Latest news: Apple REIT buying 4; IHG adds in Portugal; first Spark by Hilton

Apple REIT buying 3 in Salt Lake City, one other. Richmond, Virginia-based Apple Hospitality REIT has acquired the 175-key Courtyard by Marriott Salt Lake City Downtown for approximately $48.1 million and the 159-key Hyatt House Salt Lake City/Downtown for approximately $34.3 million. The REIT has also purchased the corresponding 346-space parking garage for approximately $9.1 million, which serves both hotels and the surrounding area. In addition, the company announced that two additional hotels are under contract for purchase: the 146-key Residence Inn by Marriott Seattle South/Renton for approximately $55.5 million and the 192-key Embassy Suites by Hilton South Jordan Salt Lake City for approximately $36.8 million. The firm anticipates finalizing the acquisitions in the fourth quarter of 2023.

Goodegg acquires 3 hotels. San Francisco-based Goodegg Investments has acquired three hotels in Indiana via its Goodegg Diversification Fund III. It acquired a dual-branded SpringHill Suites and Holiday Inn in Terre Haute and a Homewood Suites in Lafayette. The women-owned firm has a hotel, multifamily and self-storage portfolio worth over $1.4 billion.

KSL name director of investments. KSL Resorts, Irvine, California, has named Dhruv (DJ) Jain its director of investments and business development. In his new position, Jain is charged with managing deal flow and underwriting to help grow and diversify KSL Resorts’ portfolio. Jain was most recently vice president of Stratton Road Realty, overseeing the entire investment management process for the Orange County-based real estate solutions company. He was vice president of investments at Skeiron Real Estate – where he oversaw the acquisition of 15 hotels.

IHG grows in Portugal. IHG Hotels & Resorts has signing a franchise agreement with Highgate Portugal for the 149-room Kimpton Algarve São Rafael Atlántico expected to open in 2025. IHG currently operates 93 hotels in the Luxury & Lifestyle segment and a further 57 are under development. The hotel will have more than 1,300 sq meters of meeting space, multiple restaurants and bars, and a rounded wellness experience. IHG operates 19 open hotels across six brands in Portugal. In Iberia, it has 66 open hotels and a pipeline of 26 properties.

New US performance data. U.S. hotel performance from October 1-7 increased from the previous week, and year-over-year comparisons were mostly positive, according to CoStar. Occupancy was 67.8% (-0.2% YOY); ADR was $163.19 (+5.4% YOY); and RevPAR was $110.68 (+5.2% YOY). Percentage changes were positive on weekdays because of comparisons with the Yom Kippur period last year. Performance levels were notably higher for the long holiday weekend, but occupancy was still down year over year. Among the Top 25 Markets, Chicago saw the only double-digit gain in occupancy (+11.2% to 74.9%). New York City posted the highest increase in ADR (+13.9% to US$358.81). Boston reported the largest year-over-year increase in RevPAR (+23.1% to US$242.49). Tampa experienced the steepest declines in occupancy (-18.5% to 65.2%) and RevPAR (-18% to US$102.38).

London, Dubai, Melbourne performance. New CoStar data shows London having more normalized levels of growth in September as ADR and RevPAR increases (2.6% and 5.7%, respectively) were the city’s lowest of the year. Occupancy increase was the second lowest of 2023 at +3.1%. Regardless, 84.3% was London’s highest September occupancy since 2019. Meanwhile, Dubai posted its highest September occupancy since 2016, up 10% year-over-year to 77.6%. ADR was Dubai’s highest for a September since 2017. And in Melbourne, RevPAR declined for just the second time this year. Even with occupancy growth, Melbourne ADR fell by more than 4% for the second time in three months.

First Hospitality appointment. Larry Costakis has been appointed vice president of construction and development for First Hospitality, Chicago. His responsibilities include project management, quality assurance, strategic planning, as well as fostering owner and partner relationships. Costakis has overseen more than 100 hotel construction projects in key construction leadership positions with stayAPT, AJ Capital Partners and Extended Stay America.

Another “junk fee” proposal. The Biden administration has proposed a rule that would require businesses disclose mandatory fees up front and an instruction to banks not to impose excessive charges for basic information such as account balances. The Federal Trade Commission proposed a new rule on Wednesday to ban hidden fees across a swath of industries including car rental agencies, hotels, and event ticketing providers. The agency estimated the fees cost consumers tens of billions of dollars annually on items such as hotel resort fees. Businesses would have to include all required fees in the original price that they give customers, making comparison shopping easier, the FTC said. The proposed new rule would allow the agency to demand monetary penalties from companies that violate it and win refunds for customers, the FTC said in a statement.

First Spark by Hilton open. In partnership with Distinctive Hospitality Group, Hilton is celebrating the grand opening of the 120-room Spark by Hilton Mystic Groton in Connecticut, the first property to open under the premium economy brand, eight months after announcing the conversion-only concept. Hilton said it has more than 400 opportunities in various stages of development.

New CEO At Castle Hospitality. Castle Hospitality Group has selected Matt Bailey to succeed Alan Mattson as president and CEO of the Hawaiʻi-based hotel, condo resort and vacation rental management company. The long-time Hawaiʻi hospitality executive joined the company as chief operating officer in June of this year. Prior to joining Castle Hospitality Group, he served as general manager of the Montage Kapalua Bay. He also previously served as president and CEO of Aqua-Aston Hospitality and held executive positions with Sundance Resort, Aston Hotels & Resorts, The Grand Wailea Resort Hotel & Spa and Carmel Valley Ranch.

Amarillo management company grows. Thirty-Nine 23 Management, a hotel management company based in Amarillo, Texas, has added a fifth hotel to its portfolio, the Home2 Suites by Hilton in west Amarillo. The company also operates Hyatt Place, Tru by Hilton, and My Place Hotels in Amarillo, along with an additional My Place Hotel in Lubbock, Texas.