Where Hilton stands: According to analysis by Baird Equity Research, while 4Q18 results easily topped expectations and guidance (primarily due to better-than-expected 7.5% RevPAR growth in the owned/leased portfolio and strong licensing fees, which more than offset system-wide RevPAR growth at the low end of the guidance range), the firm expects the focus to be on Hilton’s updated 2019 RevPAR growth guidance, which, while not overly surprising, was reduced by 100 bps to 1.0%-3.0%.
Raleigh sells for US$103M: The historic Raleigh Hotel property in Miami was purchased today by a joint venture between Deutsche Finance America, Bilgili Holding and SHVO. The partnership purchased the property for US$103 million from Tommy Hilfiger and Turkish conglomerate Dogus Group, which had owned the Raleigh since 2014. The 83-room hotel is an icon of South Beach art deco, known especially for its ornate beachside swimming pool, which LIFE Magazine called “the most beautiful pool in America” in 1947. The new joint venture purchased the property in an all cash transaction in partnership with a number of Germany’s largest institutions including Bayerische Versorgungskammer, Germany’s largest manager of public pension schemes. The acquisition of the Raleigh marks the second joint investment between New York City based development firm SHVO, Turkish investment group Bilgili Holding and investment management firm Deutsche Finance after acquiring 685 5th Avenue in New York six months ago.
Wyndham Q4: 4Q EBITDA was largely in-line, with RevPAR ahead of pre-earnings estimate, according to SunTrust Robinson Humphrey. Adjusted EBITDA of US$125 million was in-line with the firm’s pre-earnings projection of US$125 million. Further Adjusted Diluted EPS was $US0.62. RevPAR of +8% compares to the firm’s pre-earnings estimate of +6% (this estimate reflects the total portfolio year-over-year change inclusive of the positive impact of La Quinta). Excluding La Quinta/Knights Inn, global RevPAR was +2% in constant currency. Net rooms growth of +11% compares to the firm’s pre-earnings estimate of +12%. Excluding La Quinta/Knights Inn, rooms growth was +2%.
Corinthia in Moscow: IHI plc, the Malta-based owners of the Corinthia Hotels Group, is developing a luxury Corinthia Hotel & Residences project in Moscow. IHI is acquiring a minority share in a company being formed with a consortium of investors to acquire a property at 10 Tverskaya, Moscow’s principal avenue leading onto the Kremlin and Red Square. The consortium has plans to create a luxury Corinthia Hotel and branded serviced apartments for sale. An element of high-end retail will be featured alongside Tverskaya. No estimated opening date was given.
Four Seasons movement: Four Seasons Hotels and Resorts will debut nine new hotels and resorts globally this year in addition to continued expansion of its residential portfolio. Properties include Four Seasons Astir Palace Hotel Athens; Four Seasons Hotel and Private Residences Bangkok at Chao Phraya River; and Four Seasons Resort and Residences Napa Valley.