Latest HITs: KSL buys into Sereno; junk fee bill hits; Mint adds DC

KSL buys into chic Sereno brand. With an aim to selectively grow the brand, KSL Capital Partners, Denver, has acquired for an undisclosed amount a majority interest in Sereno Hotels in Italy. Founded more than 20 years ago by the Contreras family, Sereno is the owner-operator of the ultra-luxury Il Sereno located on the shores of Lake Como, Italy, and its sister resort, Le Sereno on the beach at Grand Cul de Sac on the island of St. Barthelemy.  The Contreras family will remain significant investors in Sereno, and Sereno's current team will continue to operate the hotels. Luis Contreras, Sereno's founder and CEO, who will continue to lead the company. PE firm KSL also owns luxury hotels such as Soneva in the Maldives, Beaumier in Europe, and Baillie Lodges in Australia.

Mint to DC. Apartment-style hospitality hybrid Mint House will open the Mint House Downtown Washington D.C., in early 2025. Altus Realty, who led the acquisition of the property in 2022, will convert the existing 11-story structure – formerly an office building – into 85 high-end apartment-style flexible rental units to be operated by Mint House. Construction is scheduled to begin in November 2023.  This transaction marks Mint House's first foray into Downtown Washington, D.C. Today, the brand has more than 25 tech-first properties in 16 major U.S. cities.

Long-awaited junk fee bill introduced. The U.S. Senate is introducing a bill that would crack down on hidden resort fees for hotel stays. The bill, called the Hotel Fees Transparency Act, would establish federal guidelines for pricing transparency that have been largely voluntary. The legislation would require anyone advertising a hotel room or a short-term rental to clearly show upfront the final price a customer would pay to book lodging. It would make the Federal Trade Commission responsible for pursuing violations, and it says state attorneys general could also bring civil action for violations. President Biden announced in February that his administration would target junk fees in a variety of industries, including at hotels. The bill would also address online travel agencies, metasearch websites or any other site advertising hotels, motels, inns, short-term rentals or other places of lodging at nightly, hourly or weekly prices. It’s not clear when the Senate will consider the bill. A congressional aide suggested it could pass on its own or be included in one of several must-pass pieces of legislation Congress will take up later this year.

Certares closes fund with 10 hotels. Certares, a global private equity firm focused exclusively on the travel and hospitality industries, has completed the final closing of its first real estate hospitality fund, Certares Real Estate Holdings I LP with $284 million of equity commitments. The strategy is focused on acquiring hospitality real estate assets in growth markets and gateway cities across the United States. Since its launch in March 2021, the fund has made investments in 10 hotels (2,100 keys), investing approximately $228 million of capital in equity investments. Its acquisitions include the Sea Crest Beach Hotel in Cape Cod, the Courtyard San Diego Downtown, and the EAST Miami. The Fund has generated a net IRR of 35% and a 1.4x multiple on invested capital as of March 31, 2023, and has already made distributions to investors while maintaining an active pipeline of new investments. Certares’ portfolio includes Hertz, Liberty TripAdvisor, Internova Travel and Azul S.A., among others.

Accor raises guidance. Accor reported strong 2Q23 earnings and as a result raised its guidance for the remainder of the year. H1 2023 RevPAR was up 38% versus H1 2022. During first-half 2023, Accor opened 114 hotels, representing 14,500 rooms, translating to net unit growth of 3.5% in the last 12 months. At the end of June, the group had a pipeline of 217,000 rooms (1,262 hotels). Accor reported first half revenue of €2,402 million, up 35% like-for-like versus H1 2022. This growth breaks down into a 34% increase for the Premium, Midscale and Economy division and 40% for the Luxury & Lifestyle division. Changes in the scope of consolidation, mainly due to the consolidation of Paris Society in the Luxury & Lifestyle division, contributed positively by €139 million.

Ennismore launches Dis-loyalty. Lifestyle hotel company Ennismore, partially owned by Accor, has launched a loyalty program called Dis-loyalty for its more than 75 hotels and 150 restaurants and bars across 10 brands. For $18 per month, Dis-loyalty members get bigger discounts for going somewhere new inside the portfolio. Members will get 50% off just-opened hotels in the first three months after opening; 20% off every first-time stay in every hotel; 10% off for return stays; 10% off food and drink in any of its restaurants, bars and coffee shops; and 365 free barista-made drinks (coffee, tea, hot chocolate) – one every day of the year as long as they sit in. Members will get instant perks from the moment they sign up through a new, dedicated online platform. Every day is available for hotels when not fully booked and members can take advantage of their F&B discount any time. Dis-loyalty will donate 5% of membership subscription revenue to charities.