HOSPITALITY TRENDS
Capital Square | July 22, 2022
Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, and Method Co., a real estate management, development and design company rooted in hospitality, today held a groundbreaking ceremony for a new design-forward, 50-unit development bridging the boutique hotel experience with apartment-style living, located at 529 King Street in Charleston's historic downtown.
The $61 million project designed by acclaimed Morris Adjmi Architects will feature 52,700 square feet of space comprising a mix of studio, one-, two- and three-bedroom apartment hotel units, a rooftop lounge, and 27,700 square feet of rentable space. Method Co. will operate the property's rooftop lounge, drawing on significant experience in food and beverage operations to create a space that serves both as an amenity to guests and locals.
Attendees included Capital Square executives Louis Rogers, founder and CEO, and Whitson Huffman, chief strategy and investment officer; Method Co.'s CEO and co-founder, Randall Cook, and president and co-founder, David Grasso; and Kathy Crawford, regional director of the Office of U.S. Senator Tim Scott (S.C.). With construction now underway, the hotel property is slated for completion in early 2024.
"Capital Square is an active developer of luxury properties in growing markets within the Southeast and we couldn't be more pleased to begin construction on our inaugural project in Charleston, Charleston is a premier market, home to a growing community of high-income families and one of the nation's most popular tourist destinations. 529 King Street will contribute to this legacy and become a premier destination for local residents and tourists alike."
-Whitson Huffman, chief strategy and investment officer
The property will be the city's first high-design, extended-stay hotel concept blending the comfort and practicality of an apartment with the amenities and design of a boutique hotel, creating a temporary living environment ideally suited for a long-term stay.
"We are thrilled to break ground on our first ROOST Apartment Hotel in South Carolina and our second project in the city of Charleston, ROOST will offer guests in Charleston a comfortable stay in a beautifully designed apartment that feels like a home and the flexibility to stay a few nights or a few months. The building's design by Morris Adjmi Architects is outstanding; it will be a fitting complement to the classic architectural charm of Charleston."
-David Grasso, President and Co-Founder of Method Co.
Located in the highly sought-after "Upper King" section of downtown Charleston, which is home to a concentration of luxury retail stores, restaurants and nightlife, the new apartment hotel will serve as an ideal accommodation for the city's high volume of annual visitors. The Upper King Street neighborhood also supports a burgeoning tech and start-up scene and represents a growth corridor and exceptional demand generator for higher-end residential and hotel development.
About ROOST Apartment Hotel
ROOST Apartment Hotel is a high-design boutique extended-stay hotel concept, conceptualized by Philadelphia-based hospitality company Method Co. A first of its kind, ROOST introduces a fresh approach to hospitality by blending the comfort and practicality of an apartment with the amenities and design of a boutique hotel, creating a temporary living environment ideally suited for a long-term stay. Designed by Morris Adjmi Architects, ROOST offers studio, one and two-bedroom and penthouse apartments with full-sized kitchens and modern appliances in a beautifully appointed space, which features contemporary furnishings, antique elements, custom lighting, and unique artwork. Featured amenities include an artisanal coffee program curated by La Colombe, bike share program, and recurring resident receptions that partner with local vendors, while a dedicated 24-hour concierge desk and on-site services team further enhance and ensure a memorable guest experience. The first location, ROOST Midtown, opened in 2015 and features 28 fully furnished apartments; their second outpost, ROOST Rittenhouse, followed in 2016 featuring 27 apartments and a communal lobby; their third location, ROOST East Market opened in January 2019 with 60 apartments, an outdoor pool, and communal in Philadelphia's Midtown Village neighborhood. The fourth location is the first outside of Philadelphia – ROOST Cleveland, which opened in March 2022 and features 62 apartments located downtown within the historic May building, a restoration of the city's original 1915 department store, while their fifth location, ROOST Tampa, opened in July 2022 and includes 97 apartments within Asher, a residential building within the new Water Street development. ROOST has plans to open locations in other markets, including Detroit, Baltimore and Charleston. www.myroost.com
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6.0 billion in transaction volume. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020. To learn more, visit www.CapitalSq.com.
