The DJIA dropped 286 points, while Nasdaq was down 58, the S&P 500 fell 29 points, and 10-year treasury was up .02 at 3.36%. The Dow Jones U.S. Travel & Tourism Total Stock Market Index was down 1.3 percent.
The earnings calendar accelerated in both the REIT and C-Corp section in the past 24 hours. Hyatt received the most attention with a clean beat but then some concerns creeping in, resulting in a reaction by investors that was not as bad as Hilton but not pleasant. One thing that was pointed out was H had no asset sales and still has two hotels listed for sale. Others were not that thrilled with the legacy business performance. They did discuss the limited visibility which in a renewed jittery market is not always taken the right way. H bought back $106 million worth of stock at an average price of $104 a share.
Alan is traveling on Sunday so there will be no Daily Lodging Report on Sunday, May 7.
Host Hotels had a lousy two days to issue a great report with a clean and positive beat and raise. They bought back $50 million worth of stock in the quarter, and sold the Camby, Autograph Collection hotel in Phoenix for $110 million. It continues to have one of the best balance sheets, if not the best, in the Lodging REIT space.
Summit Hotels came in just under consensus even with a strong top-line performance as higher hotel-level expenses hurt results. RevPAR growth was 19.3% with ADR up 11.2%. The sale of six hotels from INN is still scheduled to close by the end of this current quarter. Ryman Hospitality pre-announced so the earnings beat was not a surprise. They upped their guidance to account for the beat. RHP upped their quarterly dividend to $1 a share from $0.75. Braemar Hotels & Resorts beat 1Q estimates as their urban portfolio recovery continues. RevPAR for their six urban hotels was up 60% year over year. All eyes seem to be on BHR’s debt maturities. The company said they are evaluating a corporate-level financing. They recently obtained mortgage loan extensions to give them time to complete the task. Chatham Lodging Trust reported a solid quarter with RevPAR up 28% on a 14% rise in ADR.
Marriott Vacations Worldwide beat consensus and gave in-line guidance for FY23. VAC seemed to be trying to show stability and cash flow, particularly with a quarter of returning 2.5% of their market cap to shareholders with dividends and buybacks. $80 million was in repurchases.
B.Riley upped their rating on Hersha Hospitality to Buy from Neutral. They lowered their target price to $9 from $10.
HEI Hotels & Resorts has assumed management of the 337-room Renaissance Dallas North Hotel in Dallas, Texas. Owned by L+R Hotels, the property includes an outdoor pool, a fitness center, 18 meeting rooms that comprise nearly 25,000 square feet of meeting and event space, and multiple food and beverage facilities. A comprehensive renovation of the hotel is in the planning stages with completion anticipated in 2024.
The 131-room Hotel Royer Tapestry Collection by Hilton in Urbana, Illinois, is now accepting reservations for September 28.
Melia and the Abu Dhabi Investment Authority are reportedly closing in on a deal to create a new joint venture in Spain with 1 billion euros of assets under management. According to El Confidencial, assets will include the Equity Inmuebles 17-hotel portfolio valued at 700 million euros as well as Melia’s Calvia Beach project, which includes seven properties at around 300 million euros.
Hyatt Regency Hill Country Resort and Spa has completed a $50 million renovation to its 500 guestrooms and suites and meeting spaces. The resort is also home to a five-acre water park, the Windflower Spa, 27-hole Hill Country Golf Club, and a signature restaurant.
Portman Holdings, the developer of the new, $470 million convention center hotel in downtown Cincinnati, Ohio, plans an 800-facility with a rooftop pool along with junior and senior ballrooms as a part of 75,000 square feet of meeting space. The convention center hotel will likely have one of three flags: Marriott, Hilton or Hyatt. Once planning is finalized and the hotel receives city and county’s approval, Portman will put the flag out for bid. Once financing is lined up, construction is estimated to begin in the second quarter of 2024, with a 30 to 33-month construction timeline.
IHG Hotels & Resorts announced the initiation of a multi-stage renovation of its Crowne Plaza hotel in Baton Rouge, Louisiana in collaboration with owner and management company Executive Hotel Management. Scheduled for completion in late 2023, the project will include a refresh of the property’s guestrooms and the addition of the brand’s signature Plaza Work Space individual and collaborative work stations. Crowne Plaza Executive Center Baton Rouge also includes an onsite fitness center, outdoor pool, Patio Grill and Lounge restaurant, and more than 32,000 square feet of meeting and event space.
