Best Western names successor CEO: Best Western Hotel Group at its 2021 North American Congress has appointed Larry Cuculic as the new president and CEO, succeeding David Kong, who will be retiring at the end of 2021 after 17 years in the role. Cuculic has served as Best Western’s senior vice president and general counsel, responsible for guidance on all legal issues at the corporate level and with membership. He is also responsible for Best Western’s human resources functions, reservations, customer service operations and hotel development administrative support.
Highgate grows UK portfolio: Real estate investment and hospitality management firm Highgate announced the acquisition of Dorsett City London Hotel and the addition of the management of the 130-unit Grosvenor House Suites in London. The additions to Highgate’s portfolio mark the company’s return to the European market and the U.K. The Dorsett City London Hotel deal is part of the new partnership between Highgate and Cerberus. As part of Grosvenor House Suite’s management deal, Highgate is partnering with the hotel’s owner to develop the renovation and future positioning to relaunch the hotel.
CIM closes bridge loan to refinance REVERB Hotel: CIM Group, Los Angeles, California, announced that a fund managed by its affiliate closed a bridge loan worth US$43.2 million given to Bolton Atlanta, LP to refinance the 195-key REVERB Hotel by Hard Rock, 245 parking stalls in the parking deck and a 12-story LED billboard in Atlanta, Georgia. Will James of Colliers arranged the borrower’s financing. CIM recently closed a US$67.5 million loan through its CIM Real Estate Debt Solutions business for a 189-key boutique hotel in San Francisco, California.
US performance declines: Hotel performance in the U.S. fell compared to the previous week, according to STR’s latest data through October 2.
- Occupancy: 61.7% (-9.2%)
- Average daily rate (ADR): US$130.87 (+1.2%)
- Revenue per available room (RevPAR): US$80.78 (-8.2%) Â Â
Among the top 25 markets, only Phoenix saw occupancy rise over 2019 (+1.8% to 66%). It also saw the largest RevPAR gain (+15.2% to US$88.82). Occupancy fell the most in Oahu Island (-43.8% to 46.1%). San Francisco/San Mateo (-52.6% to US$97.51) and Oahu Island  (-50.1% to US$94.06) recorded the highest RevPAR deficits.
AJ Capital acquires in the UK: The Slieve Donard Resort and Spa in Newcastle will be sold to Chicago, Illinois-based AJ Capital Partners in a deal worth €47 million (US$54.33 million). The 130-unit luxury, aparthotel will be operated by AJ Capital under its Marine & Lawn Hotels & Resorts brand. With the acquisition, Highgate will be returning to London after exiting the market in 2019. The hotel has been owned and operated by the Hastings family since 1972. The group runs six more hotels in Northern Ireland. After the sale, all roles will be retained and new reservations will be looked into by the new owners.
Sonder debuts in France: Sonder Holdings Inc., San Francisco, California, debuted in France after it launch inaugural operations with the management of the 48-unit Sonder Atala in Paris. The company recently appointed Jean-Charles Denis as the General Manager for France to oversee the company’s expansion and hospitality operations. He will also be leading Sonder’s ongoing growth in Paris and other cities in France. Sonder plans to pursue aggressive expansion in North America, Europe and the Middle East. Sonder currently operates in more than 35 cities in 10 countries and has about 15,000 global contracted and live units.
Marriott, Rakuten announce alliance: Marriott International and Rakuten Group, Tokyo, announced a strategic collaboration to develop an integrated, seamless travel experience and allow members to enjoy benefits from Rakuten’s as well as the Marriott Bonvoy loyalty programs. The agreement will enable Marriott Bonvoy to directly connect with Rakuten members and offer them experiences from the portfolio of Marriott Bonvoy’s 30 global hotel brands. It will also allow Marriott Bonvoy to directly market with Rakuten’s customers with customized promotions and content. Slated to launch in phases from late-November, the alliance will allow eligible Rakuten members to enroll in Marriott Bonvoy on the Rakuten platform and avail Marriott Bonvoy benefits, earn and redeem points and also access exclusive experiences. Rakuten has more than 100 million members in Japan, with round 70 services integrated with the Rakuten Points, its flagship loyalty program.
Construction industry recovery: The construction industry has managed to recover quickly despite the challenges brought on by the pandemic as the unemployment rate in the construction sector fell to 4.6% in August 2021 as compared to 7.6% in August 2020, according to the H2 2021 Construction Outlook report by JLL. Total employment rose to 7.4 million in August 2021 from 7.2 million in August 2020. The total construction cost growth is projected to rise 4 to 7% over the 12 months. Although the labor market has significantly recovered, declining unemployment rates coupled with steep rise in wages will result in wages rising between 3 to 6%. Despite the revival of the sector, the slower winter months will mean the rebound in construction volume is likely to happen after spring or summer 2022.
LBA Hospitality adds to management portfolio: LBA Hospitality, Dothan, Alabama, has secured the management contract of the 112-key Fairfield Inn & Suites Houston League City. The hotel, owned by Dilip Patel, Ajay Patel and Naresh Patel, operates as a Marriott franchise property. LBA’s portfolio of hotels are mostly located in the Southeast and Southwest.
TUI to raise US$1.27 billion in equity: Reporting a rise in holiday bookings in late summer, TUI Group, Hanover, will reportedly raise €1.1 billion (US$1.27 billion) in equity to repay its debt. The German travel company has outstanding loans worth €4 billion (US$4.62 billion) but has been bailed out several times by Germany. According to TUI, summer bookings rose to 5.2 million as compared to 9 million in pre-COVID summer times. After the increase in capital, the group’s cash and available facilities is expected to rise to €4.5 billion (US$5.2 billion), up from €3.4 billion (US$3.93 billion) on October 4.
Parkdean up for sale? Parkdean Resorts, Newcastle upon Tyne, is likely to be put up on sale by its Toronto-based owner Ownex Corporation. Onex, which acquired Parkdean in 2016 for ÂŁ1.3 billion(US$1.76 billion), is reportedly in talks with investment banks about an auction of the hospitality business. The sale is expected to fetch more price than what Parkdean bought it for. Parkdean currently owns more than 65 holiday parks in the U.K.
Nod for Vegas hotel-casino: A casino company owning six properties in and around Las Vegas, Nevada, received the approval from county lawmakers to develop a new hotel-casino southwest of the Strip. Construction for the 200-room, 216-foot-tall building is likely to start from early 2022. A second phase of development is expected to add another tower and additional hotel rooms, besides other features. Station Casino has been the owner of the undeveloped 71-acre land since 2000. The company owns nine casinos, 10 restaurant, bar and sports betting properties.
French honors for Peninsula COO: The Hongkong and Shanghai Hotels, Hong Kong, (HSH) announced that France has bestowed the distinction of Chevalier dans l’Ordre National de la Legion d’Honneur and Chevalier dans l’Ordre du Merite Agricole on the company’s Chief Operating Officer Peter Borer at a private ceremony at The Peninsula Hong Kong. Borer joined HSH in 1981 and was made general manager of The Peninsula Hong Kong in 1994. He took on additional regional responsibility in 1999 and was made the chief operating officer in 2004. “In recognition of his outstanding work with France and with French companies, his unwavering commitment to the Peninsula project in Paris, and his dedication to the promotion of France’s gastronomic culture, the French government has decided to bestow upon Mr. Borer both the titles,” said Alexandre Giorgini, Consul General of France to Hong Kong and Macau.