A quick roundup of global hospitality news.
REALTY INCOME TO INVEST $950M IN BELLAGIO: Realty Income Corp., The Monthly Dividend Co. and Blackstone Real Estate Income Trust, Inc. have announced that Realty Income has signed a definitive agreement to invest $950 million to acquire common and preferred equity interest from Blackstone in a new joint venture. The joint venture owns a 95% interest in the real estate assets of The Bellagio Las Vegas. Once it closes, Realty Income will invest $300 million of common equity in the joint venture to acquire a 21.9% indirect interest in the property, while Blackstone will retain a 73.1% indirect interest and MGM Resorts International will retain a 5% interest. Additionally, Realty Income will invest $650 million to acquire a yield-bearing preferred equity interest in the joint venture. The deal is expected to close in Q4 2023 and is subject to customary closing conditions. The Bellagio currently has an existing triple net lease with 26 years remaining term. The resort, which has 4,000 rooms and suites across two towers, is operated and maintained by MGM. The resort also includes 157,000 square feet of gaming space, 200,000 square feet of meeting and event space, several Michelin-star dining options and the iconic Fountains of Bellagio.
W EDINBURGH TO OPEN THIS WINTER: After nearly a decade since its initial announcement, Marriott International is set to open the first W Hotels-branded hotel in Scotland this winter. According to Marriott’s website, W Edinburgh will open in November. Plans for the 244-room were announced in 2016 when Starwood Hotels was still managing W Hotels before its merger with Marriott. The property is part of the mixed-use St James Quarter in the city’s East End. St James Quarter also includes an aparthotel. The hotel features a signature Sushisamba restaurant and cocktail bar, a lounge, a rooftop deck with 360-degree views of Edinburgh, a spa and a fitness center. This will be the second W Hotels property in the U.K., joining W London, which opened in 2011.
GRAMERCY PARK HOTEL TO REOPEN: MCR Hotels and MORSE Development are set to open the iconic Gramercy Park Hotel in New York. After staying closed since the onset of the pandemic, the hotel is expected to open in 2025. MCR recently signed a 99-year ground lease with Solil Management for the hotel. The iconic hotel will undergo extensive renovations, which include revitalizing the lobby, first-floor restaurants and bars and all 197 rooms and suites. The 7,000-square-foot rooftop bar with views of Gramercy Park will also be restored. The hotel was earlier operated by Aby Rosen’s RFR Holding, which was sued by the hotel’s landlord, Solil Management, in APRIL 2021 over non-payment of rent worth $80 million. MORSE Development earlier developed the TWA hotel at New York’s JFK Airport. The hotel was built on the site where writer Edith Wharton and architect Stanford White once stayed. Built-in 1924, Gramercy Park Hotel has hosted several politicians, musicians and actors.
MARRIOTT BONVOY, HDFC BANK LAUNCH CO-BRANDED CREDIT CARD: Marriott Bonvoy has teamed up with HDFC Bank to launch the Marriott Bonvoy HDFC Bank Credit Card, the first co-branded hotel credit card in India. The credit card will run on Diners Club, part of the Discover Global Network. The Marriott Bonvoy HDFC Bank credit card will offer several benefits, such as Silver Elite Status with Marriott Bonvoy, which comes with benefits like priority late checkout, Marriott Bonvoy bonus points, exclusive member rates and more. Other benefits include a free night award worth up to 15,000 points, which can be redeemed for a one-night stay at participating hotels, 10 Elite Night credits to accelerate cardholders’ membership status with Marriott Bonvoy, and the opportunity to earn up to three more free night awards.
HILTON’S NEW REGIONAL PROTOTYPE FOR HILTON GARDEN INN: Hilton has launched a regional room prototype for its upscale brand, Hilton Garden Inn. The prototype was launched at the Hilton Garden Inn Roadshow in Bangkok, which showcased the brand’s strategy for expansion in Thailand and Southeast Asia. The new prototype features innovations in design and amenities to enhance guest experience and deliver good investment returns. So far, Hilton Garden Inn has 75 operational properties across Asia Pacific and more than 130 in the pipeline. This year, the brand has hosted around 2 million guests in the region. Since 2021, the brand has been entering new markets and gateway cities in Japan, Thailand, South Korea and Australia. Hilton Garden Inn Da Nang opened earlier this year in Vietnam. This will be followed by more openings in Thailand in the coming years.