KSL acquires 2 in Maldives: KSL Capital Partners, Denver, Colorado, has acquired the W Maldives and the Sheraton Maldives Full Moon Resort & Spa. The seller was a joint venture between Maldives-headquartered Universal Enterprises and Marriott International. Marriott will continue to manage both the resorts under their existing brands. Each property is located on its own private island. The W Maldives consists of a combination of 77 overwater or beach bungalows with private pools and private balconies, private yachts, six restaurants and bars and a spa. The 176-key Sheraton Maldives Full Moon Resort & Spa is a family resort featuring a mix of overwater bungalows, ocean view villas and cottages, seven restaurants and bars, freshwater pools, spa, tennis facilities and a kid’s club.
Autograph Collection Residences debuts in London: Gulf Islamic Investments (GII), Dubai, has announced a new venture with Marriott International to launch a residential project in London’s Chelsea district which will be managed by Marriott, marking the debut of Marriott’s standalone Autograph Collection Residences. The Lucan, Autograph Collection Residences, will feature a seven-story building with 31 individually designed residences. The building, which earlier housed a police station, is slated to open in 2024. The residences will consist of one-, two- and three-bedrooms ranging from 780 to 1,900 square feet, with prices expected to range from £3-5 million (US$3.6-6 million). The property’s selling agents are Savills and Strutt & Parker. Services available at the property include a gym, 24-hour concierge, porter services, Marriott Bonvoy privileges and a la carte services like housekeeping, maintenance, etc. The property will be designed by architectural design firm Kohn Pederson Fox Associates, with Rive Gauche working on the interiors. This project is GII’s second branded residential development in London after the Elli Saab Residences in Hyde Park, which opened this March, and its first real estate collaboration with Marriott.
Kasada acquires Crowne Plaza in Kenya: Kasada Capital Management, the Johannesburg, South Africa-based private equity fund backed by the Qatar Investment Authority, marked its entry into the Kenyan hospitality market with the acquisition of the Crowne Plaza Hotel in Nairobi. Kasada purchased the hotel for KSh4.6 billion (US$38.41 million) from Kenya-based Golden Jubilee Ltd., in which businessman Nazir Ahmed Akbarali has a 97.5% stake. The transaction was executed by Kasada’s investment vehicle, Kasada Hospitality Fund. The acquisition adds to Kasada’s acquisitions in Africa, after acquiring hotels in Rwanda, Senegal, South Africa, Cameroon and Namibia in the last 18 months. The previous owner had been planning to sell the hotel since 2020 as the property was struggling with debts.
Peachtree acquires Canopy Atlanta: Peachtree Hotel Group, Atlanta, Georgia, has acquired the 176-key Canopy by Hilton Atlanta Midtown for an undisclosed price. Sellers included Greystar, Concord Hospitality and Whitman Peterson. Peachtree’s division, Peachtree Hospitality Management, will operate the property. The 15-story lifestyle hotel first opened in 2018.
Hotel Florhof to rebrand: The majority shareholder and chairman of Zurich, Switzerland-headquartered Lalique Group, Silvio Denz, along with entrepreneur Peter Spuhler, have acquired Hotel Florhof in Zurich. The historical hotel will reopen in early 2024 as Villa Florhof, with Lalique Group operating the hotel and restaurant as the leaseholder. The hotel will undergo renovations in consultation with the Office for the Preservation of Historic Monuments. The number of rooms will be decreased in the upper floors to 15, with plans to add a restaurant on the first floor and a bar with a terrace, a living room and a smoker’s lounge on the ground floor. Hotel manager Tanja Wegmann will be in charge of the hotel’s transformation and reopening. The previous owners had the property for around 100 years and announced its closure from July-end.
Hotel industry recovery continues: The hotel industry’s recovery continues midyear with room revenue and state and local tax revenues expected to exceed pre-pandemic levels, according to the American Hotel & Lodging Association (AHLA)’s 2022 Midyear State of the Hotel Industry Report. Room revenue is expected to exceed US$188 billion by the end of the year, surpassing 2019 figures on a nominal basis. Adjusted for inflation, RevPAR will not surpass 2019 levels until 2025. Hotels are projected to generate around US$43.9 billion in state and local tax revenues this year, rising 7% from 2019 levels. Approaching closer to pre-pandemic figures, hotel occupancy is likely to average 63.4% this year. By the end of the year, hotels are likely to employ 1.97 million people, which is 84% of the 2019 workforce. The industry is not expected to reach 2019 employment levels until at least 2024.
IHG to launch Crowne Plaza in Penang: IHG Hotels & Resorts has entered into a partnership with STC Property Management Sdn. Bhd., the Malaysian developer of Straits City, to introduce Crowne Plaza in Penang, Malaysia. The flagship hotel in Straits City, is a sustainable, high-end mixed-use project, located at the waterfront of Butterworth Penang. The 343-key Crowne Plaza Penang Butterworth Straits City will offer views of the Straits of Penang and Georgetown. IHG plans to open 10 hotels in Malaysia in the next three to five years, in addition to the six existing properties it operates.