About Method Co.
Method Co. is a Philadelphia-based hospitality, development, design and branding firm founded on the joining of historically compatible disciplines under one roof; the firm bridges the worlds of interior design and real estate development, while embracing the custom design of products, furniture, identities and experiences. Built from a team of individuals with extensive experience in the fields of finance, interior design, branding, architecture, urban planning and fine arts, Method company's diverse skill set forms the foundation of the firm's interdisciplinary practice. The team has been responsible for the design, staging and development of hotel, restaurant, and real estate projects, such as the ROOST Apartment Hotel brand, Whyle, Wm. Mulherin's Sons Restaurant & Hotel and HIROKI restaurant, along with the newly opened boutique property in Charleston, The Pinch, with plans to expand their concepts to other major markets within the US including Detroit and Wilmington, DE. www.methodco.com
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INDUSTRY OUTLOOK
Hyatt Hotels Corporation | June 07, 2022
Hyatt Hotels Corporation shared updates on its operating results for May, summer travel booking trends, and confirmation of the closing of previously announced asset disposition as the NYU International Hospitality Investment Conference commenced.
“We are delighted that we closed on the last of four previously announced owned hotel dispositions. In total, these four dispositions generated $812 million in gross proceeds and demonstrate meaningful and expeditious progress towards our current $2 billion asset disposition commitment, Additionally, our operational metrics in May serve as further evidence of continued recovery with comparable system-wide RevPAR improving from April, and system-wide RevPAR outside of Asia Pacific actualizing 3% above 2019 levels for the second consecutive month. As we look forward, we anticipate a busy summer travel season ahead.”
-Mark S. Hoplamazian, President and Chief Executive Officer of Hyatt Hotels Corporation
In the update, Hyatt announced that the comparable system-wide RevPAR in May was approximately $127, the strongest RevPAR performance in any individual month since November of 2019.
The leisure transient revenue was up 18% in May, thanks to Memorial Day weekend, where RevPAR in the Americas was approximately 24% above Memorial Day weekend of 2019.
Business transient and group revenue also continued to strengthen in May. The summer travel season ahead looks favorable in terms of booking trends. Gross group room revenue booked in May for stay dates in 2022 for comparable Americas was 46% above May of 2019. The all-inclusive portfolio had strong results.
As for the asset dispositions, the company has closed on all four previously announced assets resulting in gross proceeds of $812 million or over 40% of its current $2.0 billion disposition target, reflecting an aggregate multiple of 15.7x 2019 EBITDA, and entered into a long-term management agreement for each of the properties upon sale. Additionally, the company is marketing two of its hotels for sale.
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TRAVEL TECHNOLOGY
Nuvei Corporation | May 27, 2022
On May 26, Nuvei Corporation announced its partnership with Scott Dunn, an award-winning luxury tour operator. Nuvei will provide Scott Dunn with a comprehensive global payment solution, including smart routing and payments orchestration. Nuvei accelerates businesses through modular, flexible and scalable tech solutions so that leading companies can adapt next-gen payments, offer various payout options and benefit from banking, risk and fraud management services and card issuing.
Post-pandemic the travel industry is expected to take off. According to Statista’s Digital Market Outlook Report, travel and tourism market revenue is predicted to reach the U.S $ 637 billion in 2022.
“The entire digital travel experience should be seamless from the moment a holiday is booked to getting to your destination. Payments are an integral part of that for both holidaymakers and businesses as global travel revenues grow, The Nuvei team’s extensive knowledge of our industry, coupled with a strong product stack and global reach, were instrumental in our selection process. With Nuvei as our payment provider, we are well positioned to grow further in key markets globally.”
-Scott Dunn’s Chief Financial Officer Mark Woodall.
Commenting on the partnership said: As a business that believes in exceptional experience, innovation and service, we’re delighted to partner with Scott Dunn
“Our global acquiring and payments gateway solutions offer scalability; while our smart routing engine will help define, configure and manage transactional routing in real time. Partnering with Scott Dunn will further position Nuvei as the payments partner of choice for the travel and mobility industry,”
-Nuvei Chair and CEO Phil Fayer
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