Silverstein’s US$340 million loan for Miami tower: Royal Palm Cos., the developer of Legacy Hotel & Residences in Miami, has closed on a US$340 million construction loan from Silverstein Capital Partners, the lending arm of New York-based Silverstein Properties. The 50-floor tower will come up in the heart of the mega project Miami Worldcenter, the second-largest urban development in the U.S. The tower will feature a 219-key hotel, 310 residences, a US$100 million Blue Zones Medical and Wellbeing Center, the city’s first rooftop atrium and a cantilevered pool. Legacy broke ground in August and completed a sell out of the residences, worth US$160 million, within 12 months and before ground breaking. Accor will manage and operate the tower.
Consortium wins bid for CairoHouse: An international consortium of investors and developers, including Chicago, Illinois-based Oxford Capital Group; Chicago-based Global Ventures Group; and Abu Dhabi-based Al Otaiba Investments, won the bid to repurpose and develop Mogamma el Tahrir Complex on Tahrir Square as CairoHouse, a mixed-use development, in Cairo. RKF Global, Chicago, provided legal and strategic consulting. The project represents more than US$200 million in investment. Designed by Chicago-headquartered architect RATIO|smdp, the project will consist of 450 luxury hotel rooms and serviced apartments, dining and entertainment venues and more than 85,000 square feet of meeting and events space.
Rockpoint buys again in Florida: Rockpoint Group, Boston, has acquired from BB Hotel Owner the 139-room Waterstone Resort & Marina Boca Raton for US$37.9 million (US$272,482 per key). The hotel is currently part of Hilton’s Curio Collection. In October, Rockpoint, led by Keith Gelb, along with Fort Lauderdale-based InSite Group, bought the 481-key B Ocean Resort for US$126.9 million.
Dreamscape, Meritage JV complete acquisition: A joint venture between the affiliates of New York-based Dreamscape Cos. and San Francisco, California-based Meritage Group completed the acquisition of the 230-room Nashville Holiday Inn & Suites Downtown. The purchase of the newly-constructed hotel marks Dreamscape’s fifth overall acquisition and second transaction in the hospitality sector in the city this year, after the acquisition of The Sheraton Grand Nashville Downtown in June. Aimbridge Hospitality will manage operations at the hotel. The hotel, which opened two years ago, will include additional retail concepts in the lobby.
RIU coming to Chicago: RIU Hotels & Resorts has purchased a plot of land in Chicago’s Streeterville neighborhood near downtown where it will build a 28-story Riu Plaza with more than 350 rooms. Construction will begin in the spring of 2022 and is expected to take about two years. RIU is also about to open the Riu Plaza Manhattan Times Square in New York City, bringing the number of Riu Plaza hotels to nine.
Persus Group secures financing: Perseus Group, Brussels, has secured senior and mezzanine facilities totaling €93 million (US$105 million). The loans, from funds managed and advised by Cheyne Capital, will be used to finance the conversion of the Hôtel du Couvent in Nice and refinance the existing debt of the lifestyle Hotel Le Pigalle in Paris. Hotel du Couvent is a 16th century former convent that is being transformed into a luxury hotel. The financing has enabled the successful exit of Platina International, Perseus’s long-term investor, which has been supporting the group since 2011. Valéry Grégo, Perseus’s founder and CEO, becomes majority shareholder.
Legendary Capital sponsors unique deal: Legendary Capital, Fargo, North Dakota, announced it sponsored the 160-room Sheraton Hotel Chicago Northbrook acquisition in a US$11.3 million transaction. The deal utilized Legendary Capital’s Equity Preservation UPREIT (“EPU”) mechanism – where Sheraton ownership contributed their property in exchange for a special class of Transition Partnership Units (T-Units) – which allows for the potential preservation of the contributor’s equity as the property re-stabilizes. This is the fourth transaction Legendary Capital has sponsored in the past nine months using its EPU contribution mechanism. Through its affiliated entities, Legendary Capital has acquired 28 hotels.
Noble House to manage Estancia: Pebblebrook Hotel Trust has tapped Noble House Hotels & Resorts to manage the Estancia La Jolla Hotel and Spa in the San Diego, California, area. Noble House also manages six other Pebblebrook owned properties. This also brings the total number of hotels, resorts and experiences within the Noble House brand portfolio to 24 across North America. Estancia will join Curator Hotels & Resorts Collection, which was founded by Pebblebrook and six other hotel operators.
Access Point surpasses loan production goal: Access Point Financial, Atlanta, Georgia, announced it has exceeded its loan production goal for 2021. Till April 1, the company set a goal of US$400 million in loan production. The company is now on track to close more than 60 deals amounting to US$730 million, an 83% rise over its budgeted production from eight months ago. Some of the key transactions include a US$23 million refinance of Hotel Leveque, Autograph Collection by Marriott in Columbus, Ohio, owned by First Hospitality Group; US$34.74 million for the acquisition and conversion of the Holiday Inn River North at the Mart in Chicago to a dual-brand Holiday Inn & Voco by IHG for Murphy Development Group; and US$15.7 million senior loan for Rolling Hills Hospitality’s acquisition of Holiday Inn Express & Suites in Louisville, Kentucky. The company is backed by Wafra Capital Partners.
