The DJIA was down 46 points while Nasdaq was down 14, the S&P 500 fell 2 points and the 10-year treasury yield was up .12 to 3.57%. Lodging stocks were mixed. SHCO was up 9% and AHT was up 6% to lead the groups big movers.
Marriott International, Inc. said Monday it had completed its acquisition of the City Express brand portfolio from Hoteles City Express, S.A.B. de C.V.. With this acquisition, Marriott International has entered the affordable midscale segment and is launching its 31st brand, City Express by Marriott. The existing City Express hotel portfolio of approximately 150 properties includes urban, suburban, and extended stay offerings in Mexico, Costa Rica, Colombia, and Chile. The transaction has increased Marriott’s presence in the CALA region by approximately 45 percent, to over 480 properties across 37 countries.
A solid beat and raise was repeated over and over again today by analysts when commenting on Park Hotels & Resorts’ earnings report. It is not like it is all back to normal as their exposure in San Francisco continues to hold back their recovery but this was one of the best reports we have seen from PK since the pandemic hit. Hawaii RevPAR was up 26% in the quarter even without a lot of Japanese demand. PK said they repurchased $105 million worth of stock in 1Q, also higher than expected. For 2023, PK is expecting RevPAR growth of 7% to 14%, something we suspect they will narrow as the year rolls on.
Vacasa Inc. has become the second new-age lodging SPAC to receive notice from Nasdaq that if they don’t get their stock price above $1, they could be delisted. VCSA did mention they may just do a reverse split to get where they need to be, pointing to their proxy statement where they have a proposal to amend their company documents to effect a reverse split in a ratio ranging from 1:5 to 1:20 That latter should be able to keep them from getting another Nasdaq letter on the $1 bid price for a while. VCSA warned there was no guarantee shareholders would approve the reverse split or that the stock price can be maintained after the reverse split.
In the Q1 2023 U.S. Construction Pipeline Trend Report released by Lodging Econometrics, LE analysts report, that as a group, the year-over-year hotel construction pipeline has grown in the Top 26 Markets in the U.S. Nationally, early planning projects and room counts hit a new all-time high at Q1 with 2,434 projects and 276,274 rooms. Year over year, the Top 25 Markets in the U.S., as a group, have seen a 10% growth in early planning projects. Brand conversion and renovation activity continues to be a significant focus in the lodging industry. In the first quarter of 2023, LE recorded record-high renovation and brand conversion totals of 1,953 active projects and 253,533 rooms. Although new project announcements have been slow to return to pre-pandemic project counts, construction starts in the total U.S. pipeline rose 20% by projects and 30% by room year over year.
U.S. Hotel Pipeline by City at Close of Q1 2023
| City | Projects | Rooms |
|---|---|---|
| Dallas | 184 | 21,810 |
| Atlanta | 144 | 18,242 |
| Los Angeles | 118 | 19,066 |
| Phoenix | 117 | 16,100 |
| Nashville | 115 | 15,354 |
U.S. Hotel Projects Under Construction at Close of Q1 2023
| City | Projects | Rooms |
|---|---|---|
| New York | 54 | 8,682 |
| Atlanta | 26 | 4,278 |
| Inland Empire, CA | 26 | 2,584 |
| Dallas | 25 | 3,739 |
| Phoenix | 24 | 5,155 |
U.S. Hotel Projects Scheduled to Start at Close of Q1 2023
| City | Projects | Rooms |
|---|---|---|
| Dallas | 70 | 8,076 |
| Atlanta | 61 | 7,464 |
| Los Angeles | 45 | 6,894 |
| Phoenix | 45 | 5,472 |
| Inland Empire, CA | 41 | 4,173 |
U.S. Hotel Projects in Early Planning at Close of Q1 2023
| City | Projects | Rooms |
|---|---|---|
| Dallas | 89 | 9,995 |
| Nashville | 59 | 7,182 |
| Atlanta | 57 | 6,500 |
| Los Angeles | 56 | 9,433 |
| Phoenix | 48 | 5,473 |
U.S. Hotel Renovation and Conversion Projects at Close of Q1 2023
| City | Projects | Rooms |
|---|---|---|
| Atlanta | 41 | 4,427 |
| Houston | 38 | 3,969 |
| Chicago | 34 | 4,572 |
| Dallas | 31 | 3,807 |
| San Diego | 28 | 4,238 |
U.S. Hotel Projects Announced at Close of Q1 2023
| City | Projects | Rooms |
|---|---|---|
| Nashville | 14 | 1,847 |
| Dallas | 11 | 1,576 |
| Atlanta | 10 | 1,146 |
| Austin | 9 | 1,201 |
| Phoenix | 9 | 885 |
LE is forecasting the top 50 markets to open 319 new hotels/42,743 rooms in 2023. LE analysts anticipate that new hotel openings will continue to rise within the top 50 U.S. markets, forecasting 327 new hotels/43,525 rooms to open through 2024. In the 2023 forecast, analysts expect New York to lead with the highest number of new hotels to open with 43 accounting for 7,219 rooms, followed by Dallas with 14 new hotel projects/2,268 rooms, and the Inland Empire with 14 new hotels/1,377 rooms. For 2024, LE analysts forecast the Inland Empire to open the most new hotels, with 22 new hotel projects/2,191 rooms expected to open. Following is Atlanta, forecasted to open 21 new hotel projects/3,356 rooms in 2024, then Dallas with 18 new hotel projects/1,973 rooms.
