Interstate on the block?: Kohlberg & Co. is reportedly exploring its options to sell Interstate Hotels & Resorts, which could fetch about US$1 billion, according to people with knowledge of the matter. The private equity firm has tapped advisers to seek interest from potential suitors for the third-party hotel management company.
Trouble for Oyo?: A day after increasing his stake through a US$2 billion equity buyback from early investors, Ritesh Agarwal’s Oyo budget chain faces opposition from hotel partners in India over what they call new and unfamiliar fees on an ad hoc basis. In some of the cases, the commission rates reportedly have gone up to 30%. As a result, the Federation of Hotels and Restaurant Association of India has registered a complaint against Oyo to the Competition Council of India. The hearing of the case is scheduled on August 6.
Condor REIT sold: Canadian REIT NexPoint Hospitality Trust has agreed to acquire Condor Hospitality Trust for US$11.10 per share in all-cash transaction. The per-share purchase price, which equates to a US$318 million, is approximately in line with analyst’s estimates and just shy of the 52-week high achieved in early 4Q18. The price represents a premium of approximately 34% over Condor’s unaffected share price of US$8.27 as of July 19, 2019. The deal is expected to close in 4Q19 and about 53% of outstanding common shareholders (iIRSA and StepStone) have agreed to vote in favor of the merger. NexPoint will acquire 15 select-service and extended-stay properties, representing 1,908 guestrooms across eight U.S. states.
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Atlantis for sale?: Brookfield Asset Management is reportedly exploring the sale of Atlantis Paradise Island Resort in the Bahamas, Bloomberg reported, citing people with knowledge of the matter. Brookfield is working with an adviser to solicit potential interest in the resort, which includes multiple hotels, a casino and more than 10 swimming pools. Toronto-based Brookfield declined to comment.
Airbnb for work: Airbnb has launched a new feature that makes it easier to use for business travel – a “for work” search function that provides work-friendly listings where hosts indicate there are smoke and carbon monoxide detectors.
Anbang unloads in Amsterdam: French insurance group AXA has acquired the 557-key DoubleTree Hotel by Hilton Amsterdam Central from China’s Anbang Insurance Group, the China-based insurance group for a reported €425 million (US$861,000 per key). Hilton will retain management. In 2017, Anbang bought the hotel from The Blackstone Group for €350 million.
Red Planet Hiroshima sells: AXA Investment Managers – Real Assets is investing US$41.5 million to buy the Red Planet hotel in Hiroshima, Japan, from a joint venture between GreenOak Investment Management KK and Red Planet Japan. Due for completion in the second quarter of 2020, Red Planet Hiroshima will comprise 160 bedrooms, 14 parking spaces and a restaurant. The deal adds to AXA IM Real Assets’ US$2.8 billion portfolio of hotels across 11 countries that it manages on behalf of clients. It is the third addition to its Japan hotels portfolio.
Phuket deal: Cross Hotels & Resorts, Bangkok, has announced a management deal with PT Three Land Co. Ltd. for its third Phuket, Thailand, property inside 12 months, the 323-room X2 Vibe Phuket Patong Center. The hotel is set to open in mid-2021 and follows the debut of X2 Vibe Phuket Patong in September 2018 and the signing of Away Phuket Le Coral in May 2019.