The DJIA was up 383 points while Nasdaq was up 237, the S&P 500 rose 54 points and the 10-year treasury yield was up .02 to 3.44%. Lodging stocks were higher. SOND traded down to another all-time low but that doesn’t mean anything to the rest of the group. AHT was up 15% to lead the group while VCSA was up 6% on the day.
Truist lowered their target price on Pebblebrook Hotel Trust, saying they have concerns over 2024 San Francisco conventions along with rising hotel-level costs. That being said, they view PEB’s 4Q22 earnings calls commentary on the EBITDA bridge as reasonable, highly underappreciated and possibly materially under-modeled. Truist did raise their EBITDA and AFFO share estimates for 2023. They lowered their target price to $16 from $18 and maintained their Hold rating.
The Baird/STR Hotel Stock Index was down -3.4% in March from February. The Hotel Brand sub-index was down -2.9% while the Hotel REIT sub-index was down -5.1%.
TMGOC Ventures celebrated the opening of the Moxy Charleston Downtown located in Charleston, South Carolina. Managed by Aimbridge Hospitality, the newly built property features an expansive 7,000-square-foot indoor/outdoor rooftop lounge featuring a 10-seat rooftop bar, a ground floor Starbucks and a performance stage.
One of the new owners of Sheraton Boston Hotel in Back Bay, an entity managed by Hawkins Way Capital, has proposed converting one of the property’s two towers from a 428-room hotel into a dormitory that could house 854 students. The second Sheraton tower, which rises 29 stories with 792 hotel rooms, will remain a hotel and is not part of the proposal. Hawkins Way plans to create a dedicated student entry at the Sheraton’s converted south tower, and also plans on repurposing both the existing ground-floor retail area and third-floor hotel area to create 12,000 square feet of amenity space, with a lounge, dining and study areas, laundry facilities, and/or a fitness center.
RFR Holding and Tricap announced the resolution of outstanding litigation and the extension of financing related to the W South Beach Hotel in Miami Beach, Florida. The property features 355 luxury rooms and bungalows.
Davidson Hospitality Group’s Pivot has been selected by Kushner Companies to operate the Wave Resort and The Bungalow, situated in the heart of Pier Village in Long Branch, New Jersey. Located on the iconic boardwalk, the 67-room Wave Resort features an oceanfront pool deck, Wave Resort Spa and fitness center, 7,000 square feet of event space, and three dining experiences. The Bungalow is comprised of 24 rooms, an art gallery, 1,000 square feet of event space and a cocktail lounge.
Celebrating its five-year anniversary, the Hard Rock Hotel Dayton Beach in Florida debuted a multimillion renovation including refreshed guestrooms and youth club and revamped memorabilia. The guitar pool has been converted to a full-size pool, an oversize hot tub added, and more lounge seating enhances the expansive deck flow. The 200-room beachfront resort also features a Rock Spa & Salon, Rock Shop, an array of food and beverage amenities, and 20,000 square feet of indoor and outdoor meeting space.
Main Street Community Capital is preparing a site in Mason City, Iowa, for the construction of the Hyatt Place Hotel and Conference Center. The company’s website still lists the project as slated or completion in summer of 2023, even though the developer is just finishing up some work to get permits pulled for the project. The groundbreaking announcement will likely be delayed until everything is in place financially for Main Street Community Capital. The closing is still on schedule for prior to the end of the month.
IHG Hotels & Resorts announced the opening of the Staybridge Suites Chicago O’Hare Airport in Rosemont, Illinois. The newly-converted 145-suite hotel features more than 9,000 square feet of meeting space, a fitness center and a pool. The Staybridge Suites Chicago O’Hare Airport is owned by Gateway Rosemont LLCand managed by Hostmark Hospitality Group.
Developer Harris Bay is planning to start construction on the Artista Hotel in San Antonio, Texas, in July. When finished, the eight-story River Walk-adjacent building will offer 121 rooms. Construction is scheduled to be completed by the beginning of 2025.
