Curio Collection by Hilton debuts in Brazil: Hilton is debuting its Curio Collection by Hilton in Brazil with three new hotels, including the newly opened 168-key Qoya Hotel in Curitiba. The other two hotels, which will join by the end of this year, include Suryaa Hotel Pinhais and the newly built Qoya Hotel São Paulo. All three properties are managed by HCC Hotels. Suryaa Hotel Pinhais will feature 25 rooms and loft-style suites, while the Qoya Hotel São Paulo will comprise 166 rooms, including 14 suites. Hilton has 14 hotels across eight brands in Brazil and 10 more properties across six brands in the development pipeline. Hilton has over 190 hotels open in the Caribbean and Latin America and has a pipeline of over 100 hotels in the region.
Caesars, SL Green Realty bidding for Times Square: Developer SL Green Realty is working along with casino operator Caesars Entertainment on a bid to bring casino-hotel to New York’s Times Square. The proposed project will see the redevelopment of Times Square building 1515 Broadway into Caesars Palace Times Square, which will also include a Broadway theatre to serve as home to “The Lion King” and other entertainment attractions. The companies have also assured that the development will “accelerate economic recovery for surrounding businesses and create good-paying union jobs New Yorkers.” Caesars Palace Times Square is expected to be a renovation, not a new construction, so an opening can take place earlier than other proposed facilities without changing the law or disrupting local communities. The project will be 100% privately funded with Caesars managing the casino’s brand and operation.
Mandarin Oriental grows in China: Mandarin Oriental Hotel Group will manage a new hotel in Tianfu, a business district south of Chengdu in southwest China. The 267-key Mandarin Oriental Tianfu, Chengdu will open in 2028 and is being developed by China Overseas Land & Investment (COLI). COLI owns and operates more than 60 Grade A offices, 21 shopping malls, 15 hotels and 15 extended-stay apartments in China. Mandarin Oriental, a member of the Jardine Matheson Group, currently operates 36 hotels and eight residences across 24 countries and has more properties in its development pipeline.
JRK acquires in Palm Springs: JRK Property Holdings, Los Angeles, California, has acquired the 179-key Ace Hotel & Swim Club Palm Springs in Palm Springs, California, from an affiliate of GFI Capital. Opened in 2009, the Ace Hotel comprises seven buildings in a 5.04-acre campus which also features three food and beverage outlets, 7,500 square feet of event space and a spa. The resort was acquired through JRK’s US$350 million Hospitality Fund. Even after closing on the property, over 80% of the fund remains uninvested and JRK plans to deploy the rest of the fund by the end of 2023. Eastdil Secured brokered the deal on behalf of the seller.
Fertitta’s Vegas casino-resort gets approval: The Clark County Commission has approved of billionaire Tilman Fertitta’s plans to develop a hotel-casino on the Strip in Las Vegas, Nevada. Fertitta will develop a 43-story, 2,420-key upscale resort at the southeast corner of Las Vegas Boulevard and Harmon Avenue. Existing buildings on the site will be demolished to develop a new tower. Fertitta Entertainment acquired a six-acre plot in June for US$270 million.
Global pipeline slows: The Middle East and Africa were the only regions globally to report a rise in overall hotel pipeline activity at the end of the third quarter, as per STR’s September data.
Europe
- In construction: 197,884 rooms (-14.1%)
- Final planning: 144,277 rooms (-16.1%)
- Planning: 162,896 rooms (+9.7%)
- Total under contract: 505,057 (-8.3%)
Germany (38,676) and the U.K. (29,471) led the region in total rooms in construction.
Asia Pacific
- In construction: 485,250 rooms (+1.5%)
- Final planning: 131,427 rooms (-26.3%)
- Planning: 287,572 (-0.2%)
- Total under contract: 904,249 rooms (-4.3%)
China reported the most rooms in construction (311,859), followed by Vietnam (28,692).
Middle East & Africa
- In construction: 130,956 rooms (-3.2%)
- Final planning: 38,147 rooms (-5.9%)
- Planning: 74,510 rooms (+18.9%)
- Total under contract: 243,613 (+2.2%)
Most of the region’s pipeline activity was focused in the Middle East, with Saudi Arabia (39,070) and the U.A.E. (32,373) leading in construction activity.
Americas
- In construction: 207,585 rooms (-9.2%)
- Final planning: 203,069 rooms (-17.9%)
- Planning: 329,789 rooms (+9.4%)
- Total under contract: 740,443 (-4.8%)
The U.S. held the majority of rooms in construction in the region. After the U.S., Mexico (14,077) and Canada (7,126) posted the highest number of rooms in construction in the region.
US performance update: Hotel performance in the U.S. improved from the last week and saw mixed comparisons with 2019, revealed STR’s latest data from October 9-15.
- Occupancy: 70.3% (-2.7%)
- ADR: US$157.52 (+15.8%)
- RevPAR: US$110.78 (+12.8%)
Among the top 25 markets, Tampa posted the largest increases over 2019 in each of the key performance metrics: occupancy (+17.1% to 80.6%), ADR (+34.6% to US$159.80), and RevPAR (+57.7% to US$128.85). Tampa has been one of the Florida markets that have seen a performance boost associated with post-Hurricane Ian demand. San Francisco was the only market to see a dip in ADR (-11.9% to US$237.17). The steepest RevPAR declines were recorded in San Francisco (-28.3% to US$170.49) and Minneapolis (-7.9% to US$80.19).
Oxford Capital, Fortress Investment acquire housing properties: Oxford Capital Group, through a joint venture with funds managed by affiliates of Fortress Investment Group, has acquired Sherwood Capital, three senior housing properties totaling 256 units in Sequim, Washington. Additional terms of the deal were not disclosed. The venture purchased the properties from an independent family operator. Oxford Living US, Oxford’s senior housing management affiliate, will manage the properties. The venture plans to invest more than US$8 million to enhance all three properties, along with a major expansion of the portfolio’s assisted living/memory care offerings.
India fines MMT-Go, Oyo for anti-competitive conduct: India’s competition regulator has fined online hotel booking companies, MakeMyTrip Ltd., Goibibo, and Oyo, a combined US$47 million for unfair business practices. The Competition Commission of India (CCI) fined Nasdaq-listed MakeMyTrip and Goibibo (MMT-Go) around US$27 million and SoftBank-backed Oyo US$20 million and told the companies to correct their market behaviors. The CCI has been probing the companies since 2019 when a hotel body alleged that MakeMyTrip gave special treatment to Oyo, restricting market access to competitors like Treebo and FabHotels. Besides the fines, CCI has directed MMT-Go to modify its agreements with hotel chains and abandon exclusivity conditions.
Caesars, SL Green Realty bidding for Times Square: Developer SL Green Realty is working along with casino operator Caesars Entertainment on a bid to bring casino to New York’s Times Square. The proposed project will see the redevelopment of Times Square building 1515 Broadway into Caesars Palace Times Square, which will also include a Broadway theatre to serve as home to “The Lion King” and other entertainment attractions. The companies have also assured that the development will “accelerate economic recovery for surrounding businesses and create good-paying union jobs New Yorkers.” Caesars Palace Times Square is expected to be a renovation, not a new construction, so an opening can take place earlier than other proposed facilities without changing the law or disrupting local communities. The project will be 100% privately funded with Caesars managing the casino’s brand and operation.