Oyo eyes US$9 billion IPO valuation: Oyo Hotels & Rooms, Gurugram, India, is reportedly expeting to get a valuation of around US$9 billion in its initial public offering (IPO) after preliminary round of discussions with its potential investors. The Indian startup, which is backed by Softbank Group Corp., is set to get its approval to launch the IPO by next week. The valuation is lower than the US$12 billion initially reported last year and also lower than the US$10 billion level that the startup reached in 2019. The IPO will comprise primary shares, or those sold by the company, and a smaller share of secondary stock. Softbank, which owns 47% of equity, plans to sell a small portion of shares.
Värde Partners, Hawkins Way form JV: Värde Partners, Minneapolis, Minnesota, and Hawkins Way Capital, Los Angeles, have formed a joint venture to acquire over US$1 billion of value-add and distressed hospitality and housing assets across major cities in the U.S. The acquired assets will operate under an affiliate of Hawkins Way. Through an affiliate, the new JV recently acquired a non-operating hotel in New York City – a 764-room property earlier operated as a DoubleTree hotel. The JV will be seeded with operating properties in Oakland, San Francisco and two in Brooklyn. Lazard was the exclusive financial advisor to Hawkins Way and the partnership in the transaction.
Lotte grows US portfolio: South Korea-based Lotte Hotels & Resorts announced its first overseas L7 hotel in Chicago, after the acquisition of the Kimpton Hotel Monaco Chicago from Florida-based Xenia Hotels & Resorts for US$36 million. The hotel was purchased jointly with Korea Overseas Infrastructure & Urban Development Corp. The hotel will be refurbished and will be open by the end of 2023. Currently, there are three L7 hotels in South Korea.
Scandic signs in Sweden: Scandic Hotels has signed a long-term lease agreement with Skansa for Scandic Sundsvall Central, a new hotel in Sundsvall, Sweden. The 210-key hotel is slated to open in 2024 and will also feature a restaurant and bar area. The hotel is expected to maintain a very high energy standard and be 100% climate-neutral. Scandic has two other hotels in Sundsvall with a total of 312 rooms.
Saudi’s TDF, Deutsche Hospitality sign agreement: Saudi Arabia’s Tourism Development Fund signed a Memorandum of Understanding with Deutsche Hospitality to operate and develop Steigenberger Porsche Design Hotels projects in Saudi Arabia. The agreement includes the right to exclusively debut the Steigenberger Porsche Design Hotels project in the Middle East. Featuring 150 rooms, suites and penthouses, the luxury hotels will include a restaurant and lounge concept, meeting spaces and health and beauty facilities.
IDB Invest, Banco Popular Dominicano finance Grupo Piñero: IDB Invest, Washington D.C., provided US$120 million in financing to Spanish hotel operator Grupo Piñero to help the latter reopen its hotels in the Dominican Republic and Jamaica that had to close due to the pandemic. Banco Popular Dominicano will additionally provide a loan of US$80 million to create a total package of US$200 million. The liquidity will help Grupo Piñero’s working capital requirements, infuse funds to ensure its properties’ competitiveness and provide a financial cushion as it braces recovery. The company plans to use the funds to revitalize its regional portfolio. IDB invest will also offer technical support for the protection of coastal areas, restoring mangroves and corals and a consultancy to analyze the impact of climate change on the group’s hotels.
Asia Pac leads in construction activity: Asia Pacific was the only region to show increased hotel construction activity at the end of Q4 2021 in comparison to the same period in 2021, according to December 2021 data from STR.
- In construction: 211,453 rooms (-16.8%)
- Final planning: 220,044 rooms (-20.6%)
- Planning: 329,474 rooms (+39%)
- Total under contract: 760,971 rooms (-1%)
The U.S. has the most number of rooms in construction in the region, followed by Mexico (14,020) and Canada (6,856).
- In construction: 221,789 rooms (-7.6%)
- Final planning: 163,805 rooms (-4.9%)
- Planning: 159,232 rooms (+4.7%)
- Total Under contract: 544,826 rooms (-3.5%)
Germany (45,121) and the U.K. (31,464) continue to lead Europe in total rooms in construction.
- In construction: 473,983 rooms (+5%)
- Final planning: 170,210 rooms (-3.8%)
- Planning: 297,687 rooms (+16.3%)
- Total under contract: 941,880 rooms (+6.5%)
China (290,265) leads among countries with the most rooms in construction, followed by Vietnam (30,546).
Middle East & Africa
- In construction: 130,225 rooms (-5.5%)
- Final planning: 38,765 rooms (-14.3%)
- Planning: 67,142 rooms (+2.8%)
- Total under contract: 236,132 rooms (-4.9%)
Saudi Arabia (40,269) and the U.A.E. (31,715) lead in construction activity.
Talbot Hotels acquires Clonmel Park Hotel: Talbot Hotels has acquired from Tetrarch Capital the 4-star 99-room Clonmel Park Hotel in Clonmel, Ireland, in an off-market transaction for close to €7.5 million (US$8.56 million). This marks Talbot’s first property in County Tipperary. The deal was brokered by CBRE. The three-story hotel, which was built in 2006, spans across 6,655 square meter and will be rebranded as the Talbot hotel Clonmel. The deal with Talbot follows Tetrarch’s sale of the Killashee Hotel last month to Barry English for around €25 million (US$25.53 million).
MUI sells The Regency Hotel: Malaysia-based Malayan United Industries Berhad (MUI) has sold The Regency Hotel in the U.K. to Westbourne Leisure Ltd. For £6.5 million (US$8.88 million). Located at Shirley, Solihull, West Midlands, the 111-room three-star hotel is spread across 77,526 square feet and previously operated as Corus Hotel Solihull.
Hilton’s new opening in Jamaica: Hilton Hotels & Resorts is opening the ROK Hotel, a new hotel in Kingston, Jamaica. The 168-room hotel will be part if Hilton’s Tapestry Collection and is expected to open on May 31. Located at the heart of the Kingston Waterfront, the hotel will include three dining concepts, an outdoor pool and a fitness center.