Life House has been selected to manage two more hotels in California, Hotel Royal in Long Beach and Hotel La Rose in Sonoma County. Life House now operates seven hotels throughout California. Owned by Lukhbir Gill, Hardeep Grill and Jim McCalligan, Hotel La Rose is a landmark 48-key property located in the heart of Santa Rosa. Hotel Royal is a boutique hotel located in Long Beach’s trendy East Village Arts District and owned by Victor Beauchamp.
Marcus Hotels & Resorts announced the renovation and redesign of Grand Geneva Resort & Spa’s 358 guest rooms, slated for completion by Memorial Day weekend. Last summer all guest room bathrooms received full renovations and in the coming months, the resort is planning a series of renovations to its meeting and event spaces. Grand Geneva Resort & Spa, in Lake Geneva, Wisconsin, offers two championship golf courses, a WELL Spa + Salon and more.
Bunkhouse Group announced the opening of Hotel Genevieve in Louisville, Kentucky, ahead of the Kentucky Derby this weekend. Located in Louisville’s trendy NuLu neighborhood, the property is the company’s first urban-core, new-build hotel. Hotel Genevieve offers 122 guestrooms and three restaurants and bars as well as a mini-market.
Taylor Hospitality announced the grand opening of the Hermitage Inn and Taphouse in Petersburg, West Virginia. The hotel offers 32 rooms and 4 extended-stay studios.
Following a groundbreaking celebration, North American Properties provided fresh visuals to lend a better idea of how The Forum shopping District in Peachtree Corners, Georgia may soon look and function. Alongside joint venture partners Nuveen Real Estate, NAP acquired the open-air shopping hub and have implemented changes. The focus now turns to the physical changes that will modernize and transform The Forum into more of a mixed-use OTP destination, across several phases of development. This includes the addition of 381 multifamily units, a 125-key boutique hotel, new dining and experiential retail and a parking structure.
The Heritage Grand Perast by Rixos has opened in Montenegro following a full renovation over the last two years. This significant milestone also marks Accor and Rixos’ first hotel in the country. Following the renovation, the hotel has four buildings, Smekja, Jadran, Grado, and Teodo, offering 130 rooms, including eight duplex rooms. The Heritage Grand Perast by Rixos will be home to a diverse range of restaurants and bars and an outdoor pool. The hotel also boasts a spa with an indoor heated pool, hammam sauna and ice fountain, and a private beach dock.
The longtime former headquarters of Outside magazine at the north edge of the Railyard District in Santa Fe, New Mexico, will become a boutique hotel. State Properties of New Mexico, LLC purchased the property, received an interior demolition permit and has been knocking down interior walls and removing plumbing fixtures and bathrooms since March 17. According to the company, the building, which has two stories above ground and a basement, will be a very high-end boutique hotel with a speakeasy element on the lower level.
Personnel Moves
The American Hotel & Lodging Association announced two new staff additions who will further expand the organization’s government affairs and advocacy capabilities. Kat Fonda has been named AHLA’s Director of Federal Affairs. In this new role, Fonda will be responsible for policy development and advocacy before Congress and other federal government agencies. Fonda joins AHLA from Fundraising Inc., where she served as a fundraising consultant to several dozen members in Congress. AHLA also announced that Shreya Kanal has been named Manager of Government Affairs. In this role, Kanal will work with the association’s federal affairs team to advance the hotel and lodging industry’s agenda on Capitol Hill. She joins AHLA from Associated Builders and Contractors, where she served as the Coordinator of Legislative and Political Affairs.
Europe Highlights
Radisson Hotel Group announced the signing of its first affordable, high-design prizeotel property in the UK and Ireland region Scheduled to open in Q1 2025 in Dublin, the newly-built prizeotel Dublin will feature 145 rooms and a restaurant and bar.
Robert and Gina Parker, owners of luxury boutique hotel group, The Robert Parker Hotel Collection, have decided to retire and sell the group’s four properties. Dalhousie Castle and Aqueous Spa in Edinburgh, Ednam House Hotel in Kelso, Doxford Hall Hotel and Spa in Alnwick, and Eshott Hall in Morpeth have been brought to the market by Christie & Co. Dalhousie features 35 bedrooms, a spa and an onsite restaurant. Doxford Hall Hotel & Spa has 41 bedrooms, a spa, onsite dining and Europe’s largest yew tree maze in the extensive grounds. Ednam House in Kelso is a 33-bedroom property with the largest ballroom in the Borders. Eshott Hall, a seventeenth-century manor house with 11 bedrooms in the main hall and a further 13 bedrooms in adjacent buildings is also being jointly markets by Galbraith and Sanderson Yong for sale on the residential market. The hall has 38 acres of manicured gardens and woodland, a tennis court, walled kitchen garden and Victorian fernery.