Fattal grows Europe again. Israeli hotelier David Fattal’s Fattal Holdings continues to expand its European business announcing will acquire a Dutch holding company with ownership, rental and management rights to 12 hotels having an aggregate 1,938 rooms in the Netherlands. Fattal has been given a six-week exclusivity period to carry out due diligence for the Dutch company before signing a final acquisition agreement priced at €160 million (US$196 million). Fattal Holdings currently holds 170 hotels with 33,000 rooms in 17 countries. The company has 130 hotels in Europe.
Ashford buys project manager. Ashford Inc. has announced a definitive agreement to acquire Remington Holding’s project management division for US$203 million, which will allow Ashford to increase the breadth of services provided to its managed REITs. The transaction is expected to close in Q3 2018 and be immediately accretive to adjusted net income per share. Its operations are responsible for managing and implementing substantially all capital improvements at Ashford Hospitality Trust and Ashford Hospitality Prime. In 2017, Remington Project Management had revenues of approximately US$29 million and adjusted EBITDA of approximately US$16.3 million.
The Ascott accererates. CapitaLand’s wholly owned serviced residence business unit, The Ascott Ltd., is accelerating its expansion in Asia by forging strategic partnerships with developers in China, Japan and Thailand to manage apartments currently under development as well as future projects by these companies. In China, Ascott has partnered specialty township developer, Riverside Group. In Japan, Ascott will cooperate with the listed real estate company NTT Urban Development Corp. to jointly explore serviced residence opportunities in Japan. In Thailand, Ananda Development has expanded into the serviced residence business through its strategic alliance with Ascott.
Scarlett cares. Scarlett Hotel Group, Chicago and Nashville, has acquired from River City Lodging LLC its third property, the 113-room Marriott Fairfield Inn & Suites Downtown Omaha in Nebraska.
Columbus, Georgia, deals. Banyan Investment Group has acquired from Cascade Group for about US$21 million the 120-room Hilton Garden Inn Columbus, and the 91-suite Homewood Suites by Hilton Columbus, both in Georgia, bringing their combined portfolio of owned and operated hotels nationwide to 16. The company also will manage the hotels and oversee US$3.8 million in renovations and enhancements.
Crypto crisis? Investors reportedly are walking away from a US$675 million deal to purchase New York’s storied Plaza Hotel, in part by raising $375 million via an initial coin offering in which investors are offered cryptocoins instead of traditional stock.
London ADR decline. STR’s preliminary March 2018 data for London indicates overall performance declines, breaking a 16-month streak as the first with a year-over-year ADR decline in London since October 2016. In year-over-year comparisons:
- Supply: +1.9%
- Demand: +0.9%
- Occupancy: -0.9% to 79.8%
- ADR: -1.2% to £138.55
- RevPAR: -2.2% to £110.52
Dubai growth. STR’s preliminary March 2018 data for Dubai indicates strong growth in both supply and demand. The increase in ADR would be the first for the market since April 2017 and only the second overall since July 2014. In year-over-year comparisons:
- Supply: +5.4%
- Demand: +4.7%
- Occupancy: -0.6% to 85.7%
- ADR: +0.5% to AED752.49
- RevPAR: -0.1% to AED644.97
China in Africa. Zimbabwe President Mnangagwa has witnessed the signing of a Memorandum of Understanding that will unlock US$1.2 billion worth of investments into the tourism and hospitality industry from a Chinese company, Touchroad International Holdings Group in Hanzhou Province, which had been denied the deal for three years under the previous dispensation.