Hotel Equities and Springboard Hospitality Announce Merger
The DJIA fell 390 points, the Nasdaq was down 155, the S&P 500 fell 43 points and the 10-year treasury yield was down .04 to 4.31%. With the exception of SVC rising 7%, lodging stocks were mixed with little movement. Even the earnings reports did not cause any major action.
Marriott International reported a 1Q RevPAR and adjusted EBITDA beat while modestly lowering 2025 guidance. They reiterated they would be returning $4 billion to shareholders this year. They bought back 3.9 million shares for $1 billion YTD through April 29th. Chatham Lodging Trust reported a solid 1Q, upped its quarterly dividend by 29% to $0.09 per share, and announced its first-ever share buyback. CLDT said its Board of Trustees approved a $25 million share repurchase program. CLDT said that they sold five hotels, with an average age of 23 years, for combined proceeds of $83 million. Sunstone Hotel Investors beat 1Q estimates, and like so many before them, cut 2025 guidance. The Andaz Miami Beach opened on 5/3 (see below). They bought back 0.8 million shares in 1Q for $8 million and another 1.5 million shares have been repurchased in 2Q for nearly $13 million.
Hotel Equities and Springboard Hospitality announced a strategic merger, effective May 1. The newly merged entity will continue to operate as an owner-focused management company. Ben Rafter, CEO of Springboard, will be the new CEO of the combined company. Brad Rahinsky, former President and CEO of Hotel Equities, will assume the role of Chairman. Al Smith, Hotel Equities President of Hotel Operations, is COO, and Rob Robinson, EVP of Springboard, will be President of Springboard Hospitality. For now, they are keeping both names. For more context, see Skift's report: Hotel Managers Springboard and Hotel Equities Are Merging: Exclusive.
The Courtyard Virginia Beach Oceanfront/South 25th Street completed a major refresh & renovation. East of the hotel's 141 oceanfront guestrooms and suites have been upgraded as well as the 950 square foot meeting room, the indoor pool deck and spa and the fitness center. The hotel is managed by Crestline Hotels & Resorts, LLC and owned by Apple Hospitality REIT, Inc.
An AC Marriott hotel broke ground in Greensboro, North Carolina. Plans include building an eight-story hotel at the corner of Eugene Street and Bellemeade Street. The building will have 150 hotel rooms, a rooftop restaurant, retail space and nearly 350 apartments. Construction on the new building is expected to take about two to two and a half years.
Hilton Hawaiian Village Waikiki Beach Resort has upped its room count after the hotel's owner, Park Hotels & Resorts Inc., recently completed the first phase of an $83 million renovation to the Rainbow Tower. Phase one transformed nearly half of the Rainbow Tower's guestrooms and added 12 more keys. The budget for phase one was $41 million. In Q3, the company will spend an additional $42 million to renovate the rest of the tower's guestrooms and add 14 more keys, ultimately increasing room count to 822. The project is slated to be completed in Q1 of 2026. Meanwhile, on Hawaii Island, Park Hotels & Resorts will begin the second phase of its $68 million renovation to the Hilton Waikoloa Village's Palace Tower in Q3. Once completed in Q1 2026, the renovation will expand the hotel's inventory to 414 guestrooms, a 14-key increase. Park Hotels & Resorts started renovations to both the Rainbow and Palace towers in Q3 of 2024.
Caliber has entered into a Development Rights Agreement with an affiliate of Hyatt Hotels Corporation to develop 15 new Hyatt Studios hotels in the United States. Under the terms of the agreement, Caliber Hospitality Development will receive exclusive development rights for future development of Hyatt Studios hotels in target markets within Arizona, Colorado, Nevada, Texas and Louisiana. Construction on the first hotel, located in Georgetown, Texas, is expected to break ground in the fourth quarter of 2025. The second hotel within the agreement will be in Scottsdale, Arizona and is expected to break ground in the second quarter of 2026. Caliber expects to develop 15 hotels over the course of the next three to five years, as the market bears opportunities, and will seek to expand the agreement if market conditions allow.
Hyatt Hotels Corporation announced the opening of Andaz Miami Beach, marking the Andaz brand's debut in Florida and its first opening since the formation of the Hyatt Lifestyle Group. Owned by Sunstone Hotel Investors, Andaz Miami Beach features 287 guestrooms, including 64 suites; two heated outdoor pools with private cabanas; a spa; a member's beach club; and three dining concepts curated by Jose Andres Group.