JLL names new Americas CEO: JLL has announced that Senior Managing Director Kevin Davis has been named Americas CEO of its Hotels & Hospitality division. Davis, who leads JLL’s Hotel Investment Banking group, brings over 20 years of hospitality and capital markets experience to the role. Since joining JLL in 2013, he has been involved in more than US$20 billion of hotel debt and equity financings. With a deep background in capital markets, he spent 13 years prior to JLL working in the commercial real estate groups at Merrill Lynch and UBS, in addition to co-founding a debt fund business following the Financial Crisis. In these prior roles, he executed over US$10 billion of transactions in hospitality, multi-housing, retail, office and industrial assets.
Pandemic-era high rates in Melbourne: Melbourne’s hotel industry reported its highest room rates in the pandemic era, reflecting the end of the lockdown and eased travel norms, according to preliminary November data by STR.
- Occupancy: 33.9%
- ADR: AUD169.06 (US$120.76)
- RevPAR: AUD57.3 (US$40.92)
The market’s absolute ADR level was the highest since March 2020, while RevPAR and occupancy were the highest since May 2021. Looking ahead, STR’s latest Forward STAR data shows Melbourne’s highest occupancy on the books on December 31 (49.9%).
Hilton makes statement in Athens: Hilton and Ionian Hotel Enterprises (IHE) have announced an agreement for a new hotel and residences to be developed by IHE in the Greek capital of Athens. The news marks the introduction of Hilton’s luxury brands – Conrad Hotels & Resorts, Conrad Residences and Waldorf Astoria Residence – to Greece. The current Hilton Athens, which opened in 1963, is set to be transformed into a new destination comprising a luxury hospitality and residential offering. The deal represents a strategic investment of more than e130 million by IHE – in addition to the initial e145 million for the property acquisition. The new Conrad hotel, which is expected to welcome its first guests in 2024 will include approximately 280 guest rooms and suites, alongside approximately 50 private residences under the Conrad and Waldorf Astoria brands.
California to reimpose mask mandate: California is reimposing the indoor mask mandate from Wednesday regardless of vaccination status, amid rising COVID-19 cases and fears of the new Omicron variant of the virus. The mandate is expected to continue for at least a month, following which the state Public Health Department “will make further recommendations as needed,” said officials in a statement. The mandate, however, is not applicable for private gatherings. The anticipated wave of gatherings during the year-end holidays is said to have influenced officials to reimpose the mask mandate.
Wyndham loyalty points to cash: Wyndham Rewards members can now change their Wyndham Rewards points to cash with the newly-launched Bakkt App by digital asset marketplace Bakkt. Wyndham Rewards members can link their account in the Bakkt App and unlock the ability to instantly convert their points to cash. Once it’s converted, members can deposit the funds into their bank accounts, send them to someone, purchase discounted gift cards or use them for online and in-store purchases through Apple Pay and Google Pay. The Bakkt App can also be used to purchase more rewards points, either through funds they have received from converting other loyalty currencies to cash or through another payment method.
Hilton Honors extends F&B credit: Hilton Honors has extended the daily F&B credit into 2022. Starting from February 1, 2022, the credit amount will be increased across its lifestyle and full-service brands from US$12 to US$15 per night and US$15 to US$18 per night in select markets (Boston, Chicago, District of Columbia, Key Largo, New York City, San Francisco, County of Los Angeles and Hawaii). From July, Hilton Honors had been offering its Gold and Diamond members a complimentary daily food & beverage credit in U.S. hotels, ranging from US$10 to US$25 per member, or US$20 to US$50 for two registered guests per night, depending on the property location and brand.
Locke expands in Europe: Locke the London-based aparthotel brand, has expanded into Europe with its two new German openings in Munich and Berlin in 2022. The opening of WunderLocke in Munich and Locke at East Side Gallery in Berlin follows the brand’s six new openings across London, Dublin, Cambridge and Munich. Designed by studio Holloway Li, WunderLocke consists of 360 studio apartments, co-working area, meeting and events space and an urban farm. Locke at East Side Gallery comprises 176 studio apartments featuring co-working space for guests and visitors, meeting and events space that includes a rooftop terrace, 24-hour gym and an audiophile bar and restaurant. The Berlin property is designed by Matthew Grzywinski of Grzywinski+Pons.
Aries Living acquires Apple Tree Inn: Aries Living, New York, announced the acquisition of the 34-key bed-and-breakfast The Apple Tree Inn in Lenox, Massachusetts, for US$2.7 million or approximately US$79,411 per key. Aries Living funded the purchase with existing cash on its balance sheet. Spread over 22 acres, the property was built in 1885 and consisted of a 13-room Main House, which still stands. A second structure, called The Lodge, houses an additional 21 rooms. The Apple Tree Inn will embark on the first phase of development with a US$45,000 per room renovation in Q1 2022, marking an additional investment of US$1.02 million. The phased roll out of planned renovations includes a music studio space in Q2 2022, followed by an additional event venue set to debut in early 2023. With this acquisition, Aries Living now operates four hotels.
Excel Group completes acquisition of five hotels: Excel Group, Arlington, Virginia, completed the acquisition of five hotels through three separate transactions — the 154-key Embassy Suites Dulles North Loudon, 90-key Homewood Suites Dulles North Loudon, 170-key Homewood Suites Lansdale, 94-key Courtyard Charlotte Northlake and 94-key Residence Inn Charlotte Northlake.