The DJIA was down 110 points, Nasdaq was down 97 points, the S&P 500 was down 24. All three U.S. indexes were on track for week-over-week losses. The 10-year Treasury yield fell to 3.546%
Truist gave their 1Q lodging earnings preview. While they continue to see macro over micro with the main driver/wildcard coming from the economic impact of high interest rates and inflation, at a minimum they expect results to be in-line but more likely ahead. Investor sentiment seems to be impacted the most by the wall of worry, which Truist said now has recent concerns about a banking/lending crisis added to it. They expect the greatest degree of strength in 1Q domestic RevPAR results to be coming from the Group/convention-heavy Upper-Upscale segment. While more important for C-Corps, Truist believes 1Q23 international RevPAR results continue to exceed investor expectations. They see no macro reason why companies should miss the midpoint of their guides, at least come close to consensus numbers or at least maintain full-year expectations. Truist expects other common themes to include the return of capital to shareholders via share repurchases and/or dividends. Their favorite name in lodging stocks continues to be Hyatt which they expect to have several catalysts led by group, recovery of international higher-rated travel demand and particular strength in leisure demand to the Caribbean and Europe. For the REITs, their favorite is Ryman Hospitality.
The Kayak Miami Beach hotel could be seized in a $13.68 million foreclosure lawsuit. VMC Finance LLC filed a foreclosure complaint against Husha LH VN LLC. The lender also filed a motion to place the property into receivership with GF Hotels & Resorts taking over operations and cash management of the hotel. The 51-room hotel includes a restaurant, snack bar and a rooftop pool.
The ART Hotel Denver, Curio Collection by Hilton announced the completion of its $3 million property-wide refresh to its 165 rooms and suites, 7,500 square feet of flexible meeting and event spaces, fitness center, private dining and public spaces. The art haven hotel is located in the Golden Triangle Museum District of Denver, Colorado.
Chartwell Hospitality announced the sale of their Home2 Suites by Hilton property in Colorado Springs, Colorado to ARA US Hospitality Trust for $29.0 million. The 119-room hotel features a business center, meeting space, indoor heated pool and a combined fitness and laundry center.
Hyatt Hotels Corporation and GRJ announced the official opening of The Pell, the first JdV by Hyatt Hotel in Rhode Island. The property, which is managed by Highgate, is located on Rhode Island’s Aquidneck Island. Following a $9 million renovation, the property features 127 guestrooms and suites, a signature restaurant and 1,250 square feet of customizable meeting and event space.
In December 2021, developer H.R. Sheevam open a newly built Comfort Suites hotel in St. Louis, Missouri. Now, H.R. Sheevam is proposing to build a second new hotel next door. The proposed, five-story Hampton Inn by Hilton would have 88 rooms. Following city approval, construction could start within three months and could be completed in two years.
Adventurous Journeys Capital Partners announced an acquisition in downtown Austin, Texas, which will be home to the forthcoming Graduate Austin. Upon completion, the 18-story hotel is expected to open in 2025. The hotel will offer meeting and event space, a fitness center, ground floor café and lobby bar, rooftop restaurant and bar, a rooftop pool and on-site parking. The Burt Group will serve as co-developer of the project alongside the AJ team.
IHG Hotels & Resorts announced the opening of the Holiday Inn Express Hattiesburg West – Univ Area, located in Hattiesburg, Mississippi. Owned and managed by APU, LLC, the 85-room hotel offers a fitness center and indoor heated saltwater pool.
Red Roof and Spectrum Hospitality announced the completion of the year-long major renovation of an 80-guest room hotel, now open as Red Roof Inn & Suites Wilkesboro. The hotel is located in Wilkesboro, North Carolina, and features renovated rooms, lobby and hallways along with a new security and fire alarm system. Phase two of the renovation will include a playground and picnic area with a fire pit and grills and there are plans to reopen the restaurant portion of the property.
Casetta Group announced the completion of the guestroom renovations of Marina Riviera, located in Big Bear Lake, California. The property features 42 guestrooms in the main lodge and six two-bedroom cabins. Slated to open later in 2023 are an onsite private beach, pool, hot tub, sauna, and outdoor fire pits, with a bar & restaurant still to come.
A hotel along Via Real has been approved by the Carpinteria California Planning Commission. Plans for the site, which was previously used as a church, include 72 rooms spread across 2 stories with an outdoor pool, patio, gym, business center, meeting room, fitness room and 77-space parking lot. RAM Hotels is the landowner and project developer.
Personnel Move
Waterford Hotel Group promoted Chris Chiappa to Vice President, Acquisitions & Business Development – East. In this role, Chiappa will seek new business for Waterford Hotel Group, including management and investment opportunities, with a concentrated effort in the eastern region of the United States. Most recently, Chiappa was Corporate Director of Business Development.
Europe Highlights
IHG Hotels & Resorts announced the first Vignette Collection hotel in Europe as Casa da Companhia opened in the center of Porto, Portugal. The hotel provides 40 rooms including three suites, a spa, fitness suite, heated indoor and outdoor pools and an outdoor terrace.
Mandarin Oriental, Lago di Como reopened for the summer with a new 40-meter pool, one of the largest infinity floating pools in the world. Situated right on the lake, the pool’s sundeck features sun loungers and cabanas and a new informal dining venue. The resort boasts two additional dining options and a remodeled Spa & Wellness oasis. The nineteenth-century Villa Roccabruna is at the heart of the resort, which features a total of 22 rooms, 51 suites and two stand-alone private villas.
Radisson Hotel Group celebrated the opening of its fifth luxury-lifestyle hotel in Italy, Radisson Collection Hotel, Santa Sofia Milan. The hotel provides 159 rooms and suites, multiple dining venues, fourth floor terrace with an outdoor pool and lounge bar area, a fitness center and a sauna.
The first Radisson hotel in the North of England has opened in York. Previously known as Park Inn by Radisson York City Centre, the riverside property has undergone an impressive transformation to become Radisson Hotel York. The hotel features 200 guest rooms and the renovation introduced new flooring, furniture and soft furnishings as well as the addition of self-service check-in desks. Amenities include a restaurant, a range of flexible and versatile meeting and function spaces, a gym, and parking spaces for up to 51 cars.
Choice Hotels EMEA has added four boutique Scandinavian hotels to its upscale Ascend Hotel Collection portfolio, as part of an agreement between Nordic Choice Hotels and The Fortress Hotels. The Fortress Hotels include Norway’s Oscarsborg Fortress, Kongsvinger Fortress and Reenskaug Hotel; as well as Sweden’s Torreby Castle.