The DJIA rose 92 points but NASDAQ was down 173, the S&P 500 was down 16 points and the 10 year treasury yield jumped .09 to close at 3.78% again. This wound up taking the wind out of the sails of some lodging stocks. The group still ended the day mostly higher but the big movers were to the downside with VCSA down -15%, SOND down -9% and AHT falling -7% on the day.
The Morgan Stanley Travel & Leisure Conference contained much of the same from hotel executives including confirmation that business remains good with financing being the big question mark. The expectations of a future bonanza of Chinese travelers continues to fuel the optimism from hotel companies, particularly the larger international operators. While the leisure and resort business could be facing headwinds, particularly as we get deeper into the summer, Group/Urban/China is still outperforming and executives believe margins can hold up.
Ryman Hospitality Properties upsized their previously announced common stock offering from 3.5 million shares to 3.85 million shares with the over-allotment to underwriters rising to 577,500 shares. The offering was priced at $93.25 per share so it is a lock the over-allotment will be exercised. In addition, RHP announced a proposed $300 million senior notes offering. The proceeds will be added to the stock offering proceeds to help fund the $800 million purchase of the JW Marriott San Antonio Hill Country Resort & Spa.
Atrium Hospitality announced the completion of a seven-month, multimillion dollar renovation of the 290-key Houston Marriott South at Hobby Airport in Texas. The renovation spanned guest accommodations, atrium lobby, restaurant, 17,000 square feet of meeting space and a new and expanded fitness center.
Hotel Equities assumed management of the Element Moline, Illinois. The downtown hotel, owned by Moline Promenade Investors, LLC features a fitness center, indoor pool and meeting space.
Dimension Hospitality unveiled a multimillion dollar music-themed renovation to the Homewood Suites by Hilton New Orleans in Louisiana. The 166-suite hotel has been renovated from top to bottom, including the suites as well as public spaces. The property features a two-story lobby and new front desk, an indoor pool, fitness center and 5,561 square feet of meeting space spread across nine rooms and a boardroom.
Kelco Brooklyn LLC has completed the structural framework of a 100-room Home2 Suites by Hilton in the Brooklyn neighborhood of Jacksonville, Florida. The project is a partnership between Kelco Management and Development Inc. and Corner Lot Development Group. The six-story hotel will include a fitness area, business center and a ground-floor restaurant with outdoor seating. The $16.2 million project is expected to be completed sometime in early 2024.
Rockford Construction and Grand Michigan Lodging LLC are planning a new four-story, 103-room Homewood Suites hotel in Walker, Michigan. The site plan includes a hotel with meeting rooms and a pool, associated utilities and a 110-space parking lot with four accessible spaces.
The Splash Indoor Water Park Resort is slated to open on June 23 in the Clarion Inn & Suites Riverfront in Oswego, New York. Open year round, the water park will include water slides, splash pad, activity pool, hot tub, arcade, party rooms and the Splash Bar & Grill.
Raffles Boston is set to open later this summer and is now accepting reservations for stays beginning September 1, 2023. The property marks the first mixed-use development in North America for the Raffles Hotels & Resorts brand. The $400 million+, 35-story building will offer 147 guestrooms and 16 distinct gathering spaces, a Sky Lobby, multiple food and beverage venues, gym, Raffles Spa and indoor pool.
The Omni Scottsdale Resort and Spa at Montelucia, in Scottsdale, Arizona, announced a multimillion dollar renovation of the property. The first stage of the project will upgrade the guestrooms and suites, followed by the meeting spaces. The new design is expected to be completed this fall.
Hotel Canandaigua has finally opened in Canandaigua, New York following years of delays. Part of Hilton’s Tapestry Collection, the five-story Hotel Canandaigua features 109 units, an outdoor pool, fitness center, 14,000 square feet of functional wedding, conference and event space, a gaming room, multiple food and beverage venues, and a parking garage. Off the 44 condos on the top two floors, 18 are a vacation turn-key style for rent or purchase. The rest have already been purchased.
The Surf Company announced the York Beach Surf Club, a new coastal Surf Hotel, has officially opened in York, Maine. The family-owned property has been completely renovated and features 42 hotel rooms and 10 bungalows, a heated saltwater pool, three food & beverage outlets, and oceanfront lawn & outdoor event space.
Beck Ventures is planning a $5 billion mixed-use project at Midtown Dallas, Texas. The 104-acre development plans call for two luxury hotels, iconic office towers, upscale 10-screen theater, about 4,000 high-end multifamily rental units, hundreds of luxury for-sale condo units, and an elevated tram system. Vertical construction is slated to begin late 2023.
In State College, Pennsylvania, Scholar Hotel Group has big plans for both the Nittany Lion Inn, located on Penn State’s campus, and the Penn Slater Hotel & Conference Center, after acquiring the properties in March under a long-term ground lease. The Company plans to pour more than $10 million into renovating the historic Nittany Lion Inn. Before the anticipated August 2024 opening, the Company would like to see three, or maybe four, new food and beverage outlets inside the Inn. Once the Nittany Lion Inn reopens, a top-to-bottom renovation will start at the 300-room Penn Slater, which will remain open during renovations.
Hunter Hotel Advisors announced the sale of four institutionally-branded assets, totaling 467 keys, in Chicago and Minneapolis. Marquee Hospitality and Endeavor Hotels Inc. purchased the portfolio for an undisclosed amount from Summit Hotel Properties. Hunter facilitated the transaction on behalf of the seller. The Hilton Garden Inn
Eden Prairie and the Holiday Inn Express & Suites Minneapolis Minnetonka are in the heart of Southwest Minneapolis. The Hyatt Place Chicago Lombard Oak Brook is 20 miles west of Downtown Chicago and the Hyatt Place Chicago Hoffman Estates is in the affluent Chicago suburb of Hoffman Estates.
Europe Highlights
KOP Group announced the purchase of the 105-key Burns Hotel located within the Royal Borough of Kensington & Chelsea in London. The purchase through Knight Frank was completed on May 30, 2023. The newly acquired hotel comprises five inter-connected town houses, a large reception, bar, restaurant facilities, and a private garden. The hotel will undergo an extensive renovation to a boutique luxury hotel and will be operated by Montigo Resorts when it opens in the first quarter of 2024.