Hotel Investment Today brings you a roundup of the latest deal news, more earnings reports and more.
Pandox buys in UK. Pandox AB, Stockholm, has acquired for a reported £53 million the newly renovated, 232-room Queens Hotel in central Leeds, U.K. The hotel will be operated as an independent brand under a new management agreement with Axiom Hospitality. The property is expected to deliver a stabilized yield of more than 9%.
Portfolio refinancing. Franklin BSP Realty Trust closed a $120 million loan
facilitating the refinancing of a portfolio of 12 limited-service hotels (1,313
rooms) spread across six different hotel chains. Driftwood Capital provided a
co-terminus mezzanine loan for $20 million at closing, for a combined loan of
$140 million. Ten of the 12 assets recently received significant renovations
and the remaining two assets are completing renovations. The deal, led by JLL, represents
the sixth transaction where FBRT and Driftwood have provided a senior/mezzanine
loan structure together. As of September 30, 2022, FBRT had over $6.3 billion
of assets.
DiamondRock 4Q. DiamondRock Hospitality Co. beat the Street with 4Q22
earnings with total revenues +9.5%, RevPAR +6.7% and ADR +19.1% versus 2019
data. Adjusted FFO/share of $0.23 beat projections as did $67.4 million in Adjusted
EBITDA. Hotel EBITDA of $77 million showed margins of +192 bps versus 4Q19. Top-line
performance for January 2023 is also favorable with RevPAR +10.5% and ADR
+22.5% versus 2019. The company did not provide 2023 earnings guidance.
Standard sold. The shuttered Standard Hotel on The Sunset Strip in Los Angeles
has reportedly been acquired for about $112 million by hoteliers Ian Schrager
and Ed Scheetz. It is not yet clear what the duo plans to do with the property
sold by Rittersbacher Sunset LLC.