Latest HITs: Waramaug adds in Atlanta; data on NYC, China pipeline, boutiques

Waramaug adds in Atlanta. Waramaug Hospitality has acquired the 222-room Atlanta Marriott Peachtree Corners located northeast of Atlanta's Interstate-285 beltway perimeter. It marks the investor’s second full-service Marriott hotel and 16th Marriott-branded property in its portfolio. The property will now be managed by Aimbridge Hospitality. The name of the seller and price paid for the asset were not disclosed.

Manhattan performance stagnates. The rate of growth in Manhattan (New York City) occupancy, average daily rate and resultant RevPAR decelerated in each of the first six months of this year, due largely to increasingly difficult comps, according to new data from PwC. With a stagnating return to office and resultant office vacancy rising, Manhattan hotels reliant on the business transient guest are starting to see growth from that demand segment wane. In the first half of 2023, RevPAR experienced a year-over-year increase of 23.6%, decelerating each month from a January high of 103.6% to a June low of 4.7%. Q1 RevPAR increased 53.5% YOY, while Q2 increased 11.3%.

Boutique appeal. Boutique hotels have collectively increased in all performance indicators through June 2023 compared to the previous period in 2022, according to new data from The Highland Group.  Strong increases in demand and revenues of 8% and 9%, respectively, continue to establish that deviation from the generic sameness of traditional lodging is appealing to travelers. The Lifestyle segment averaged the largest increases in performance, while Soft Brands reported a 5-percentage point premium in RevPAR recovery compared to the same class of U.S. hotels. Luxury class boutiques continue to perform strongly; however, rate growth has stabilized, similar to all U.S. luxury hotels during this period. Boutique hotel development is clearly following an upward trend with a 29% annual increase in the pipeline of new rooms projected through 2027.

China’s pipeline. China’s pipeline stands at 3,666 projects/678,965 rooms, according to new data from Lodging Econometrics. At the close of the second quarter, the pipeline is slightly less than the all-time high of 3,711 projects/704,101 rooms set in the second quarter of 2022. Projects in the under construction stage in China rose slightly year-over-year (YOY), closing the quarter at 2,655 projects/478,703 rooms. At the close of the second quarter, new construction starts and new project announcements in China increased YOY to stand at 160 projects/28,256 rooms and 236 projects/36,163 rooms, respectively.

Asia Pac pipeline. The pipeline in Asia Pacific, excluding China, was at an all-time high at the end of 2Q23 with 1,936 hotels/401,766 rooms, according to Lodging Econometrics data, luxury, upper upscale, and upscale projects dominating. Countries with the largest pipelines include India, followed by Vietnam and then Thailand. Asia Pacific cities with the largest construction pipelines include Bangkok, Kuala Lumpur, Jakarta and Melbourne. The top franchise companies are Marriott International with 280 projects/60,566 rooms, Accor with 206 projects/47,052 rooms, and IHG Hotels & Resorts with record project counts of 164 projects/34,227 rooms.

Red Carnation adds Edinburgh. London-based Red Carnation Hotel Collection is set to launch in November its first hotel in Scotland, the 30-room 100 Princes Street in Edinburgh. The space was the former home of a membership club known as the Overseas League. The hotel marks Red Carnation’s 19th property.

Bob W growth. Short-term rental brand Bob W has added a property in Helsinki’s Kaartinkaupunki area, securing the former Hotel Rivoli Jardin building. This property was acquired by real estate private equity firm Slättö and is now being leased to Bob W. The addition of Bob W Kaarti gives the brand 32 operating properties across 20 cities in nine European countries. The property is expected to open to the public in 2024 and will feature 55 rooms and suites with kitchenettes, a social kitchen and co-working space as well as a communal sauna, paying homage to Helsinki’s apartment building sauna culture.