Breaking news about deals, development, data and more.
Six Senses London trades. In one of London’s biggest property
deals of the year, Italian real estate giant Gruppo Statuto has acquired for £180
million the Six Senses Hotel at The Whiteley, a former office building that is
being converted into a luxury mixed-use property that will include a 109-room
hotel. The sellers are Hong Kong developer CC Land Holdings Ltd. and investment
firm MARK. The property will officially change hands when it opens next year,
Bloomberg reported, citing off-the-record sources. Six Senses holds a 30-year
agreement to manage and brand the Six Senses London, which will also be home to 14 branded
and fully furnished luxury residences. The Whiteley also comprises 139 homes,
managed by the adjacent Six Senses. Gruppo Statuto also owns the Six Senses in
Rome, which it purchased for €245 million late last year. Among its other
assets are the Four Seasons Hotel in Milan and the Mandarin Oriental in
Paris.
PwC reforecasts. PwC has revised its 2024 U.S. hotel
forecast for 2024. It said a 50 bp increase in the unemployment rate over the
past 12 months (3.4% in April 2023 vs. 3.9% in April 2024), now speculative
reductions in policy rates, and a perceived lack of visibility in the public
markets have resulted in downward pressure on room rates. Consistent with its
November 2023 outlook, PwC continues to expect annual occupancy for U.S. hotels
this year to increase marginally to 63.6%. With moderating growth in
occupancies for the balance of this year, PwC expects average daily room rates
to increase 1.2% for the year, with resultant RevPAR up 2.2% – approximately
116% of pre-pandemic levels, on a nominal dollar basis.
Nickelodeon to Orlando. Lion Star, Everest Place and Paramount have
unveiled their partnership to develop the Nickelodeon Hotels & Resorts
Orlando in Kissimmee, Florida. Slated to open in 2026, this
resort will be located in the Everest Place development and operated
by Lion Star Hospitality Inc., the exclusive U.S. licensee for Karisma
Hotels & Resorts. The property will have more than 400 rooms and condo
units combined.
Kirkwood Collection expands. California boutique hotel
operator Kirkwood Collection, along with investment partner Somera Capital
Management, have acquired the The Ballard Inn in the Santa Ynez Valley, a
region in the Santa Barbara Wine Country. The Collection has 11 properties and
plans call for expanding the 15-room Ballard Inn to 19 rooms and exploring food
and beverage options for the on-site restaurant.
Good weekly performance in US. The U.S. hotel industry from
May 12-18 reported higher performance from the previous week and positive
comparisons year over year, according to CoStar data. Occupancy reached
67.4% (+0.2% YOY); ADR hit $163.11 (+2.6% YOY); and RevPAR was $109.93 (+2.8%
YOY). Among the Top 25 Markets, Houston saw the only double-digit
occupancy lift (+10.5% to 67.9%). Atlanta reported the highest
year-over-year increases in ADR (+10.0% to $137.30) and RevPAR (+18.0% to $98.86). The
steepest RevPAR declines were seen in Orlando (-8.6% to $119.59), St. Louis
(-6.7% to $91.46) and Tampa (-6.7% to $109.91).
Canada rebounds in April. After four consecutive months
of year-over-year declines, Canada’s hotel industry in April reported an
increase in occupancy, according to CoStar data. Occupancy was 64.0% in April (+2.7%
YOY); ADR C$188.39 (+5.1% YOY); and RevPAR was C$120.64 (+8.0%). Room rate
growth accelerated in April, mostly driven by groups which posted an increase
of 10.5%. Occupancy in the segment also stood out, up 3.7%, benefitting from
weekday group demand. “The year-over-year growth in occupancy suggests that
downward pressure on hotel demand related to weaker economic conditions will
not be linear, as the period from December through March suggested,” said Laura
Baxter, CoStar’s director of hospitality analytics for Canada.
Okura-AWC tie up. Hotel Okura Co., Ltd. signed a
multiple-property framework agreement on May 17 with Thailand-based developer Asset
World Corp. (AWC) to operate a new hotel being developed by AWC in Chiang Mai
by 2028 and several (to be announced) Okura Group luxury hotels across Thailand
by 2030. These will add more than 500 rooms in the country and expand Okura’s
presence to more than 2,000 rooms in Thailand by 2030. Separately, the two
companies have also agreed that Hotel Okura will provide hospitality services
for cruises to be launched on the Chao Phraya River starting this December. The
Chaing Mai hotel will be part of AWC’s Lannatique project, a commercial
development in Chiang Mai’s Chang Klan area. Hotel Okura aims to expand its
global network of hotels in Japan and other countries and regions to 150
locations by 2030, including 75 outside of Japan.
Marriott-Delonix update. Marriott International announced the
first three projects under its strategic cooperation agreement with Chinese
hospitality company Delonix Group are now underway. Anticipated to open in
spring 2025, the first signed Tribute Portfolio Hotels are expected to mark the
brand’s debut in three scenic destinations and include the 299-room Grand New
Century Hotel, Hangzhou Boao, a Tribute Portfolio Hotel; the 203-room the
Wonderland Resort, Hangzhou Jiande, a Tribute Portfolio Resort; and the 210-room
Grand New Century Hotel, Chongqing, a Tribute Portfolio Hotel. Delonix has
expanded its presence in the overseas hotel markets, with commercial territory
expanding to over 1,400 hotels and 200,000 rooms in operation as well as under
development pipeline.
Two Microtels trade. Investment vehicles managed by Miami-based
Rialto Capital sold the two hotels to separate investors. Totaling 170 keys and
facilitated by Hunter Hotel Advisors, Rialto Capital sold the Microtel Inn
& Suites Wheeling at Highlands and Microtel Inn & Suites St.
Clairsville, both in Virginia. Terms of the deal were not released.
Fusion expands in Vietnam. Fusion Hotel Group has announced
a partnership with VinaLiving on the management and operation of The Ocean
Resort by Fusion Quy Nhon in central Vietnam. Fusion Hotel Group will undertake
the management and operation of the new resort in partnership with VinaLiving,
a real estate development brand known for boutique resort-style residential
properties in Vietnam. Located next door to its sister Fusion property, Maia Resort
Quy Nhon, the Ocean Resort Quy Nhon is 22 km from Quy Nhon town center and 23
km from Phu Cat Airport.