Gaw Capital countersues lenders: New York City’s Standard High Line Hotel owner, Hong Kong-based Gaw Capital Partners, is countersuing its lenders to prevent foreclosure on the property, Bloomberg reported. Wells Fargo & Co. sued on behalf of the lenders in November to foreclose on the hotel, contending the owners defaulted on a US$170 million mortgage. Gaw Capital’s counterclaim reportedly accuses the lenders of an “illicit scheme” to extract US$50 million from its coffers by offering only “outrageous new [loan] terms.” Gaw Capital also wants Apollo Global, Wells Fargo and other lenders to be denied interest on delinquent debt. It bought the hotel for US$340 million in 2017 and more recently fell behind on mortgage payments due to the pandemic and its impact on the business.
LVMH buys again on Rodeo Drive: LVMH, the Paris-based luxury goods conglomerate, has reportedly acquired for US$200 million the former 86-key Luxe hotel on Rodeo Drive in Beverly Hills, California, from owner Efram Harkham and family. That would put the deal at an astounding US$2.3 million per key. The 42,560-square-foot property additionally consists of three high-end retail storefronts leased to Rolex, Patek Philppe and Ferrari. It is not yet clear what LVMH’s plans are for the space, especially considering it acquired in 2018 for US$245 million a property a block away on Rodeo Drive with plans to build a Cheval Blanc hotel.
Oxford acquires Westin Book Cadillac: Oxford Capital Group, Chicago, Illinois, announced the acquisition and planned full-scale interior renovation of the 453-key Westin Book Cadillac Detroit Hotel in Detroit, Michigan. Oxford and its partner Taconic Capital Advisors led negotiations with several constituents, which resulted in the restructuring, modification and assumption of the commercial mortgage-backed security loan. Oxford and Taconic will work on a refresh of the guest rooms, public space, meeting rooms and ballrooms over the next 24 months. The hotel will remain operational and open throughout the renovation period. As part of their agreement with Marriott International, Oxford is making a significant investment into the newly-designed guest rooms all public spaces. The property will be reimagined by Oxford in collaboration with The Gettys group and Marriott.
Concern over Omicron’s impact on revenue: Concern about the Omicron variant of COVID-19 is apparent among the global business travel industry, with 82% respondents being concerned or very concerned about the impact to revenue in the business travel sector, according to the latest poll by The Global Business Travel Association. About 69% report they are concerned about employment and rehiring in the sector, with 61% being concerned about the safety of business travel. About 37% report their bookings have decreased, while 25% say their company’s bookings have remained the same. About 53% say their company is not likely to introduce new restrictions due to the new variant, while 19% report that while their companies have not introduced new restrictions, they are considering to do so.
Starwood rumored to buy Standard: Barry Sternlicht’s Starwood Capital Group is reportedly buying the 100-room Standard hotel in Miami Beach for somewhere between US$60 million and US$70 million from the family of Zara brand magnate Amancio Ortega.
Aman announces Project Sama: Aman, the Baar, Switzerland-based luxury hospitality company, announced Project Sama, a luxury motor yacht, developed through a joint venture between Aman and Cruise Saudi, of which Saudi Arabia’s Public Investment Fund is a shareholder. The vessel’s official name will be announced soon. The 183-meter vessel will comprise 50 luxury suites each with a private balcony and will launch in 2025. Designed in partnership with Sinot Yacht Architecture & Design, the vessel will also feature an informal all-day restaurant along with international dining options, a club and lounge, spa, two helipads and a beach club. Aman’s portfolio currently consists of 33 hotels and resorts in 20 destinations. Eight additional properties are under construction, with the next to open in New York.
IHG, China Duty Free Group partner: IHG Hotels & Resorts has partnered with China Duty Free Group to develop new luxury and lifestyle hotels in Hainan — the 317-key Regent Sanya Haitang Bay and the 175-key Hotel Indigo Sanya Haitang Bay. Both the properties are expected to open in 2026. IHG acquired a majority stake in Regent Hotels & Resorts in 2018. Situated along the Haitang Bay coastline and Sanya International Duty-Free Shopping Complex, the Regent Sanya Haitang Bay will have five room types, including 10 private villas, while Hotel Indigo Sanya Haitang Bay will have four room types. Currently, IHG had 12 hotels in operation in Hainan and 17 under development across several brands.
