The DJIA rose 211 points on Friday but Nasdaq was down 319, the S&P 500 fell 44 points and the 10-year treasury yield was down .03 to 4.62%. Lodging stocks were modestly lower with the mover of note once again being SOND, this time down -17% on the day. SVC traded down to a new 52-week low.
Barclays gave their 1Q preview for the lodging sector. They believe the March Easter shift made 1Q RevPAR beats less likely but they expect more or less in-line EBITDA for the large caps. Wyndham is still their preferred lodging name medium term on what seems like an unsustainable valuation discount to peers but they are more cautious on the WH and Choice Hotels earnings prints.
Barclays upped their target price on Marriott to $240 from $239, Hilton to $216 from $204 but cut target prices on Hyatt to $153 from $156, Wyndham from $90 to $87 and Choice to $114 from $122.
UBS cut their target price on Host Hotels to $20 from $21. They maintained their Neutral rating.
PM Hotel Group has been selected to assume management of the Hampton Inn & Suites National Harbor/Alexandria Area located in the heart of National Harbor, Maryland. The 11-story hotel offers 154 guestrooms, an indoor pool, business center, fitness center and ample meeting space.
The Palmetto Marriott Resort & Spa, in Palmetto, Florida, will host its ribbon-cutting ceremony on May 30. The property offers 252 guestrooms, two resort-style pools, the Revive Pool, Spa and Fitness Center, multiple onsite bars and restaurants, a 40,000 square foot outdoor lawn and an amphitheater, and the Beach Club at Riviera Dunes including a pool, beach volleyball court, pickle ball courts, and a waterfront area with cabanas and loungers. The resort will connect directly to the Bradenton Area Convention Center which is undergoing a $48 million renovation and expansion expected to be completed in 2025.
On April 18th, Schulte Hospitality Group and Emerald Hospitality Associates closed on a strategic partnership that will propel Emerald’s next wave of growth. Terms of the transaction were not disclosed. Schulte is a hotel management and development company with more than 200 properties across four countries. Emerald is a hospitality management company that manages 30 US properties.
A new hotel and convention center is coming to Emporia, Kansas. Administrative work has been completed and construction could begin in the next 60 to 90 days on the 88-room hotel and convention center.
Hanjin KAL Corp., the holding firm of Korean Air Lines Co., is set to sell a 100% stake in its subsidiary Waikiki Resort Hotel Inc. to Sono International Co. for $101.2 million. Waikiki Resort Hotel has 19 stories above ground and one underground and 275 guestrooms, including 11 suites.
Ohana Real Estate Investors, owners of the La Cantera Resort & Spa, plan to invest nearly $60 million in the property located in Northwest San Antonio, Texas. Plans call for the development of a new events center and a renovation of the resort’s nearly 500 hotel rooms. The events center will span 5,500 square feet and will tie into the resort’s signature restaurant. It will overlook a large lawn area and the La Cantera driving range. The project is slated to cost approximately $8 million and is scheduled for completion by mid-October. The more complex project involves an extensive makeover of the resort’s guestrooms. That project is expected to cost as much as $45 million and will begin this summer with an expected completion by early 2025.
Sean Patel, the new owner of Hotel Mead in Wisconsin Rapids, has a plan to refresh and revitalize the hotel. Patel officially took over in March and he and his staff have hit the ground running, setting a three-year plan to clean up the facility and make exterior and interior updates including new signs declaring the newly-adjusted name: Hotel Mead Resorts & Convention Centers. Exterior lights, decorative lights and canopies will be updated along with new carpets, furniture and lighting in the guestrooms. The Grand Avenue Tavern is open with updated dart boards, gaming machines and a pool table. The Whitney is now open for lunch and will soon extend its hours to include dinner. Patel purchased Hotel Mead from Founders Collection 2 LLC.
Driftwood Capital secured $33 million in refinancing for the Sheraton Park Cityhotel in Park City, Utah. Berkadia’s South Florida office arranged the 5-year, fixed-rate CMBS loan through Goldman Sachs Bank USA. The hotel boasts 200 guest rooms, over 12,000 square feet of dedicated meeting space, an indoor atrium pool with hot tub and sauna, game room, coffee shop, and a restaurant and bar with outside covered patio and fire pits.
Personnel Moves
Ashford Hospitality Trust, Inc. announced that Rob Hays, the current President and CEO of Ashford Trust will be stepping down effective June 30, 2024, after nearly 20 years of dedicated service to the Company. The Company’s current Senior Vice President of Corporate Finance & Strategy, Stephen Zsigray, will succeed him at that time to become Ashford Trust’s President and Chief Executive Officer. Hays will spend the next new few months working alongside Zsigray on a smooth transition.
Europe Highlights
The newest Hilton hotel in Hungary, and the first in the countryside, the Hilton Garden Inn Debrecen City Center, is slated to open in July. Facilities include 101 guestrooms, an all-day dining restaurant, a sky bar, a roof terrace, meeting room, a fitness area and a children’s corner.
Travelodge is acquiring six hotels, totaling 773 rooms, in Spain from Louvre Hotels Group. The hotels are currently branded Hotel Campanile, with five acquired on a freehold basis and one to be acquired on a long leasehold. The hotels are acquired by Spanish subsidiaries held within the Travelodge OpCo Group and are located in Alicante, Barcelona, Madrid, Malaga and Murcia. The acquisition doubles Travelodge’s presence in the Spanish market.
KOP Properties, a subsidiary of KOP Limited announced the latest plans behind the opening of its second UK property this year in the Royal Borough of Kensington and Chelsea. Officially named Ellen Kensington, the former Burns Hotel, is comprised of five interconnected conservations of Victorian period townhouses. Montigo Resorts has been appointed to manage the beautifully refurbished luxury boutique hotel. The 105-key property boasts a welcoming reception and lounge, a destination bar, a restaurant with its own private terrace, a gym, wellness treatment rooms and self-operated laundry.
Nobu Hospitality is set to make waves in Bulgaria with the opening of two luxury hotels under the Nobu brand in Sofia and Varna. The first hotel and restaurant, located in Sofia’s “banking building,” will offer guests a blend of luxury accommodation and exquisite dining experiences. Meanwhile, the second property will grace the Black Sea coast in Varna, offering guests a serene seaside retreat. These properties are the result of a collaboration between Nobu Hospitality, investor BSPF Bulgaria and local hotel operator GHV-Dolphins.
Anandes Hotel is set to open this June on the island of Mykonos. Featuring 42 rooms and suites, many equipped with private pools, along with a spa and LPM Restaurant and Bar, at the poolside al-fresco terrace and in-room dining, Anandes Hotel is set to redefine intimate luxury hospitality on the Greek island.
Primestar Group has opened its second hotel with an integrated offering in the hotel, long-stay, and workspace segments in Hannover, Germany. The June Six Hotel Hannover City features 115 rooms and suites, WorX Space, June Bistro & Bar, and gym. The property has been extensively renovated and is owned by Crown S.C.A. SICAV-RAIF.