Latest HITs: CRE debt relief bill; Houston InterCon sells; Ennismore's all-inclusive

CRE debt relief bill. To lessen the blow of pending CRE loan maturities, a bipartisan bill, HR 5580, has been introduced in the U.S. House of Representatives that would amend the tax code to make it easier for commercial real estate borrowers to defer taxes applied to their properties during loan modifications or debt workouts. HR 5580 would amend Section 108(a)(1) of the tax code, which since 1986 has allowed noncorporate taxpayers such as small business owners to defer the tax incurred on loan modifications or workouts when their property depreciates. The bill focuses on existing cancellation of debt income policy, which treats debt forgiveness as a taxable event, where corporate borrowers, such as those who own hotels, office buildings or retail malls, are taxed on the amount canceled. Current policy allows borrowers to reduce their taxable basis by the amount of debt canceled, resulting in smaller depreciation deductions but higher capital gains upon a future sale.

Houston InterCon trades. Los Angeles-based investor Stockdale Capital Partners has acquired from local real estate investor Medistar the InterContinental Houston, a 354-key hotel built in 2019 in the heart of the Texas Medical Center. Terms of the deal were not disclosed. The largest medical complex in the world is expected to double in size over the next decade with $3 billion of developments in medical and life sciences research facilities already underway.

Marriott grows in KSA. Marriott International has signed an agreement with NEOM to open two luxury properties in Trojena, NEOM’s mountain destination located in the northwest region of Saudi Arabia. The agreement includes Saudi Arabia’s first W Hotel, and a JW Marriott property. The W Hotel in Trojena is anticipated to feature 236 guest rooms, including 47 suites, with uninterrupted views of the mountains and a freshwater lake. The property will be situated within the region’s Lake Village. The 500-room JW Marriott Hotel in Trojena will be immersed inside the Lake and surrounded by a mountainscape. Trojena will host the 2029 Asian Winter Games and the development is expected to include apartments, chalets, retail, dining, and entertainment areas.

NewcrestImage acquires Marriott in Texas. Dallas-based NewcrestImage and Dabu Group acquired a Marriott in the Dallas-Fort Worth suburb of Westlake in a joint venture. The 294-key hotel also has approximately 15,000 sq. ft. of meeting space. New York-based Newmark Lodging Capital Markets arranged the sale on behalf of the seller (Blackstone-owned BRE Hotels & Resorts currently lists the hotel in its portfolio.) NewcrestImage owns more than 70 hotels across the U.S. with almost 8,000 rooms.

Whitbread’s London buy. U.K. hotel giant Whitbread Plc has acquired the freehold interest in New London House for the NIA office, retail and restaurant building from clients of Orchard Street Investment Management for £56.5 million. It intends to seek planning consent from the City of London to repurpose and extend the current building into a Premier Inn hotel-led, mixed-use development with a mix of complementary uses together with new public spaces. It said the acquisition is part of a strategy to target office buildings which no longer meet the requirements of occupiers and investors and offer the opportunity to repurpose into hotels.

Club Med to South Africa. Club Med has announced the development of its first resort in South Africa with the 2026 planned opening of the all-inclusive Club Med Tinley, a combination beach/safari experience nestled on the North Coast of KwaZulu-Natal. The development is a collaborative between Club Med and the Collins Residential Consortium. The project represents an investment exceeding 2 billion rands under the enterprise of Tinley Leisure Pty Ltd. The construction period is estimated to be 28 months, commencing in early 2024, with the resort opening scheduled around July 2026. In addition to the beach experience, guests will also can stay at an 80-room lodge within Big-5 Game Reserve located 3.5 hours by road or a 40-minute flight from the resort.

CIM sells debt. CIM Group’s CIM Real Estate Debt Solutions business last week closed on behalf of a CIM managed fund a $34.97 million senior loan to a joint venture between Monarch Alternative Capital and HHM Hotels secured by the dual-branded Aloft/Element hotel in Orlando and a $28.9 million whole loan to Newbond Holdings secured by the Aloft in Tampa. In 2022, CIM Group and its affiliates have provided more than $3.8 billion of commercial real estate loans for property acquisitions, recapitalizations, and new construction projects across the U.S.

Ennismore brands all-inclusive properties. Ennismore, London, has announced the launch of the ALL Inclusive Collection, whihc brings together over 30 resorts from brands such as Rixos, SO/ and Swissôtel, with plans to expand to over 50 resorts in the next three years, from these brands and others, including Hyde, Mondrian, SLS and Fairmont. The international expansion of the all-inclusive business continues to grow across Europe, the Middle East, Africa, Turkey, Asia, Central America and the Caribbean, with 15 all-inclusive resorts across Accor and Ennismore brands currently in the pipeline.

Mission Hill Hospitality creates CFO position. Denver-based Mission Hill Hospitality has named Tom Barber for its newly named Chief Financial Officer position. He joined Mission Hill as Managing Director of Acquisitions when the firm was launched in March 2021. The company has a portfolio of 33 select-service and extended-stay hotels in 16 states. Before joining Mission Hill, Barber was Global Chief Development Officer at Wyndham Hotels & Resorts.

LuxUrban converts more properties. Miami-based LuxUrban Hotels has converted three more independent boutique hotels into the Trademark brand of Wyndham Hotels & Resorts. The three hotels are Hotel 57, a 216-room hotel in midtown Manhattan; Condor, a 35-room hotel in Williamsburg, Brooklyn; and The Lafayette, a 60-unit hotel in New Orleans. Counting these properties, six LuxUrban hotels have been converted into the Trademark brand. LuxUrban expects 60% of its hotels to be converted by September, with the rest by year's end. LuxUrban also plans to open a new property in midtown Manhattan by October 15. The 76-room hotel is currently closed and will also join the Trademark brand.

LOGE Camps secures $16M investment. North Bend, Washington-based lodging brand LOGE Camps has secured a $16 million capital investment from Roseville, California-based DCA Family Office and other existing investors to grow its brand and expand nationwide. LOGE Camps said as part of the expansion it will pursue more property acquisitions and enhance amenities at its current network of properties. LOGE said the investment will help fuel its growth and strengthen its position as a leader in outdoor-oriented hospitality.

Japanese REIT buys 3. Japanese REIT Nippon Accommodations Fund has purchased for JPY 3.1 billion hotels in Nishi-Akashi, Matsuyama, and Naha, Japan with a total of 331 rooms. The deal takes its portfolio to 136 Properties with 13,477 units. Properties include the 106-key Smile Hotel Nishi-Akashi; the 128-room Smile Hotel Okinawa Naha; and the 97-room Smile Hotel Matsuyama.

Island Hospitality adds in California. Third-party manager Island Hospitality Management, West Palm Beach, Florida, has been named by Mission Hill Hospitality the operator of the 114-room Springhill Suites Truckee in California. Island Hospitality Management operates more than 90 properties under 20 different brands in 27 states and the District of Columbia.

Disney expanding. Disney reported last week that it intends to nearly double its investment in theme parks, spending $60 billion over the next 10 years, including new hotels. More details are expected to be announced this week during its investor day meeting.

Bob W adds in London. Short-stay apartment operator Bob W has secured the Gulaid House in Knightbridge London. The building was acquired by Saudi-based real estate private equity partner Gulaid Group Holding and is being leased to Bob W for operations.