Brookfield invests in developer: Brookfield Asset Management, Toronto, is behind a €350 million (US$396 million) investment in Experimental Group, Paris, to develop between 10 and 15 hotels by 2024 in U.S. and U.K. markets. The owner of the Experimental Cocktail Club and the Hotel des Grands Boulevards in Paris has already signed terms to buy a hotel in Ibiza and has two more under negotiation, one in Rome and another in Switzerland, according to an adviser with knowledge of the deals. Brookfield has taken a majority stake in a new real estate business alongside Experimental founders Olivier Bon, Pierre-Charles Cros and Romée De Goriainoff and its original majority shareholder Jean Moueix, whose family own the Château Petrus wine estate. Previously the group, which operates six boutique hotels in Europe, leased hotels and paid for full-scale renovations.
CDL to sell Millennium Hilton Seoul: City Developments Ltd. (CDL), Singapore, announced plans to sell the 680-room Millennium Hilton Seoul in South Korea and the adjoining plot of land for 1.1 trillion won (US$ 846 million). The deal between CDL Hotel (Korea), CDL’s wholly-owned subsidiary, and YD427 PFV, an IGIS Asset Management-managed entity, was reached at on a “willing buyer and willing seller basis.” The proposed sale marks CDL’s fourth hotel sale in the Millennium & Copthorne Hotels Ltd. portfolio since it was privatized and the biggest hotel divestment so far. The proposed sale is likely to be completed by February 28, 2022.
IHG grows in Vietnam: IHG Hotels & Resorts announced the signing of a management agreement with Bao Quan Co., JSC to open in 2022 the 170-key Crowne Plaza Vinh Yen City Centre in Vietnam’s Vinh Yen. As the first upscale and premium international hotel in the region, the hotel is expected to a key hub for people attending the rescheduled 2021 Southeast Asian Games in May 2022, which is being hosted by Vinh Yen. The hotel marks Bao Quan’s first venture into hotel management. IHG currently has 14 hotels across four brands in Vietnam and another 15 properties in the pipeline.
Raffles London at The OWO opening date: Raffles London at The OWO, the new 120-room hotel in the former Old War Office in London, will open in late 2022, announced Raffles Hotels & Resorts and Hinduja Group. The building, which will open to the public for the first time, underwent a five-year transformation and now consists of 120 rooms and suites, 85 branded residences and 11 restaurants and bars. The Hinduja Group led the building’s redevelopment since they acquired it in 2016. Philippe Leboeuf has been appointed as the managing director.
Nobu announces fourth Spanish property: Nobu Hospitality, New York, announced the launch of Nobu Hotel and Restaurant San Sebastian, its fourth hotel and restaurant in Spain. Located in a “culinary mecca,” the 20-key hotel is set to open in March 2023 and will include a 98-seat Nobu restaurant. Millennium Hospitality Real Estate SOCIMI has partnered with Nobu for the property. The renovated hotel sits on the erstwhile Palacio Vista Eder, designed by Spanish architect Francisco Urcola and constructed in 1912.
Dorchester names new Dubai hotel: Dorchester Collection, London, and Omniyat, Dubai, announced that their new 225-key hotel in Dubai will be called The Lana. The 30-story hotel, which also features 69 suites, is set to open in Q4 2022 under the leadership of general manager Caroline-Jane Houston. Designed by architects Foster + Partners and interiors developed by Parisian duo Gilles & Boissier, the hotel marks Dorchester’s first property in the Middle East. Dorchester is also managing the adjacent 39 residences.
Berlin’s occupancy declines: Berlin’s hotel industry saw lower occupancy but higher room rates, amid increasing COVID cases and subsequent restrictions, according to preliminary November data from STR.
- Occupancy: 57.4%
- ADR: €92.45 (US$104.62)
- RevPAR: €53.09 (US$60)
The occupancy level was the lowest since July in the market and about 30% lower than November 2019. In October, Berlin’s occupancy at 70.1% was 16% lower than the pre-pandemic comparable. The market’s ADR was at its second highest since March 2020, after September 2021 (€93.47/ US$105.77).
Abu Dhabi’s occupancy peaks: Abu Dhabi’s hotel industry saw its highest monthly occupancy level since the beginning of the COVID-19 pandemic, according to November data by STR.
- Occupancy: 77.1%
- ADR: AED496.5 (US$135.16)
- RevPAR: AED382.65 (US$104.16)
Occupancy level was at its highest since February 2020, while ADR and RevPAR levels were the highest since December 2019 and November 2019, respectively.
Fertitta cancels merger with Fast Acquisition: Fertitta Entertainment, the parent company of Golden Nugget and Landry’s restaurant chain, and special-purpose acquisition company Fast Acquisition Corp., have decided to call off their planned merger. Fertitta will pay Fast and its shareholders a settlement of US$33 million, in a “combination of upfront and deferred payments.” The settlement will ensure that Fast can still pursue another merger target. According to the terms of the merger, Fertitta would list on the Nasdaq stock exchange. The deal was scheduled to close in the second half of 2021. On December 1, Fertitta informed Fast that it planned to cancel the merger.
Transformation of economy: Business shifts made during the pandemic could yield greater productivity, with productivity having the potential to rise one percentage point through 2024, revealed a latest McKinsey Global Institute 2021 research. The pandemic altered consumer preferences, with online healthcare and grocery shopping reporting a persistent digital boom, while dining out and leisure travel returning to pre-pandemic levels. A spike of 10-20% in savings rate in the U.S. and Western Europe during the pandemic suggested a robust but unequal recovery in consumer demand. While the world’s net worth has grown rapidly in the past two decades, most of the wealth is stored in bricks and mortar. When the economy has become more digital, the biggest driver of rising net worth is real estate, accounting for 68% of real assets.
City Club breaks ground on Cleveland aparthotel: City Club Apartments, Detroit, Michigan, broke ground on its mixed-use City Club Apartments in downtown Cleveland, Ohio. The 23-story building will comprise 304 luxury apartments and penthouses, restaurant, retail space and café. The building will also include a business center, conference room and indoor theater. Guests can rent furnished or unfurnished apartments or penthouses for a day, week, month or several years. Construction will begin later this month, with pre-leasing slated to start from Q4 2022 and first occupancy starting spring 2023.
UK’s hotel quarantine norms likely to be scrapped: Mandatory hotel quarantine norms in the U.K. are likely to be scrapped this week after reports emerged that the Transport Secretary might ease travel restrictions for red list countries. Self-isolation at government-mandated hotels will reportedly be canceled for U.K. citizens, making way for testing for fully vaccinated arrivals to the U.K. ahead of Christmas. While the red list will stay in some form, hotel quarantine will be replaced by self-isolation at home. Currently, 11 countries, including South Africa, Namibia and Zimbabwe, feature in the U.K.’s red list.