The DJIA fell 173 points, Nasdaq was down 279, the S&P 500 fell 54 points and there is nothing like geopolitical unrest to get investors running to treasury bonds as the 10 year treasury yield was down .06 to 3.74%. Lodging stocks were lower.
According to the latest World Tourism Barometer by UN Tourism, around 790 million tourists traveled internationally in the first seven months of 2024, about 11% more than in 2023 and only 4% less than in 2019. With increased air connectivity and visa facilitation supporting the recovery in international travel, the data shows all world regions have recorded a strong year so far. The Middle East remained the strongest-growing region in relative terms, with international arrivals climbing 26% above 2019 levels in the first seven months of 2024. Africa welcomed 7% more tourists than in the same months of 2019. Europe and the Americas recovered 99% and 97% of their pre-pandemic arrivals, respectively, during these seven months. Asia and the Pacific recorded 82% of its pre-pandemic tourist numbers. A total of 67 out of 120 destinations around the world recovered 2019 arrival numbers in the first half of 2024. Some of the strongest performers in January-July 2024 were Qatar (+147% vs. 2019), Albania (+93%), El Salvador (+81%), Saudi Arabia (+73%), the Republic of Moldova (50% through June), and Tanzania (+49% through June). Regarding international tourism receipts, 47 out of 63 countries with available data had recovered pre-pandemic values in the first six months of 2024, many reporting strong double-digit growth compared to 2019. The UN Tourism Confidence Index shows positive expectations for the last part of the year, at 120 points for September-December 2024, though below the prospects for May-August, which stood at 130 on a scale of 0 to 200.
| Region | International Arrivals (compared to 2019 levels) |
|---|---|
| Middle East | 26% above 2019 levels |
| Africa | 7% above 2019 levels |
| Europe | 99% of 2019 levels |
| Americas | 97% of 2019 levels |
| Asia and the Pacific | 82% of 2019 levels |
Hyatt Hotels Corporation has completed the acquisition of the brands and most of the affiliates of Standard International. This gives Hyatt the Standard and Bunkhouse Hotels brands. The 100% asset light portfolio includes management, franchise and license contracts for 22 open hotels with approximately 2,000 rooms. The acquisition also includes more than 30 future projects with a signed agreement or letter of intent, and Hyatt says that the new projects were sparked by the August announcement of the planned acquisition.
Pebblebrook Hotel Trust announced that several of its resorts were impacted by Hurricane Helene and that repair and remediation cost net of insurance payments are expected not to be material. The 189-room LaPlaya Beach Resort & Club in Naples, Florida, was impacted by the storm. The company, along with the operator of LaPlaya, Noble House Hotels & Resorts, is actively working on cleanup, repairs, and a comprehensive assessment. Currently, two of the three guestroom buildings at LaPlaya are open and operational, along with the resort’s primary restaurant and waterfront dining venue. Additionally, LaPlaya Beach Club is open and operating normally. The 200-room Jekyll Island Club Resort in Georgia sustained minor damage and a temporary power outage due to the hurricane. The resort did not close and is now operating normally. The company’s other resorts in southern Florida affected by Hurricane Helene are fully operational.
The Renaissance ClubSport, in Aliso Viejo, California, announced the complete renovation of its 174 rooms. From the ground up, Renaissance ClubSport completed its latest phase of upgrades to its sprawling property, which includes a 4-star hotel and 100,000 square-foot fitness resort that was fully updated in 2022. Recent ClubSport additions include The Edge Performance training turf, pickleball + basketball courts, and a dedicated Formula3 Studio. The property also includes a full-service day spa, multiple dining options, and Kids World. Renaissance ClubSport is owned and operated exclusively by Leisure Sports, Inc., in partnership with Renaissance Hotel Group/Marriott International, Inc.
The Crowne Plaza Orlando – Downtown completed the first phase of its multi-year renovation project under the guidance of owner and management company Vista Hospitality Group. Within the first stage, the property’s 227 guestrooms received a full modernization. The second and final phase of the renovation is on track for a December 2024 completion and will feature upgrades to its public spaces, exterior, and restaurant and lounge areas. The property also features more than 8,000 square feet of meeting and events space.
The first Graduate hotel in Alabama has just opened near the campus of Auburn University. Graduate by Hilton Auburn, Alabama boasts 177 guestrooms, 10,000 square feet of meeting space, 2 restaurants, and a fitness center. Earlier this year, Hilton announced plans to acquire the Graduate Hotels brand, which is known for being located in college towns near campuses.
Extended Stay America announced the opening of the 45th Extended Stay America Premier Suites, located in Pueblo, Colorado. Developed by BEP Pueblo Hospitality, LLC, constructed by Integrated Hospitality Construction LLC, and managed by Aimbridge Hospitality, this new property will set the standard for the extended stay experience in the region. The four-story, 124-room newly constructed Extended Stay America Premier Suites – Pueblo offers a fitness room, onsite guest laundry, and the brand’s signature spacious lobby with additional vending options.
