Briefs: GFI Capital completes Beekman refi; Dalata launches in Continental Europe

GFI Capital completes Beekman refi: New York City-based GFI Capital Resources, through an affiliate, has completed a US$196 million refinancing of The Beekman, a Thompson Hotel managed by Hyatt Hotels Corp in New York City. The deal included a US$130 million senior loan with Bank OZK arranged by Newmark and a US$65 million subordinate financing raised from bond investors on the Tel Aviv Stock Exchange. Proceeds from the raised funds will be used to repay existing debt and outstanding obligations of the property, along with establish reserves for the hotel. GFI’s affiliate acquired the hotel in 2012, underwent extensive refurbishments and opened as The Beekman Hotel in late 2016. The revitalized property features 287 rooms, including 38 suites and two penthouses with private rooftop terraces and two restaurants curated by renowned chefs and restaurateurs Tom Colicchio and Daniel Boulud.

French group acquires ski resorts: French hotel group Beaumier has acquired from the Zinnert family three hotels in Switzerland’s Alpine region of Wengen for an undisclosed amount. The three hotels – the Hotel Silberhorn, Hotel Belvedere and Wengener Hof – are in the center of the village with ski-in, ski-out capabilities and views to the Jungfrau and the Lauterbrunnen valley. The acquisition is the first purchase for Beaumier outside of France and reflects the group’s desire to acquire high-quality hotels across premier seasonal leisure destinations in Europe. The pre-existing portfolio is already made up of eight hotels spread across the French Alps, Provence and the Côte d’Azur.

Hotel Nikko Dusseldorf

Dalata’s first in Continental Europe: Dalata Hotel Group, Dublin, has entered into an agreement with Art-Invest Real Estate to acquire a new operating leasehold interest in Hotel Nikko Dusseldorf. The acquisition marks Dalata’s debut into the Continental European market. The 393-room hotel, which is now owned by Art-Invest and Dalata, has begun the transition phase and will re-open on February 15. The rent, with a guaranteed minimum, is determined by the revenue performance of the hotel. The lease term is 20 years, with an option to extend it by five years. CBRE advised Dalata on the transaction.

Times Square hotel tower gets new owner: A lender group led by Natixis will take over 20 Times Square, which houses the 452-key Times Square Edition Hotel, from Mark Siffrin’s Maefield Development. No other bids at a January 26 public auction could top the group’s offer, which hasn’t been disclosed. The Natixis group’s plans for the hotel haven’t been made public. Maefield Development defaulted on the US$800 million leasehold debt in 2019 and has since been tangled in legal issues. The hotel is the New York flagship property of Marriott’s Edition brand and comprises around 90% of the tower. The rest of the building houses vacant retail space, the main cause of Maefield’s loan default. The hotel’s management is unlikely to be changed since the Edition brand has a strong management contract that can’t be affected by the change of owners.

AWC acquires dusitD2 Chiang Mai: Thailand-based developer Asset World Corp. has acquired the 130-key dusitD2 Chiang Mai from Dusit Thani Properties REIT for 435 million Thai Baht (US$13.03 million). The Thai developer has also taken over Lhong 1919, a tourist attraction in Bangkok’s Thonburi area. The company plans to develop an integrated wellness destination managed by The Ritz-Carlton Hotel Co.

ShaD Prosperity Fund I: She Has a Deal (SHaD), a real estate investment platform for hotel ownership and development opportunities for women, has launched SHaD Prosperity Fund I and announced a 10-city tour of U.S. cities to raise equity to support women-led hotel projects. The tour will start in Miami, Florida, on February 11, and will be open to small groups of individual investors and family offices, small entities and trusts. The tour is slated to continue till the first week of April.

Brookfield Property Partners to launch auction for Center Parcs: Canadian real estate giant Brookfield Property Partners is reportedly launching a £4 billion (US$5.3 billion) auction to sell Center Parks UK, its subsidiary and Britain’s largest chain of holiday villages. Center Parks UK reported EBITDA earnings worth £120 million (US$161.14 million) in the half year ended October 7. Brookfield is believed to have started talks with PwC to assist with the sale process. Investment banks are yet to be appointed formally to handle the auction. Brookfield reportedly might retain Center Parcs if no attractive deal comes up.

U.S. hotel market outlook: Despite the spread of the Omicron variant of COVID-19, December RevPAR in U.S. hotels surpassed 2019 levels and there was a strong improvement across geographies, asset type and chain scale, according to the U.S. Hotels State of the Union report by CBRE. Recent travel trend data and leading indicators have shown softening demand in Q1 for both businesses and leisure travel the report revealed, adding that office vacancy and remote work are headwinds for a short-term recovery of business travel. Thanks to easing of international travel restrictions in November 2021, which triggered a significant uptick in inbound international travel, New York, San Francisco, Los Angeles and Miami are set to be the biggest beneficiaries this year. Short-term rental market share has normalized as hotels have reopened. Large units in southern and drive-to destinations are driving revenue growth. Hotel delinquency and special servicing rates have decreased steadily as fundamentals have improved. Increase in construction costs and labor challenges have resulted in slower supply growth, with wage pressures and the labor crunch showing no signs of slowing down.