Notes from more interviews at the Lodging Conference include
news from BWH, Stonebridge, Hyatt, Brittain and Resolute Road.
PHOENIX – Following up on yesterday’s Lodging Conference
notebook, here are more reports from one-on-one interviews with top executives
discussing growth challenges and opportunities.
BWH Hotels. With
18 brands today and an increasing global presence, Best Western is very
different than it was 15 years ago.
CEO Larry Cuculic
said BWH is having its strong development year internationally (150 deals)
since before the pandemic.
Globally, for
2025, he said the pipeline remains strong with BWH getting more aggressive with
flexibility on key money (10 to 15 such deals this year) and fee structures.
Europe is seeing
more conversions with more independents seeking out brands with Cuculic adding
that revenue in 2024 is up 17% there.
Middle East and
Africa is seeing 80% new construction and projects are bigger than elsewhere
with Cuculic highlighting a 955-room WorldHotels property in Saudi Arabia.
U.S. development
this year has surpassed 2023, again with conversions leading the way.
WorldHotels now has 160 properties and signed between 25 and
30 this year, according to brand President Ron Pohl, who is also president of international
operations. WorldHotels added 10 in North America to reach 32 with three more
on the way this year.
WorldHotels is
also getting into the residential game with two residence-only projects (5,550
units) in Vietnam.
BWH boutique
brand Aiden recently opened in Long Island, New York, which is one of many to
come in the New York City area. The brand is up to 50 properties (half are
open) in North America and has another 25 in Scandinavia. In total,
Aiden has 130 properties open and in the pipeline.
Cuculic added the
BWH needs to better tell its story as it is indexing above its comp set in
North America, driven primarily by rate.
The company
continues to look at all processes to control costs with Cuculic citing
negotiated prices on necessary items at breakfast.
Stonebridge Companies. New CEO Rob Smith (formerly
Aimbridge) said an investment vehicle launched in 2022 continues to help the
third-party business grow.
Today, Stonebridge has some 160 properties under management
(equity in 18 and own five) and Smith said two small, regional company
acquisition deals are pretty far down the road. It bought Real Hospitality
Group in May 2024, which more or less doubled the size of the third-party
business and grew their geographic presence to 25 states from 12.
Smith said 11 properties are in the Stonebridge pipeline,
including five acquired from Ashford Hospitality Trust. Among them is the W
Atlanta, acquired for $24.8 million and being converted to a JW Marriott.
Ongoing, Smith said Stonebridge wants to realize organic
growth of 10 to 12 properties per year.
Smith boasted that Stonebridge is increasing same store
revenue at a 7.4% average, compared to a 2.5% overall national average. He
credited focused teams with low capacity and increased engagement with
ownership.
Hyatt Hotels Corp. Dan Hansen, head of Americas development
said the company is relaunching Caption by Hyatt with a more efficient model
(especially F&B), flexible design, and reduced labor requirements. Three
are open, including Shanghai and Osaka, and seven are in the pipeline.
Caption is all new build in the U.S. but Hansen said it can
be a conversion concept in urban centers.
For its newly formed lifestyle division led by Amar Lalvani,
formerly of Standard International, greater penetration is Europe is among the
priorities. He added that several Thompson hotels are coming to Italy and
Spain.
There are 450 Hyatt Places (also being redefined for greater
profitability) and 135 Hyatt Houses with one-third of their pipelines in the
Americas.
Hyatt Studio is growing exponentially with deals executed for 4,000 rooms and four properties having broken ground.
Brittain Resorts & Hotels. The Myrtle Beach, South
Carolina-based operator made news at the conference, assuming management for
eight hotels in Florida by partnering with Provident Hotels & Resorts. It marks Brittain’s first move outside
South Carolina.
Chief Development
Officer Brittney Jones said the group will keep looking for more opportunities
in Florida and also has deals pending in Pigeon Forge and Gatlinburg,
Tennessee.
Jones said the
Brittain, today with some 30 properties under management, can manage complex
assets, including resorts and condo hotels, and its in-house marketing team
drives 80% to 85% of room nights.
Resolute Road
Hospitality. The Boise, Idaho-based management company with 25 hotels under
management today expects to add another 10 in 2025. For what it calls
“controlled growth,” the group like premium-select properties in the Sunbelt,
Nashville and Mountain West regions.