple on-site restaurants and bars, on-site liquor store, meetings and events spaces, a fitness center and business center.
Wyndham Palmas Beach & Golf Resort, in Palmas Del Mar, Puerto Rico, is undergoing a dramatic transformation, set to be unveiled on May 18, 2023. The multi-million-dollar renovation comes as LionGrove recently acquired the oceanfront property. The resort’s 107 guest rooms and suites will feature upscale amenities and guests can now enjoy an enclosed modern and trendy lobby. Additional transformations include expansive landscaping enhancements, the cigar lounge, and improvements to the indoor ballroom and outdoor event spaces. The hotel also features two pools and multiple on-site food and beverage options. Located in the Palmas del Mar community, the resort offers access to an array of outdoor activities including two golf courses, the largest tennis center in the Caribbean, pickleball courts, and an equestrian center.
StonePark Capital acquired the Hotel Cerro, a 65-room property located in downtown San Luis Obispo, California. The hotel features a restaurant and bar, spa and wellness center, event space and the only rooftop pool and bar in the city. Hotel Cerro will join Marriott’s Autograph Collection, with design and branding updates to begin immediately. The project represents the third collaboration between StonePark and AZUL Hospitality, whose team will be taking over operations of the hotel, restaurant and spa.
Glyndon Properties LLC wants to open a historic hotel in downtown Richmond, Kentucky again. The company is discussing a possible public/private partnership between Glyndon Properties and the City to bring the property back to life as the Glyndon Hotel, a 35-room hotel with valet parking and a rooftop bar.
Construction is progressing on an Extended Stay Hotel in Hollywood, California. Developed by Level Hotels, the property will feature one- or two bedroom suites, a two-story gym, outdoor heated pool, pet runs/grooming stations and a sports court.
Deborah and David Hatley, owners of Coffee Ridge Resort have obtained a general construction permit which will allow officials to proceeds with construction of the multi-million-dollar venue located in Unicoi County, Tennessee. The vision for the resort is an all-luxuries-included adult resort which will include dwellings, a spa, large communal space, a greenhouse for a farm-to-table experience, an observatory, and a lookout tower.
Mumford Company completed a flurry of deals to close a busy first quarter of 2023 and the addition of Andrew and Tripp Lowe to their team in the Mid-Atlantic. The Lowe brothers bring an abundance of hotel ownership and commercial real estate experience and knowledge to the firm. They are joining Mumford Company in the Washington DC office from their family firm, Lowe Real Estate Group. In the last few weeks, the firms closed several deals representing a broad range of property types throughout the United States.
Crystal Investment Property, LLC announced the sale of the Clarion Hotel & Suites Fairbanks in Fairbanks, Alaska. CIP represented the Seller in the sale in cooperation with Suzanne Jasso, a licensed Alaska broker. The CIP team worked closely with the Buyer and Seller to negotiate a mutually acceptable sale. The final sale price is confidential. Clarion Hotel & Suites Fairbanks is a 128-key property featuring a guest laundry, fitness center, on-site remodeled restaurant with a bar/lounge area. The hotel also has a meeting/event space and a business center.
Personnel Moves
TPG Hotels & Resorts announced the appointment of Ben Perelmuter to President & Chief Operating Officer. Perelmuter will oversee the operational performance of TPG’s entire hospitality portfolio. Perelmuter most recently served as Division President at Aimbridge Hospitality.
Officials announced the formation of the Extended Stay America Lodging Association (ESLA), a trade association dedicated to advancing the extended stay lodging industry by providing an impartial forum for stakeholders in the segment to share ideas, innovations, and best practices. According to Douglas Artusio, Founder and Chairman, Extended Stay Lodging Association, ESLA will provide developers, owners, lenders, and other stakeholders with a combination of education webinars and educational opportunities on a variety of topics.
LW Hospitality Advisors announced the appointment of Embree C. “Chuck” Bedsole, II as Managing Director, Asset Management/Restructuring and Bankruptcy/M&A. Bedsole has more than 40 years of international lodging industry experience with hotel companies and professional service firms in the areas of workout/restructuring, mergers & acquisitions, development, finance, operations and marketing.
Europe Highlight
Palladium Hotel Group has kicked off the opening of its seasonal hotels in Europe. Throughout the months of March and April, the establishments managed by the hotel group in Ibiza, Menorca, Marbella and Sicily will open their doors with several new features and a wide selection of proposals adapted to all types of travelers. Palladium Hotel Group has driven a series of innovations and improvements in the hotels it operates, including several relevant renovations. Grand Palladium Palace Ibiza Resort & Spa has undergone a thorough refurbishment, including its 411 rooms and suites, main entrance and several common areas. Nearby, the iconic Ushuaia Ibiza Beach Hotel has also undergone a refurbishment of its facilities. Hard Rock Hotel Marbella has completed extensive renovation work on its building, after which it will remain open for good, bringing together a total of 373 rooms in two towers: Oasis and Nirvana.