A boutique hotel marketed toward LGBTQ travelers has closed less than one year after opening for business. In a Facebook post, Bent Inn owners Mark Hunter and Greg Kafka attributed the downtown Las Vegas property’s closure to an ongoing legal battle with its general contractor. The 33-room, non-gaming hotel opened to the public last fall as the couple’s first venture in Las Vegas. Their company, Escape Resorts, previously operated two gay men’s resorts in Palm Springs. Business court records filed in the Eighth Judicial Circuit Court show ADJ Contracting filed a lien against the company for a nearly $917,000 balance in unpaid work in April. Escape Resorts countered with a lawsuit of its own four days later, alleging the contractors sought to increase its total bill amount by about $748,000. Both hotel owners argued that such an increase could not be authorized without an approved change order to their contract. The cases are ongoing.
The Rio Hotel & Casino announced that the first phase of its multi-year, property-wide transformation has been completed. The Las Vegas property has undergone extensive renovations since the Dreamscape Companies took over operations in late 2023. Some of the renovations include the addition of eight new food and beverage destinations, the remodeling of 220,000 square feet of meetings and convention space, a revamped pool district with four distinct pools, brand-new carpeting, and over 900 new slot machines. Phase two of the renovations is expected to start later this year.
A hospitality company renovating a historic mansion in Denver’s North Capitol Hill neighborhood hit a major milestone with the opening of an adjacent restaurant and bar on September 12. Urban Cowboy Hotels, the group renovating the George Schleier Mansion into a hotel, opened Urban Cowboy Public House in the carriage house behind the mansion. The bar and restaurant’s debut comes approximately one month before the hospitality group plans to open the downtown hotel. Urban Cowboy Hotels expects to open the Denver hotel on October 19. When construction is complete, the hotel will feature 16 rooms, including a penthouse suite with a double soaking tub, a 600 – 800 square foot private event space, and a wine bar.
JLL’s Hotels & Hospitality group arranged the $210 million refinancing for The Ritz-Carlton Dallas, Las Colinas hotel, a recently renovated 427-key resort located within the Dallas-Fort Worth Metroplex. JLL worked on behalf of the borrower, a joint venture between Partners Group acting on behalf of its clients and funds managed by Trinity Investments to secure a new loan through Marathon Asset Management. Previously known as the Four Seasons Resort and Club Dallas at Las Colinas, the hotel now features fully renovated rooms and common areas; over 80,000 square feet of meeting space; five upscale food and beverage venues; a newly renovated resort-style pool; The Ritz-Carlton Spa & Lounge; access to a golf course with driving range; and a fitness center with indoor/outdoor tennis, a lap pool and squash/racquetball courts.
Following the strategic acquisition of SOSH by WATG, the leaders of both firms are working closely together to establish and implement strategies as a single business entity moving forward. SOSH’s office in Atlantic City, New Jersey, will begin to operate as the 9th regional office in WATG’s global framework following the recent announcement of WATG expansion into the Dallas market this fall. Specializing in architecture and interior design for the hospitality, gaming, and entertainment sectors, WATG and SOSH share a commitment to design excellence intertwined with a mutual dedication to optimizing operational performance, project delivery, and talent development. As a combined entity, WATG and SOSH form a strong global multidisciplinary design firm with more than 500 professionals practicing across 9 locations around the world.
Aimbridge Hospitality is strengthening its technology leadership in the industry with a newly developed proprietary data reporting platform called Aimbridge Intelligence, built to provide greater transparency and collaboration with owners. Housed in OwnView, a dedicated portal exclusively available to Aimbridge owners, Aimbridge Intelligence creates new opportunities for owners with seamless access to information, including key performance data intended to offer greater flexibility and self-service capabilities to complement the work of property support teams. Built on Power BI to automate data integration and updates, Aimbridge Intelligence gives owners near real-time access to STR performance, RevPAR Index, profitability, guest service, and turnover data. Through this data tool, owners can view the metrics associated with their individual hotels or an entire portfolio, allowing for expedited implementation of relevant strategies to address areas of opportunity.
Europe Highlights
OTO Development announced Rob Rain is their new Chief Executive Officer. OTO Development is part of The Johnson Group and Rain was previously President of the Industrial Division at Johnson Development Associates. BWH Hotelsannounced the appointment of Bill Ryan to the position of Senior Vice President and Chief Technology Officer. In this role, Ryan will be responsible for leading the Technology Management team while steering the brand’s comprehensive digital strategy and transformation initiatives. In his latest position, Ryan held the title of Vice President of Digital Commerce and Customer Technology at Backcountry. Marriott announced the launch of its first Moxy brand hotel in Spain, in Barcelona, after a thorough renovation of the Expo Barcelona hotel, acquired by the Canadian fund Brookfield in 2021 from Selenta. The hotel includes 414 rooms, a restaurant, common areas designed to host meeting and leisure spaces, and a rooftop pool with sun loungers, cabanas, and a bar. Selenta is in charge of the hotel’s operations.
