PROJECT H3 BY HILTON BREAKS GROUND ON FIRST HOTEL: Hilton has broken ground on the first Project H3 by Hilton hotel in Kokomo, Ind. This marks the beginning of the construction of Hilton’s new studio apartment-style extended stay brand. Hilton is currently in the final stages of the brand’s trademark process, and the brand is operating under a working title. The 137-room hotel is owned by Sun Management & Development Corp and is slated to open in summer 2024. The hotel will have three signature elements — deliberate design, apartment-style rooms and a non-traditional lobby experience. The construction of the property comes within five months of Hilton announcing the lower midscale extended stay brand. Currently, the brand has more than 350 deals in various stages of negotiations.
LE PAVILLON HOTEL TO JOIN MARRIOTT’S TRIBUTE PORTFOLIO: Ashford Hospitality Trust, Inc. has entered into a franchise agreement with Marriott International to convert its 226-room Le Pavillon Hotel in New Orleans to a Tribute Portfolio property. The hotel will be converted in Q1 2024, with the theme ‘Turning History on its Head’ driving the property’s redesign. Refurbishments of the property will see upgrades to the restaurant, rooms, bathrooms, corridors and reimagining the lobby bar. Ashford Trust expects the hotel to realize a 10-20% RevPAR premium post-conversion compared to a stabilized pre-conversion basis. Remington Hospitality will continue to manage the hotel. Located in downtown New Orleans, the hotel is situated adjacent to the French Quarter and is a member of Historic Hotels of America.
SUNSTONE COMPLETES SALE OF BOSTON PARK PLAZA: Sunstone Hotel Investors, Inc. has completed the sale of the 1,060-room Boston Park Plaza Hotel for $370 million or $350,000 per key. A media report stated that the hotel was acquired by Parks Hospitality Holdings, a Hilton franchisee. The sale price represents a 12.1x multiple on hotel adjusted EBITDA and a 7.1% cap rate on hotel net operating income for the trailing four-quarter period ended June 30. Sunstone acquired the hotel in 2013 and reimagined the hotel. One of the largest hotels in Massachusetts, the hotel is expected to convert to a Hilton brand and rebranded as the Hilton Boston Park Plaza.
MR. C HOTEL AND RESIDENCES IN WEST PALM BEACH: Terra, the Florida-based real estate development company, and the Palm Beach, Fla.-based Morrison family’s Sympatico Real Estate have announced Mr. C Hotel & Residences in West Palm Beach, Fla. Located along the South Dixie Highway, the 25-story condominium hotel will have 110 rooms along with 146 branded residences. Residences will include one- to four-bedroom units. Homeowners on some floors can also enter their units in the property’s home rental program. The property will include a signature Bellini restaurant and lounge, a fitness center and spa, a co-working lounge, a children’s playground and a rooftop pool deck with views of the Palm Beach and the Atlantic Ocean. Construction on the property will begin in early 2024 and be completed in 2026. Sales for the condominiums will start in November. Terra and Sympatico have appointed Douglas Elliman to lead sales and marketing to develop the residences. Arquitectonica will lead the architectural design of the property, with the Landscape Design Workshop working on the landscape and interiors. Design boutique Meyer Davis and Ignazio and Maggio Cipriani will design the interiors and amenity spaces. Mr. C Hotel & Residences West Palm Beach will be Terra’s first hotel in the Palm Beach County market and its third in South Florida for the Mr. C luxury hospitality and residential brand.
BLUE WATER OPENS RESORT IN FLORIDA KEYS: Blue Water Development has opened Sun Outdoors Sugarloaf Key in the Florida Keys. The luxury location is located along a seven-acre saltwater lake, surrounded by parks and mangroves, and offers 73 full hook-up RV sites and 20 vacation cottages with patios. The property was earlier known as Lazy Rivers RV Resort. Blue Water purchased and renovated the resort for $14 million. Additions include rentals of a floating private oasis called Aqua Bana. Guests can also avail of kayaking, paddleboard rentals, a pool, a tiki bar with a fire pit and a custom Airstream food truck. The resort opened on October 1 and will have a grand opening event in early 2024.