Noble Investment fund boost: The New York State Common Retirement Fund has approved a US$200 million commitment to Noble Hospitality Fund V, Noble Investment’s recent U.S. hotel investment fund. The commitment to the fund “will lead to more diversification and capital needs, and depleted reserves combined with high loan-to-value loans in the post-pandemic arena are presenting attractive buying opportunities for hotels.” Noble Investment has reportedly reached its US$800 million goal for the fund and is likely to reach its US$1 billion hard cap by the end of this year when the fund closes. The fund will invest in select-service and extended-stay hotels and will target an internal rate of 15% net and 20% gross with a 65% loan-to-value leverage component.
Ennismore signs TRIBE in Thailand: Ennismore in partnership with Bangkok-based Siamese Asset Public Co. Ltd. has signed TRIBE Bangkok Sukhumvit 39. The hotel, which will be the first TRIBE property in Thailand, will open in Q4 2022. The hotel will offer 272 rooms and serviced apartments, a café and flexible spaces for work or social interaction, an all-day dining restaurant, rooftop bar, gym and pool. Ennismore has signed 50 TRIBE hotels and is planning to grow the portfolio with up to 100 properties set to open globally in the next five years, including in Phuket, Singapore and Manila by 2025.
US profitability slows: U.S. GOPPAR in July surpassed the pre-pandemic figures but stood lower than June, revealed STR’s July P&L data.
- GOPPAR: US$78.30
- TRevPAR: US$209.66
- EBITDA PAR: US$55.29
- LPAR (labor costs): US$67.27
Although each of the bottom-line metrics saw a slight dip from June on a per-available-room basis, total profits increased with peak summer room demand and revenues. Profit margins came in stronger than July 2019 for full and limited-service hotels but GOP margins were lower than in the last four months. A total of 11 major markets reported higher GOPPAR and TRevPAR levels than 2019 figures. Leisure-heavy markets, like Miami, are expected to lead recovery of both GOPPAR and TRevPAR. Chicago posted the third highest GOPPAR.
Saudi Arabia streamlines visa norms: A ministerial decree, signed by Saudi Arabia’s tourism ministry, will enable the country to welcome more tourists and enable residents of the Gulf Cooperation Council (GCC) to apply for a tourism visa. GCC residents can now apply for an eVisa through an online portal, allowing residents of the U.S., the U.K. and the E.U. to apply for visa on arrival. The decree scraps the mandate of potential visitors to attend their country’s embassy before entering Saudi Arabia, increasing opportunities for travelers through a simplified journey.
Fairmont hotel, residences in Spain: Accor has signed a management agreement with Odyssey Hotel Group and the Madrid-based Spanish SOCIMI, Millennium Hospitality Real Estate, for a Fairmont hotel and residential project in Sotogrande, Spain. The 323-room Fairmont La Hacienda is expected to have a soft opening within the next 12 months and will be fully operational by Easter 2024. The project will be located in La Hacienda, a gated residential and golf development spread across 400 hectares. The complex will include 153 guest rooms with three junior suites and two-bedroom bedroom suites and 51 villas with 170 keys of which 15 will be comprised of junior suites and one-bedroom suites. Out of the 51 villas, 36 will have a private pool, living room and kitchen and will be available for sale to third-party. The complex will also have a Fairmont Villa, five restaurants and bars, a 2,000-square-meter spa, fitness center, a 1,108-square-meter ballroom, flexible meeting spaces and two golf courses.