The latest global news on development, M&A and more.
Big portfolio trades in Japan. Looking to capitalize on Japan’s
booming tourism sector, a consortium formed by Singapore’s SC Capital Partners
with Goldman Sachs Asset Management and the Abu Dhabi Investment Authority
(ADIA) has acquired from Daiwa House Industry for a reported $900 million a
portfolio of 27 resort hotels (7,124 rooms) in major tourist destinations
across Japan. SC Capital said the investment strategy will focus on increasing
top-line revenue, rebranding initiatives, improving distribution channels and
refurbishments. SC Capital’s asset manager, Japan Hotel REIT Advisors, will
come in to maximizing further growth of the portfolio.
Big win for Miami developers. Witkoff and Monroe Capital have
reportedly secured a big $430 million construction loan for their Shore Club
project in Miami Beach. J.P. Morgan provided the financing for the luxury condo
and resort development planned for 1901 Collins Avenue, according to a press
release. The 49 luxury condos will be in a new 20-story tower and an
eight-story renovated building. The condos will be part of Auberge Resorts
Collection, which will operate the 75-room Auberge hotel. The project will also
include a single-family beach house. The developers said they’ve secured
presales for two-thirds of the units, totaling more than $550 million, since
launching sales at the start of the year.
Mandarin-Swire
tie-up in Miami. Mandarin Oriental Hotel Group has agreed to manage a new hotel
and branded residences in Brickell Key, Miami. The Mandarin Oriental, Miami
and The Residences at Mandarin Oriental, Miami is being developed by Swire
Properties, Mandarin Oriental's joint-venture partner at the existing Mandarin
Oriental, Miami, and will form part of the One Island Drive development,
consisting of two towers connected by an amenity podium. The 151-room hotel with
61 private residences, as well as 220 units at the Residences at Mandarin
Orienal are projected to open in 2030.
US transaction volume off YOY. The LW Hotel Advisors Q2 2023
Major U.S. Hotel Sales Survey indicated a 36% decrease in the number of sale
transactions versus the same period last year, a 50% decline of total dollar
volume, and a decrease in sale price per room of 4%. The list includes 84
single sale transactions over $10 million which totaled roughly $3.1 billion
and included approximately 12,100 hotel rooms with an average sale price per
room of $257,000. In comparison, the LWHA Q1 2023 sales data included 83 single
sale transactions over $10 million which totaled nearly $3.5 billion and
included approximately 12,500 hotel rooms with an average sale price per room
of $279,000.
Azora armed for further expansion. Madrid-based Azora
Capital has launched a European multi-strategy vehicle having raised €270
million in equity commitments from a sovereign wealth fund, giving it a total
investment capacity of up to €500 million. With an investment horizon of
between five to 10 years, the new vehicle has been established to target a
broad range of opportunities across the entire real estate sector, with a
primary focus on Southern Europe and selective investment in other European
countries. This is the third dedicated multi-sector strategy Azora has launched
in Europe, the first being the €1.1bn Hispania SOCIMI, which it launched in
2014 and sold to Blackstone in 2018 to realize net IRR of 19%. Subsequently,
Azora created a fund using capital from its own balance sheet and Azora’s
principals, which is now fully invested and has already generated an average
return of 23% on divestments to date. Today, this alternative investment
management platform has over €6.5 billion in assets under management.
SBM moves beyond Monte Carlo. Monaco’s Société des Bains de Mer is acquiring the Palace
des Neiges hotel in Courchevel, France, with plans to completely refurbish the
property that will mark its entrée into the Northern Alps. The acquisition is
expected to be completed before the end of the first half of the 2023/2024
financial year, according to SBM. “This acquisition reflects our desire to
deploy new growth drivers beyond the Principality of Monaco, while preserving
the group’s DNA, with the support of the new international development
department,” said the group’s new Chairman and CEO Stéphane Valeri. “As well as
reaching a new target customer base, the future establishment will enable our
group to extend its operational season, giving our employees new prospects
throughout the year. The aim is to write a new page in the history of our
company in a key center of international luxury.”
Hilton adds all-inclusive. Hilton has signed a management
agreement for the 540-room Hilton Cancun Mar Caribe All-Inclusive Resort in
Mexico. Expected to open in November, the newly-renovated property bolsters
Hilton’s all-inclusive presence in the Caribbean and Latin America, where
Hilton currently has nine all-inclusive resorts. The property, formerly known
as Royal Uno All-Inclusive Resort & Spa, is owned by Tortuga Resorts. This
marks Hilton’s sixth all-inclusive property in Mexico and 90th overall with 25
additional hotels in various stages of development. Hilton currently has a
portfolio of more than 205 hotels in CALA and a development pipeline of
approximately 110 hotels in various stages of design and construction.
IHG adds in KSA. IHG Hotels & Resorts has signed a
franchise agreement that will see a 250-key Hotel Indigo property open in 2026
in Oxagon, a coastal industrial city in NEOM, located in the Northwest region
of Saudi Arabia. IHG currently operates 37 hotels across five brands in Saudi
Arabia with 31 hotels in the development pipeline set to open within the next
three to five years. Last month IHG signed a management agreement to open a
Hotel Indigo in Mohammed Bin Salman Non-profit City in 2025.
25hours to SE Asia.
Ennismore has announced a partnership with Agung Sedayu Realestat Indonesia
(ASRI) to open a 345-room 25hours Hotel in Jakarta, marking the brand’s entry into
Southeast Asia. Located at an integrated mixed-use development of District 8 at
the city’s Sudirman CBD, the 25hours Hotel, The Oddbird Jakarta, is scheduled
to open by the end of this year.
Club Med growth. Club Med announced a new ski resort coming
to Japan this December with the 266-room Club Med Kiroro Grand ski resort in Hokkaido.
The company said it plans to expand its portfolio with three to five openings
or renovations per year, including a U.S. mountain resort targeted to open in two
to three years, as well as a new resort in the Caribbean in the near
future.
Maine resort trades. Kennebunkport,
Maine-based developer Tim Harrington has acquired from Asti-Kim Corp, for a $7.75 million the Asticou Inn and Restaurant in Northeast Harbor, Maine,
which will be added to his Acadia collection of hotels. Asticou Inn will remain
open for the 2023 season before undergoing a restoration. Harrington also purchased
in Maine the Claremont Hotel in 2020 and Salt Cottages in 2021. Harrington, owner
of real estate development and management company, Atlantic Holdings, was an
original founder of the 10-property Kennebunkport Resort Collection where he
remains a partner.
Davidson gets creative. Davidson
Hospitality Group has launched DH Creative, an in-house creative agency that
specializes in comprehensive brand development services and creative direction
for its hotels, resorts, restaurants, bars, spas and membership clubs. The
service is only being made available to existing Davidson-managed properties.
Services include concepting brands, managing large-scale photo and video shoots,
and aligning with partners to oversee website development.
Sonder adds in NYC. Sonder Holdings has partnered with
Kalimian Equities to manage and operate the newly constructed property at 139
Orchard in New York City as The Merchant. This 98-key hotel is scheduled
to open in the fall of 2023. Sonder operates in 40-plus markets across 10 countries
and has approximately 18,200 live and contracted units worldwide as of Q1 2023.
This deal marks their sixth property in New York City.