Canadian Hotel Construction Is Rebounding at Last
25.08.2023 - 14:46
/ skift.com
/ Sean Oneill
Here are some excerpts from Daily Lodging Report from the past week. If you’re not a subscriber, you should be. Get news on hotel deals, development, stocks, and career moves. Sign up here.
DiamondRock Hospitality reported 3Q results, beating the preliminary results they announced two weeks ago. DRH said they bought back $12.3 million worth of stock in October, post-3Q. Service Properties Trust followed up their resumption of a $0.20 per share quarterly dividend with a 100% increase in normalized FFO in 3Q. SVC said business continues to recover with increased bookings at their urban and suburban select service hotels. They expect to benefit further in the coming quarters from the continued business travel recovery. Playa Hotels beat estimates and is trying to do its part in propping up its stock price, buying back 973,000 shares in 3Q and another 2.67 million shares so far in 4Q. The 3Q result is impressive given the impact of Hurricane Fiona.
Jefferies cut its rating on Xenia Hotels & Resorts from Buy to Hold. Jefferies has a $17 price target on XHR.
Loews Hotels & Co announced the opening of the Loews Coral Gables Hotel in Coral Gables, FL. The property includes 242 guestrooms, including 21 suites; a spa; fitness center; pool; and four restaurants and lounges. Additionally, 30,000 square feet of indoor/outdoor meeting space.
The RADCO Cos. purchased the Courtyard by Marriott St. Petersburg Downtown, in Florida, from The Blackstone Group for $29.1 million. The 128-room hotel features a restaurant and bar, fitness and business centers, indoor pool, and meeting space. CBRE Hotels represented Blackstone in the sale.
IHG Hotels & Resorts announced the opening of its first dual-branded avid hotels and Holiday Inn & Suites property in Mt. Juliet, TN. The five-story hotel is owned by Image Hotel Management.
Skift Note: Economic turbulence hasn’t stopped hotel dealmaking.
Choice Hotels received a mixed response to its third-quarter earnings report from analysts and a big thumbs down from investors. They missed estimates but whether it justified the pummeling their stock took depends on whether you think the stock already being down nearly 20% from its highs was enough to foreshadow the miss. CHH did buy back $230 million in shares during 3Q and said October RevPAR was up 20 percent versus October 2019. Investors seemed to have stopped reading/listening after the earnings miss part.
Hong Kong has continued to loosen Covid restrictions, now targeting eventgoers. The NY Times gave them publicity on this, as the city tells people no sweat if they test positive for Covid in Hong Kong. Stories of bankers being allowed to leave on a private jet if they test positive, tech executives dining in private rooms, and