Latest news: Loews Hollywood on market; Hyatt closes Orlando sale; US per diem up

JV selling Hollywood hotel at a discount. A joint venture of London-based MetLife Investment Management and New York City-based Loews Hotels & Resorts have put their 625-key Loews Hollywood Hotel up for sale at a discounted price tag, according to The Real Deal. The JV listed the hotel with a guiding price of $125 million, about $40 million less than what Loews paid in 2012. In 2021, the JV refinanced the debt for $91 million from alternative investment firm Värde Partners.

Hyatt closes sale in Orlando. On Friday, Hyatt announced the close of the sale of the 1,641-key Hyatt Regency Orlando by a joint venture between Los Angeles-based Ares Management and Houston-based Rida Development for approximately $1.07 billion. Hotel Investment Today reported the sale last week. The amount is slightly higher than what was reported last week because it includes a 45-acre entitled development parcel that is adjacent to the property (which also adds in $50 million in seller financing for that property). Hyatt said this sale has exceeded its $2 billion asset-disposition commitment announced in 2021 as part of its asset-light strategy and over a three-year period, Hyatt has now realized $2.6 billion of gross proceeds, net of acquisitions, at a 13.3x multiple. Hyatt President and CEO Mark Hoplamazian said the sale is the largest single-asset sale in Hyatt history (it’s also the largest single-asset hotel transaction in 2024.)

AHLA applauds increase of federal per diem. The American Hotel & Lodging Association (AHLA) applauded the General Services Administration‘s decision to raise fiscal year 2025 per diem rates for federal workers. GSA’s per diem guidelines govern reimbursement for federal employees’ lodging and meals expenses for official government travel. Starting October 1, 2024, the standard daily lodging allowance for most of the continental United States will increase by $3 to $110 per day, estimated to be worth approximately $100 million to the hotel industry. The standard meals and incidental expenses allowance will increase by $9 to $68 per day, the first increase for this expense category in three years. “These increases are an important victory for AHLA, which has made fair per diem rates a perennial federal advocacy priority on behalf of our members,” said AHLA interim president and CEO Kevin Carey.

Ireland’s oldest hotel sells. Mark and Joseph Scott-Lennon have completed the purchase of the 69-key Woodenbridge Hotel and Lodge in Wicklow, Ireland, from Esther and Billy O’Brien for an undisclosed amount. It ends over three decades of the O’Brien family’s ownership of Ireland’s oldest hotel. The O’Briens purchased the hotel in the early 90s and transformed it from a 12-key property to its current size. The hotel dates back to 1608. The hotel becomes the second property in the newly named Fitzpatrick Hotel Collection, which aims to expand further in the coming years.

Sohal sells in Washington. Sohal Hotels has sold the La Quinta Inn & Suites by Wyndham in Marysville, Washington, to an entity associated with Edmonds, Washington-based Jaye Enterprises Inc. for $26.5 million, or about $226,495 per room.

Coast adds in Saskatchewan. Vancouver-based Coast Hotels Ltd., a fully owned subsidiary of APA Hotel Canada, is opening its latest hotel in Weyburn, Saskatchewan. The 67-key Coast Weyburn Hotel was rebranded from Canalta Hotel Weyburn.

Hotel Indigo adds in Indonesia. Hotel Indigo, part of IHG Hotels & Resorts, has opened the 277-key Hotel Indigo Bandung Dago Pakar, which is its second property in Indonesia. Hotel Indigo has 154 open hotels in 25 countries and is IHG’s second-largest brand in its luxury and lifestyle portfolio.

Meliá adding in Albania. Meliá Hotels International is strengthening its presence in Albania. As part of its expansion strategy, Meliá Hotels has identified locations in Albania for its new properties, including the capital city of Tirana and the coastal city of Durres.