The DJIA rose 153 points while Nasdaq was up 166, the S&P 500 rose 41 points and the 10-year treasury yield was down .03 to 3.61%. Most people would like all of June to be like this. Lodging stocks were modestly higher. The only mover of note was SLNA, up 6% on the day.
Truist issued their May/June RevPAR Monitor. Their latest round of forward-looking checks showed a mix of positives and negatives. The most positive trend continues to be the recovery in Group travel, something they see as the greatest driver of 2023 RevPAR growth for US hotels. They see occupancy for this segment on track to finish flat with 2019 by the end of the year. It was down -19% in January 2023 versus January 2019. Room rates are up approximately low double digits versus the same time last year. For the corporate individual business/transient segment, they see current booking volumes as lethargic and pricing growth in line with inflation. Volumes have gained back some of the loss they saw after the SVB/banking crises in March. Truist said the domestic leisure segment, especially for higher-end mountain and beach locations, is challenged this summer following significant outperformance the past three summers. They see occupancy down in the teens for higher-end resorts with room rates flat to up single digits. Truist has started to see ADR pulling back. They continue to have a view of lodging stocks as relative optimism but more so for the C-Corps than the REITs. Their favorite name continues to be Hyatt while their favorite REIT is Ryman Hospitality. Concurrent with the report and the recent earnings season, Truist made changes to price targets for lodging names in their coverage. Their PT on ABNB goes to $116 from $130, CHH goes to $133 from $132, and their price target on HST goes to $21 from $20.
STR reported US lodging data for the week ended May 27. RevPAR was up 2.9% year over year.
IHG Hotels & Resorts announced the launch of a new mobile product feature – IHG Wi-Fi Auto Connect. The feature is now available exclusively in the IHG One Rewards mobile app for both IOS and Android users and will automatically connect IHG One Rewards members to Wi-Fi upon arrival at more than 5,000 IHG hotels worldwide, no separate passwords or logins needed.
Saks Fifth Avenue is rolling out its Fifth Avenue Club personal shopping and styling service to luxury resorts across America. The initiative allows Saks Fifth Avenue to reach a wider audience and deliver personal service in locations where it does not operate stores. So far, three Fifth Avenue Club suites in resorts are open: in the Alohilani Resort in Waikiki, Honolulu, HI; inside the Ritz-Carlton Laguna Niguel in Laguna Beach, California; and in Napa Valley, California at the Stanly Ranch, Auberge Resorts Collection. Additional Fifth Avenue Club suites are expected to open in resort properties in Maui, Hawaii; Nashville, Tennessee; Orlando, Florida; Charleston, South Carolina; Deer Valley, Utah; Nantucket, Massachusetts; and Santa Fe, New Mexico. The names of the resort properties will be disclosed later, pending final confirmations.
The LNAA Board of Governors approved some basic terms of a deal with HPD to develop a Courtyard by Marriott on Lehigh Valley International Airport property, in Allentown, Pennsylvania. The hotel would be limited to four stories and have as many as 125 rooms. As of now, construction may start in the second quarter of 2024 with an opening possible in 2025.
Hyatt Hotels Corporation announced plans for the 509-room Secrets Playa Blanca Costa Mujeres, expected to open later this year near Cancun, Mexico. The new resort will join the Inclusive Collection and feature nine dining options, seven bars and lounges, Secrets Spa by Pevonia, 8,000 square feet of dedicated meeting and event space and four swimming pools including two oceanfront infinity pools.
IHG Hotels & Resorts announced the opening of its newest Canadian Holiday Inn Express & Suites hotel in Courtenay, British Columbia. The 93-room Holiday Inn Express & Suites Courtenay – Comox provides 340 square feet of meeting space, a fitness center and a heated indoor pool. The hotel is owned by Ryan Road Hospitality Group Limited and managed by Metropolitan Hospitality Management.
Ohm Management LLC is planning to construct a 143-room, dual-brand Avid, an IHG Hotel, along with a Candlewood Suites in West Memphis, Tennessee. The entire project is expected to cost roughly $19.5 million and is anticipated to open in Fall 2024. The dual-brand concept allows for each hotel to share the lobby and common public amenities such as the board room, pool, fitness center, gazebo, and an outdoor grill area.
Procaccianti Companies announced the acquisition of the Presidents’ Quarters and development of the Sabal House Savannah, in Savannah, Georgia. The project is a joint venture with Kim King Associates and Ross Hotel Partners. When complete, the 62-room boutique hotel will comprise 20 luxury rooms and suites from the Historic Presidents’ Quarters combined with 42 rooms from a new construction modernized building connected through a beautiful outside courtyard linking the two properties. Upon completion in 2024, the Sabal House will feature two food and beverage outlets, an upscale lounge and bar, as well as a full-service restaurant. The hotel will be managed by TPG Hotels & Resorts.
Trestle Studio unveiled plans for the Hotel Chalet, set to open in late 2023, in Chattanooga, Tennessee. Set on the campus of the Chattanooga Choo Choo, an iconic train station, hotel and entertainment complex, The Hotel Chalet reflects Trestle’s meticulous $19 million renovation of the former Choo Choo Hotel. The hotel will offer 127 guestrooms, including 25 rooms in restored train carriages; a restaurant and multiple bars; and a range of meeting and event spaces currently accepting event bookings for 2024.
