The DJIA fell 30 points but Nasdaq was up 127, the S&P 500 rose 18 points and the 10-year treasury yield was down .08 to 3.44%. Lodging stocks were all over the place. SOND was up 20% but that is only $0.08 per share. VCSA was down -11% but that was only .095 cents. ABNB was the big mover, down -11% or down close to $14 a share.
It was a rough one for Airbnb as investors seemed blindsided by their guidance. The 1Q results were in line but ABNB said they expect 2Q bookings to have slower growth. There was more that caused the drop in the stock but the headlines about fewer bookings and lower prices in the second quarter would be enough to have all those Macro fear mongers to be able to point to ABNB after a year of being wrong and fist pump a little.
The best thing to be said about Vacasa’s earnings report came from JP Morgan. Their headline was the quarter was better than feared. No reason to jump up and down as they followed that up with the warning that incremental bookings show a deceleration through the year.
Citigroup upped their price target on Park Hotels to $13 from $12. They maintained their Neutral rating.
STR reported US lodging data for the week ended 5/6. U.S. hotel RevPAR was up 8.4% year over year. When compared with the same week in 2019, RevPAR was up 13.3%.
Specialized Real Estate Group announced Arkansas’ first Moxy Hotel will be part of the South Yard development in Fayetteville. Plans call for the Fayetteville Moxy Hotel to be seven stories tall and include 131 rooms. The completion date for the project has not been finalized.
Pebblebrook Hotel Trust closed on the sale of the 189-room Hotel Monaco Seattle, located in Seattle, Washington, for $63.3 million. Proceeds from the sale of the hotel will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing common and preferred shares.
Strategic Property Partners LLC plans to develop a Four Seasons hotel in Charleston, the first in South Carolina. Proposals for the project call for three different buildings to be constructed on a 1.9-acre site. The mixed-use development will also include residential condominiums and retail space. Strategic Property Partners LLC has agreed on terms with Four Seasons Hotels and Resorts to manage the planned hotel and residences.
Four Seasons, together with Azure Resorts & Hotels and Luxus Developments, announced a new standalone residential project in Las Vegas slated to open in 2026. Four Seasons Private Residences Las Vegas will be set within the MacDonald Highlands community, a private 11-acre oasis in Henderson, Nevada. The new project will comprise 171 high-rise residences and six standalone, family-style villas. The new luxury residences will also feature a signature restaurant and wine bar, private chef services, private wine cellars, multi-level resort-style pools, cabanas, onsite even lawn, catering services, a pet spa, auto spa, community boardroom, library, screening room, and a myriad of wellness amenities including a gym and spa with a sauna, steam room, whirlpool, lap pool, multiple private treatment rooms and personal training offerings.
MMI Hotel Group has assumed management of the Cambria Suites in Fort Mill, South Carolina. The 127-room property offers a seasonal outdoor pool, modern fitness center, 1,350 square feet of meeting and event space and an onsite restaurant and bar.
Choice Hotels International, Inc. announced the official start of construction on Cambria Hotel Pearl District-Portland and Cambria Hotel Hillsboro. Expected to open in Oregon in Spring 2025, this milestone marks Cambria’s entry into the Pacific Northwest. The six-story, 178-room Cambria Hotel Pearl District-Portland will be developed in collaboration with HighSide Development. The four-story 115-room Cambria Hotel Hillsboro is being developed by Evergreen Hotel Development Group. All Cambria Hotels feature elegant onsite dining, a fitness center, multi-purpose indoor and outdoor spaces for work or relaxation and stylish meeting and event spaces.
Palladium Hotel Group has been selected to manage the new 45 Times Square Hotel in NY, a property of Ferrado Hotels, owned by the Rosp Corunna Group, when it debuts in June. The 139-room property will be converted into an Only YOU Hotels.
LuxUrban Hotels Inc. signed a 25-year Master Lease Agreement, inclusive of two five-year options to operate the Condor Hotel in Williamsburg, Brooklyn, New York. The Company also signed a 15-year MLA, inclusive of one five-year options, to operate the Trinity Hotel in Los Angeles, California. The Company expects to commence operations at the Condor Hotel and Trinity on or about July 1, 2023. In total, these new properties will add 214 units to the Company’s growing portfolio of short-stay hotel rooms. The Condor Hotel is LuxUrban’s second property in Brooklyn. The 179-room Trinity Hotel will operate under the LuxUrban Ultra brand. The Company also announced that effective May 1, 2023, it commenced operations at 101 Bogart Street, a 65-unit, mixed-used, seven-story property in East Williamsburg-Bushwick, Brooklyn, New York.
