U.S. travel trends: Growth of both international and U.S. domestic travel are on target to decelerate in the first few months of 2019, owing to a number of worrying trends. U.S. domestic travel grew 3% year-over-year in November, with both business and leisure travel registering gains due to historically high levels of consumer confidence. At the moment, that segment’s year-over-year growth is expected to slow to 2.4% through May 2019, with the business segment outpacing leisure travel. U.S. Travel economists caution that the road ahead for domestic business travel could become rocky as well.
Dream in Mexico: New York-based Dream Hotel Group will launch the Dream Hotels brand in Valle de Guadalupe in 2021. The latest hotel signing with Baja California-based Cosmopolitan Group marks the first Dream Hotel location and third hotel deal signed in Mexico within the last 12 months.
Ascott Raffles Place Singapore sells for US$261M: Singapore-based Ascott Residence Trust REIT has reached an agreement with private investor Cheong Sim Lam to sell Ascott Raffles Place Singapore for SGD353 million (US$261million). The sale price is 64.3% higher above the property’s latest valuation of SGD215 million (US$158 million) as of December 31, 2018. Formerly known as Asia Insurance Building, the 20-story conserved building has a gross floor area of 168,952 square feet with 146 serviced apartments. Cheong Sim Lam, whose family developed Hyatt Regency Singapore, International Plaza, and Pacific Mansion, is also the developer of residential projects such as Robinson Suites and the previous owner of 137 and 139 Cecil Street. Once the deal is completed in May 2019, Ascott Reit should net approximately SGD134 million (US$99 million).
Archer JV: Amsterdam-based APG and GIC Real Estate have established a jointly owned specialist European hotel investment vehicle, Archer Hotel Capital B.V., following the acquisition of Host Hotels & Resorts’ minority limited partner and general partner interests in the European joint venture. Archer Hotel Capital will be headquartered in Amsterdam and will also maintain an office in Central London. All former European-based employees of Host have transferred to the new platform and selective additional hires will be made during 2019. The shareholders intend to commit €300 million (US$343 million) in additional equity to the vehicle to capitalize on opportunities to further enhance one of the best quality portfolios of its type in Europe. The Archer Hotel Capital portfolio currently comprises 11 hotels located in major cities across Western Europe with a gross asset value of circa €2 billion (US$2.2 billion).
Animal Kingdom hotel sells: Located near Walt Disney World’s Animal Kingdom theme park, the 295-Room Baymont Inn & Suites by Wyndham in Celebration, Florida has sold to 7601 Black Lake Rd, LLC from CC, LLC, a Florida based company. The new owner intends to renovate the property and further increase its market share. Selling price was not disclosed.