Latest news: Braemar sells in La Jolla; historic KC hotel sells; LATAM pipeline surges

Braemar announces strategy change, sale of asset. Braemar Hotels & Resorts, a Dallas-based REIT, has changed its strategy and announced a new plan for shareholders, which includes the sale of the 394-key Hilton La Jolla Torrey Pines in California for $165 million, the payment of its remaining 2024 debt maturities, a $50 million preferred share redemption program and a $50 million common share buyback authorization. Braemar said it anticipates capital expenditures of $40 million from the Hilton Torrey Pines sale, representing a 7.2% cap rate on net operating income for the trailing 12 months ending March 31. Braemar is also evaluating the sale of two more hotels, which would be completed in 2024 and 2025, respectively. The REIT also has fully repaid the $30 million outstanding loan for the 143-key Cameo Beverly Hills in California. Once the Hilton La Jolla Torrey Pines sale closes, Braemer said it will have refinanced or paid off its 2024 debt maturities. The REIT’s earnings call is on Wednesday.

KC hotel sells. The Raphael Hotel in Kansas City, Missouri, which was built in 1928, has been sold by Salina, Kansas-based Lighthouse Properties to Plano, Texas-based Bentley Legacy Holdings for an undisclosed amount. Lighthouse bought the property in 2005. Bentley Legacy Holdings CEO Les Bentley is the cofounder of Aimbridge Hospitality.

Latin American pipeline up 11%. The hotel construction pipeline in Latin America grew 11% year-over-year, according to Lodging Econometrics. At the end of the first quarter, the hotel construction pipeline in Latin America stood at 604 projects and 100,990 rooms. There are 249 projects and 47,393 rooms under construction, a 10% YOY increase in projects and 18% in rooms. Projects scheduled to start construction in the next 12 months stand at 189 projects (+18% YOY) and 28,740 rooms (+11% YOY) by rooms. The upscale segments led with 129 projects and 18,314 rooms. Mexico was the top country with 226 projects and 35,691 rooms; Brazil was second with 91 projects and 13,670 rooms; the Dominican Republic was third with a record-high count of 51 projects and 13,118 rooms. Mexico City was the top city with 21 projects and 2,353 rooms. New project announcements in the region showed significant growth, with 23 more than in the first quarter of 2023. LE analysts expect an additional 81 new hotels with 15,051 rooms to open throughout the year.

NexGen acquires in Chicago. Itasca, Illinois-based NexGen Hotels has acquired the 137-key Hotel Versey in Chicago from an undisclosed buyer for an undisclosed amount. The hotel will be managed by St. Louis-based Genuine Hospitality Group.

Perth hotel sells. Far East Hospitality Properties and Rendezvous Hotels, subsidiaries of Singapore-based Far East Orchard (FEOR) have sold the 103-key Rendezvous Hotel Perth Central in Australia to Chesterfield Property Group and Mountstreet Operations for A$18.5 million (S$16.5 million).

Barceló expansion plans. Palma, Spain-based Barceló Hotel Group has a $400+ million global expansion strategy that involves adding hotels in the Middle East, Africa and Turkey. It will focus on acquiring new hotels, refurbishing existing properties and repositioning projects in the Kingdom of Saudi Arabia, UAE, Bahrain, Oman, Qatar and Turkey. Barceló currently has over 300 hotels in 30 countries.

New Four Seasons in Saudi Arabia. Toronto-based Four Seasons and Saudi Arabia-based development firm Dar Al Omran Co. are opening the Four Seasons Hotel Madinah, which is scheduled to open late in 2024. The 246-key hotel in Madinah is one of six properties in Saudi Arabia for Four Seasons.

Ashburn adds 10 to portfolio. Atlanta-based Ashburton Hospitality, a consultancy firm focused on asset management, has added 10 hotels to its portfolio. The 10 hotels are Marriott, Hilton and IHG-branded and located in the Midwest, Eastern seaboard and Southeast. The company’s portfolio now includes 21 hotels across 11 states. 

IHG first voco in India. IHG Hotels & Resorts has added the first voco hotel in India with the opening of the 70-key voco Jim Corbett. The resort is in the Dhilkuli region of Jim Corbett. IHG has 45 hotels open in Southwest Asia, with another 45 in the pipeline due to open in the next three to five years.

Dusit adds near Malé. Bangkok, Thailand-based Dusit Hotels and Resorts has signed an agreement with Pearl Atoll Pvt Ltd to manage the 125-key dusitD2 Feydhoo Maldives – a lifestyle resort on a private island near the main island of Malé. The resort is currently under construction and scheduled to open in the fourth quarter of this year.

IHG adds first Vignette in Kuwait. IHG Hotels & Resorts introduced its first collection brand to Kuwait by opening the 195-key Arabella Beach Hotel Kuwait, Vignette Collection. IHG is opening a second Vignette Collection property this summer with the The Palm Dubai Beach Resort Vignette Collection.

Crissa Hotels rebrands to S Hotels Jamaica. Jamaica-based Crissa Hotels is rebranding its name to S Hotels Jamaica. The company currently has two luxury boutique hotels in Jamaica in its portfolio: the 120-key S Hotel Montego Bay and the 125-key S Hotel Kingston.