Breaking news on data, development, deals and more.
Positive week in the US. The U.S. hotel industry from July
28 to August 3 reported slightly positive comparisons year over
year, according to CoStar data. Occupancy was 69.4% (+0.8% YOY); ADR was $159.63
(+0.6% YOY); and RevPAR was $110.84 (+1.3% YOY). Among the Top 25 Markets,
Houston saw the highest year-over-year increases in occupancy (+28.1% to 75.8%)
and RevPAR (+45.7% to $93.88). Houston (+13.7% to $123.82) and Philadelphia
(+13.7% to $161.02) matched for the largest lift in ADR. The steepest
RevPAR declines were seen in Anaheim (-12.0% to $171.55) and Los Angeles
(-10.7% to $158.64).
Braemar’s 5 refis. Braemar Hotels & Resorts has closed
on a refinancing for five hotels. The new loan totals $407 million and has a
two-year initial term with three one-year extension options, subject to the
satisfaction of certain conditions, taking the final maturity to 2029. The loan
is interest only and provides for a floating interest rate of SOFR + 3.24%. As
part of this financing, the company acquired $42.2 million of the most junior
tranche of the loan, which lowered its net spread on the $364.8 million
remaining loan amount to SOFR + 3.01%. The loan is secured by five hotels: Pier
House Resort & Spa, Bardessono Hotel & Spa, Hotel Yountville, The
Ritz-Carlton Sarasota, and The Ritz-Carlton St. Thomas. The new loan refinanced
the $80 million loan secured by the Pier House Resort & Spa, which had an
interest rate of SOFR +3.60% and had a final maturity date in September 2025;
the $42.5 million loan secured by The Ritz-Carlton St. Thomas, which had an
interest rate of SOFR + 4.35% and had a final maturity Date in August 2026; and
the $200 million Corporate Term Loan and Credit Facility secured by The Ritz-
Carlton Sarasota, Hotel Yountville, and Bardessono Hotel & Spa. which had interest
rates of SOFR + 3.10% and had a final maturity date in July 2027.
Reverb deal for Pensacola. Hard Rock International will
develop the 125-room Reverb by Hard Rock Pensacola (Florida), which is to break
ground in 2026 and open in 2029. This will mark the company’s sixth Reverb with
Atlanta, Hamburg, Kalamazoo, Michigan, Tampa, and Scottsdale, Arizona also
being developed. The Pensacola property will be located downtown at Maritime
Park along Pensacola Bay. The hotel will be developed on a 100-year ground
lease with the city of Pensacola that goes to vote by the City Council on
August 8.
LatAm pipeline update. The Q2 2024 Latin America
construction pipeline trend report from Lodging Econometrics (LE) indicates a
positive growth trajectory for the region’s hospitality sector, with stable
growth in new hotel openings forecast through 2026. This projected growth is
supported by the region’s expanding construction pipeline, currently standing
at 612 projects (97,597 rooms), marking an 11% increase in projects and a 10%
increase in rooms year-over-year. At the end of the second quarter, Latin
America has 253 projects with 44,319 rooms under construction, reflecting an
11% YOY increase in projects and a 15% increase in rooms. Additionally,
projects scheduled to start construction in the next 12 months stand at 187
projects/29,476 rooms, up 18% by projects and 17% by rooms YOY, while projects
in the early planning stage increased by 3% YOY to stand at 172 projects/23,802
rooms at the close of the quarter.
Dusit deal in Bangkok. Dusit International, Bangkok, has
signed a property management agreement with King Square Development Co. Ltd., a
Bangkok-based real estate company established by Saha Group and Tokyu Corp.,
and King Square Suites Co. Ltd. to manage Dusit Suites Kingsquare, Bangkok and KingsQuare
Residence - an upscale hotel and luxury residential project slated to open
in 2026. Serving as both a serviced apartment and hotel, Dusit Suites
Kingsquare, Bangkok will comprise 60 hotel rooms and 49 serviced suites,
ranging from twin rooms to two-bedroom suites. Alongside the hotel, Dusit will
also manage the luxury KingsQuare Residence. This will be managed by
Dusit Hospitality Services, a wholly owned subsidiary designed to leverage the
extensive experience of Dusit's hotel teams. The 52-storey tower boasts 222 residences
ranging from one-bedroom units (60-73 sq m) to three-bedroom homes.