The DJIA was down 229 points but Nasdaq was up 55, the S&P 500 was down 16 points and the 10-year treasury yield was up .04 to 3.43%. Lodging stocks were lower. SOND and VCSA traded down to new all time lows with SOND down -7%. AHT and SHCO were both down -5%. The C-Corps took it on the chin today despite positive HLT results.
Hilton kicked off earnings season with solid results. You could not get much better than Hilton’s with a solid beat, and a raise in guidance and even commentary on the conference call that they don’t expect what has been dogging the industry on Wall Street for a year, a massive recession to impact them. HLT’s CEO even said he is expecting a soft landing and seemed to feel the worst has passed. Judging by the reaction in HLT stock, as well as a spillover effect into Marriott and Hyatt stock, one would think Chris Nassetta said the exact opposite. We have a feeling the general public is just hypnotized into thinking the worst whether it is based on politics, the economy or something to do with social media. By the way, HLT repurchased $446 million worth of stock in the quarter and their development pipeline increased to 428,000 rooms from 416,000 rooms in the prior quarter, just in case you are thinking things like that could have caused the big sell off in the group. HLT was down $4.94 a share, MAR was down $7.74, H was down $4.84, CHH was down $3.62 and WH was down $2.25.
TNL (Travel + Leisure) beat expectations, bought back $102 million worth of stock and gave out more in dividends than expected. The stock went down. This could be a long earnings season. Perhaps we need the market temperature to be taken each day before passing judgment on an earnings report. TNL was down $1.59 a share.
Sonder has become the first of the SPACs that are either penny stocks or close to it, to receive a deficiency notice from their trading exchange. SOND was notified they had 180 calendar days to get their stock price above $1 bid for at least 10 consecutive business days or they will be delisted. They could also switch to the Nasdaq Capital Market and do a reverse split or some other thing to quickly get their stock price above $1. They could also do nothing, chalk it up to they should not have gone public, get delisted and eventually go private at an even lower price.
STR reported US lodging data for the week ended April 22. US hotel RevPAR rose 6.6% year over year for the week. When compared to the same week in 2019, RevPAR was up 18.1% with the Easter Holiday shift playing a part.
Southwest Value Partners acquired the JW Marriott Tucson Starr Pass Resort & Spa in Tucson, Arizona for $110 million from Fortress Investment Group. The 575-key property boasts more than 80,000 square feet of flexible indoor and outdoor meeting and event space, seven food and beverage outlets, three pools, a spa, and the 27-hole Starr Pass Golf Club. The resort will continue to be managed by Marriott. Southwest Value Partners is evaluating potential renovations and upgrades to the property. CBRE Hotels represented the seller, Fortress Investment Group, in the transaction.
Opportunity Group 1 LLC has acquired the Four Points by Sheraton Hotel in Cleveland, Ohio, from NexGen Hotels. The hotel was acquired on a deed in lieu of a foreclosure. The Sheraton Hotel site includes a temporarily closed restaurant.
The dual hotel project in Saltillo, Mexico continues to advance with Hilton’s Homewood Suites and Tru brands to be located in the northern zone. It is currently in the engineering and bidding stage. The project’s investors expect the property to be ready by the end of 2024 and the Hilton brands will manage the combined 170-room hotel.
Kinseth Hospitality is developing a 93-guestroom Home2 Suites at a nine-acre site in Sheboygan, Wisconsin. The four-story hotel is adjacent to the upcoming North Town Apartments and will include a fitness center, salt water pool and outdoor lounge with fire pits. The project is expected to be completed in July 2024.
Crain’s Chicago Business reported the joint venture of Lionstone Development and Virgin Hotels has hired Jones Lang LaSalle to sell the 250 room Virgin Hotel Chicago.
1533 Queensbury LLC, owner of the 98-room The George Hotel in Queensbury, New York, want to convert the four-story hotel into a La Quinta by Wyndham. The hospitality firm has filed plans with Queensbury town planners seeking approval for a string of exterior upgrades to accommodate the requirements of rebranding to the LaQuinta flag.
The Chicago City Council approved the proposed hotel conversion at 446 E. Ontario. The Onterie Center (now know as Axis Apartments and Lofts) is a 60-story building which holds 140,000 square feet of office space, 594 apartments, and a 363-space parking garage. Planned by Group Fox Management, the proposal would convert 100,000 square feet of the office space into 101 hotel rooms. The plan would convert the sixth through tenth floors within the base of the building. No parking will be provided. The $28 million development is now fully approved and can move forward with permitting and construction. A timeline for construction is currently unknown.