Yellowstone National Park announced the Mammoth Hot Springs Hotel, in Mammoth, Wyoming, will delay its 2023 opening due to a flood-damaged wastewater system being built. The hotel was scheduled to open by April 28, but due to a long winter and difficult construction conditions, more time is needed. Overnight accommodations will reopen after construction on the wastewater treatment system is complete. There is no target date yet. Although the hotel will be closed to overnight guests temporarily, the hotel’s gift shop, coffee and beverage service, and lobby will open as scheduled on April 28.
Blackstone announced the final close of its Blackstone Real Estate Partners X fund with $30.4 billion of total capital commitments, the largest real estate or private equity drawdown fund ever raised. In total, Blackstone’s three opportunistic strategies (Global, Asia, Europe) now have $50 billion of capital commitments. Blackstone has around 80% of its portfolio concentrated in logistics, rental housing, hospitality, lab office, and data centers. Given their superior performance post-pandemic, hotels will likely feature highly on the fund’s shopping list.
LRE & Companies revealed the plans for University Square, a 10-acre mixed-use development project in Rocklin, CA. The project is slated to be completed by year-end 2025. University Square will have more than 20,000 square feet of retail space and 5,000 square feet of space for quick service restaurant with drive-thrus; a 123-room Hilton Garden Inn; a daycare center; a convenience store; and a car wash.
An 11-story, 130-room upscale hotel planned for Milwaukee’s Brady Street area has won a key city approval. Klein Development Inc. is looking to start construction later this year and would take about two years to complete. Klein Development and development partner Geno Cataldo plan to build a parking structure across the street from the site of the hotel, the brand name of which hasn’t yet been disclosed. The parking ramp could have more than 100 to 200 stalls and would also have first-floor commercial space.
The Albert Hotel, a boutique hotel from the New Waterloo hospitality company, will open this summer in Fredericksburg, Texas. The hotel will feature 110 guestrooms, a sunken pool, a full-service spa, event spaces, three restaurants and two bars. The Albert Hotel’s food and beverage services will be run by MaieB Hospitality, marking the third collaboration between new Waterloo and MaieB. The Albert’s entire property will span two acres and feature old historic buildings as well as contemporary structures.
Under Canvas announced the opening of the first location of ULUM, a new, safari-inspired, luxury outdoor resort brand. ULUM Moab, in Utah, is the first luxury, outdoor resort of its kind and features 360 square foot Suite Tents and a contemporary lobby that opens up onto an expansive terraced deck with dipping pools, firepits, a yoga deck, and comfortable lounge spaces. ULUM Moab’s inaugural season runs through October 23, 2023.
The Maidstone Hotel, in East Hampton, New York, has been sold to Irwin D. Simon, the founder of The Hain Celestial Group, Inc. and Mayank Dwivedi, a hotelier and restaurateur, for about $17 million. The sellers were Jennifer and Jonathan Baker, who will retain a minority, but non-operating, stake in the 19-room property.
The Ponce Plaza Hotel and Casino, in downtown Ponce, Puerto Rico, is celebrating its fifteenth anniversary with the completion of a $12 million renovation of its facilities, including its lobby and 69 guest rooms. Other areas that were remodeled are the Lola Eclectic cuisine restaurant and the casino. The renovation of the restaurant included an expansion of the space and a larger bar. The expanded casino area offers more services, more entertainment, the return of the Viva Casino Bar and the integration of sports betting
Cronheim Hotel Capital secured a $47 million loan on behalf of Lexin Capital in order to refinance the existing note on the 150-room Hyatt House New York/Chelsea. CHC sourced the loan with a New York City-based bank on a five-year term and a favorable fixed rate.
Personnel Move
Cape Resorts announced the appointment of Kate Harth as Chief Sales & Marketing Officer. Kate will build up the sales team at Cape Resorts to prepare for growth and drive occupancies during non-peak traditional times at seasonal properties. Most recently, Harth worked in asset management at Fulcrum Hospitality, overseeing sales and marketing for a select group of hotels.
