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$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.