The Indigo Road Hospitality Group has added Bridge Creek Inn in Clayton, Georgia, to its growing portfolio of boutique hotels. Indigo Road will manage the property, slated to open in September 2023, for Ridgeline Investment Partners, the property’s owner. Bridge Creek Inn will have 45 guestrooms, a coffee bar, a bar and restaurant and multiple indoor and outdoor event venues.
Palisociety announced its newest expansion in Los Angeles, California with the debut of Palihotel Hollywood. The hotel, a former motor lodge circa 1958, has been restored and re-imagined into a two-story, 76-room contemporary hideaway featuring an indoor bar, coffee bar, restaurant, outdoor pool and oversized courtyard. Palihotel Hollywood is the brand’s sixteenth property.
Two developers, a joint venture of affiliates of H.N. Gorin Inc. and Masterworks Development Co. LLC have filed new documentation, with the Boston Massachusetts Planning and Development Agency, outlining plans to build a 21-story, 300-room hotel and restaurant in Boston’s Back Bay area.
My Place Hotels of America entered into a two-phase franchise and development agreement with Rimrock Companies for 10 extended-stay hotels throughout the South over the next six years. The properties will be in three states, growing My Place’s presence in Tennessee, South Carolina, and Georgia. Some of the properties are already under development. All 10 are expected to be completed by 2029. The second phase of the development plan continues to focus on the country’s Southeast region and incorporates at least as many franchises as the first phase.
Jackson Family Wines Chairman and proprietor Barbara Banke and her family joined with Ensemble Investments LLC to acquire the 78-room Vintners Resort and Spa hotel, conference and event spaces, John Ash & Co. restaurant, River Vine restaurant and surrounding flower and culinary gardens, fig and olive orchards and estate vineyards. Ensemble will take over day-to-day management of Vintners Resort, which is in Santa Rosa, California. Poppy Bank in Santa Rose participated in financing the Vintners Resort purchase.
Cushman & Wakefield Global Hospitality, as exclusive advisors to both JMI Realty and Cadre, has arranged the partial sale of The Hotel Indigo at The Countrypolitan in Downtown Nashville, Tennessee. The transaction included the sale of 88 of the property’s 161 keys and the adjacent development site. The Hotel Indigo at The Countrypolitan now features 73 hotel keys, a restaurant, lobby bar and lounge, 5,000+ square feet of meeting space and a music venue. The Countrypolitan is slated to undergo a comprehensive guestroom renovation and convert existing office space to approximately 60 new keys in 2024.
Personnel Moves
Crestline Hotels & Resorts, LLC announced the appointment of Samuel M. Woodworth as Vice President, Business Development. Prior to joining Crestline, Woodworth was the Director, Acquisitions at GF Hotels & Resorts.
Peachtree Hospitality Management announced the appointment of Caroline Royster to vice president of business development, responsible for growing its third-party management partnerships by leveraging industry relationships and identifying new management opportunities. Royster most recently served as vice president at R.M. Woodworth & Associates.
AD1 Global appointed Bryan Hayes as Chief Strategy Officer. Hayes will be responsible for driving strategic initiatives and ensuring the continued growth and success of the company. Prior to joining AD1 Global, Hayes served as Vice Chairman and Managing Director of Corportex’s two hotel companies, Commonwealth Hotels, Inc. and Commonwealth Collection Inc.
CapStar Advisors announced David McCaslin joined the organization as a full partner. McCaslin helped found the original CapStar with Paul Whetsell. Most recently, McCaslin was chief development officer for HHM Hotels.
Europe Highlights
According to Sky News, KSL Capital Partners is set to sell off its Village Hotels portfolio. KSL has started drawing up plans for the sale of the portfolio of budget hotels dotted around Scotland, England and Wales. KSL is likely testing the market to see if it can make a decent return on its nine-year-old investment.
IHG Hotels & Resorts announced the signing of InterContinental Chantilly – Chateau Mont Royal – the latest chateau property within its growing Luxury & Lifestyle portfolio in France. The historic 107-key chateau is signed under a management agreement with Groupe BMF and Groupe PFH. The property will feature two restaurants, a bar, summer terrace, 11 meeting rooms, a gym, sauna, Jacuzzi and treatment rooms alongside an indoor pool and tennis court.
FTC Hotels, which owns the Casa Cook and adults-only Cook’s Club lifestyle brands, has been acquired by the Real Estate business within Goldman Sachs Asset Management for an undisclosed consideration. The Casa Cook and Cook’s Club brands feature 16 franchised properties across prime sun and beach locations in the Mediterranean and Red Sea. The investment from Goldman Sachs will accelerate expansion across European destinations.
Wyndham Hotels & Resorts announced the opening of the Ajul Luxury Hotel & Spa Resort, its first Registry Collection hotel in Europe. Owned and operated by Zeus International Hotels & Resorts, the resort is located in Halkidiki, one of Greece’s most sought-after destinations. Ajul Luxury Hotel & Spa Resort, a Registry Collection Hotel offers 171 rooms including 26 private villas and 92 bungalows; five pools as well as access to nearby heavenly pebble beach; three restaurants; Spa Center; two tennis courts; a basketball court; a beach volleyball court; an adventure park and other great outdoor activities.
