The DJIA rose 80 points but Nasdaq was down 129, the S&P 500 fell 10 points and the 10-year treasury yield was down .05 to 3.29%. Lodging stocks were lower. At the rate SOND is going, it may be trading at a dime before it gets a delisting notice, down another 12% to another all-time low. SHCO was down -9% and SLNA fell -7% on the day.
Deutsche Bank initiated coverage on Wyndham Hotels & Resorts with a Buy rating and $79 price target. DB said they believe the recent underperformance of WH shares is overdone and primarily related to regional banking concerns on funding availability for development/unit growth. They believe this gives investors an entry point in what they think will be a relative outperformer.
Club Med said it was beginning a new chapter. Taking inspiration from the original Club Med philosophy, creating simple moments of happiness, the lifestyle brand will be providing a more premium, family-friendly and eco-conscious experience. Club Med operates nearly 70 all-inclusive beach and mountain resorts worldwide and sees between three to five new resort openings or renovations per year that appeal to both luxury travel and family-friendly experiences. The brand’s expansion has also continued to evolve into becoming more upscale with the recent launch of its Exclusive Collection portfolio, a collection of 5-star resorts, villas, chalets, spaces and a yacht around the world. Club Med is prioritizing the expansion of its Exclusive Collection portfolio by opening more Exclusive Collection properties and including Exclusive Collection spaces within its four-star resorts. In addition to its brand evolution, Club Med has also put significant focus on accelerating its ongoing sustainability efforts dedicated to responsible tourism like the elimination of single-use plastics, energy management and cultural preservation.
STR reported US lodging data for the week ended April 1. US hotel RevPAR was up 10.9% year over year. When compared with the same week in 2019, RevPAR was up 16.5%
Aimbridge Hospitality has been selected to manage the 321-key Millennium Minneapolis, including 20,500 square feet of meeting and event space and a restaurant and bar, within the company’s Full Service operating division. Owned by Capp Industries, Inc., the upper upscale hotel will undergo a comprehensive renovation and repositioning, anticipated to be completed in the fall of 2024. The property is located in downtown Minneapolis, Minnesota and is the closest full-service hotel to the Minneapolis Convention Center.
The Highlander Hotel, in Radford, Virginia, celebrated its grand opening following two years of construction. The hotel is right off Radford University’s campus and offers a rooftop restaurant and bar, a fitness center and a conference center.
On March 8, 2022, NexPoint Hospitality Trust began the marketing process to sell its DoubleTree portfolio. As of December 31, 2022, the Company has sold their Beaverton, Vancouver and Bend properties for a combined purchase price of $67.5 million. The Company has executed purchase and sale agreements on the Tigard property for a purchase price of $24.5 million and expects this transaction to close in the second quarter of 2023. The Company will use the proceeds from the sale to pay down the outstanding debt on the DoubleTree portfolio. The Company has opted to no longer sell the Olympia property at this time. We believe all these properties are in Oregon or Washington State. The press release did not specify and their website does not list their properties.
The Alfond Inn at Rollins, located in the heart of historic Winter Park, Florida, announced its new wing will open for guests in summer 2023, as its celebrates its tenth anniversary this year. The new wing offers 71 guest rooms and The Spa at The Alfond Inn. During construction, guestrooms in the original building have undergone complete upgrades with new interiors. With the opening of the new wing, The Alfond Inn at Rollins will feature 183 guest rooms and suites; The Spa with seven treatment rooms, steam, sauna, fitness facility; two pools, including a new pool off The Spa with a 6,000 square foot amenity deck and outdoor living room; new lobby café; upgraded restaurant; new meeting room and boardroom adding 2,400 square feet to the existing 10,000 square feet of flexible meeting space; and a renovated lobby, library and bar.
The Outrigger Reef Waikiki Beach Resort recently completed the latest phase of its $80 million transformation with an unveiling of the Coral Reef Penthouse Suites in the all-new Diamond Head Tower. The Penthouse Suites is a two-bedroom pied-a-terre within the resort, providing nearly 4,000 square feet of living space, inclusive of the largest oceanfront lanai in Waikiki. A third bedroom and bath is located on the suite’s first floor and are well-suited for multi-generation travelers and families seeking additional space. The resort features multiple food and beverage venues, and a cultural center.