IHG Hotels & Resorts, in collaboration with owner Farid Kapadia, announced the opening of a newly built Holiday Inn Express & Suites hotel in Morrow, Georgia. Featuring 93 guestrooms, The Holiday Inn Express & Suites Morrow offers 800 square feet of meeting space, an outdoor pool and a fitness center.
Extended Stay America announced the opening of the Extended Stay America Premier Suites - Charlottesville in Virginia. Developed and managed by KARA Hospitality, the four-story, 92-room property features a fitness room, onsite guest laundry, and lobby with additional vending options.
The Cobblestone Hotel at Russells Point, Ohio, is celebrating its grand opening today. The 54-room property features a conference room, bar, pool and ample parking.
Choice Hotels International, Inc. is celebrating a major achievement for the Ascend Collection brand with more than 400 independent resort, historic and boutique hotels open around the globe. As part of the next chapter of the brand's growth, Choice Hotels is streamlining the brand name as the 'Ascend Collection' and unveiling a new logo, giving equal prominence to the words 'Ascend' and 'Collection'. The Ascend Collection has 423 hotels open worldwide and is continuing its strategic expansion into high-demand leisure and urban markets with more than 70 hotels in the global pipeline. In 2024, the brand experienced an increase of more than 40% in total room numbers globally compared to 2023. The brand last year also entered new markets including Washington, D.C; Park City, Utah; Vancouver; Mexico City; and Queensland, Australia.
The 938-room Hotel del Coronado in San Diego is nearing the completion of a renovation that started in 2019, according to the New York Times. The $550 million renovation and restoration is expected to be complete next month.
Philadelphia's Hotel Anna & Bel has announced the debut of its Anna Suite, designed by lifestyle brand Anthropologie. The master suite marks the first collaborative hotel suite the brand has ever designed and features pieces from its Spring 2025 collection. At over 950 square feet, the suite consists of two bedrooms, two bathrooms and a kitchenette, and is the only room on the fourth floor of the hotel, accessed through a private staircase. All pieces that make up the suite are fully shoppable through a custom postcard with a QR code found in the room.
Donatella Boutique Hotels & Restaurant will open May 9 in the heart of Miami Beach's Art Deco district. The restaurant is the center of this venue, surrounded by two-story villas to the front, left and right. Each of the three buildings has two rooms for a total of six rooms. Donatella Boutique Hotel & Restaurant is owned by Jamil Dib, co-founder and owner of Vida & Estilo Hospitality Group, and the Nakash Group.
HREC Investment Advisors arranged the sale of the 65-room Best Western Territorial Inn & Suites located in Bloomfield, New Mexico. The Buyer is JHMC Inc. HREC Investment Advisors exclusively represented the seller, VWH Enterprises Inc., on this transaction.
Hunter Hotel Advisors announced the sale and financing of the Home2 Suites by Hilton An Antonio North Stone Oak, located in San Antonio, Texas. A San Diego-based investor purchased the property from an institutional seller for an undisclosed price. The hotel offers a diverse selection of 106 guestrooms, an onsite fitness center and an outdoor pool. Hunter also arranged financing on behalf of the buyer. The finalized CMBS loan structure exhibits an 11.5% debt yield, secured at a fixed interest rate of 7.37% on an interest-only basis.
Personnel News
Gravity Haus announced the appointment of Mike DeFrino as President. Most recently, DeFrino held the position of Managing Director of IHG Luxury and Lifestyle Hotels, Americas. Prior to that, he spent 28 years at Kimpton Hotels & Restaurants, serving as CEO until Kimpton's acquisition by IHG in 2022.
The Plamondon Companies announced Matthew Zappone is joining the organization as Chief Financial Officer. He spent the last 25 years at Marriott International in various Finance and Accounting Department roles. The Plamondon Companies includes Plamondon Hospitality Partners, which owns and operates 15 Marriott, Hilton and IHG properties across Maryland, Pennsylvania and Georgia. The family-owned and operated company is expanding its footprint, including the development of the full-service Marriott hotel and conference center on Carroll Creek in Frederick, Maryland. And as CFO, Zapponewill play a key role in future developments. In addition to supporting the hotel division's growth, Zappone will also be supporting the Roy Rogers Restaurants division.
Europe Highlights
Kimpton has opened Kimpton Main Frankfurt, the brand's first hotel in Germany. Located in the heart of Frankfurt's financial district, the hotel features 155 guestrooms and suites, lively social spaces, a rooftop bar, and restaurants.
According to an article in Cinco Dias, IHG is doubling its commitment to growth in the Spanish market. The main priority of the U.S. hotel chain in its current expansion in Spain, where it has 57 operating hotels and 15 under development, is to find locations that fit with its new Ruby brand.
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