Financing for Ritz-Carlton in Papagayo: Gencom, a U.S.-based investment firm that owns, operates and develops hospitality real estate around the world and Mohari Hospitality, a global investment company engaging in a broad range of real estate investment activities with emphasis on luxury hospitality, secured US$130 million in financing for Nekajui, a Ritz-Carlton Reserve on Peninsula Papagayo in Costa Rica. The financing was provided by a group led by Banco BCT and Monroe Capital. The resort will be comprised of 107 guest rooms and suites, as well as 36 ultra-luxe branded estate homes and villas. To date, 70% of Nekajui’s residences have been pre-sold, totaling approximately US$180 million in sales. Pricing for the villas and estate homes range from US$5 million to US$15 million.
IHG, Willard renew agreement: IHG Hotels & Resorts has a new 25-year management deal with Willard Associates for The Willard InterContinental Hotel in Washington, D.C. Located one block away from the White House, the 12-storied hotel features 335 rooms, including 55 suites and 14 specialty suites. Carr Companies, the organizations’ affiliate partner, serves as the managing member of the two nearby IHG-branded hotels — InterContinental Washington D.C. – The Wharf and the Hotel Indigo Old Town Alexandria.
RIU to debut in UK: Spain’s RIU Hotels & Resorts is set to open its first hotel in the U.K., the Riu Plaza London Victoria. The hotel is scheduled to open in spring 2023. The hotel offers 435 rooms, a bar and a restaurant. The property has been refurbished and converted into a 4-star hotel. Located next to Victoria Station, Westminster Cathedral and Buckingham Palace, the building was constructed in the 1960s and fully renovated in 1997.
Dallas leads US construction pipeline: Dallas, Texas, led the U.S. market with the largest hotel construction pipeline by projects at the end of the third quarter, with a record high of 174 projects, accounting for 20,676 rooms. Atlanta, Georgia, came next with 139 projects/17,843 rooms; followed by Los Angeles, California, with 118 projects/19,062 rooms; Phoenix, Arizona, with 113 projects/15,508 rooms, and New York, New York, with 102 projects/17,805 rooms. Within the first three quarters, New York City, Austin, Nashville, Atlanta, and Detroit saw the greatest number of new openings.
Markets with most projects under construction:
New York – 69 projects/11,781 rooms
Atlanta – 25 projects/3,798 rooms
Phoenix – 24 projects/5,126 rooms
Dallas – 23 projects/3,390 rooms
Austin – 22 projects/3,135 rooms
Markets with most projects expected to start construction in 12 months:
Atlanta – 63 projects/8,026 rooms
Dallas – 63 projects/7,355 rooms
Phoenix – 53 projects/5,837 rooms
Los Angeles – 48 projects/7,461 rooms
Houston – 36 projects/4,227 rooms
Markets with the highest projects in early planning stage:
Dallas – 88 projects/9,931 rooms
Los Angeles – 51 projects/8,668 rooms
Atlanta – 51 projects/6,019 rooms
Orlando – 46 projects/8,039 rooms
Nashville – 44 projects/5,519 rooms
Pebblebrook earnings: Pebblebrook Hotel Trust reported third-quarter earning with quarterly funds from operations of US$0.66 per share, beating the Zacks Consensus Estimate of US$0.64 per share. This compares to FFO of US$0.16 per share a year ago. It also posted revenues of US$416.69 million for the quarter, beating the Zacks Consensus Estimate by 3.68%. This compares to year-ago revenues of US $238.81 million. Same-property revenues (versus 2019) was +2.5%; RevPAR was +1.3%; and ADR was +20%. Adjusted EBITDA of US $124.1 million beat Street estimates of US$121 million. R.W. Baird analysts wrote that it expects to focus on Pebblebrook to shift to the near-term impact from Hurricane Ian and the lost earnings at La Playa, which is negatively impacting 4Q22 guidance. Baird recently lowered our 4Q22 Adjusted EBITDA estimate to US$76.6 million to account for US$8 million of expected of hurricane-related disruption at La Playa.