Latest news: Sunstone closes in NOLA; Brand USA in trouble; incentives for DFW's 2nd JW

Sunstone sells in New Orleans. Aliso Viejo, California-based REIT Sunstone Hotel Investors has completed the sale of the 252-key Hilton New Orleans St. Charles to an undisclosed buyer for $47 million, or approximately $187,000 per key. The sale price represents a 10.1x multiple on 2024 hotel adjusted EBITDAre and an 8.7% cap rate on 2024 hotel net operating income. Sunstone anticipates the hotel will require a cyclical renovation to maintain its competitive position and sustain its current level of earnings. Inclusive of the company’s estimated required near-term capital expenditures, the gross sale price represents a 13.4x multiple on hotel adjusted EBITDAre and a 6.6% cap rate on hotel net operating income for 2024.

Incentives for another JW Marriott in DFW. The city council in McKinney, Texas, agreed to a 75% reimbursement for the sales, property and hotel occupancy taxes and proposed a $324 million JW Marriott hotel that would be part of a 2,200-acre mixed-use development in the city. David Johnson, the founder of Aimbridge Hospitality and co-founder and managing partners of Horizon Capital Partners is involved with the 290-key JW Marriott Resort McKinney Craig Ranch along with David Craig and Craig International. They talked to Hotel Investment Today about the deal last year.

Brand USA funding cut proposal. A U.S. Senate committee has proposed cutting Brand USA’s annual funding from $100 million to just $20 million — a cut that would drastically limit the organization’s ability to promote the U.S. internationally as a tourism destination. The U.S. Travel Association is urging the travel industry to oppose the proposal due to its potential industry-wide impact. The funding cut, which would trigger a similar cut in matching contributions from the travel industry, would limit the ability of Brand USA to carry out marketing campaigns internationally and would lead to severe cuts to staffing and operations. In addition to Washington, D.C., Brand USA maintains several offices overseas in key tourism source markets.

Waterford adds 5. Waterford, Connecticut-based Waterford Hotel Group is adding five hotels in New Orleans to its portfolio, beginning July 1. The properties – Audubon Cottages, Le Richelieu, Dauphine Orleans Hotel, Hotel Royal, and Chateau Hotel – are part of the J Collection, a New Orleans-based portfolio of Southern hotels and resorts. Waterford and its affiliates have developed and operated hospitality assets valued at over $3 billion, with a portfolio of over 100 locations nationwide.

Tulip acquires in London. London-based Tulip Real Estate has acquired the 137-key Hilton London Syon Park from Dallas-based investment fund Lone Star for approximately £30 million. Located within the 200-acre Syon Park Estate near Brentford, the hotel initially opened as a Waldorf Astoria during the 2012 London Olympics and was repositioned as a Hilton in 2019. This acquisition represents Tulip’s first major hotel partnership in the U.K., executed via a joint venture with an operator currently managing six luxury hotels nationwide. Operational management of the hotel will be handled by Countrywide Hotels.

Marriott adds in Dubai. Marriott International is partnering with DMCC and Signature Developers on the W Residences Dubai – Jumeirah Lakes Towers (JLT) in Dubai. The project will be 38 stories, including 33 residential floors which will house approximately 185 residences.

Hotel101 deal in KSA. Singapore-based Hotel101 is partnering with Saudi Arabia-based Horizon Group to build 10,000 rooms or 20 hotels across the Kingdom of Saudi Arabia, marking its fourth destination outside of the Philippines and after Japan, Spain and the U.S. Hotel101 is due to list on Nasdaq following a merger with a Nasdaq-listed special purpose acquisition company JVSPAC Acquisition Corp that puts Hotel101 equity value at $2.3 billion.

Thailand announces entertainment hub. Thailand has announced a THB 100 billion entertainment complex to boost tourism and economic growth. The project includes luxury hotels, shopping malls, theaters, and theme parks. The proposed Thailand Entertainment Complex will feature a range of year-round attractions, including indoor stadiums, exhibition centers, amusement parks, museums, luxury shopping, fine dining, and cultural venues, designed to reduce the impact of seasonal tourism downturns.

Marriott adding in India. Marriott International has signed an agreement with Grey Group to introduce its JW Marriott brand to Ludhiana, India. The 160-key hotel is scheduled to open in January 2029.