Latest news: $24M Arizona refinance; Hilton converts in Cancun; Kasa adds in New Orleans

$24M refinance in Arizona. Tempe RI LLC, an affiliate of Miami-based Finvarb Group, has secured a $24 million refinancing loan from Charlotte, North Carolina-based Barings for the 173-key Residence Inn Tempe Downtown/University by Marriott in Tempe, Arizona. The property was developed in 2013, and a full renovation was completed in early 2024. Toronto-based Colliers Mortgage advised on the transaction.

Hilton converting in Cancun. Hilton and Cancun, Mexico-based Oasis Hotels & Resorts are partnering to convert The Sens Cancun, an adults-only, all-inclusive resort in Mexico, to the Tapestry by Hilton brand. Oasis will continue to manage the hotel, which is scheduled to reopen in 2026. This is one of 10 new deals Hilton has signed in Mexico in 2024. Hilton has more than 100 open hotels and resorts across Mexico and 40 additional hotels are in various stages of development. The Tapestry collection has over 135 open independent properties with a pipeline of nearly 120 hotels in various stages of development.

Kasa adds in New Orleans. Kasa is expanding into New Orleans by adding the historic Lafayette Hotel to its management portfolio, which will now be rebranded as The Lafayette New Orleans by Kasa. The Lafayette New Orleans first opened in 1916. Kasa has 85 properties across the U.S.

Park Hotels Q3 earnings. Tyson, Virginia-based REIT Park Hotels & Resorts said its third-quarter comparable RevPAR increased 3.3% year-over-year, driven by accelerating demand trends at its hotels in Chicago, New Orleans and Boston, plus strong performance at its Key West and Orlando hotels in Florida. The REIT said group demand continues to improve, with 2024’s comparable group revenue pace up to 9% YOY. Analyst Patrick Scholes from Truist Securities said, based on a phone call Tuesday night with the REIT, that the company said Q3 results were “exceptionally strong.” It passed on questions regarding a current union strike and negotiations (the company removed 2024 guidance due to the negotiations) at some of its properties. The REIT also said it is still seeing softness in its Hawaiian properties. As for questions about Hawaii, Parks said the market could have a “monster” 2025 based on favorable comps past the first quarter and increased Japanese arrivals.

Sonesta executes 30 agreements in Q3. Newton, Massachusetts-based Sonesta International Hotels Corp. says it executed 30 new franchise agreements during the third quarter of 2024, representing growth at seven of its 13 brands. The 30 new franchised hotels include 11 Sonesta ES Suites, 7 Sonesta Essential Hotels, 6 Americas Best Value Inn, 2 for Sonesta Hotels, Resorts & Cruises and Sonesta Select Hotels and one each for Red Lion Hotel, Inn & Suites and Sonesta Simply Suites.

Canada reaches historic heights. Through the third quarter, Canada’s hotel development pipeline suggests an expansive phase is underway, according to Lodging Econometrics data. The country’s total pipeline has reached a historic peak of 327 projects and 40,799 rooms, with year-over-year 19% increase in projects and 8% in rooms. Projects under construction are incredibly active, with 81 projects and 10,596 rooms, representing a 45% surge in projects and a 29% increase in rooms YOY. Projects in the early planning phase have experienced the most dramatic growth, with 177 projects and 20,435 rooms, showing a 50% project increase but only 14% room growth, suggesting a trend toward smaller-scale developments. Another 69 projects and 9,768 rooms in Canada are scheduled to begin construction within the next 12 months. By chain scale, upper midscale hotels lead the pipeline with record numbers of 135 projects and 14,219 rooms, representing 41% of total projects and 35% of rooms. Ontario is the top province and accounts for 59% of projects and 61% of rooms countrywide, with record counts of 193 projects and 24,697 rooms, while Toronto is the top market with 67 projects and 9,468 rooms, which is 23% of all the rooms in Canada’s total construction pipeline. Through the third quarter, Canada had nine new hotels open, and LE is forecasting that another 12 hotels will open by the end of 2024.

Accor adds in Egypt. Accor is partnering with Cairo-based International Co. For Touristic Investments (ICTI) to sign the 615-key Sofitel Cairo Downtown Nile, which will be the fourth Sofitel hotel in Egypt. The conversion is scheduled to open in January 2025.

Kolpin creates new brand. Copenhagen-based Kolpin Hotels is developing a new brand called Roberta’s Society. The new brand is a budget hybrid concept that the company said is aimed at guests between the ages of 18 and 50. The first hotel for the brand will be in Aarhus, Denmark, at a former main library that was built in 1934. The adaptive reuse project will have 455 beds in a fusion between a hostel and a hotel with 53 double rooms and 355 beds in dorms varying from 4 to 12 beds per room, including a mega dorm room of 34 beds.

State of extended-stay. In terms of the monthly change in supply, demand, revenues and occupancy, extended-stay hotels fared better than the overall hotel industry in September, according to The Highland Group data. However, extended-stay hotels’ average rate growth was behind the industry average, while RevPAR for the segment was fractionally greater than the total hotel industry. RevPAR for extended-stay hotels declined for the first time since March in September. “September was a mixed month for extended-stay hotels as demand growth lagged the change in supply and the increase in ADR was not enough to stop RevPAR contracting for the first time in six months.” Mark Skinner, partner at The Highland Group, said.

Visa processing time increases. In a White House press conference this week, both Secretary of State Antony Blinken and Secretary of Commerce Gina Raimondo shared the results of a concerted joint effort to facilitate global travel. Among the major strides announced, 11.5 million visas were issued in fiscal year 2024, breaking all previous records. Of these, 8.5 million were visitor visas, a 10% increase over the previous year. Wait times for visas are down by nearly 60% since the height of the pandemic. The median wait time now is under 60 days for a first-time visitor-visa interview. The Department of State issued 24.5 million passport books and cards in FY2024, an all-time high and half a million more than the previous year. Wait times for passports have decreased, now averaging four to six weeks. The United States hopes to increase the number of visa appointments by 1 million visas in FY2025, partly to accommodate the FIFA World Cup, Olympic and Paralympic Games, and Rugby World Championships all being in the U.S. in the coming years.

Club Med expanding. Paris-based Club Med is planning to open nine resorts through 2026. The expansion will see new Club Med resorts debuting across China, France and Greece in late 2024 and the company is also opening its first resort in the Arabian Peninsula, on the Musandam Peninsula of Oman.

Hilton adds Tru in Colombia. Hilton is partnering with Cali, Colombia-based Hoteles MS, to open its first Tru by Hilton brand in Colombia with the 98-key CALI, Colombia – Tru by Hilton. Since its launch in 2023, the Tru by Hilton brand has shown breakout growth in the CALA region with 20 planned hotels, including upcoming market firsts in Argentina, Chile, Costa Rica, the Dominican Republic, Honduras and Puerto Rico. Hilton currently has a portfolio of more than 225 open hotels and resorts in 29 countries across CALA.