Lux Living hopes to build an apartment complex and new hotel next to the Ameristar casino in St. Charles, Missouri, expanding on another developer’s pre-pandemic project that didn’t take off. The apartment building would total six stories and 289 units, built above a parking garage three levels below ground.
The Abbey Resort, located in Fontana, Wisconsin, announced the completion of its multi-year, multi-million dollar renovation. The renovation included entire-room upgrades to 300 guest rooms, all meeting and event spaces, common guest public areas including a full lobby renovation, guest hallways and other public areas. The Avani Spa received a $2 million upgrade and now includes 16 treatment rooms, new couples’ suites, steam and sauna rooms, and a large adult-only pool. Additional amenities at The Abbey Resort include an indoor pool with separate children’s wading area, indoor and outdoor hot tubs, and an on-site marina.
The 101-suite Best Western New Smyrna Beach Hotel & Suites, in Florida, has reopened following its closure due to Hurricane Ian. Owned by Key International and managed by LBA Hospitality, the eight-story, beachfront hotel has been updated and features an outdoor pool with a newly resurfaced sundeck, a fitness center and onsite dining.
The Jamul Indian Village Development Corporation, owner and operator of Jamul Casino in Jamul, California, closed on $515 million of Senior Secured Credit Facilities with a syndicate of commercial banks led by KeyBanc Capital Markets Inc. The other lenders included Western Alliance Bank, Nevada State Bank, U.S. Bank, PNC Bank, CIT Bank, and Columbia State Bank. Proceeds from the Credit Facilities will be used to refinance existing debt, fund hotel construction, and pay transaction-related fees and expenses. JIVDC is adding to its property by developing a new 16-story hotel, which will feature 200 rooms including 52 suites, a rooftop pool and jetted hot tub, a spa and salon, fitness center, restaurant and lobby bar, and a banquet room.
Hunter Hotel Advisors announced the sale of the 152-room Hilton Garden Inn Tampa East Brandon, Florida. MIG Real Estate sold the property to Mike Desai and Bruce Patel for an undisclosed amount. Hunter’s Miami and Jacksonville offices arranged the sale on behalf of MIG.
HVS Brokerage & Advisory announced the sale of the 40-key Karnes City Inn, located in Karnes City, Texas. The property was purchased by BH Hospitality Management from Newstream Capital Partners.
The Vista Hospitality Group purchased the Springhill Suites by Marriott Pittsburgh Mills and the Residence Inn by Marriott Pittsburgh Monroeville/Wilkins Township from an unnamed seller. HREC Investment Advisors exclusively represented the seller during this transaction. The SpringHill Suites by Marriott Pittsburgh Mills, in Tarentum, Pennsylvania, offers 115 suites, a fitness center, heated indoor pool, meeting/function space and a business center. The Residence Inn by Marriott Pittsburgh Monroeville/Wilkins Township is located in Pittsburgh, Pennsylvania and features 125 guestrooms, an indoor heated pool, outdoor sports court, fitness center, meeting spaces and laundry facilities.
Ashford Securities LLC continues to receive strong interest from the investment community for its recently launched product, shares of Series J Redeemable Preferred Stock and Series K Redeemable Preferred Stock of Ashford Hospitality Trust, Inc. In total, Ashford Trust sold more than $13.3 million of its Series J and Series K Redeemable Preferred stock through Ashford Securities as dealer manager since the offering commenced, including $9.1 million in March of 2023. In connection with the Ashford Trust offering of Series J&K Redeemable Preferred Stock, Ashford Securities has assembled a syndicate of 27 broker-dealers and RIA firms.
Personnel Move
Hawkeye Hotels promoted Tony Cruz to the company’s newly created role of Chief Operating Officer. Cruz most recently served as Vice President of Operations at Hawkeye Hotels.
Europe Highlight
Radisson Hotel Group celebrated the opening of its fifth luxury-lifestyle hotel in Italy, Radisson Collection Hotel, Santa Sofia Milan located in the center of Milan. The hotel provides 159 rooms and suites, multiple food and beverage venues, co-working spaces, a fitness center and a fourth floor outdoor pool and lounge, bar area.