Deals at AHIC. Multiple deals have been announced at the Arabian Hotel Investment Conference in the UAE’s Ras Al Khaimah. The Indian Hotels Co. Ltd. has partnered with Umm Al Qura Development and Construction Co. to develop a Taj hotel in the King Abdul Aziz Road (KAAR) project, one of the largest urban rejuvenation projects in the city of Makkah, Saudi Arabia. Scheduled to open in January 2023 with approximately 340 keys, IHCL’s first hotel in the Kingdom marks its fourth venture in the MENA region. It will also open another two hotels in Dubai in the next 12 to 18 months. IHG has signed a Master Development Agreement with Saudi Arabian business conglomerate Al Hokair Group, to rollout of at least 10 Holiday Inn Express hotels over next 15 years. And Emaar Properties announced the launch of the company’s first hotel and residences project in Ras Al Khaimah, located in the Views island of Al Marjan Island, a four-island mega-development. The 249-room Address Al Marjan Island hotel with 234 residences will be managed by Emaar Hospitality Group’s Address Hotels + Resorts.
No wasting away. KSL Capital Partners has purchased the Margaritaville Hollywood Beach Resort in two deals from a joint venture between developer Lon Tabatchnick and Starwood Capital Group for US$126.5 million (about US$362,000 per room), according to The Real Deal. The deed traded hands for US$97.93 million and the ground lease for US$28.59 million. The buyer financed the deal with a US$123.5 million mortgage from Bank of America.
Record March. The U.S. hotel industry reported record-breaking performance in March 2018, according to data from STR. Occupancy was up 0.9% to 68.5%; ADR jumped 3% to US$131.56; and RevPAR increased +3.9% to US$90.17. The increase in ADR was the largest for any month since January 2017. The month marked the 97th consecutive RevPAR increase.
Wynning hand. Elaine Wynn, the largest individual shareholder in embattled Wynn Resorts, is looking to shake up the company’s board a day after settling long-running litigation with her ex-husband, Steve Wynn, who stepped down as chairman of the company they co-founded after allegations of sexual impropriety.
Hyde Miami trades. The Related Group and Dezer Development sold the hotel component of Hyde Midtown in Miami for US$21.8 million, according to The Real Deal. Property records show Midtown Hotel Investment, led by Haim Yehezkel, bought the yet-to-open 60-room hotel. Yehezkel heads Elysee Investments, a commercial investment firm in Miami Beach and New York. The buyer financed the deal with a US$14.5 million mortgage from Bank of America. The hotel sold for about US$363,000 per suite. When it opens, Hyde will be the first hotel in Midtown Miami and managed by Sbe.
Eco plays in Mexico. Destino Xcaret, Riviera Maya, Mexico, has announced plans for its second hotel project, La Casa de la Playa, an eco-focused boutique hotel featuring 63 suites and set to open in the summer of 2019.
So Dubai. AccorHotels’ has announced the debut of its experience-driven So brand in the Middle East with the So/Uptown Dubai. The hotel is set to open by late 2020 and will feature 188 rooms in addition to 215 branded residences. Rockwell Group will lead the architecture and interior design experiences.
Good news in South America. South America hotel demand is growing at a quicker pace than supply for the first time since 2011, according to data and analysis from STR. For 2017, demand increased 4.9%, while supply rose 2.6% in year-over-year comparisons. The growth was based on a 7% increase in international visitors in 2017.