OKO’s new financing for Aman New York: In what was termed a highly competitive bidding process, JPMorgan Chase reportedly has provided a three-year, US$754 million bridge loan to Aman Chairman Vladislav Doronin’s OKO Group for the soon-to-open, mixed-use Aman New York at the Crown Building. JPMorgan’s financing takes out the construction loan provided by Bank OZK and Cain International in 2019. The 83-room hotel is joined by 22 residences, which are reportedly close to selling out with one full-floor unit recently having sold for US$55 million.
Homes & Villas by Marriott launches in Asia Pac: Homes & Villas by Marriott International, a curated collection of premium and luxury home rentals by Marriott Bonvoy, has launched in Australia and New Zealand, marking its expansion into the Asia Pacific region. The debut in these markets adds more than 350 premium and luxury homes in key leisure destinations like Sydney, Melbourne, Brisbane, Perth and Orange in Australia and Queenstown and Auckland in New Zealand. These homes add to Marriott Bonvoy’s existing portfolio of over 29 hotels across 13 other brands in Australia and New Zealand.
Mandarin’s alpine resort: Mandarin Oriental Group, Hong Kong, has signed a long-term management agreement with Attestor Ltd., London, to manage and rebrand Hotel Cristallo in Cortina d’Ampezzo, Italy. The historic property will undergo renovations after it closes in the second quarter of 2023 and will reopen in summer 2025 as a Mandarin Oriental resort, ahead of the 2026 Milano-Cortina Winter Olympics. Renovations include an extension created by architects Herzog and deMeuron. Once it reopens, the hotel will comprise 83 rooms, including 30 suites with views of the Dolomites. Mandarin Oriental Cristallo, Cortina will mark the group’s first alpine resort. The hotel, which sits above a mountain village, was built in 1901 by the Menardi family and became a popular ski destination in the 1930s. It was acquired in 2021 by funds managed by Attestor Ltd., which also owns Mandarin Oriental, Lago di Como.
Summit closes acquisition of dual-brand in Miami: Summit Hotel Properties, Austin, Texas, has completed the acquisition of the dual-branded 264-key AC Hotel by Marriott and Element Miami Brickell. The group’s initial purchase option was based on a hotel evaluation of US$89 million (US$337,000 per key). Summit financed its 90% equity interest amounting for US$38 million with the conversion of the recently funded US$30 million mezzanine construction loan, which earned 9% cash interest in the loan term and US$8 million in cash. The transaction was funded with the assumption of a US$47 million mortgage loan. Summit expects the hotel to generate a combined EBITDA yield between 8%-9% in 2022. The project was developed by Miami, Florida-based Robert Finvarb Companies, which will remain Summit’s joint venture partner with 10% equity. A letter of credit worth US$10 million that supported the equity purchase option was released and Summit will retain the option to acquire the rest 10% equity interest in December 2026.
Portugal’s recovery outlook: Portugal’s tourism sector is expected to drive the country’s economic recovery and will exceed pre-pandemic levels in 2023, when it is projected to increase by 4.8% over 2019 levels, showed forecast from the latest Economic Impact Report by the World Travel & Tourism Council. The tourism sector’s contribution to GDP is set to reach around €39.5 billion (US$41.29 billion) in 2023, accounting for 17.4% of the total economy. Employment is also projected to exceed 2019 levels, creating over 3,200 more jobs, to reach over one million by 2023-end. Travel and tourism’s GDP is projected to grow at an average 3.4% annually in the next decade, more than thrice the 1.1% growth rate of the nation’s overall economy, to touch over €50 billion (US$52.26 billion), which is 20.2% of the total economy, by 2032. The travel and tourism sector has been showing a good recovery in Portugal and the sector’s total contribution to GDP by the end of this year is likely to surge 54.7% to over €35.8 billion (US$37.42 billion), representing 16.2% of the total GDP. As per flight booking data, Portugal is expected to be the fourth most popular European destination this summer with a 179% YOY jump of international arrivals and only 9% behind pre-COVID figures. Employment will grow 5.6% to touch almost 953,000 jobs. Flight bookings also exceeded pre-pandemic levels, with bookings from the U.S., Netherlands, Denmark and Germany rising 41%, 36%, 29% and 11% respectively.
The Siegel Group adds 5: The Siegel Group, Las Vegas, Nevada, has acquired a portfolio of five extended-stay properties earlier operating under the Hamilton Inn Extended Stay brand for US$29 million. The five properties consist of 562 studio and one-bedroom units with four of the properties located in Chattanooga, Cleveland and Knoxville, all in Tennessee, and in Acworth, Georgia. The acquisitions grow the number of Siegel Suites and Siegel Select properties across the U.S. to 66 and is the company’s first location in Georgia. The Siegel Group will operate the properties under its Siegel Select brand and will be renamed Siegel Select Chattanooga, Siegel Select Chattanooga 2, Siegel Select Cleveland, Siegel Select Knoxville, and Siegel Select Atlanta/Acworth. Siegel will be making several improvements to the properties, including upgrades to the furniture and appliance packages and room amenities. The group has added eight Siegel Select locations within the last 60 days.
Marriott Bonvoy updates Android app: Marriott Bonvoy, Marriott International’s travel program and marketplace, has launched a redesigned version of its Android mobile app. The app now features new travel shopping options based on destinations and access to more of Marriott’s travel offerings. Guests can browse and book premium and luxury vacation rentals from Homes & Villas by Marriott International along with Marriott Bonvoy’s portfolio of 30 brands and over 8,000 hotels, and book Free Night Award and Suite Night Award redemptions. Users will be able to access the best available rate and personalized recommendations and offers to make full use of their points. The app is available in English, French, Spanish, German, Korean, Japanese and Chinese as of now with more language support to come.
Highline Hospitality acquires Sheraton Suites: Highline Hospitality Partners, New York City, has acquired the 278 all-suite Sheraton Suites Galleria-Atlanta in a joint venture with an affiliate of Dallas, Texas-based Paceline Equity Partners. The full-service hotel marks Highline’s sixth property and first strategic investment with Paceline. The hotel was developed in 1990 and underwent a full renovation in 2013.
Provenance sells minority stake in Woodlark Hotel: Provenance Hotels, Portland, Oregon, has sold its minority interests in the 151-room Woodlark Hotel in Portland to majority shareholder NBP Capital at an undisclosed price. NBP has also acquired the management rights of the hotel. NBP and Provenance continue to work together on two other projects in Seattle, Washington. Provenance’s current portfolio comprises 13 properties.