LAS COLINAS RESORT TURNS TO RITZ-CARLTON: Four Seasons and Resorts concluded management of the Las Colinas Resort in Dallas on December 15. A joint venture between Partners Group and Trinity Real Estate acquired the hotel last year and is converting it to The Ritz-Carlton Dallas, Las Colinas. It will be managed by Marriott International. The 431-key resort will undergo a $55-million property-wide transformation in 2023. Renovations will include all rooms and villas, reconcepting the dining venues, renovating the 84,000 square feet of event space, activating the outdoor pool area and enhancing the 14,000 square foot spa. The property will remain open during the renovation. Designer Pierre Josselin of Jeffrey Beers International will oversee the reinvention of the resort.
MARCUS & MILLICHAP BROKERS TWO-PROPERTY PORTFOLIO IN TEXAS: Marcus & Millichap has announced the sale of two properties totaling 188 keys in Port Arthur, Texas. The properties include the 92-key Holiday Inn Express & Suites Port Arthur and the 96-key TownePlace Suites Beaumont Port Arthur. The properties were sold by Texas-based Daugherty Property Group. Marcus & Millichap procured the buyer, an out-of-state entity in a 1031 exchange.
WYNDHAM ADDS THREE HOTELS IN CHINA: Wyndham Hotels and Resorts, in partnership with Shanxi Xiaohe Xincheng Hotel Co. Ltd., has opened three new hotels in China’s Shanxi province. The three hotels are the 367-room Wyndham Grand Shanxi Xiaohe Xincheng; the 222-room Wyndham Shanxi Xiaohe Xincheng; and the 502-room La Quinta by Wyndham Shanxi Xiaohe Xincheng. Together, the three properties add more than 1,000 rooms to Wyndham’s portfolio in China. The hotels are located next to the Xiaohe International Convention and Exhibition Centre.
U.S. PERFORMANCE UPDATE: U.S. hotel performance was lower than the last week and showed weakened comparisons from 2019 on the unfavorable side of a holiday calendar shift, STR’s latest data through December 24 showed. Simultaneously, occupancy on December 24 was the highest for any Christmas Eve on record.
Occupancy: 43.9% (-9.7%)
ADR: $132.29 (+2.3%)
RevPAR: $58.04 (-7.6%)
Christmas Eve occupancy was 43.6%, which topped the previous high established in 2021. The corresponding week in 2019 ended on December 28, which brought performance up for that overall period.
NEGATIVE HOLIDAY SHIFT: Christmas and New Year’s falling a day later this year has caused a “negative holiday shift” for visitation, a reversal from the previous year’s “positive holiday shift,” noted Scholes/Truist Securities Lodging. As per DestiMetrics, “shifts in school breaks this year vs. last year mean that there are approx. 38% fewer households with K-12 children available to travel prior to the holiday week. That is reflected in the deep YOY decline in occupancy between December 15 and 24. And while that’s problematic – and difficult to overcome – more concerning is the peak week of December 25 to 31, which was extremely busy last year but had trouble filling in this year—with extreme room rates playing a role.”
Major RevPAR statistics:
Luxury RevPAR: -10% y/y and -26.9% over 3 years
Upper Upscale RevPAR: +0.1% y/y and -19.8% over 3 years
Upscale RevPAR: +5.9% y/y and -1.1% over 3 years
Upper Midscale RevPAR: +6.6% y/y and +8.3% over 3 years
Midscale RevPAR: +2.2% y/y and +10.4% over 3 years
Economy RevPAR: +0.9% y/y and +17.3% over 3 years
Independent hotels (~ 1/3rd of the data set) RevPAR: -5.2% y/y and -13.5% over 3 years
Within Upper Upscale & Luxury class hotels:
○ Group: +13%y/y vs.+49.4% prior week over 3 years: -27.6% vs +142.2%prior week.
○ Transient: -8.4% y/y vs. +11.9% prior week; over 3 years: -23.4% vs +24% prior week.
CANADA PERFORMANCE SURPASSES 2019 LEVELS: Hotel performance in Canada was lower than last month, but comparisons improved from 2019, according to STR’s November data.
Occupancy: 61% (+1.6%)
ADR: CA$169.69/ US$169.69 (+14.8%)
RevPAR: CA$104.98/ US$77.56 (+16.6%)
With top-line performance recovery showing significant strength in November, it indicated that travel was still a priority despite inflation and economic uncertainties. Indexed to 2019, the key performance metrics aligned with the last recovery peak in July. The improvement over recent months was partly due to a higher occupancy index, which was 1.6% above the 2019 comparable. The weekday occupancy index, which can be used as a proxy for corporate travel demand recovery, was in line with 2019 for the first time of the pandemic era. The weekend occupancy index, used as a proxy for leisure travel recovery, pushed ahead to 107% of the 2019 figure. ADR was also on an upwards trajectory, with the lift over 2019 coming in stronger month over month. Nominal growth in the metric was up 14.8%, and with overall inflation slightly cooling in November, real ADR growth was 1.6%.
EVERWOOD ACQUIRES ORLANDO LA QUINTA: Everwood Hospitality Partners, based in Columbus, Ind., has acquired the 184-room La Quinta I Drive/Convention Center hotel in Orlando, Fla. From Cavalier Florida, LP. Cronheim Hotel Capital helped secure the loan from a Florida-based bank, which provided the five-year fixed rate financing with two years of interest. The loan will be used for the acquisition and subsequent multi-million-dollar renovations, which will include enhancements to public and private spaces. The loan represents 65% of the all-in cost and holds a five-year term at a favorable interest rate. Currently, Everwood has 13 hotels either open, under development or in the pipeline with over 1,600 rooms.
IHCL SIGNS TWO GINGER HOTELS IN INDIA: Mumbai-based Indian Hotels Co. Ltd. (IHCL) has signed two Ginger-branded hotels in the state of West Bengal. The hotels will be built in Durgapur and Asansol cities. The 55-key Ginger Durgapur and the 80-key Ginger Asansol will feature Qmin, the all-day diner, a bar and fitness center along with banquet and meeting spaces. Both the properties are fully fitted leases with Ginger Durgapur, a brownfield project and Ginger Asansol a greenfield project. IHCL has partnered with The Citi Residence Group of Hotels for the hotels. With these two properties, IHCL will have nine hotels in West Bengal across four brands, including four under development.