Hilton and Small Luxury Hotels of the World have unveiled an exclusive strategic partnership aimed at extending a warm welcome to Hilton guests at numerous independently operated luxury hotels in highly desirable global destinations.
The DJIA surged by 156 points, accompanied by Nasdaq’s 148-point rise, while the S&P 500 climbed by 41 points. The 10-year treasury yield inched up by 0.02 to 4.11%. HLT reached a new high in trading, whereas the standout was SHCO, plummeting by 19% following a report from GlassHouse Research, alleging accounting irregularities and casting doubt on the company’s future. AINC also saw a decline, dropping by 8%.
Hilton’s recent stock performance, along with Marriott’s, set high expectations for their earnings report. Hilton surpassed these expectations with adjusted EBITDA exceeding consensus by over $50 million and RevPAR growth of 5.7% compared to the consensus of 5%. Their guidance slightly exceeded estimates, although analysts considered it conservative. During the fourth quarter, HLT repurchased 4.6 million shares worth $746 million, indicating confidence in their trajectory despite rising stock prices. They projected capital returns of $3 billion in 2024, a 20% increase from 2023.
In California, individual hotel sales declined by 45% in 2023, according to CoStar. Despite this, Atlas Hospitality Group noted the decline wasn’t as severe as anticipated, considering sales were down 53% halfway through the year. The survey reported a decrease in individual sales from 483 in 2022 to 265 in 2023, with total dollar volume falling by 56.3% to $3.75 billion. The median price per room saw a slight dip to $150,000. Atlas predicts that debt maturities in 2024 will drive deals in California, with optimism among investors buoyed by the potential for interest rate cuts.
According to STR’s data for the week ended 2/3, US hotel RevPAR increased by 1.7%, with ADR up 1.9%. Group RevPAR surged by 10.3%, primarily due to an 8.1% rise in occupancy.
HHM Hotels added the Crystal City Marriott to its managed portfolio, featuring various amenities.
Whitestone Hospitality plans to open an AC Hotel by Marriott in Irving, Texas, in July 2025, as per a filing with the Texas Department of Licensing and Regulation.
Baywood Hotels acquired the Residence Inn by Marriott Philadelphia Langhorne from MCR for $22.1 million, facilitated by Hunter Hotel Advisors.
The Hilton Woodcliff Lake hotel in New Jersey, owned by a development group led by Zygi Wilf, will be closed and redeveloped into housing.
Partners Real Estate purchased the Hilton Garden Inn San Marcos in Texas with its Hospitality Fund I, focusing on properties along the Interstate 35 corridor and high-growth markets.
Hilton and Small Luxury Hotels of the World announced an exclusive partnership, expanding Hilton’s luxury offerings with unique SLH properties.
IHG Hotels & Resorts completed the conversion of a Holiday Inn Express & Suites hotel in Mountain View, California.
Drury Development Corp filed a building permit for an eight-story Drury Plaza Hotel in downtown Lincoln, Nebraska.
Junius Real Estate Partners enlisted JLL to sell the 21c Museum Hotel in Chicago.
RobertDouglas secured financing for Chartwell Hospitality’s Hilton Franklin Cool Springs in Tennessee.
Braemar Hotels & Resorts Inc. refinanced or extended most of its 2024 debt maturities, including the Capital Hilton in Washington, D.C., the Hilton La Jolla Torrey Pines, and the Ritz-Carlton St. Thomas.
Crescent Hotels & Resorts promoted Jon Hodges to Vice President of Global Sales, while Langham Hospitality Group appointed Lawrence Ng as Senior Vice President of Sales and Marketing.
Hostaway hired ex-Hotjar COO Ken Weary to support its growth, with co-founder Saber Kordestanchi transitioning to Chief Strategy Officer.
In Europe, H.I.G. Capital consolidated its hotel assets to create Ella Hotels & Resorts, a luxury group focusing on eco-friendly resorts across Southern Europe.
Source: Daily lodging report