Black banks to fund Marriott development: The National Black Bank Foundation announced that a pair of Black-owned banks are participating in a US$45 million transaction to develop The Trade, a new Autograph Collection hotel by Marriott in Deer District in Milwaukee, Wisconsin. Columbia Savings & Loan Association and Citizens Trust Bank are financing North Central Group, which is developing the property through a long-term land lease with the Milwaukee Bucks. The partnership follows a summit between the presidents of four of the country’s biggest Black banks and Milwaukee Bucks President Peter Feigin earlier this year.
Wyndham conversion story grows: Wyndham Hotels & Resorts has announced franchise agreements with Ceres Development on three new signature Wyndham-branded hotels, two in Indiana and one in Ohio. These newly rebranded hotels (previously flying Choice Hotels flags) reflect Wyndham’s growth via conversions as it has experienced 100% more domestic conversions in third quarter 2021 compared to third quarter 2019. Joining the Wyndham portfolio are the 132-suite Wyndham Noblesville in Indiana; the 152-room Wyndham Westfield in Indiana; and the 113-suite Wyndham Avon in Ohio. Orlean Company is a joint owner of the Avon and Westfield properties.
Paris leads Europe bookings: Occupancy on the books is increasing in Paris with a peak of more than 70% on New Year’s Eve, according to STR’s Forward Star. As of December 13, Paris’ occupancy on the books was 71.1% for December 31, which was the highest in Europe’s key markets and the highest for the city over the next 90 days. From that point, booking levels gradually fall to a low of 10.5% on January 31. New Year Eve’s occupancy on the books in Rome and London is 56.1% and 52.3%, respectively, while Brussels is lower at 34.3%.
Occupancy on the books rises in Australia: Occupancy on the books is rising in Australia’s hey markets, with Brisbane and Adelaide nearing 70% for New Year’s Eve, according to STR’s Forward Star. Occupancy is about 60% in some key markets and as more markets reopen in the country, occupancy levels is set to rise. Following lower periods next week, Adelaide, Brisbane, Melbourne and Sydney each show rising occupancy on the books after Christmas that builds to high points on December 31. Adelaide, with early December peaks above 70% for the coming weekend, dips to 31.6% (December 21) above gradually increasing to 67.4% on New Year’s Eve. Brisbane, which fell to 41.8% on December 22, rises to a high off 68.5% on New Year’s Eve. Melbourne and Sydney occupancy on the books hit highs of 57.9% and 53%, respectively.
Hawaii hotel industry flourishes: Hawaii’s hotel industry continues to flourish as pent-up travel demand brings more people to the islands, according to CBRE’s Hawaii Hotel Q3 2021 report. RevPAR skyrocketed to 44.1% YOY from 30.95% in Q3 2020 to US$167.46 in Q3 2021. IN Q1, RevPAR was down 59.5%, while ADR was down 12%. Occupancy continues to rise to the pre-COVID levels, with a 1674 BPS rise from 20.6% in Q3 2020 to 55.1% in Q3 2021. Maui is performing the best by most metrics, with the ADR reaching US$584, almost US$300 higher than the next highest rates on Kaui (US$316) and the Big Island (US$306). From an occupancy perspective, Kauai saw the most significant increase with a +3377 BPS change from Q3 2020 to Q3 2021. Overall, occupancy levels on all the islands are above 50% for the first time since the start of the pandemic.
Ashford updates results: Ashford Hospitality Trust reported on Friday preliminary portfolio occupancy of 61.6% for November with an ADR of approximately US$155, resulting in RevPAR of approximately US$95. This RevPAR result represents an approximate decrease of 21% versus November 2019 and is the best monthly performance versus 2019 numbers since first quarter 2020. Additionally, for the month of November, hotel net income was US$0.6 million. Comparable hotel EBITDA for the month of November was US$19.2 million, a 407% increase over November 2020’s comparable hotel EBITDA of negative US$6.3 million.
Remington signs two deals in DC: Remington Hotels, the Dallas, Texas-based wholly owned subsidiary of Ashford Inc., has signed agreements to manage Courtyard Washington, D.C. Dupont Circle and Moxy Washington, DC Downtown, two Marriott properties in the District of Columbia. Remington will oversee both the properties’ daily operations. The Courtyard Washington, DC Dupont Circle opened earlier this month under Remington Hotels’ operation after renovations, while Moxy Washington, DC Downtown recently joined Remington’s portfolio. The additions mark Remington’s expansion across the northeast region of the country. Remington currently managed 86 hotels in 23 states across 19 brands, including 13 independent and boutique properties.