Activar Hotels has partnered with Messier, Savard & Associates to acquire Le Grand Lodge Mont-Tremblant located in Mont-Tremblant, Quebec. Activar Hotels will oversee report operations and MSA will act as the prime asset manager. The property offers two restaurants and spaces for events. The partners are planning to renovate the 112-room hotel to optimize its spaces and develop projects that create complementary product offerings on the non-developed parts of the 37-acre land.
The all-inclusive Grand Fiesta Americana Coral Beach, in Cancun, Mexico, is embarking on a major expansion of its culinary program with the opening of three new restaurants this summer. The new space includes a sleek lounge and bar for pre or after-dinner drinks. The hotel has a total of 602-suites, a lagoon-style pool, a spa and a new kid’s club. The property is part of the La Coleccion portfolio and is also a member of the LXV collection at Preferred Hotels and Resorts.
The Shingle Springs Bank of Miwok Indians announced the opening of the newest hotel at Red Hawk Resort and Casino in Placerville, California, The hotel offers an outdoor terrace with a pool and a fitness center and joins Red Hawk’s recently opened Apex amusement center.
This spring, The Kensington Hotel, in Ann Arbor, Michigan, will be completing renovations. The enhancements include: a brand-new roof over guest rooms and event spaces; modern bathroom and room upgrades; and the installation of colorful plants at the hotel entrance. A two-phase spring landscaping project calls for the removal and replacement of concrete slabs under the porte-cochere, pool patio and walkway and then a brand-new landscape to the hotel’s West Street entrance.
Personnel Moves
Marriott Vacations Worldwide Corporation announced Executive Vice President and Chief Financial Officer Anthony Terry has decided to retire later this year. The Company is conducting a search for his successor. Mr. Terry plans to stay on as CFO until the role has been filed and the transition period is complete later this year.
Vacasa, Inc. announced the appointment of Bruce Schuman as Chief Financial Officer, effective June 1, 2023. Schuman will succeed Jamie Cohen, who is stepping down to pursue other opportunities. To facilitate an orderly succession and transition, Cohen will remain available for transition consultation services with the Company through October 1, 2023. Most recently, Schuman served as the CFO of Kiavi, Inc and prior to that, spent more than 25 years at Intel Corporation.
Latin America Highlight
According to Lodging Econometrics’ Construction Pipeline Trend Report for Q1 2023, the hotel construction pipeline in Latin America at the close of Q1 2023 stands at 546 projects/90,139 rooms. Of these projects, 226 projects/40,034 rooms are under construction throughout Latin America. Projects scheduled to start construction in the new 12 months stand at 160 projects/25,887 rooms. Early planning stands at 160 projects/24,218 rooms at the close of the first quarter. New project announcements stand at 30 projects/5,330 rooms at Q1. The top countries in the Latin America construction pipeline, at Q1 2023, are Mexico with 210 projects/35,295 rooms, Brazil with 89 projects/15,456 rooms, the Dominican Republic with 28 projects/6,538 rooms, Peru with 27 projects/3,326 rooms, and Puerto Rico with 17 projects/2,658 rooms. Other countries with 17 projects include Costa Rica and Argentina, with 1,884 rooms and 1,832 rooms, respectively. Cities in Latin America with the largest construction pipelines include Mexico City, Mexico with 24 projects/2,899 rooms; Sao Paulo, Brazil with 12 projects/2,848 rooms; and Georgetown, Guyana with 11 projects/1,408 rooms. Marriott International leads hotel franchise companies in Latin America’s construction pipeline with 105 projects/17,344 rooms, followed by Hilton Worldwide with 103 projects/14,198 rooms, then Accor with 73 projects/9,164 rooms. LE analysts report the top brands for these hotel companies at the Q1 close are Accor’s ibis brands with 48 projects/5,974 rooms, Hilton’s Hilton Garden Inn brand with 24 projects/3,062 rooms, and Marriott’s Courtyard by Marriott brand with 13 projects/1,801 rooms. Renovations projects increased substantially in Latin America during the first quarter, closing with 62 projects/11,716 rooms. Brand conversions stand at 67 projects/9,464 rooms. At the end of Q1 ‘23, luxury and upper upscale renovations and conversions accounted for 47 projects/8,741 rooms. In the first quarter of 2023, Latin America had 13 new hotels, accounting for 2,053 rooms, open throughout the region. LE analysts forecast another 83 new hotel projects with 16,015 rooms to open through Q2 – Q4, for a total of 96 new hotel projects/18,068 room expected to open by year-end 2023. For 2024, LE forecasts 100 new hotel projects/15,007 rooms to open in Latin America.