Latest news: Service Properties Trust sells 3 assets; LA default; SF sales approved

REIT sells 3 more hotels. Newton, Massachusetts-based REIT Service Properties Trust has sold three hotels totaling 399 rooms in three states for $22.5 million to an undisclosed buyer. The transaction is part of a previously announced agreement to sell a portfolio of 113 hotels, comprising of 14,803 rooms, for $913.3 million, excluding closing costs. With this latest sale, the company has completed the sale of 23 hotels with 3,166 rooms for a combined $158.2 million. Service Properties Trust remains under agreement to sell the remaining 90 hotels, which have 11,637 rooms, for $755.1 million. The company said the remaining hotel sales are expected to be completed in phases by the end of 2025. According to the filing, it expects to use the proceeds to repay debt.

Los Angeles default. London-based private equity firm Queensgate Investments defaulted on $70.8 million loan tied to the 226-key Freehand Los Angeles in California, according to The Real Deal. Atlanta-based lender Trimont provided the loan in 2021, with a maturity date this past May. The borrower, according to a notice of default and election to sell, is a company connected to Generator Hostels, which Queensgate sold its European interests to Brookfield earlier this year. Queensgate purchased the Freehand hotel brand six years ago for $400 million from Sydell Group and later refinanced the acquisition for $230 million.

SCP segments portfolio. Soul Community Planet – founded seven years ago on the values of wellness, kindness and sustainability – has segmented its 10 hotels into three sub-brands: SCP WildFree, SCP Hotels, and By SCP. The first SCP WildFree (nostalgic motels, reimagined for the modern, mindful traveler) will be a conversion of the SCP Colorado Springs following a $1.5 million renovation. SCP Founder and CEO Ken Cruse said he sees SCP Hilo in Hawaii as being a solid candidate for conversion to the SCP WildFree expression. By SCP (one-of-a-kind destinations, elevated through shared values) will start with the Salishan Coastal Lodge in Oregon, the Corcovado Wilderness Lodge in Costa Rica, and the Laguna Surf Lodge in California. Cruse said the remaining hotels are in the SCP Hotels segment (boutique sanctuaries grounded in wellness and nature). “We see each of these three segments as having significant growth potential,” Cruse told Hotel Investment Today.

Choice grows in France. Choice Hotels International said it will onboard an additional 50 properties representing more than 4,800 rooms across France, nearly doubling the company’s portfolio in the country from 57 to 107 franchised hotels. The new properties will join the Quality Suites brand and complement Choice Hotels’ existing Clarion, Quality, Comfort and Ascend Hotel Collection hotels in France. The new hotels will be located throughout France and will add 30 more cities to Choice’s network.

Portland hotel sells. Virk Hotels Management has acquired the Residence Inn by Marriott in Portland, Oregon, from Blackstone for $13.3 million. The financing, which was provided by Scottsdale, Arizona-based Arriba Capital, includes additional proceeds to complete a change-of-ownership PIP.

Court approves sale of troubled SF assets. A San Francisco court has approved the sale of the Hilton Union Square and Parc 55 hotels to Newbond Holdings and Conversant Capital, according to multiple reports. The sale price was undisclosed, though the value of the hotels has dropped significantly, with the properties’ combined value estimated at less than $600 million, down from a $1.56 billion appraised value in 2016. Tysons, Virginia-based REIT Park Hotels & Resorts stopped making payments on the $725 million loan for the 1,921-room Hilton Union Square and the 1,024-room Parc 55 in 2023, which are the first- and third-largest hotels in the city. The sale of the assets has been heavily watched by the hotel industry as the San Francisco market has rebounded over the past year.

Chestnut gets £20 in financing. U.K.-based hospitality firm Chestnut Group has received a £20 million loan from Metro Bank, taking the bank’s total funding to £50 million. The new facility includes a £10 million revolving credit line and a £10 million commercial loan. The hospitality firm will use the lending for expansion to acquire the Titchwell Manor Hotel in Norfolk, with funding remaining for future potential acquisitions. Chestnut owns 26 pubs and hotels across the U.K.

White Lodging adds in South Carolina. Merrillville, Indiana-based White Lodging has added the Sher Shepherd Hotel at Clemson University in South Carolina to its management portfolio. The hotel is purposely built to employ people with intellectual disabilities and has been open for three years. As part of the agreement, all current associates of The Shepherd Hotel will be invited to become White Lodging associates with comparable roles, wages and benefits.

First Hospitality adds in Chicago. Chicago-based First Hopsitality had added the 210-key, dual-brand Hyatt House Chicago – Medical/University District and Hyatt Place Chicago – Medical/University District to its management portfolio. The property is the company’s fifth dual-brand hotel and expands its Chicago-area presence to 16 properties.

WTTC: Travel booming but needs workers. The travel industry is not just surviving but thriving, despite conflict and geopolitical shifts, leaders at the World Travel & Tourism Council Global Summit said this week. The industry’s real threat to growth is a workforce shortfall. In a new report, the WTTC said 10 years from now, global demand for workers in travel and tourism will outpace supply by more than 43 million people, or 16% below required levels. The hospitality sector alone faces an expected gap of 8.6 million workers by 2035, around 18% below the staffing levels needed. Low-skilled roles, which are critical to the sector, remain the most sought after, with a projected need of more than 20 million additional workers. Positions that rely heavily on human interaction and services that cannot be easily automated are also in high demand. While the labor challenge impacts most major economies, the most significant absolute shortfalls forecast are in China (16.9 million), India (11 million) and the EU (6.4 million).

Amano acquires in London. Berlin-based boutique hotel brand Amano has expanded in London with the £20 million acquisition of Waterman House. Manex Properties, a joint venture between Amano and London-based investment firm Excellion Capital, acquired the property on September 29 from Regal Hotels International Holdings.

UAE development. United Arab Emirates-based developer Marjan has launched its mixed-use beach town destination, Marjan Beach. The development is set to attract billions in investments across lifestyle, real estate and hospitality and accelerate RAK Vision 2030. This destination designed to deliver a seamless fusion of accessibility and livability, offering a luxury lifestyle for residents and visitors alike. Upon completion, the development will host 12,000 hotel keys and 22,000 residential units with an anticipated population of 74,000 residents and a workforce of 32,000. The mixed-use development is designed to accommodate up to 180,000 visitors annually.

Pride Hotels files IPO. New Delhi, India-based Pride Hotels Ltd. has filed its Draft Red Herring Prospectus with SEBI for an Initial Public Offering. The company is the sixth largest hotel chain in India in terms of size and has hotels in the upscale, upper midscale, and midscale segments. The offer comprises a fresh issue of equity shares aggregating up to ₹2,600.00 million (₹260 crores) and an offer for sale of up to 39,239,446 equity shares of face value of ₹5 each.

Shangri-La reopening in the Maldives. Hong Kong-based Shangri-La Hotels and Resorts is reopening the Shangri-La Villingili Resort & Spa in the Maldives in late December. The resort is located on the Villingili Island in the Addu Atoll and features tropical greenery, natural lagoons, two kilometers of white sandy beaches, and six kilometers of Indian Ocean coastline.