Latest news: Extended-stay dominates US pipeline; Marriott adds in Vietnam; Asia Pac development data

US 3Q pipeline update. At the close of 3Q23 2023, the U.S. construction pipeline stood at 5,704 projects/672,676 rooms, up 7% year-over-year (YOY) by projects and rooms, according to new Lodging Econometrics data. The construction pipeline continues to grow at a moderate pace with current project counts 3% below and rooms 14% below the all-time high of 5,883 projects/785,547 rooms reached in 2Q 2008. At the close of the third quarter, there were 1,063 projects/140,331 rooms under construction, up 8% by projects and 4% by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,234 projects/257,729 rooms, up 8% YOY by projects and 9% YOY by rooms. Projects and rooms in the early planning stage each increased 7% YOY to stand at 2,407 projects/274,616 rooms, just 27 projects and 5,296 rooms shy of the all-time high. The upper midscale chain scale has the largest project count, accounting for 38% of the projects and standing at 2,149 projects/209,895 rooms at the 3Q23 close. Following is the upscale chain scale with 1,376 projects/170,943 rooms. At the end of 2023’s third quarter, 2,176 projects/223,518 rooms in the U.S. construction pipeline are extended-stay projects, accounting for 38% of projects in the total pipeline.

Marriott grows in Vietnam. Marriott International has signed agreements to open three luxury resorts in Vietnam. The signings mark the expected debut of two new brands into Vietnam – Ritz-Carlton Reserve and The Luxury Collection on Hon Thom Island in Phu Quoc. Additionally, Marriott also announced Vietnam’s third JW Marriott Hotel set for Trang An, the UNESCO World Heritage destination in northern Vietnam. Slated to open in 2028, the 150-room JW Marriott Trang An Resort & Spa is being developed by BITEXCO Group. Owned by Sun Group, the resort on Hon Thom Island will be part of The Luxury Collection brand and is slated to open in 2029 with 305 rooms. Sun Group also owns the JW Marriott Phu Quoc Emerald Bay Resort & Spa. Anticipated to open in 2028 and slated to be designed by Bill Bensley, the new Ritz-Carlton Reserve will be located on an estate close to the south tip of Hon Thom Island with 40 pool villas. This resort is also owned by Sun Group. These signings add to Marriott’s pipeline in Vietnam, accounting for more than 50 properties.

Mama Shelter for Liverpool. Landlab Development has received approval to convert Liverpool’s former George Henry Lee department store into a 175-room Mama Shelter hotel from Accor. No timeline on the project was immediately available.

Asia Pac investment data. Hotel investments in Asia Pacific will cool to $10.1 billion for 2023 due a variety of external factors, representing a year-on-year decline of 14%, according to JLL’s Hotels & Hospitality Group, who largely attributable the decline to the combined headwinds of interest rate increases, cost inflation, and macroeconomic uncertainty. . JLL sees investment volumes crossing $10.4 billion in 2024. JLL data and analysis suggest that most major metrics are down in 2023 year-on-year. As of October 2023, total investment volumes tracked by JLL stood at $5.9 billion, significantly down on the same time period of 2022 of $9.8 billion. The average price per key or room was also less during 2023 to-date at $291,600 versus $368,900 in 2022. According to JLL, 130 hotel transactions have been recorded across 13 markets in Asia Pacific, down from 168 deals during the same period in 2022. Furthermore, the number of hotel keys transacted in 2023 year-to-date stands at 24,800 versus 27,990 during the comparable time in 2022.

US performance last week. U.S. hotel performance for the week of October 15-21 increased from the previous week and showed improved year-over-year comparisons, according to CoStar data. Occupancy was 69% (-0.8% YOY); ADR was $165.32 (+3.8% YOY); RevPAR was $114.04 (+2.9% YOY). Among the Top 25 Markets, Seattle saw the largest year-over-year lift in occupancy (+8.5% to 76.1%). Las Vegas posted the highest increases in ADR (+20.3% to US$257.42) and RevPAR (+23.5% to US$229.57).  Miami saw the steepest RevPAR decline (-12.3% to US$133.01).

Mr. C coming to West Palm Beach. South Florida real estate developer Terra and Palm Beach, Florida-based Morrison family’s Sympatico Real Estate will open in 2026 a Mr. C Hotel & Residences in downtown West Palm Beach, Florida.  The 25-story condominium hotel will include 110 rooms alongside 146 branded residences. Construction of the project is slated to begin in early 2024 and wrap up in 2026. The project will follow the brand's two Miami properties: the Mr. C Miami Coconut Grove hotel, and the sold-out Mr. C Residences in Coconut Grove, which is also being developed by Terra and is nearing delivery later this year.

Kempinski’s new CFO. Kempinski Hotels has appointed Stuart Dickie as CFO and member of the Management Board. In his new role, he will oversee and lead the global financial team and be responsible for all aspects of the financial and risk management of the luxurious hotel group. From 2000 to 2009, Dickie worked as director of corporate finance at Mandarin Oriental Hotel Group. He also worked in a similar position for Jumeirah Hotels & Resorts.

NH coming to Helsinki. Minor Hotels will debut in Finland with NH Collection Helsinki Grand Hansa scheduled for a Q1 2024 opening. It marks Minor’s second property in the Nordic market. The property is currently under construction and will combine two of the city's most iconic and recognizable buildings: the Kaleva building (known as the Hotel Seurahuone) and the New Student House (home to the famous Hansa Hotel between 1924-1968), as well as a more recently constructed extension. A full refurbishment of the two existing buildings and the construction of the third are in the final stages and when it launches will offer 224 guest rooms.

Z Hotels eyes Leicester Square. Budget brand Z Hotels has secured a £23 million loan from OakNorth bank and property lenders ASK Partner to open a new property near London's Leicester Square. With 14 hotels in the U.K., Z Hotels will redevelop a will vacant office building on Charing Cross Road.

Generator hire development head. Hostel hybrid brand Generator has appointed Anmol Bhojwani as head of development, Asia Pacific and Middle East. The goal is to add locations across the globe and double the brand’s footprint in the coming 18 months. Bhojwani previously spent over three years leading and implementing development strategies as vice president of development, Asia Pacific and Middle East, at Standard International. Bhojwani also oversaw development initiatives at Singapore-based Park Hotel Group and the global Jumeirah Group’s Asia Business Unit, managing large property portfolios and expansion.

New business development head at Access Point Financial. Hospitality lender Access Point Financial has appointed James Reivitis as managing director, head of Business Development. With over 15 years of hospitality finance, development, and leadership experience, Reivitis joins Access Point Financial from 6M Company, where he was an advisor across various resort projects, specialty real estate, and brand platforms, spearheading underwriting, finance, and entitlement. He also spent over a decade with Choice Hotels International, where he led their national site acquisition team, in addition to overseeing underwriting and negotiating direct capital investments into projects with private equity franchise partners and developers.