Deal activity rises 9.7%: Deal activity in the travel and tourism sector rose 9.7% in November, according to GlobalData. A total of 79 deals (mergers and acquisitions), private equity and venture financing were announced globally in November, as compared to 72 deals announced in October. The increase marks an improvement in deal activity for the third consecutive month in the sector. Deal activity increased in some key markets like the U.S., the U.K., India and China in November compared to October. However, markets like Australia, Japan and South Korea reported a dip in deal activity. Announcement of M7A deals jumped 30% in November. However, venture financing and private equity deals dipped 9.5% and 27.3%, respectively.
Choice Hotels, Concord sponsor program for HBCUs: Choice Hotels International, Rockville, Maryland, and Concord Hospitality Enterprises Co., Raleigh, North Carolina, are sponsoring a hospitality management accelerator program for students graduating from Historically Black Colleges and Universities (HBCUs) to gain experience at the Cambria Hotels brand. Two recent Morgan State graduates are the first to participate in the six-month managers-in-training rotational program, which was launched in September with Concord Hospitality at the Cambria Hotel Washington, D.C. Convention Center and the Cambria Hotel Nashville Downtown. Choice Hotels joined the HBCU Partnership Challenge, developed by Congresswoman Alma Adams. So far, 78 companies have joined the challenge.
GuruHotel raises US$21 million: GuruHotel, Mountain View, California, announced a US$2.1 million round from Anthemis Group, Magic Fund, 500 Startups, Shruti Challa and others. With this investment, the company plans to position itself in the tourism and hotel reservations industry. Unlike popular booking platforms, which constitute around 80% of online reservations and charge fees between 15% and 40%, GuruHotel plans to charge 5% of each reservation. The company focuses on conversions to get hotels to generate 30% additional revenue.
Gaming operators gear up for New York’s casino expansion: Several gaming operators are exploring possible expansion into New York, with Bally’s, Hard Rock, Las Vegas Sands, Wynn Resorts, Genting, MGM resorts and Rush Street Gaming reportedly among the companies that have responded to the request for information by the New York State Gaming Commission before the December 10 deadline. This follows New York’s announcement that it might grow its land-based casino market. For casino operators, the city and its surroundings, including Nassau County and the northern suburbs, are considered gold mines.
Monte Carlo-style casino in NYC’s East River?: The East River waterfront in Manhattan is reportedly being considered as a location for a ‘Monte-Carlo-style’ casino by Water Club restaurateur Michael “Buzzy” O’Keefe. However, it’s not clear who O’Keefe has partnered with to operate the gambling portion. The casino, which will feature “classic” table games and no slot machines, will be 24,000 square feet with a 100-car parking lot. About 450 feet of “open deep water pier” is likely to be used to build extra gaming facility space or “float in a custom casino.” Around nine casino operators have expressed interest for the three downstate casino licenses, based on the preliminary outlines submitted to the state Gaming Commission.
Schloss Elamu to host G7 twice: Bavarian spa resort Schloss Elmau is set to become the world’s first hotel to host a G7 summit for the second time in June 2022. Schloss Elmau last hosted the G7 annual summit — which brings together leaders of Canada, France, Germany, Great Britain, Italy, Japan and the U.S., in 2015. “With its scenic backdrop, Schloss Elmau has provided an attractive setting for talks and meetings between the heads of state and government in the past: it left a lasting impression worldwide and care was taken to ensure that everything ran smoothly,” a German government spokesperson said.
Airbnb, Vrbo’s partnership to address “party houses”: The pilot program of the Community Integrity Program, a joint collaboration of Airbnb and Vrbo, has been officially operationalized in the U.S. The initiative seeks to promote community safety by sharing information on listings and strengthening action on the community treat posed by chronic “party houses.” Vrbo’s Stay Neighborly allows the community to raise issues or concerns, which are investigated. If there are repeated violations at the property, the listing is deactivated and host is notified. Airbnb’s Neighborhood Support Line provides a forum where a neighbor and community members can flag alleged “party houses” or other concerns. Airbnb then investigates and enforces its community policies, like removing the listing from its platform.