Latest HITs: High-profile portfolio misses payments; Hilton Belfast, Rancho Santa Fe trade

Cerberus-Highgate portfolio misses payments. Another high-profile hotel portfolio is seeking relief with news breaking that Cerberus Capital Management and Highgate have missed two months of payments on a $415 million loan for 30 Courtyard by Marriott hotels. The duo reportedly has requested an extension of the floating-rate loan, which matured in July, according to a servicer report. “Borrower stated that they do not have enough funds to cover the shortage and the regular monthly debt service,” according to the report. The delinquent Courtyard portfolio was facing a higher insurance payment following last year’s Hurricane Ian and Tropical Storm Nicole, according to the report.

Pandox adds Belfast. Pandox AB has completed the acquisition of the 202-room Hilton Belfast from Starwood Capital, and the property will now be managed by Axiom Hospitality subject to a franchise under the Hilton brand. The total acquisition price, including certain targeted value increasing investments, amounts to approximately £40 million and will initially be financed by cash and existing credit facilities. Pandox expects the hotel to generate a stabilized yield of approximately 10%.

Rancho Santa Fe trades. Steve Hermann Hotels has sold The Inn at Rancho Santa Fe in California for $100 million to an unnamed institutional investment fund. Sonnenblick-Eichner Co. represented the seller of the 85-room luxury boutique resort, which is undergoing an extensive “top-to-bottom” renovation and expected to be fully operational in the fourth quarter of this year. The property was offered unencumbered by franchise and management agreements.

Accor deeper into events. The Accor Group, Andera Partners and partner investors have entered into exclusive negotiations for Accor to acquire a 63% stake in tailored events creator Potel & Chabot which it does not currently own. After this transaction, Accor will become the sole shareholder of Potel & Chabot (now known as Momense) which will be consolidated within the group's Luxury & Lifestyle Division. Closing is expected to occur in the fall of 2023. Momense services are divided into three categories: corporate events for multinationals and private clientele; major sporting and cultural events such as the French Open, hospitality events of the PSG, the 24 Hours of Le Mans and the Saut Hermès; and private events in exceptional Parisian venues. In 2023, Potel & Chabot is expected to generate revenue of around €130 million.

Echo update. Wyndham Hotels & Resorts has announced 60 new hotels for its new-construction Echo Suites Extended Stay by Wyndham brand, growing grow the brand’s global pipeline to 265 hotels and approximately 33,000 rooms. Signing a multi-unit deal is Calgary, Alberta, Canada-based MasterBuilt Hotels, which will extend the brand’s reach to Canada. Wyndham stated that multiple projects have already broken ground and are in various stages of construction across Virginia, Texas and South Carolina, with over a dozen more slated to break ground in the months ahead. The company expects to have 100 hotels open over five years, with the brand’s first locations opening in 2024. Wyndham has not responded to our questions about how many of these 60 hotels have secured financing and cost per key for the concept.

Four Seasons to Jacksonville. Four Seasons Hotels and Resorts and Shahid Khan through Iguana Investments Florida announced plans for the Four Seasons Hotel and Private Residences Jacksonville in Florida with an anticipated opening in 2026, The project will be the centerpiece of the Jacksonville Shipyards, located adjacent to the Sports Complex and proposed Stadium of the Future – a renovated and reimagined EverBank Stadium that will serve as home to the Jacksonville Jaguars football team. The property will offer 170 hotel rooms and 26 residences, and four dining and lounge outlets. The initial conceptual design for the project was created by Pininfarina America. HKS is the lead design architect, partnering with ODA for interior design and EDSA for landscape design. The property will be the second Four Seasons property for Khan, the owner of the Jacksonville Jaguars. In 2016, Khan purchased the flagship Four Seasons Hotel Toronto.

Kempinski adds in Bali. Kempinski Hotels, Geneva, has signed a management agreement with Indonesian real estate developer PT. Panorama Indah Dewata for the 160-room Apurva Kempinski Ubud, a hilltop resort in Bali set to open in 2027. The hotel’s interior design will be led by Rudy Dodo of Jakarta-based studio Trivium Design Group, who also assumes responsibility for the architectural design. It marks the second Kempinski resort in Bali, following the 2019 opening of The Apurva Kempinski Bali. It will also be the third management agreement signed, following last year’s announcement for The Apurva Kempinski Lombok, which will open in 2027.

IHG adds in UK. Scheduled to open in 2024, IHG Hotels & Resorts will introduce voco Zeal Exeter Science Park in the U.K. in partnership with Zeal Hotels – the first lifecycle net zero carbon hotel for both businesses. Signed under a franchise agreement and set to be managed by Valor Hospitality, the 142-key hotel will be part of the Exeter Science Park which, once fully developed, will be home to around 822,000 sq ft of buildings for science, technology, engineering, mathematics and medicine (STEMM) businesses.

Equinox to Amaala. Equinox Hotels has been selected by Red Sea Global in Saudi Arabia to manage the Equinox Resort Amaala in Amaala along the Red Sea coast. Set to open as part of the first phase of development at Triple Bay, the Equinox Resort Amaala will be located adjacent to the Triple Bay Marina Yacht Club. The resort will include 128 guest rooms and suites, several culinary concepts, a Beach Club, spa, magnesium salt rooftop pool.

Record performance in Canada. Led by limited-service demand and group ADRs, Canada’s hotel industry reported its highest ADR and RevPAR on record in June, according to CoStar data. Versus June 2022, occupancy was 74.4% (+3.6%); ADR was C$221.86 (+12%); and RevPAR was C$164.97 (+16.1%). In addition to the monthly ADR and RevPAR levels, Canada’s occupancy level was its highest since August 2022. Among the provinces and territories, Newfoundland and Labrador recorded the highest June occupancy level (86.7%), which was 9% above 2022. Among the major markets, Vancouver saw the highest occupancy (89.2%), which was 6.8% ahead of June 2022. The lowest occupancy among provinces was reported in Saskatchewan (62.9%), down 0.3% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+8.1% to 58%).

Turning Stone investment. The Oneida Indian Nation is making a $370 million capital investment in its Turning Stone Resort Casino in Verona, New York, that will include a new conference center, outdoor event spaces, hotel, and other new amenities. The Nation will break ground on the two-year project early next year. The expansion will include construction of The Crescent, a 258-room hotel, as well as renovations at the exist Lodge property. On October 1, Oneida Nation Enterprises will become Turning Stone Enterprises.

Integrated casino resort for Ohio. Hollywood Casino Columbus (Ohio) is reportedly adding a resort as part of a $100 million expansion. Penn Entertainment and Gaming and Leisure Properties said the 200-room hotel will feature resort-style amenities and is slated to begin construction this fall.  Once complete, Hollywood Casino Columbus will be billed as the first integrated resort casino in Ohio.