Latest news: Hyatt buyback; Peachtree credit investment; more woes in SF

Hyatt $200M stock buyback. On March 15, Hyatt Hotels Corp. repurchased $200 million of Class B shares from a Pritzker family trust, according to R.W. Baird. In an 8-K filing after market close, Hyatt disclosed the price was based on the trailing three-day VWAP of $155.96/share. The 1.283 million shares represent 1.2% of total Class A and B shares outstanding. R.W. Baird now forecasts $700 million of buybacks and dividends in 2024 (+$100 million versus prior).

San Francisco woes continues. Westbrook Partners reportedly has received a notice of default for the more than $70 million loan attached to the 155-room Four Seasons San Francisco. The San Francisco Business Times reported the real estate developer has not made a loan payment since December 2023. Other troubled properties in the city include the Hilton Financial District, which received a notice of default in January and the Hilton San Francisco Union Square having stopped making loan payments in 2023.

Peachtree goes big in credit. Peachtree Group announced it has closed approximately $660 million in credit investments since December 1, 2023, with an additional $350 million anticipated closing over the next 30 to 45 days. The credit investments primarily encompass originations for hotels, multifamily, industrial and student housing. In February, Peachtree closed one of the largest individual credit transactions in the firm's history with a $102.9 million three-year loan to recapitalize a 350‐room Marriott dual-brand AC Hotel Sunnyvale Moffett Park and TETRA Hotel, Autograph Collection in Sunnyvale, California.

Baccarat to the Maldives. Starwood Capital Group’s SH Hotels & Resorts plans to open its first hotel and residences in Asia Pacific with the Baccarat Hotel & Residences Maldives in 2027. The resort with 50 hotel villas and 53 private residences for sale will span five interconnected islands across more than 111 acres in the South Malé Atoll. The property is being developed by MDC Investments LLC, a sister company of Madevco Holdings Ltd.

Hilton adds in Puerto Rico. Hilton has signed an agreement to add Palacio Provincial in Old San Juan, Puerto Rico, to Curio Collection by Hilton. Owned by Hostal El Convento and managed by International Hospitality Enterprises (IHE), this 43-room boutique hotel that opened in 2021 is located inside an early 19th century building full of diplomatic history dating back to 1838. 

First Hospitality COO. Owner-operator First Hospitality, Chicago, has appointed Jason Kreul as chief operating officer. Kreul, who most recently served in numerous executive roles at Highgate, will report to President and CEO David Duncan and will lead the operations, commercial strategy, and the people and talent groups at First Hospitality and play a pivotal role in further expanding their hotel portfolio.

Aareal’s biggest green loan. Largest green loan in APAC. Hotel investor Pro-invest Group, Sydney, has finalized a green loan from Germany’s Aareal Bank. Aareal Bank announced the first ever green loan governed by its Green Finance Framework in July 2021 with the financing of Pro-invest’s Holiday Inn Express Macquarie Park in Sydney. Approximately two and a half years later, following a strategic refinancing initiative of Pro-invest Group’s Fund I portfolio, five hotels within this funding forms Aareal Bank’s largest green loan for a hotel portfolio in the APAC region. Aareal Bank acted as the arranger and sole lender in the financing of this hotel portfolio. These properties have met the stringent criteria of Aareal Bank’s Green Finance Framework 2023, with all five hotels achieving or bettering the minimum required 4.5-star rating under the National Australian Built Environmental Rating System (NABERS) Energy rating scheme – exceeding the Bank’s previous threshold of 4.0 stars.

Little National adds in Australia. Canberra, Australia-based DOMA Group said it is expanding its Little National brand of hotels in Australia. The hotel chain, aimed at digital nomads, has locations in Canberra and Sydney and is opening new locations in Newcastle in April with the 181-key Little National Newcastle. The Little National Adelaide is scheduled to open next year. DOMA say its development team is “actively pursuing opportunities in Melbourne and other capital cities” and has a vision to expand into every capital in Australia and New Zealand.