Briefs: DiamondRock adds in Florida; Radisson grows African portfolio

DiamondRock adds in Florida: DiamondRock Hospitality has acquired from Banyan Investment Group for US$18.9 million (approximately US$198,000 per key) the 96-room Kimpton Goodland Fort Lauderdale Beach. It marks DiamondRock’s second property in the city. The hotel REIT owns some 33 hotels across the U.S. with seven in Florida.

Florida hotels sell for US$110 million: A joint venture of Kohlberg Kravis Roberts & Co. and Riller Capital have acquired the 110-key Aloft and the 112-key Element in Tampa, Florida, along with the 160-room Hyatt Place in Jacksonville, Florida, for US$110 million. The seller was a partnership of Whitman Peterson and Concord Hotels & Resorts. The sale was arranged by The Plasencia Group. The Aloft and Element are the anchors of Midtown, a US$500 million mixed-use development in Tampa.

Rendering of the Radisson Resort Dakar Saly in Senegal

Radisson grows African portfolio: Radisson Hotel Group has signed five deals across Africa, adding around 600 rooms to its portfolio. The group plans to add around a dozen more hotels this year, reaching over 100 hotels under operation and under development on the continent. Currently under construction, the Radisson Hotel Addis Ababa Bole Airport will be the first Radisson-branded hotel in East Africa and is slated to open in 2023. Once it opens in 2024, the Radisson Resort Dakar Saly in Senegal will be the first Radisson resort in Africa and the second Radisson-branded property in Senegal. The Radisson Hotel Sfax in Tunisia, which is opening later this year, is set to become the first globally branded upscale hotel in the city. In Tunis, Tunisia, the existing independent La Maison Blanche Tunis will undergo a complete renovation before reopening as a Radisson Individuals-branded property in January 2023. In Accra, Ghana, the Number One Oxford Street Hotel & Suites will open later in the year as a Radisson Individuals-branded property.

Hotel Management Services rebrands: Hotel Management Services, Johnson City, Tennessee, has relaunched under a new brand and name — Envoy Hospitality. The rebranding comes at a time when the company is aiming to grow its services. The new brand will replace the previous brand with a new set of resources to train their team members and a new website to help future team members along with current and prospective partners understand the change.

Uber to add flight, hotel bookings in app: Uber Technologies has launched a pilot project in the U.K. to include offers from travel partners into Uber’s app to create a “door-to-door travel experience,” allowing customers to book planes, trains, buses and hotels from the app, aligning with the company’s plans to become a travel ‘super app.’ The company will not provide the travel service but will partner with third-party booking agencies to provide tickets and collect a service fee from the bookings. Train and bus bookings is set to be available on the app from this summer, while flights and hotel reservations is likely to launch later this year.

US performance dips slightly: Hotel performance in the U.S. fell marginally from last week, reflecting the continued seasonal slowing down in spring break travel, as per STR’s latest data through April 2.

  • Occupancy: 64.1% (-6.4%)
  • ADR: US$145.74 (+11.7%)
  • RevPAR: US$93.48 (+4.5%)

Among the Top 25 Markets, only Phoenix registered occupancy increase over 2019 (+0.2% to 79.9%), while Minneapolis saw the largest occupancy decrease from 2019 (-23.9% to 51.3%). Boosted by the NCAA Men’s Final Four, New Orleans posted the largest ADR increase over 2019 (+43.1% to US$237.69). The steepest RevPAR deficits were in Minneapolis (-40.6% to US$63.07) and San Francisco/San Mateo (-37.1% to US$106.88).

Legendary Capital sponsors Fairfield Lakewood acquisition: Legendary Capital has sponsored the acquisition of Fairfield Inn & Suites Denver Southwest Lakewood, Colorado, in a US$19.4 million transaction. The transaction utilized Legendary’s proprietary Equity Preservation UPREIT structure, in which the ownership contributed the hotel in exchange for a special class of Transition Partnership Units, allowing for the potential preservation of the contributor’s equity as the property re-stabilizes. This is Legendary’s second deal where they helped the owners to complete a new-build or conversion. The 142-key hotel is in the final stages of a conversion to a Fairfield Inn & Suites.

Sonnenblick-Eichner arranges loan to refinance Pismo Beach hotel: Sonnenblick-Eichner Co., Beverly Hills, California, has arranged US$30 million of long-term, fixed-rate financing for the 104-key Inn at the Pier, a full-service, luxury boutique hotel in Pismo Beach, California. The non-recourse loan was funded by a Life Company and priced in the low 4% range with interest-only payments for the entire term. The loan’s proceeds also provided for a return of equity to the borrower. This is the third time that Sonnenblick-Eichner has arranged financing for the hotel, including the construction, interim and long-term fixed-rate financing for the property.

Kempinski’s 125th anniversary offers: Marking 125 years of Kempinski Hotels, the company has launched a dedicated website that will introduce the 125 Anniversary Special, a collection of offers that includes discounts of up to 25% on hotel bookings till September 30 with a flexible cancelation policy. The website will also highlight some of the important chapters of Kempinski’s journey. Currently, Kempinski manages a collection of 80 hotels, resorts and residences across 34 countries, with 26 additional projects under development.

Turkey’s popularity among budget-conscious: Turkey is projected to emerge as a preferred destination among budget-conscious travelers this year, according to GlobalData.  Despite the average stay for inbound travelers (9.7 days) being the second-longest in Europe in 2021, in-destination spending is relatively lower in Turkey. Compared to average inbound expenditure in popular leisure destinations, like Spain and Portugal, travelers are likely to save between US$230 to US$770 per trip if they travel to Turkey, the database revealed. Although average expenditure is expected to increase in Turkey this year as a result of inflation, compared to average expenditure in other European destinations, it will still be lower. The gap is set to widen as countries in Western Europe continue to suffer from economic hardships.

Dream Hotels to offer Karl Lagerfeld amenities: Dream Hotels, New York, has added fashion house Karl Lagerfeld bath and beauty into its global portfolio and will offer an exclusive range of premium Karl Lagerfeld skincare products at its properties. Guests will experience the Karl Lagerfeld Argumes et Vetiver line of amenities, a five-piece collection of soaps, shampoos and lotions. Some locations will also offer Karl Lagerfeld extension items like lip balms, eye and face creams, face wash, hand wash and bath salts.

    April 8, 2022 at 12:51 pm

    One small suggestion/request: please consider making these valuable industry highlights separately sharable in different social media platforms (or may be provide an URL link) so I can pass the relevant ones to my University students with ease…
    Continue the good work..,

    • Jeff Weinstein
      Jeff Weinstein
      April 8, 2022 at 1:40 pm

      Hello, There are social media icons on the top of all news stories. My best, Jeff