Rentyl Resorts grows global footprint: Rentyl Resorts, the Kissimmee, Florida-based travel platform, has announced its collection of resorts globally and has added over 50 new partnerships, with plans to add more over the next few months. The new properties are spread across destinations including Paradise Island, the Bahamas; Greece; Turks & Caicos; New York and Hawaii, the U.S., St. Lucia; Belize; Cabo, Mexico; Portugal; New Zealand and the Cayman Islands. The group recently announced an exclusive partnership with the Nicklaus Companies, Palm Beach Gardens, Florida, to launch over 100 high-end residential resorts globally in the next five years.
Olympia Companies expands footprint in White Mountains: The Olympia Companies, Portland, Maine, has acquired the 66-room Golden Gables Inn in North Conway, New Hampshire. The hotel, which will be managed by Olympia Hotel Management, marks Olympia’s third property in the White Mountains. Golden Gables Inn has been family-owned for several years. All rooms are new or have been recently renovated.
US construction pipeline grows: With 5,220 projects/621,268 rooms at the end of Q2, the total construction pipeline in the U.S. increased by 9% YOY by projects and 4% YOY by rooms, according to Lodging Econometrics. Currently, there are 965 projects/130,914 rooms under construction, down 17% YOY by projects and 18% YOY by rooms. Projects scheduled to start in the next 12 months, at 2,009 projects/232,163 rooms, are up 9% YOY by projects and 9% YOY by rooms. Projects and rooms in the early planning touched a record high, standing at 2,246 projects/258,191 rooms, up 26% YOY by projects and 15% YOY by rooms. Continuing the last few years’ trend, the upscale and upper-midscale chain scales led the pipeline with 68% of projects. A total of 428 new projects (accounting for 47,034 rooms) were announced into the pipeline, which more than doubled YOY when compared to Q2 2021 when 202 new hotel projects/25,653 rooms were recorded. Notably, there are 1,889 projects/237,420 rooms in the renovation or conversion, with project and room conversions reaching an all-time high and increasing 66% YOY by projects and 35% YOY by rooms. During Q1 and Q2 2022, the U.S. opened 247 new hotels with 28,116 rooms. LE is forecasting 428 projects/50,322 rooms more to open through the year, for a total of 675 projects/78,438 rooms by year-end, representing a 1.4% increase in new supply.
3650 REIT originates 3 loans: 3650 REIT, Miami, Florida, has originated three loans totaling roughly US$100 million with each carrying a term of 10 years. The loans include the US$57.5 million to sponsor Prime Hospitality Group for the refinancing of the 162-key Art Ovation Hotel in Sarasota, Florida; and US$14 million to sponsor Klamath Hotel Partners to refinance the newly-built 92-key Fairfield by Marriott Klamath Falls in Klamath Falls, Oregon.
ANI Private Resorts’ second in Anguilla: ANI Private Resorts has announced plans for the second project in Anguilla. The 15-suite property located in Shoal Bay will include a gym, tennis court, spa and a beach-front pavilion for dining and experiential activities. The resort is slated to open in 2024. This will be the brand’s fifth private retreat, with more locations in the Dominican Republic, Sri Lanka and Thailand.
IHG’s partnerships to prevent human trafficking: IHG Hotels & Resorts has partnered with anti-human trafficking organizations, ECPAT-USA and Polaris, to deepen its commitment and efforts against trafficking and support survivors. Senior advisors from both the organizations will join IHG’s anti-human trafficking steering committee to provide expertise for the company’s initiatives. IHG will also continue to support the organizations by donating IHG One Rewards loyalty points, which will help the organizations provide refuge for survivors escaping dangerous situations. As an extension of its collaboration with Polaris, IHG will be the only hospitality sponsor for its partner’s National Survivor Study, which will include feedback from interviews, surveys and focus groups with anti-trafficking leaders and survivors in North America. Apart from these partnerships, IHG is also a partner of international non-profit organization It’s A Penalty, which aims to stop trafficking around sporting events, and Atlanta non-profit organization Wellspring Living, which transforms the lives of victims or those at risk of sexual exploitation.
Groundbreaking of new Gaylord in California: Marriott International has announced the commencement of construction of the 1.8 million square foot Gaylord Pacific Resort and Convention Center in Chula Vista, California. Marriott will manage the property under a long-term management agreement at the resort expected to open in summer 2025. The US$1.27 billion property will feature 1,600 rooms, including 89 suites and 12 presidential suites, as well as an outdoor waterpark complex. Marriott, along with Houston, Texas-based RIDA Development and a real estate fund managed by Ares Management, announced the closing on a US$685 million construction loan from Wells Fargo as co-lead arranger for a nine-bank consortium. A construction loan of US$383 million from JPMorgan Chase Bank as sole lead arranger was secured by the City and Port. Currently, Marriott operates five Gaylord Hotels.
JLL secures US$24.5M loan for dual-branded hotel: JLL Capital Markets has arranged US$24.5 million in construction financing for the development of the 148-room dual-branded Fairfield Inn and TownePlace Suites hotel in Tempe, Arizona. The four-story, select-service hotel will comprise 83 keys in the Fairfield Inn and 65 keys for TownePlace Suites. JLL worked on behalf of the borrower, EKN Development Group, to secure the three-year, floating-rate loan through Hall Structured Finance. The JLL team was led by Senior Managing Director Jillian Mariutti, Director Robert Tonnessen and Associate Phil Cadorette, with local support provided by Senior Director Carl Beardsley.