Latest news: Driftwood originates mezz loan; first Graduate by Hilton; boutique data strength

Driftwood originates mezz loan. Driftwood Capital, Miami, has originated a $12.1 million mezzanine loan for the refinancing of a five-property, 714-key portfolio. Through its lending fund, Driftwood Lending Partners, LP, (DLP) the firm provided financing to a joint venture between affiliates of a hotel investment and management firm and a global investment management firm. Driftwood originated a 3-year loan with two, 1-year extension options at a competitive interest rate. The loan collateral is comprised of a 189-key property in Salt Lake City, Utah; a 139-key property in Norwood, Massachusetts; a 113-key property and a 146-key property in Bloomington, Minnesota; and a 127-key property in Arlington, Texas. Since the fund’s launch in late 2020, DLP has participated in more than $1.4 billion in financing for hotels and sponsors throughout the U.S.

Boutiques outperform. Boutique hotels have collectively increased in all performance indicators through June 2024 compared to the previous period in 2023, according to data from The Highland Group.  Each boutique segment - Lifestyle, Soft Brand Collection and Independent - contributed to a collective increase in revenues of 5%.  Demand increases are seen across classes, from Upper Midscale to Luxury. The Lifestyle segment achieved the largest increase in supply, occupancy, demand and revenue.  The Soft Brand Upper Midscale class reported some of the strongest average rate gains. Independent boutiques achieved the largest increase in RevPAR.

New Graduate under Hilton banner. The first Graduate by Hilton hotel has opened since Hilton took ownership of the brand from AJ Capital. The Graduate Princeton in New Jersey is a transformation of a historic 1918‑era student dormitory into a 180‑key boutique hotel, doubling the total hotel rooms in town. It is located on historic Nassau Street in the heart of downtown, directly opposite the Princeton University campus. The opening marks the first new hotel to open in Princeton in nearly 90 years—and only the second hotel in its historic downtown.

China aviation data. Passenger flights in China could reach 700 million this year, according to the country’s Civil Aviation Administration. In the first half of this year, passenger trips rose 9% from the same period in 2019. Last year, total trips were 619.6 million. During the eight-day Lunar New Year holidays earlier this year, tourism revenues in China surged by 47.4% year-on-year, driven by a domestic travel boom, beating pre-pandemic levels. International travel from China recently got a boost from the Paris Olympic Games, as well as demand for flights to and from Japan, South Korea, Singapore and Europe, according to the CAA.

New gateway to Galapagos. Art Hotels Ecuador will open in late 2024 the luxury, 20-room Hotel Rio Guayas in Guayaquil, Ecuador (a city which serves as the gateway to the Galapagos). The hotel is located in the historic neighborhood of Las Peñas, on the traditional street Numa Pompilio Llona, the first neighborhood of Guayaquil with over 400 years of history. Opening their first hotel in 2018, Art Hotels Ecuador is an Ecuadorian owned and operated collection of historic luxury boutique hotels, including hotels in Quito, Otavalo and Cuenca with future locations to be added in Guayaquil and the Galapagos Islands.

Big July in Berlin. Boosted by three key events, Berlin’s hotel industry posted its highest July levels in ADR and RevPAR, according to CoStar data. July occupancy was 77.9% (-0.1% YOY); ADR was EUR136.94 (+17.3%); and RevPAR was EUR106.73 (+17.2%). The July 14 final of the UEFA European Football Championship between Spain and England pushed the market’s ADR to EUR353.56 (+171.4% YOY) and RevPAR to EUR308.77 (+189.2% YOY). Berlin’s highest daily occupancy level was posted on Saturday, July 27 (88.8%)—the night of Christopher Street Day. The second highest occupancy (88.6%) was recorded on both the second and third nights of Berlin Fashion Week (July 2-3). Overall, the market’s occupancy levels remained above the 70% mark for all but five days.

IHCL grows in Rajasthan. Indian Hotels Co. Ltd. (IHCL) has signed a greenfield, 200-key resort deal in Sawai Madhopur, Rajasthan, for its Gateway resort brand. The developers are Jalan Builders, Jalan Hospitality, V2RS Group and Jatsons. With the addition of this hotel, IHCL will have 30 hotels in Rajasthan, including nine under development.