Accor adds in UK. AccorHotels has signed a UK portfolio of six Mercure hotels (864 rooms) under a hotel management agreement with Proark, a Danish-based real estate property group. The properties will receive a capital investment of £15m and be rebranded from Park Inn to Mercure.
Tommy sells the Raleigh. Miami’s iconic 83-room Raleigh Hotel has been acquired for US$103 million from famed designer Tommy Hilfiger and a Turkish conglomerate by a joint venture between Deutsche Finance America, Bilgili Holding and SHVO. The new joint venture, which has not announced its plans for the property, purchased the hotel in an all cash transaction in partnership with a number of Germany’s largest institutions, including Bayerische Versorgungskammer (“BVK”), Germany’s largest manager of public pension schemes. The partnership wants to expand its portfolio into other global hubs, especially Los Angeles and New York City.
Hyatt’s Q4 beat. Hyatt Hotels Corp.’s Q4 2018 earnings beat expectation despite weaker-than-expected RevPAR growth. For the full year, comparable system-wide RevPAR growth was 3.1%, which is below the low end of Hyatt’s most recent 3.25%-3.75% guidance range. For 2019, RevPAR growth guidance was maintained at 1-3%. More positively, Hyatt expects net unit growth to be 7%-7.5% in 2019 despite some hotel openings shifting into 4Q18.
More fans for Big Apple. Mandarin Oriental Hotel Group has agreed to brand and manage 69 residences scheduled to open in 2021 on New York City’s Fifth Avenue. Mandarin Oriental Residences at 685 Fifth Avenue are being developed in a 1920’s building on the corner of Fifth Avenue and 54th Street. The owners and developers of the project are SHVO, BLG Capital and Deutsche Finance America.
Massive project for Spain. A smart city called Elysium City is set to be built in Castiblanco, Spain, and will be home to several sustainably designed resorts, a huge theme park, an 18-hole golf course and its own high-speed train system. The massive project is being developed by Cora Alpha, a U.S.-based tourism and leisure development company that created Disneyland California’s Adventure Theme Park and the Downtown Disney District. The first stage of the project is set to open in 2023 and will include a 5-star hotel, a huge theme park with its own on-site hotel, an adventure water park, a marina and a stadium that will host sports and musical performances. It will also have 2,000 homes for Elysium’s new residents. The second phase is set for completion in 2028 when another five luxury hotels will open.
Red Lion’s 2018 growth. RLH Corp. reported it achieved a record 167 executed hotel franchise agreements with the signings of 37 mid- and upscale hotels and 130 select-service hotels in 2018. The brand has also acquired over 350 select-service franchise agreements with the acquisition of Knights Inn and now encompasses over 85,500 rooms — an increase of 24% from 2017 — with upscale brands comprising 8% of RLH Corp.’s hotels.
Red Collection in NYC. Red Roof is introducing the 78-room Lord & Moris Times Square Hotel as part of its newly launched soft brand, The Red Collection. This marks the third property, second franchised hotel, and first location in New York City. The property is being managed by Real Hospitality Group. It’s just a short walk to some of New York’s most famous attractions including the Empire State Building, Broadway theatres, and the Vessel at Hudson Yards.
Sandpiper loves WoodSpring. Sandpiper Lodging Trust (SLT) has acquired four WoodSpring Suites Hotels from Wills Capital Partners, LP. Three of the properties are located in Texas (Austin, San Antonio and Odessa) and one in Clarksville, Tennessee. SLT now owns 13 properties operating as WoodSpring Suites located in five states from the Mid-Atlantic region to Texas.