JW Marriott unveiled its newest property in Clearwater Beach, Florida, with the opening of JW Marriott Clearwater Beach Resort & Spa, the first beachfront property to be designed from the ground up. The waterfront sanctuary offers 162 guestrooms and 36 Residences, a JW Market, Spa by JW, fitness center, JW Kids Club, rooftop pool deck, elevated food and beverage concepts and more than 20,000 square feet of indoor and outdoor event space.
Pramit Patel, who represents EO5 Hotels, is asking the city of DeKalb, Illinois to approve a rezoning request to allow for a 121-room Marriott-branded hotel to be built along Peach Road. The four-story property would offer 60 Fairfield Inn and Suites by Marriott rooms and 61 rooms to be branded as TownePlace Suites by Marriott. Both hotels would share the same building, parking lot, lobby, front decks, meeting room, swimming pool and 136 parking spots. If the rezoning request passes, construction will start Spring 2024. The hotel expects to open Summer 2025.
IHG Hotels & Resorts announced the opening of a new dual-branded Holiday Inn and Staybridge Suites property in the Chicago suburb of Rosemont, Illinois. The Holiday Inn and Staybridge Suites O’Hare Airport hotel offers 139 Holiday Inn rooms and 145 Staybridge Suites rooms on nine floors. Shared common areas and amenities include an indoor pool, fitness center, outdoor patio and grills, more than 9,000 square feet of meeting and event space and an onsite restaurant.
In Pennsylvania, the Easton City council approved a certificate of appropriateness for a proposed hotel slated for 1-6 Centre Square. The plan is offered by developer and restauranteur Mick Gjevukaj, founder of Enjoy with Gusto Hospitality Group. The seven-story building will feature 49 rooms, two restaurants and meeting space.
Rad Lab is looking to open a boutique hotel by year’s end at Jackson Avenue and Fourth Street in downtown Waco, Texas. Hotel Herringbone will feature 21 suites and rooms, three unique dining concepts, a craft cocktail bar, wine & charcuterie bar, private event space, retail, live music and entertainment.
Hotel Mousai is coming to Mexico’s Caribbean coast with the opening of the Hotel Mousai Cancun. Set to debut in 2024, the resort will feature 88 suites, an infinity-edge rooftop pool and bar, restaurants, and a gym. Hotel Mousai Cancun will be located next door to its sister property, Garza Blanca Resort & Spa Cancun.
Preparing to break ground today, the developers behind a project in the works along the waterfront in Muskegon, Michigan are already planning another new addition. Adelaide Point, billed as a marina community, is slated to feature more than 100 boat slips, condo buildings, and other amenities once complete. The property could also house a hotel. The Hotel at Adelaide Pointe, not its formal name, is expected to include 125 rooms, 3,500 square feet of event space, a restaurant, pool and a swim-up bar. The hotel is the brainchild of Dr. Emily Leestma, the Adelaide Pointe co-developer. According to Leestma, the project would launch in 2024 with the hotel’s opening tentatively planned to occur the following year.
Berkadia announced the sale of the Wingate Lake Charles, Louisiana. The hotel provides 77 rooms, a pool and a fitness center. Berkadia Hotels & Hospitality completed the sale on behalf of the seller.
Hodges Ward Elliott arranged the sale of the Marriott Saddle Brook, a 241-key asset located in the township of Saddle Brook, New Jersey. The HWE team brokered the sale of the property on behalf of the seller. The HWE team ran a successful auction process in tandem with the Ten-X platform. The new owner plans to upgrade the full-service hotel which offers over 8,000 square feet of meeting space.
Hotelbeds is expanding its portfolio to meet rising consumer demand by signing new partnerships, including The Lux Collective. The United States, Mexico and Europe are among the largest source markets for Hotelbeds, while travelers from India (109%), Australia (216%), China (78%) and Spain (66%) have been increasingly looking for a premium experience over the past year versus the previous 12 months. The Lux Collective is headquartered in Singapore and manages brands LUX, SALT, TAMASSA, SOCIO AND Café LUX. Other properties managed by TLC include Hotel Le Recif, Reunion Island and Ile des Deux Cocos, Mauritus, a private paradise island.
One of Scotland’s most famous city hotels is set to be marketed to be sold. The React News publication said the Sheraton Grand Hotel and Spa in Edinburgh is primed for £100 million-plus sale with an adviser appointed to offload the 270-room asset.
Lifestyle aparthotel brand Locke announced it will open its sixth Locke in London in July 2023, with the brand expanding to the city’s exclusive Kensington and Chelsea neighborhoods. The aparthotel, spread across eight floors, will comprise 121 apartments, a lobby, common areas, a coffee shop, bar, restaurant, co-working space, meeting room, garden, gym and laundry room.