Latest news: Arizona Biltmore sells for $705M; Dallas dominates pipeline; Marriott to add big in China

Blackstone sells Arizona Biltmore. The Arizona Biltmore in Phoenix is being sold by Blackstone for $705 million to Henderson Park, a London-based private equity real estate firm, according to a report in Bloomberg. Blackstone acquired the 703-key property in 2018 from GIC Real Estate for $403.4 million and spent more than $150 million renovating the property after it took over.

Dallas leader (again) in construction pipeline. Dallas still leads the U.S. in hotel development, with 193 projects and 22,291 rooms in its pipeline, according to Lodging Econometrics. Atlanta is second with 151 projects and 18,730 rooms, followed by Nashville with 123 projects and 16,148 rooms. Phoenix is fourth with 122 projects and 15,977 rooms, and the Inland Empire in California is fifth with 116 projects and 11,649 rooms. Dallas leads in both projects scheduled to start in the next 12 months and the early planning stages. Atlanta led in new projects in Q4, with 16 for 1,572 rooms, followed by Phoenix and Dallas. Hotel construction is hot in other Texas markets, with Austin having 11 projects and Fort Worth-Arlington having 10 projects in Q4. In the U.S., 43 of the top 50 markets have 10 or more hotels getting a renovation or conversion at the end of Q4. Atlanta leads that category with 33 projects for 3,903 rooms. Throughout 2023, the U.S. had 474 hotel openings with 60,436 rooms, and New York City had the highest total of new openings with 19. In 2024, New York City has 28 projects scheduled to open, followed by Dallas with 18. LE analysts expect the Inland Empire to open the most new hotels in 2025 with 22 projects, followed closely by Dallas and Atlanta, each with 21 projects. Dallas ranks third lowest across the top 25 U.S. hotel markets, with 3.3% of its hotel supply in the luxury segment, and there has been a big slate of luxury and upper upscale projects that will help fill that space.

Marriott, Delonix partner to add 100 in China. Marriott International and China-based Delonix Group have signed a cooperation agreement to grow Marriott’s Tribute Portfolio brand in mainland China. Delonix’s current portfolio includes 10 hotel brands and over 1,400 rooms in its development pipeline. The partnership is expected to add at least 100 properties that could join the Tribute Portfolio in the coming years.

Margaritaville in Galveston, Texas. Dallas-based RREAF Holdings is partnering with Florida-based Innisfree Hotels to develop a new 334-key Margaritaville resort in Galveston, Texas. The $250 million resort will occupy over 300,000 sq. ft. and include a 2.5-acre water park. The project will break ground in early 2024.

Hotels reach full recovery in 2023. Global hotel performance soared and reached a full recovery in 2023, according to JLL Hotels & Hospitality Group’s annual Global Hotel Investment Outlook. The report found that global RevPAR fully recovered last year, exceeding 2019 by 12%. Because of capital market concerns and the high cost of debt, global hotel transactions in 2023 fell to $44.5 billion, a 10-year low (excluding 2020). However, the report said transaction volume is expected to accelerate dramatically in 2024, exceeding 2023 volume by 15% to 25%, with the Americas and EMEA leading that growth. To download the report, click here.

InnVest buyer of Morguard portfolio. Hong Kong-based InnVest Hotels, one of the largest hotel owners in Canada, has acquired a portfolio of 20 hotels in Ontario and Halifax, 10 of which were properties that Morguard Corp. sold earlier in January for $10 million. The portfolio of 20 includes a mix of segments and over 1,737 rooms. InnVest now owns four Marriott-branded properties and approximately 100 across Canada.

DoveHill launches new fund. Fort Lauderdale, Florida-based DoveHill Capital Management is launching DoveHill Opportunity Fund II, an investment vehicle with three strategies: experiential hotels, structured equity and opportunistic value-add. DoveHill plans to raise $30 million for the fund and seeks long-term partners.

Dynamic Hospitality adds in Utah. Provo, Utah-based Lodging Dynamics Hospitality Group will manage the 125-key Homestead Resort in Midway, Utah. Midway is home to Soldier Hollow, the biathlon site for the 2002 Winter Olympics.

New Adina Hotels exec. Asli Kutlucan, former chief development officer for Amsterdam-based Cycas Hospitality, has joined Australia-based Adina Hotels as CEO Europe. Kutlucan previously worked for Frasers Hospitality.

Motel One Group opening 13 hotels by 2026. Munich-based Motel One Group plans to open 13 new hotels under its Cloud One brand by 2026. Cloud One Düsseldorf-KöBoge will launched in Germany by mid-2024. It also plans to open hotels in Chicago, Miami, Berlin, Brussels, Nice, Vienna and Lisbon, which will be its first hotel in Portugal.