Breaking news about M&A, development, management and more.
Linder take 12.18 management. Düsseldorf-based Lindner Hotel Group (LHG) has taken over the operation of five hotels (1,000 rooms) previously managed by 12.18. Group, also based in Düsseldorf. LHG’s portfolio grows from two to four brands, while 12.18. will shift its focus to real estate activities. Both companies consider the merger to be another milestone in their respective growth strategies. The takeover strengthens LHG’s position as an operator and lessee of hotel real estate, as well as increases its turnover by around e90 million euros. LHG now operate 35 hotels in eight European countries and the U.S. and has six additional hotels in the pipeline. 12.18. will focus on acquiring, developing, and repositioning hotel real estate and providing asset management services to its capital partners. The L-Collection has been created to include the other hotels previously operated by 12.18 such as Schloss Roxburghe (Scottish Borders/UK), Hotel Stadt Hamburg (Sylt, Germany) and San Carlos Hotel (New York City).
Rendering of the new Shore Club in Miami Beach
Auberge to manage The Shore Club. Auberge Resorts Collection,
Mill Valley, California, has been appointed by Miami-based developer Witkoff
and Monroe Capital to manage the 73-room Shore Club Resort & Residences,
Auberge Resorts Collection in Miami Beach, Florida, when it reopens in 2027. The
new property will include a new 18-story residential tower with 49 units and a
free-standing residential villa.
Tall Six Senses residences in Dubai. Six Senses and Dubai-based developer Select Group have
signed an agreement to launch Six Senses Residences Dubai Marina by the first
quarter of 2026. The 122-storey building will have 251 residences and be the
world’s tallest residential tower once complete. The partnership has already
launched the Six Senses Residences The Palm, Dubai, which will also be home to
Six Senses Place, the first wellness and social club in the United Arab
Emirates.
Union deal in LA. Workers at 34 Southern California hotels will see their
wages increase by $10 an hour over four years after Unite Here Local 11 agreed
to a new contract for its membership. Finalized
contracts include the Anaheim Hilton, Courtyard Los Angeles L.A. Live, Sheraton
Gateway Los Angeles Hotel and Irvine Marriott, among others. Labor disputes are
ongoing at dozens of other hotels, including the Hotel Figueroa, Hotel Maya,
Doubletree Downtown Los Angeles and the LA Grand. Under new four-year
contracts, many room attendants, cooks and other non-tipped workers at most of
the hotels will get a $5 hourly pay increase in the first year. They’ll see a
$10-an-hour bump, or an increase of up to 50%, over the course of the labor
agreements, which expires January 15, 2028, the union said.
Hyatt stock buyback. Hyatt disclosed in an 8-K filing that it repurchased $111.2 million of Class B shares from a Pritzker family trust – 0.7 million shares at a $157.97/share weighted-average price. So far in 1Q24, Hyatt has completed approximately $388 million of buybacks, of which $311 million have been Class B shares. Analyzing the move, R.W. Baird wrote that it recently increased its capital returns estimate to ~$700 million. “We suspect the accelerated pace of buybacks is due to progress on the asset sales front, which we expect to hear more about over the near term,” Baird said.