Graduate Hotels names new president: Graduate Hotels, Nashville, Tennessee, has appointed Kevin Osterhaus as president. He will be in charge of global operations and marketing across the collection of 35 properties in the U.S. and the U.K and will be based in Nashville. Most recently, Osterhaus was the COO for Ennismore International and oversaw global operations for The Hoxton hotels. Graduate Hotels, owned by Adventurous Journeys Capital Partners, opened 10 new hotels since spring 2020. Launched in 2014, the company’s portfolio consists of 30 hotels in the U.S., two properties in the U.K., with four more hotels set to open by the end of 2023.
Hyatt completes Apple Leisure Group acquisition: Hyatt Hotels Corp. announced the completion of the acquisition of Apple Leisure Group (ALG) from affiliates each of KKR and KSL Capital Partners. Hyatt is doubling its resorts footprint with the addition of ALG’s AMR Collection brand portfolio, which consists of around 100 hotels and resorts in 10 countries and a pipeline of 24 executed deals in Europe and the Americas. The acquisition has helped Hyatt add properties in 11 new European markets and grow its European brand presence by 60%. Hyatt also has luxury, all-inclusive resorts in new destinations like Curaçao, Acapulco, Menorca, the Canary Islands and St. Martin. Hyatt also reaffirmed its commitment to generate an additional amount of US$2 billion in proceeds from asset dispositions by the end of 2024. Alejandro Reynal will continue to lead ALG’s business and the current ALG leadership team. ALG will operate as a separate business unit within Hyatt.
Gurney’s acquires in Arizona: Gurney’s Resorts, Montauk, New York, has acquired Sanctuary Camelback Mountain Resort and Spa in Paradise Valley, Arizona. BB Hotels (formerly Berger Holdings), Scottsdale, Arizona, partnered with Metrovest Equities, New York, and BLDG MGMT, New York, to purchase the resort. While financial terms of the transaction were not disclosed, the deal is expected to close in early November. The resort has been owned by Robert Castellini since 1992. It will now be known as Sanctuary Camelback Mountain, a Gurney’s Resort and Spa. Michael Surguine, the resort’s general manager, will continue in his role. The property will undergo refurbishments, which are likely to start in summer 2022.
Radisson, SVC amend deal: Service Properties Trust (SVC) has signed an agreement with a subsidiary of Radisson Hospitality, to amend their previous management agreement for nine hotels owned by SVC. Radisson will continue to manage eight of the hotels, including five Radisson Hotels & Resorts and three Country Inn & Suites by Radisson for a 10-year term effective from August 1, 2021. SVC’s owner priority return is fixed at US$10.2 million annually, backed by a US$22 million guarantee for 75% of the aggregate annual owner’s priority return beginning in 2023. A management fee equivalent to 3% of gross revenue for Radisson branded hotels and 5% of gross revenue for Country Inn & Suites payable to Radisson will act as an operating cost paid senior to SVC’s owner’s priority return. After paying SVC’s owner’s priority return and reimbursement of certain advances (if any), Radisson might earn an incentive management fee of 20%, while SVC will receive the rest of the cash flow. SVC will fund around US$12 million for renovations which are likely to be completed by the end of 2022. Since the funding is advanced by SVC, the aggregate annual owner’s priority return due to SVC under the revised agreement will rise by 6% of the amounts funded. SVC and Radisson transitioned management of one property to Sonesta International Hotels Corp. under their Royal Sonesta brand on October 31. SVC currently owns 34% of Sonesta.
Dalata announces new CEO: As announced in March, Dermot Crowley has now succeeded Pat McCann as CEO of Dalata Hotel Group, Dublin. McCann, who has been part of Dalata since it was founded in 2007, retired from the board on October 31and his employment by the company will end on December 31. Dalata’s portfolio currently consists of 29 owned hotels, 12 leased hotels and three management contracts with a total portfolio of 9,161 rooms.
Asia Pacific profitability slips: Hotel industries in seven key markets in the Asia Pacific region reported profitability levels much below the pre-pandemic levels, with only Beijing above 40% of the 2019 figure, according to the September 2021 monthly P&L data by STR. Beijing’s GOPPAR surged 70% from September 2019 levels to reach US$29.91. Singapore (US$39.99) was 35% of the 2019 level, while Hong Kong (US$6.22) was only 10%. Meanwhile, Sydney, Bangkok, Bali and Tokyo all reported negative GOPPAR, with Tokyo reporting the greatest dip in profitability over the last few months.
Getaway expands portfolio: Getaway, a hospitality company that offers access to tiny cabins in nature sports, has announced the opening of new locations near New Orleans, Louisiana; Minneapolis, Minnesota; Kansas City, Missouri; and Indianapolis, Indiana; along with a second location near Boston, Massachusetts, where Gateway’s first cabin is located. All the new Outposts are expected to open by middle of 2022. The growth for Brooklyn, New York-based Getaway will add 224 cabins, bring its Outpost number to 20 and cabin count to 829, an increase from 13 Outposts and 487 cabins at the end of 2020. Earlier this year, Getaway closed a US$41.7 million Series C funding round, led by Certares.