Group items tagged

EXTENDED-STAY HOTELS reported mixed results in November compared to the broader hotel industry, as supply and demand showed gains and occupancy declined less than the total hotel industry, according to The Highland Group. However, the 2.2 percent net increase in extended-stay room supply for the month, consistent with September and October figures, represents a slight uptick compared to the average over the last 17 months. Also, relatively low ADR growth led to a modest increase in extended-stay hotel RevPAR. Supply growth stayed below 4 percent for the 26th consecutive month in November, well under the long-term average, The Highland Group said. The 13 percent increase in economy extended-stay supply and decline in mid-price segment rooms mainly result from conversions, as new construction in the economy segment is estimated at about 3 percent of rooms open compared to one year ago.

WYNDHAM HOTELS & RESORTS and WaterWalk recently launched a new upscale brand, "WaterWalk Extended Stay by Wyndham." This deal will introduce up to 11 hotels with more than 1,500 rooms, initially in markets such as Tucson, Jacksonville, and Wichita. Pictured is the lobby of the WaterWalk by Wyndham - Phoenix. The new brand is Wyndham's 25th addition to its portfolio and will join the company's existing economy and mid-scale extended-stay brands, Wyndham said in a statement. "In the last year, guest demand for the extended stay segment reached record highs, which has been underscored by demand from owners and developers looking for new opportunities to partner with Wyndham," said Chip Ohlsson, Wyndham's chief development officer. "Our vision is to offer the industry's most robust portfolio of extended stay brands and the addition of WaterWalk marks an important step in that direction-helping ensure we have an offering in every segment, for every owner and for every guest." WaterWalk, founded by the late Jack DeBoer, currently runs 11 hotels in the U.S., the statement added. Newer hotels adopt the brand's Gen 2.0 prototype, focusing on efficient design and lower operating costs to increase profitability.

AURO HOTELS RECENTLY ACQUAIRED the Residence Inn by Marriott Atlanta Buckhead/Lenox Park. Hunter Hotel Advisors helped broker the deal, which it said is another example of the strength of the extended-stay segment that has been seeing increased interest from major hotel companies such as Wyndham Hotels & Resorts. The 150-room Residence Inn is in Atlanta's upscale Buckhead neighborhood near shopping and dining outlets, such as Lenox Square Mall and Phipps Plaza, according to Hunter. Also, the hotel is across from AT&T corporate offices. "We are thrilled that the stars aligned on this acquisition - a smooth process with a highly professional seller, another collaboration with a trusted equity partner, and a further expansion of our relationship with Marriott," said D.J. Rama, CEO of Auro Hotels. "With the expertise brought by our investment, operations and design and construction resources, we believe strongly in the property's future performance potential."

COMMERCIAL REAL ESTATE direct lender Stonehill recently originated a $79.8 million, three-year, floating-rate bridge loan for New York-based Churchwick Partners for the acquisition of a 12-property, extended-stay hotel portfolio. The deal was premised on the strong performance by extended-stay hotels even during the pandemic. Stonehill is an affiliate of Peachtree Hotel Group, led by Jatin Desai and Mitul Patel as managing principals. The deal includes 1,432 rooms in nine states, mostly Sonesta Hotels brands. "Our sponsors benefit from experienced real estate lenders able to originate and close complex transactions," said Nick Baer, Stonehill's vice president for business development. "With funding options from traditional lenders limited for hotels and other commercial real estate properties, we are pleased to provide Churchwick Partners with the lending solution, financial capacity and hospitality expertise to close this transaction in a challenging capital market environment."

DHRUV MANAGEMENT IS to construct a HomeTowne Studios by Red Roof in Tampa, Florida, as well as a new HomeTowne Studios in Bradenton, Florida, with its affiliate Dhruv Development. Dhruv Management is led by Vijay Patel and Dhruv Development is led by Amit Patel. Dhruv Management owns and operates two Red Roof hotels in Alabama and Florida and has four more properties in various stages of development through Dhruv Development. "We are excited to partner with Red Roof on our latest extended-stay hotels with the HomeTowne Studios in Tampa and Bradenton," said Amit Patel. "Red Roof is not just a franchisor; they are heavily invested in any franchisee partnership from the moment they sign a deal. Their assistance has been invaluable, from securing approvals to moving dirt. Thanks to Red Roof's continued commitment to hospitality fundamentals, we are confident in the future of this hotel."

STONEBRIDGE COS. LLC, a Denver-based hotel management firm with a diverse portfolio of full-service, select-service, and extended-stay properties, recently acquired Real Hospitality Group LLC, an Ocean City, Maryland-based hotel management company. Stonebridge is chaired and led by CEO Navin Dimond, while RHG was founded and led by Ben Seidel, president and CEO. Seidel will join Stonebridge as a principal and member of the board of directors, the companies said in a joint statement. However, the terms of the deal were not disclosed. "We're thrilled to join forces with RHG as we embark on this next chapter of our evolution," said Dimond. "The blending of these two companies will create a dynamic, leading hotel management group that will drive innovation and create exciting growth opportunities for our team members."