Latest news: Extended-stay takes hit; Charlottesville deal; Accor soft brand to SF

First quarterly decline for extended-stay since ’21. A 1.6% year-over-year decline in extended-stay hotel RevPAR in 1Q24 was the first contraction since RevPAR started rising in April 2021, according to the Highland Group. Lower priced extended-stay hotels led the decline, but economy and mid-price segments made gains relative to corresponding classes of all hotels. The Highland Group’s Mark Skinner added that if most forecasts for overall performance are realized, extended-stay hotels are likely to reverse the trend of declining occupancy in the near future because demand has increased for 13 consecutive quarters and supply growth is very low.

Charlottesville trade. The 80-room Quirk Hotel in Charlottesville, Virginia, has been acquired for $24 million by New York-based Blue Suede Hospitality Group, who will oversee a full rebrand of the property in the coming months. The sellers were Katie and Ted Ukrop and an ownership group of about 30 investors. Blue Suede, led by CEO Kenny Lipschutz, has a portfolio of four hotels – two in Miami and one each in Memphis, Tennessee, and Ann Arbor, Michigan. It acquired the 79-room South Beach Plaza hotel and villas in Miami last year for $26.5 million, according to news reports. Cushman & Wakefield represented Blue Suede Hospitality and CBRE advised the seller in the transaction.

Accor soft brand adds US. San Francisco-based Frame Ventures, owners of the 94-room Hotel Stratford situated along the renowned Powell Street cable car line in San Francisco, will join Accor’s Handwritten Collection and become the soft brand’s first hotel in the U.S. The property becomes Accor's third hotel in San Francisco, joining the Fairmont properties atop Nob Hill and at Ghirardelli Square. The hotel was built in 1910 and has recently undergone a multi-million-dollar refurbishment. Launched in 2023, Handwritten Collection has built a global footprint of 35-plus hotels open and in development.

Sotherly amends loan, relicenses hotel. Sotherly Hotels has executed a loan extension, which includes amended mortgage loan terms on its first mortgage with TD Bank, collateralized by the DoubleTree by Hilton Philadelphia Airport in Philadelphia. The interest-only loan, which has been reduced by $3 million to $35.9 million, matures in April 2026 and carries a floating interest rate based on SOFR plus 3.5%. As part of the transaction, the Sotherly purchased an Interest Rate Cap capping SOFR at 3%. The company also announced that it has entered into a 10-year franchise agreement with Hilton to relicense the hotel under the DoubleTree by Hilton flag. It will undertake an $11.5 million renovation of the property with an estimated completion date of April 2026.

Airbnb takes hit in Hawaii. Hawaii Gov. Josh Green has signed into law legislation that grants local governments the power to regulate short-term rentals. The law ensures Hawaii counties have the authority to tax and regulate short-term rentals by the same standards as hotels, designate them as a non-residential use for zoning purposes, or restrict their operation.

Minor grows in UAE. Minor Hotels will open a new resort and residences in Sharjah, UAE by late 2027. The Anantara Sharjah Resort and Anantara Sharjah Residences is owned and being developed by Arada, the new-build resort and residence complex is located on the northeastern edge of Sharjah’s Al Heerah Beach. The property will feature 110 guest rooms and suites, ranging from 45 to 120 square metres, and 128 one- to four-bedroom residential units for sale.