Latest news: Noble acquires in Florida; lender takes former Trump; Apple REIT earnings

Noble acquires in Jacksonville. Atlanta-based Noble Investment Group has acquired the 150-key Courtyard by Marriott Jacksonville Beach Oceanfront from an undisclosed buyer for an undisclosed amount.

Lender for former Trump takes control. BDT & MSD Partners, the lender for the Waldorf Astoria in Washington, D.C., formerly the Trump International Hotel, has acquired the property’s rights at auction for $100 million after investor CGI Merchant Group defaulted on a $285 million loan in 2023. CGI has stated it intends to regain control of the leasehold and said it secured the necessary financing to cure the loan default before the auction. The Miami-based investment firm paid the Trump Organization $375 million for the rights to the hotel about two years ago. BDT & MSD said it extended the foreclosure auction date by 45 days, but CGI didn’t cure the default in time.

Apple Hospitality earnings mixed. Richmond, Virginia-based Apple Hospitality REIT reported RevPAR growth of 2.5% in Q2 and hotel EBITDA growth of 1.5% year over year but lowered its RevPAR and adjusted EBITDA guidance for the rest of 2024 as part of its second-quarter earnings. The highly acquisitive REIT bought two hotels in the quarter, sold three others and still has one previously announced deal on the books, an approximately $98.2 million acquisition of a 260-key Motto by Hilton hotel in Nashville, scheduled to be completed next year. Analyst Michael Bellisario of R.W. Baird said the REIT’s results were in line with expectations. “June RevPAR was a bit softer than we expected, but better margins led to hotel-level results that matched our forecast. Not surprisingly, the 2H24 outlook is being reduced to reflect slower growth top-line trends (ADR pressure, consumer pricing sensitivity). We expect management to remain active with buybacks at the current stock price.”

Playa says Beryl will impact 2024 results. Fairfax, Virginia-based Playa Hotels & Resorts said continued strong performance in the Yucatan and Dominican Republic resulted in its Q2 adjusted EBITDA exceeding expectations as part of its second-quarter earnings. However, the REIT said it faces headwinds in the third quarter due to Hurricane Beryl’s impact, especially in Jamaica. Because of the hurricane and construction disruption along the Pacific Coast, Playa said it is now expecting its full-year adjusted EBITDA guidance to be near the low end of its $250-$275 million guidance range. C. Michael Scholes from Truist Securities said after a conversation with management on Monday night that in Jamaica “pickup is not getting worse but has not gotten much better. Pacing is not better into (peak season) 1Q25. Bookings are “incredibly volatile... and well below [normal] trends.”

Valor adds in Virginia. Atlanta-based Valor Hospitality Partners is adding the 117-key Hilton Garden Inn Haymarket in Haymarket, Virginia, to its management portfolio. Valor has over 95 hospitality projects in its international portfolio.

Hilton adding three in Portugal. Hilton is opening three new hotels in Portugal in 2025 and 2026 under three brands as part of the company’s plans to expand in the country. Hilton secured a franchise agreement with Arrow Global Group for the 155-key Canopy by Hilton Vilamoura Marina, which is scheduled to open in 2026. The 44-key Santo André Beach Hotel, Tapestry Collection by Hilton, will be the first Hilton property in the Santiago do Cacém region and is scheduled to open in 2025. Following a franchise agreement with Mercan Properties Group, the 199-key DoubleTree by Hilton Lisbon Airport is scheduled to open in 2025.

CLAS gets sustainability loan. CapitaLand Ascott Trust (CLAS) says it is the first lodging trust to secure an OCBC 1.5°C loan. With this S$165 million sustainability-linked multi-currency revolving credit facility, CLAS will receive interest-rate reductions upon meeting the agreed-upon annual greenhouse gas (GHG) emissions reduction targets. The proceeds of the facility will be used for general corporate purposes.

Minor adds dual-branded in China. Bangkok-based Minor Hotels has signed a property in Yining, China, which will become a dual-branded Tivoli and NH hotel, a debut for both in northwest China. The project is scheduled to open in 2026 and will have 200 rooms for each brand.