[ad_1]
Here are some excerpts of what the Daily Lodging Report informed its readers during the past week. If you’re not a subscriber, you should be. Sign up now, here.
Scroll down to Thursday’s excerpt for the Pro-invest news.
Sunday, May 22
Hyatt Hotels Corporation announced that an affiliate agreed with Grupo Murano for it to manage a new luxury lifestyle hotel, Andaz Condesa Mexico City, in Mexico City’s Condesa neighborhood. The 213-room hotel will is expected to open in late 2022 as part of the 1421 mixed-use complex with one of the city’s tallest rooftop pools.
Starwood Capital Group and London & Regional are exploring the sale of the Hard Rock Hotel in central London. The firms are working with advisers to solicit interest in the property, which could fetch as much as £500 million.
Alpine Acquisition Corporation and Two Bit Circus, Inc., agreed to combine. Alpine also agreed with an affiliate of Atrium Hospitality, LP, to acquire two full-service conference hotels with 739 rooms in Denver, CO, and Stamford, CT. Alpine will eventually rebrand the properties to Revelers Resorts. The combined company is expected to be renamed Two Bit Entertainment Corp and be listed on Nasdaq under the symbol REVE by the 3rd quarter of 2022.
Skift Note: It’s a busy time for hotel deals and development despite recent concerns related to inflation.
Monday, May 23
Truist reported on meetings they held with senior management of Wyndham Hotels. Truist said organic growth is clearly improving as Wyndham Hotels increasingly pushes into the 2%-4% annual net unit growth range and perhaps into the 3%-5% range in the next few years. Retention is the key driver, though new rooms are increasingly entering the system, especially in mid-scale and above. While WH remains interested in mergers and acquisitions, when Truist asked if they have an interest in acquiring the Radisson chain, executives made it clear they are not interested at this time.
Marriott International CEO Anthony Capuano told the Wall Street Journal he thought it was really going to be difficult to avoid a recession in the US but said Marriott’s bookings remain strong. He said they had seen no uptick in cancellations. What he is seeing is some more supply chain challenges with opening hotels. He said they have completed buildings but are just waiting for furniture, equipment, and other necessary supplies. He told CNBC that pricing has been extraordinary. President Stephanie Linnartz said their Courtyard by Marriott hotels could take a couple of years to build and open versus 18 months previously.
Service Properties Trust has sold 42 Sonesta-branded hotels for $397.6 million. An extra 22 hotels are under purchase and sale agreements for an aggregate sales price of $141 million. The company continues to market four other hotels for sale. Most sales will close by June.
According to the latest Construction Pipeline Trend Report from Lodging Econometrics, at the end of Q1 ‘22, China’s total hotel construction pipeline reached record high project and room counts, standing at 3,711 projects/704,101 rooms. China has 2,623 projects/477,245 rooms presently under construction. Franchise companies topping China’s construction are Hilton Worldwide, InterContinental Hotels Group, and Marriott International. Side note: China is Marriott’s second-largest market, with 400-500 open hotels and roughly 400 more in the pipeline.
Skift Note: Fascinating that Wyndham Hotels isn’t biting on a possible acquisition of Radisson. Also, that’s reassuring news from Marriott International, Service Properties Trust, and Chinese developers.
Tuesday, May 24
Accor and Nomura Real Estate Development Co., Ltd introduced Fairmont Tokyo, slated to open in 2025. This will be the luxury hotel’s first in Japan and will feature 219 guestrooms with views of Tokyo Bay from the upper floors of the South Tower of the Shibaura Project.
Goldman Sachs lowered their target price on Membership Collective Group (parent company of Soho House) to $8.50 from $9.50. They maintained their Sell rating.
The Kessler Collection revealed plans for a $150 million+ mixed-use village development in Cashiers, NC. The 24.5-acre development will incorporate diverse accommodations, including a boutique lodge, mountain cottage, and glamping cabins, as well as two restaurants with a rooftop bar, a café, high-end shopping, art spaces, and an event pavilion — plus a residential village. The Kessler Collection also announced The Grand Bohemian Hotel building project in Greenville, SC, is coming to a close. The hotel features 187 guest rooms.
Nobu Hospitality announced its fifth hotel and restaurant. Nobu Hotel Madrid will see the transformation of an existing office building and be developed by Millenium Hospitality Real Estate SOCIMI.
Skift Note: It’s great to see innovative concepts from brands like Fairmont, Kessler Collection, and Nobu.
Wednesday, May 25
San Francisco hotel occupancy reached a pandemic high of 67.2% last month, with an average daily room rate of $226.59, another high, reported the San Francisco Chronicle. The upside is leisure travel, and business conferences are seeing a comeback. The downside is China, the top market for San Francisco tourists before the pandemic, which has banned nonessential travel overseas. The 1,024-room Parc 55, the city’s last major hotel still closed by Covid, reopened last week. Three new and renovated hotels, 1 Hotel, Luma Hotel, and Beacon Grand, will open in June, with the Line SF set to open in late summer. Hotel demand was up 118% in the first quarter, compared to the same time last year. San Francisco Travel expects visitor volume and spending to recover by 2024 fully.
The 191 room St. Regis Chicago has been delayed again. The June launch is now expected to be a February 2023 launch due to supply chain issues and a deal with Alinea Group falling through. Magellan Development Group is the developer. The hotel rooms will be on the lower 11 floors of the tower and are mostly completed, but the fine dining restaurant needs to be built.
Mission Pacific Hotel unveiled Top Gun House, a meticulously restored classic 1887 bungalow featured in the Top Gun film, which is now the home of High-pie. The opening marks the completion of the final phase of Mission Pacific Hotel and sister property, The Seabird Resort, both located in Oceanside, CA.
Harolds Evotel is gradually expanding its operations by launching another brand in Manila, specifically Quezon City. The first hotel in the Philippines was completed in Cebu City. GOH Management Inc., owners of Harolds Evotel, are setting their sights elsewhere, starting with Metro Manila. Harolds Evotel Quezon City construction began in 2019. The 18-story hotel will have 145 rooms and suites, with its soft opening in July 2022.
Skift Note: Let’s hope San Francisco’s full recovery is faster than 2024.
Thursday, May 26
Pro-invest Hotels announced the opening of the Holiday Inn Express Auckland City Centre. This is a joint partnership between Pro-invest Hotels and IHG Hotels & Resorts, a dual-hotel development that also includes the 201 room voco Auckland City Centre which opened its doors earlier this month. The Holiday Inn Express features 294 well-appointed guest rooms and can access the restaurant and rooftop bar at the neighboring voco. The rooftop bar, Bar Albert, on Level 38, will open in early August.
Meanwhile, Pro-invest is looking to cash in, or out, on the resurgent institutional investor demand, putting a $1 billion (Australian dollars) portfolio of Holiday Inn Express hotels on the market for sale, reported AFR. The collection has eight select-service hotels in Sydney, Melbourne, Adelaide, Brisbane, Newcastle, and New Zealand’s Queenstown and totals around 2,000 rooms. Pro-invest developed all as part of its first Australia Hospitality Opportunity fund, which raised $300 million (Australian dollars) from mostly offshore investors to fund new hotel development in 2016. A third fund, which Pro-invest hopes to raise $500 million (Australian) for, already made its first acquisition, buying the Sebel Canberra Campbell hotel this month.
Skift Note: Few things better highlight institutional demand in hotels as an asset as this Pro-invest asset sale.
[ad_2]
Source link