The South Seas Island Resort, located on Captiva Island, Florida, is committed to welcoming guests as early as September. 12 feet of storm surge destroyed most of the resort which has managed to o pen the Starbucks and parts of the marina and is providing limited services. Crews are working on a new T-Dock at the North End Fishing Pier. While renovations take place, a Bayview fishing pier will open. There will be a new water slide, a lazy river and cove pool area, an arcade, food and beverage outlet and a kids camp. Management anticipates some pools, beaches, vacation rentals, and food and beverage offerings to serve guests plus two new fun food trucks will be available by the end of September.
Mark Bellissimo announced a partnership with Nexus Luxury Collection to create The Wellington, a luxury residential club community in the heart of the Village of Wellington, Florida. Through their new partnership, Wellington Lifestyle Partners, the principals will re-imagine over 600 owned acres to craft a residential experience focused on wellness, resort living and sport while honoring Wellington’s equestrian roots. WLP’s proposed new project will include a walkable commercial center featuring shops, hotels, offices, a park, and restaurants. The development plan will also include a public riding facility that will include trail riding and basic introduce to horse sport. Other amenities include a world-class racquet center with a prop shop, four pools, two-story Field House, fitness center, children’s indoor and outdoor facilities, and single family homes and condominium residences.
The Gaylord National Resort & Convention Center at National Harbor in Price George’s County, Maryland, will reopen its Old Hickory Steakhouse next month after a renovation that followed a $64 million guestroom overhaul. Gaylord is spending $14 million to transform the restaurants at the property, which also includes its Harbor Social sports bar, Pose Rooftop Lounge and Belvedere Lobby Bar. The hotel was closed for 15 months during the Covid-19 pandemic, reopening in July 2021. Owner Ryman Hospitality Properties Inc. used that time to renovate all 1,995 rooms, including new looks for all 110 suites at the property.
Margaritaville and Levy Holdings signed a license agreement for Latitude Margaritaville International Lake Chapala, Mexico, an active living community, set to debut in phases starting in spring 2024. Latitude Margaritaville International Lake Chapala will be influenced by the surrounding area, offering experiences, and living opportunities for those 55 and better. Developed by Levy Holding, the community will features a total of 194 accommodations and resort-style amenities including food & beverage locations, pools, pickle ball courts, a theater and more.
BWH Hotel Group’s SureStay Hotel Group has opened new SureStay Plus properties in Tennessee and New Mexico. The SureStay Plus Hotel by Best Western Sevierville in Sevierville, TN, completed a half-million dollar renovation and offers 80 guestrooms and an outdoor pool. SureStay Plus by Best Western Silver City, in Silver City, New Mexico, features 61 guestrooms, an indoor heated pool, hot tub, and exercise facility.
HREC Investment Advisors arranged the sale of the Courtyard Fort Lauderdale Coral Springs located in Coral Springs, Florida. HREC Investment represented the seller in this transaction. The 110-room, four-story hotel offers 1,056 square feet of meeting space and ample parking.
Paramount Lodging Advisors executed the sale of a Marriott-branded hotel located in College Station, Texas. PLA represented the seller in the transaction. The new owners are excited to begin an improvement plan on the 94-key property.
Brevet Capital announced the completion of a $42 million mezzanine loan that was used to finance a portion of the $167.2 million construction and development costs of The Joseph, a Luxury Collection Hotel located in downtown Nashville, Tennessee. The Joseph contains 297 guestrooms, 13,305 square feet of meeting space, an upscale restaurant and bar, fitness center, spa, gift shop, and a rooftop pool and lounge. The loan was made to an affiliate of the Pizutti Companies. The Joseph hotel project was funded by Brevet Capital utilizing the EB-5 Immigrant Investor Program.
Personnel Move
Twenty Four Seven hotels named Dan Grunbeck corporate F&B director. In the newly created role, Grunbeck will implement and lead strategic operations to enhance offerings and partner with hotels to create unique, market-based food and beverage concepts, as well as source quality products that adhere to brand standards. Grunbeck most recently served as executive chef/F&B director at Snowpine Lodge in Alta, Utah.