Latest HITs: Big deals in NYC, Singapore, Barcelona, Edinburgh

NYC Mondrian trades. Real estate developer Global Holdings Group has taken full ownership New York City’s 190-room Mondrian Park Avenue hotel two years after buying a $110 million senior mortgage on the property from Moin Development. The price paid by founder Eval Ofer has not been disclosed. Global Holdings’ portfolio includes more than 120 properties globally, totaling 10 million square feet across residential, hotel and commercial assets, including more than 1,500 hotel rooms. Global Holdings is an active player in the New York market, over the past month launching leasing for the luxury rental tower Anagram Columbus Circle, and acquiring 51 Irving Place, a mixed-use apartment building located near Gramercy Park.

Biggest deal in Singapore. In Singapore’s biggest single-asset hotel deal to date, Pan Pacific Hotels Group is selling the 542-room Parkroyal on Kitchener Road hotel in Singapore for approximately $388 million (a 24% premium to book value at the end of 2022) to Worldwide Hotels holding company Midtown Properties. Worldwide Hotels runs 38 properties across the city-state under six brands, including V Hotel and Hotel 81. Both Midtown and Worldwide are controlled by the family of Singaporean hotel tycoon Choo Chong Ngen, who started in the textile business. For Pan Pacific, the deal serves as an opportunity to sell an aging, mid-market property at an attractive price. JLL advised Pan Pacific.

Mandarin Barcelona sells. Reig Capital has sold the 120-room Mandarin Oriental, Barcelona, to Saudi investor Olayan Group for a reported $262 million (more than $2 million/key). The Saudi fund already has a partnership with MOHG having a 50% ownership stake in the Mandarin in Madrid. The seller’s debt partner is Farallon Capital Europe, which bought that firm’s debt with Spanish bank Caixa in October 2020 for €200 million and then put the hotel on the market. JLL acted as financial advisor to Reig Capital Group, and Savills LLC acted as financial advisor to The Olayan Group.

Edinburgh landmark trades. The 241-room Caledonian Waldorf Astoria – The Calendonian in Edinburgh has been acquired by Henderson Park and Klarent Hospitality from Twenty14 Holdings in a deal said to be worth £85 million. The Caledonian was constructed from 1899 to 1903 and was originally owned by the Caledonian Railway company. The buyers also purchased The Carlton on North Bridge and the DoubleTree Edinburgh Airport as part of a larger deal in November 2021, where they acquired 12 hotels. Twenty14 Holdings bought the Caledonian Waldorf Astoria from Hilton in 2018 and refinanced the property in 2021 with a senior and mezzanine debt package worth £62 million. JLL advised the seller on the transaction.

GOPPAR down in May. U.S. hotel gross operating profit per available room (GOPPAR) fell from the previous month, according to STR’s May 2023 P&L data release. May 2023 per-available-room metrics versus May 2022:  (GOPPAR: $83.86 (-2.6%); TRevPAR: $222.78 (+4.1%); EBITDA PAR: $61.16 (-7.1%); LPAR (labor costs): $72.82 (+13.6%). “Weak revenue growth tied with strong labor costs caused GOPPAR to decline year over year for the first time in 16 months,” said STR’s Raquel Ortiz. “The increase in labor costs was nearly three times that of revenue, but despite this, profit margins continue to rise due to higher total revenues and managing expenses through reduced services, lower employment levels and changes in operation.”

Covivio sells in Milan. Coima Sgr has acquired from Covivio the HD8 Hotel Milano for €23 million. The property is LEED Gold certified and is part of a portfolio rotation strategy of the COIMA Core Fund II in favor of certified and sustainable properties.

Indigo to Romania. IHG Hotels & Resorts has signed a franchise agreement with Dacia SRL, a subsidiary of Manevi ZRT, to develop the Hotel Indigo Satu Mare in Romania, marking the brands debut in the Balkan nation. Slated to open in 2025, Hotel Indigo Satu Mare will comprise 62 rooms and suites. The hotel will be operated by Hotel & More, a Hungarian operator with a vast experience in the hotel sector and in the region.

Voco coming to Beirut. IHG Hotels & Resorts has signed a franchise agreement with DIA SARL to debut voco in Beirut, Lebanon. A conversion property, voco Beirut Central District is scheduled to be rebranded by the end of this year, adding 123 rooms to IHG’s portfolio in the country. The signing of voco Beirut Central District marks the brand’s debut in the Levant region.

Loan for London properties. Leumi UK, a subsidiary of Israel’s Bank Leumi, has agreed to a financing package of £26.3 million for the acquisition and merging of two hotels in Bloomsbury, near Russell Square in London, for investor Zorca Holdings. The acquisition price was not disclosed. The loan facility will go towards the purchasing and refurbishment of the hotels, as well as merging the two hotels into a single 74-bed hotel with an event space and F&B offerings. The new hotel is set to open in late 2024. Owned by Laith Pharaon, Zorca Holdings is a subsidiary of the Malta-based investment firm Orca Holdings. This deal marks Leumi UK’s second hotel partnership with Orca Holdings, having previously provided financing for the acquisition of the Zetter Group in London in 2021.

Le Méridien to Phuket. Narai Hospitality Group has signed an agreement to open the 244-room Le Méridien Phuket Mai Khao Beach Resort in Thailand. Operated under a franchise agreement with Marriott International, this resort is expected to open in September 2023 following a major refurbishment. Narai Hospitality is investing in significant upgrades, which will encompass every aspect of the guest experience, including plans to generate its own energy, with solar panels on the roofs of eight buildings, helping to reduce the resort's CO2 emissions by 370 tons.

Second Scandic Go. Stockholm-based Scandic Hotels has signed a lease agreement for the second Scandic Go property on the island of Kungsholmen in Stockholm.  The plan is to open the 221-room hotel toward the end of the summer of 2024 following a renovation. Scandic signed the lease agreement with the company's largest landlord, Pandox.