Q2 US transaction update: A total of 133 single asset sale transactions worth more than US$10 million, totaling around US$5.3 billion took place in the U.S., and included 21,200 hotel rooms with an average sale price per room of US$248,000, revealed the LWHA Q2 2022 Major U.S. Hotel Sales Survey. In comparison, according to the 2021 Q2 survey, there were 60 single asset sale transactions worth more than US$10 million totaling US$4.7 billion and included 14,000 keys with an average sale price per room of US$331,000. While the number of trades soared 122% in Q2 2022 and total dollar volume grew 12%, the sale price per room fell by 25%. Around 29% (38 trades) of the national quarter occurred in California, followed by 22% (29 trades) in Florida. Two sales were completed for over US$200 million each —the U.K-based Henderson Park Capital Partners acquired the 553-key Naples Grande Beach Resort from Northwood Investors for US$248 million and Sunstone Hotel Investors acquiring the 339-key The Confidante Miami Beach for US$232 million from Hyatt Hotels Corp. Nine sales were completed between US$100 million and US$199 million. Institutional investment platforms, most of which are lodging centric, dominated the hotel transaction segment.
Yotel launches in Japan: YOTEL, London, has announced its debut in Japan with YOTEL Tokyo, expected to open in 2024 under a long-term management agreement. The 244-key flagship will feature the brand’s signature robotic concierge Yobot, motorized smart beds, and fully integrated technologies enabling a touchless guest experience from reservation to check out. The hotel is part of Yotel’s wider expansion plan to grow across key cities in Japan. The company is also working on opportunities to launch YotelAir, its transit hotel concept at key gateway airports and train stations.
Mandarin Oriental DC to rebrand: The Mandarin Oriental in Washington, D.C., will be rebranded and managed by Middleburg, Virginia-based Salamander Hotels & Resorts from September 9. Mandarin Oriental Hotel Group is selling the 373-room hotel to London-based Henderson Park for US$139 million. The hotel marks Salamander’s entry into D.C. It currently operates properties in Charleston, South Carolina; Aspen, Colorado; Palm Harbor, Florida; Montego Bay, Jamaica; and Rendezvoud Bay, Anguilla.
Hilton launches brand platform, ad campaign: Hilton has announced a global brand platform ‘Hilton. For the Stay,’ which elevates the importance and role of the hotel stay, and a new advertising campaign to introduce the platform. Including a spot with Paris Hilton, businesswoman and great-granddaughter of Conrad Hilton, the founder of Hilton Hotels, the campaign — “It Matters Where You Stay” — highlights the benefits the hotel group offers to make guests feel cared for. Spanning 13 commercials, the campaign includes TV, audio, print, social media and out of home and will start launch first in the U.S., followed by the U.K. and some Asia Pacific and Middle East markets.
Banyan Investment Group’s fund fully subscribed: Banyan Investment Group, Atlanta, Georgia, has announced its Banyan Lodging Enhanced Value Fund has been fully subscribed. The final participants comprised domestic and foreign family offices. The fund was created to quickly move and purchase and backfill with external capital post-closing. The fund can be used to form joint venture partnerships with institutional investors and/or syndicates of retail investors, implying total investible equity in the range of US$350 million. The fund allows for both individual property and portfolio acquisitions, and will serve as a general partner along with institutional investors to acquire hotels.
Pyramid Global assumes management in Nashville: Pyramid Global Hospitality, Boston, Massachusetts, has assumed management of the 255-key Cambria Hoe Nashville Downtown, marking the company’s third Cambia under management. The 19-story hotel includes work areas, spa-style bathrooms, rooftop pool and bar and over 6,000 square feet of flexible meeting space.
Dunk Island gets new owner: Annie Cannon-Brookes, wife of tech billionaire Mike Cannon-Brookes, has acquired the beleaguered 150-hectare Dunk Island in Australia’s Great Barrier Reef. The sale price is said to be between AU$20-25 million (US$13.84-17.3 million). The island is home to the former 160-key Dunk Island Resort, which has remained closed since 2011 after suffering severe damages by Cyclone Yasi. Cannon-Brookes is reportedly planning to develop the freehold part of the island, with the rest of the land comprising a national park and camping facilities for visitors. The island’s previous owners, the family company of businessman Peter Bond, have sold it twice recently, but the deals fell through. Mayfair 101 acquired the island in 2019 for AUS$31.5 million (US$21.8 million) with plans to redevelop it into a tourism hub, but less than a year later the deal collapsed and the island was repossessed by the Bond family.
Mixed-use project in Tokyo: Tokyo-based companies Tokyu Corp., and Tokyu Department Store along with Greenwich, Connecticut-based L. Catterton have unveiled plans for Shibuya Upper West Project, a mixed-use development in Tokyo’s Shibuya district. Slated to be completed in 2027, the tower will have 36 floors above and four floors below with a total height of 164.8 meters. Norway-based design firm Snøhetta will work on the building’s architectural design. The building will feature a hotel by The House Collective, a luxury hotel brand by Hong Kong-based Swire Hotels. The building will also include retail space, rental residences and a green space.
Flyt Property acquires Wink: Flyt Property Investment, Cape Town, South Africa, has acquired Wink ApartHotels from Indalo Hotels and Leisure. Flyt will take over management of the short-to-medium stay and long-term leasing aspects, administration and management of three Wink-branded properties — Eaton Square in Cape Town, WINK Quivertree in Stellenbosch and WINK Foreshore. This will ensure all 185 keys under WINK’s management.
Hong Kong considers cutting quarantine: Hong Kong plans to introduce a two-color health code system and reduce hotel quarantine for arrivals. The government is likely to implement five days of hotel quarantine, after which visitors will be issued a yellow health code for two days prohibiting them from entering high-risk areas where masks can be removed. Another plan under consideration is a four-day hotel isolation period followed by three days of yellow code restrictions. Currently, Hong Kong mandates a seven-day quarantine for incoming visitors. Local media said the government is likely to implement the health code from early August. Separately, the government has mandated travelers to fill out an electronic health declaration form before boarding a flight to make the process more efficient, no longer allowing them to complete the paperwork after landing. The new system will be rolled out from July 28 on a trial basis.