VICI takes Blackstone’s share of two Vegas giants: Blackstone Real Estate Income Trust (BREIT) and VICI Properties (VICI) have entered into a definitive agreement in which VICI, currently owner of a 50.1% interest in the joint venture that owns MGM Grand Las Vegas and Mandalay Bay Resort in Las Vegas, will acquire BREIT’s 49.9% interest in the joint venture for cash consideration of approximately US$1.27 billion and VICI’s assumption of BREIT’s pro-rata share of the existing property-level debt. The property-level debt has a principal balance of US$3 billion, matures in 2032, and bears interest at a fixed rate of 3.558% per annum through March 2030. The properties are subject to an existing triple-net lease agreement between the joint venture and MGM Resorts International. The lease will generate annual rent of approximately US$310 million upon the commencement of the next rental escalation on March 1, 2023. The MGM Grand Las Vegas/Mandalay Bay triple-net lease has a remaining initial lease term of approximately 27 years (expiring in 2050) with two 10-year tenant renewal options. Rent under the lease agreement escalates annually at 2% through 2035 (year 15 of the initial lease term) and thereafter at the greater of 2% or CPI (subject to a 3% ceiling). VICI intends to fund the transaction through a combination of cash on hand, proceeds from the settlement of existing outstanding forward equity sale agreements and assumption of the remaining 49.9% of the existing property-level debt.
A first for Four Seasons: Naviva, A Four Seasons Resort, Punta Mita, Mexico, has opened as the brand’s first adult-only tented resort in the Americas. The retreat features only 15 luxury tents surrounded by 48 forested acres on the edge of a private peninsula and neighbors the brand’s Punta Mita property. Naviva stays start at US$3,950 per night and include all meals, snacks and drinks, one 60-minute spa treatment per guest, daily practices and rituals, and unscripted Naviva experiences such as a surprise picnic in the jungle. The team collaborated with Mexican artists, craftspeople, and manufacturers throughout the design and construction process, not only to support local businesses but also to create spaces with an authentic connection to Mexico’s culture.
Remington names new president: Remington Hotels has promoted divisional President Chris Green to president. Green joined the group in April after it partnered with Chesapeake Hospitality, where he served as CEO. He has 25 years of experience in hospitality operations. Founded in 1968, Remington currently manages 118 hotels in 27 states and Washington, D.C. across 24 brands, including 18 independent and boutique properties.
More hotels for Diriyah Gate: Saudi Arabia’s US$50 billion giga-project Diriyah Gate, the birthplace of the Kingdom just outside Riyadh, has announced 16 additional hotel brands, including more than a dozen new hotels with names such The Langham, Faena and Corinthia joining. The announcement brings the total number of confirmed hotels to 32, with a total of 38 hotels planned for the giga-project. The new hotel brands joining the project, some previously announced, include Anantara, Corinthia, Edition, Faena, The Chedi, Hyatt Place, Montage Hotels & Resorts, Moxy, 1 Hotels, Pendry Hotels & Resorts, Radisson Red, Taj, The Langham, Treehouse Hotels, Waldorf Astoria and Well Health Retreat.
US performance dips: Hotel performance in the U.S. came in lower than the previous week due to the Thanksgiving holiday and saw mixed comparisons to 2019, revealed STR’s latest data through November 26.
- Occupancy: 50.4% (-0.5%)
- ADR: US$135.49 (+20.4%)
- RevPAR: US$68.27 (+19.9%)
Among the top 25 markets, Minneapolis posted the largest occupancy increase over 2019 (+7.6% to 42%). Phoenix recorded the highest ADR (+42.7% to US$151.24) and RevPAR (+44.8% to US$85.05) increases. San Francisco (-21% to US$73.73) registered the only RevPAR decrease.
Wyndham grows in Indonesia: Wyndham Hotels & Resorts Asia Pacific has signed a multi-property license development agreement with Indonesia-based hotel developer Sun Motor Group. The signing was launched with the first two of multiple license agreements scheduled to be signed in the next five years, starting with Super 8 Singosaren Solo (which marks the debut of the Super 8 brand in Indonesia) and Ramada by Wyndham Sleman Yogyakarta (which helps grow Wyndham’s footprint in the country). Both hotels will open by 2024. The 50-room, limited-service Super 8 Singosaren Solo is the second hotel to open in Solo by Sun Motor and Wyndham.
International inbound forecast: International inbound travel to the U.S. will see a significant downgrade through the rest of the year and 2023 due to economic concerns and worsened by excessive wait times for first-time visa applicants, according to the U.S. Travel Association’s latest travel forecast. Potential visitors from key source markets, including India, Mexico and Brazil, currently witness 400- to 800-day wait times to meet with U.S. Consular officials. In June, Tourism Economics projected international visitation volume would end 2022 at 67% of 2019 levels and 82% in 2023. That has now been downgraded to 63% of pre-pandemic levels for 2022 and 75% for 2023. This marks an additional loss of 8 million visitors and US$28 billion in spending over those two years. International inbound travel is not expected to fully recover to 2019 levels till 2025.
IHG adds Regent in Shanghai: InterContinental Hotels Group and Shanghai Seagull Holding Group Co. will jointly open a luxury hotel, Regent Shanghai on The Bund. The hotel, expected to open in 2023 following the completion of renovations, will become the second Regent in Shanghai. Earlier known as the Shanghai International Seamen’s Club, the Regent Shanghai on The Bund will be restructured, which will see enhancements of original facilities and standards. The hotel will feature 130 rooms, close to the existing number of rooms. Greater China is the second largest global market for IHG, with 12 out of 17 brands under IHG having entered the country.
Courtyard by Marriott to Mexico: Courtyard by Marriott has opened the new Courtyard By Marriott Mazatlan Beach Resort, the first Courtyard resort to open in Mexico. The 195-key hotel includes event spaces with ocean views which can accommodate up to 300 people, spa, fitness center and several restaurants and bars. Courtyard by Marriott has properties in over 1,265 locations across 60 countries.
Valor, ICD form jv: Atlanta, Georgia-based Valor Hospitality Partners has entered into a joint venture with the hospitality and leisure arm of Investment Corp. of Dubai (ICD), the principal investment arm of the government of Dubai which manages a portfolio of commercial companies and investments. Following the joint venture, Valor has begun the operational transition of over 800 keys across hotels in the Emirate, including the Radisson Blu Hotel Dubai Deira Creek and three Wyndham Deira hotels. The properties will be added to Valor’s operating and pipeline properties in the region. Valor operates more than 85 properties globally.