Latest news: LVMH sells only US asset; Marriott dual-brand in Phoenix; extended-stay demand up

LVMH sells only US asset. French luxury conglomerate LVMH Moët Hennessy Louis Vuitton  has sold its only U.S. hotel property, the 90-key El Encanto Hotel in Santa Barbara, California, to Justin Mateen, founder of the online dating app Tinder, and his brother, Tyler Mateen, in partnership with Costa Mesa, California-based Culver Capital, for $82.2 million. LVHM acquired the hotel in 2018 as part of its $2.6 billion acquisition of Belmond. The new owners plan to put $40 million in renovations into the property, which was first opened in 1918. The hotel will be added to the Leading Hotels of the World portfolio.

Dual-brand in the Phoenix area. Las Vegas-based LaPour Partners and Tucson, Arizona-based Holualoa Companies are developing the $92 million, 240-key dual-branded AC/Element City North in North Phoenix. The companies recently broke ground on the property, which will feature a 142-key AC Hotel by Marriott and a 98-key Element. The project represents the second partnership between LaPour and Holualoa, following their successful development of the AC Marriott Biltmore in 2018.

Extended-stay demand increases. Extended-stay hotel demand increased 1% in May 2025 compared to May 2024 despite small declines in mid-price and upscale extended-stay segments, according to The Highland Group. Economy and mid-price extended-stay hotels posted increasing ADR in May, but at a cost to occupancy, which declined for the fifth consecutive month. “While extended-stay supply growth remains below its long-term historical average, it has exceeded the change in demand for three consecutive months,” said The Highland Group's Mark Skinner.

Barceló acquires in France. Palma, Spain-based Barceló Hotel Group has acquired the 338-key Evergreen Laurel Hotel in Levallois-Perret, France, for €70 million from an undisclosed seller. This marks Barceló’s entry into the French market. The hotel will be operated under the Occidental Hotels & Resorts banner, one of the group’s upscale brands. CBRE facilitated the transaction.

CoralTree adds in Boston. Englewood, Colorado-based CoralTree Hospitality has added the Seaport Hotel in Boston to its management portfolio, which is the CoralTree’s first in the Northeast. The hotel opened in 1998.

WaterWalk adds to management portfolio. Wichita, Kansas-based WaterWalk Hospitality, WaterWalk Holding Company’s hotel management group, has assumed management of WaterWalk Extended Stay by Wyndham Minneapolis. All corporate-owned and franchised WaterWalk properties are now managed by the management company. WaterWalk extended-stay hotel joined Wyndham’s portfolio in April 2024.

Whitbread adding in London. Whitbread PLC has begun construction on its flagship hub by Premier Inn hotel development at 5 Strand in Central London. The 693-key hub by Premier Inn at 5 Strand will be one of the largest budget hotels in London. Whitbread acquired the development site in August 2022 as part of its strategy to grow its presence in the popular London market. The £200 million development is scheduled to open in fall 2028.

New flights could help Australian hotels. New international flight routes are set to supercharge Australia's hotel sector, creating demand for potentially 1.9 million room nights annually according to a new CBRE analysis. Over the last year, CBRE has tracked the launch of 56 new international flight routes adding over 10,500 annual flights into key Australian cities, marking a significant shift in the country's inbound travel capacity. This boost has direct implications for hotel performance. Increased capacity from core markets including China, India, Southeast Asia, North America and the Middle East is expected to drive the continued recovery in international arrivals, reinforcing aviation's role as a critical lever for tourism and hotel sector growth.

Luxury wellness resort in Mexico. The 96-key Mailena, which will be the first wellness resort and adults-only property in Loreto, Mexico, is scheduled to open in late summer 2026. The luxury boutique hotel is part of Danzante Bay, a 741-acre master-planned resort community set amidst the Sierra de la Giganta mountains and the Sea of Cortez. The development will also include the Villa del Palmar at the Islands of Loreto hotel and TPC Danzante Bay, the only TPC-designated golf course in Mexico.