The latest news about development, M&A and performance.
Raffles London prepares for opening. After eight years of
restoration, September 29 will mark the opening of The OWO, the first hotel in
the U.K. for Raffles Hotels & Resorts. The hotel in Whitehall, London, will
have 120 rooms and suites while The OWO Residences by Raffles with 85 branded
residences will mark the first Raffles-serviced residences in the UK and Europe.
House in the former Old War Office, the property has been developed by the
Hinduja Group, an international multi-billion-pound business with experience in
restoration and renovation of historic buildings, and Onex Holding, a private
investment group with a strong track record of developing and operating
strategic and critical infrastructure. The property will feature nine
restaurants and three bars, as well as a grand ballroom and a spa in partnership
with Guerlain and Pillar.
Club Med deals in Indonesia. A MoU has been signed between Paradise
Indonesia and Club Med to enter into a mutually exclusive partnership for the
development of a portfolio of new upscale all-inclusive resorts across
Indonesia. To be rolled out across several phases with a development target of
more than five new resorts, the first phase consists of three resorts to be
developed in the next five years in key tourism destinations, namely North
Sulawesi, Bali, and West Java. With operations in 40 countries and nearly 70
resorts, Club Med will open 17 new resorts between 2023 and 2025, including 10
extensions or renovations of existing resorts. Paradise Indonesia has 30 years
of experience developing and creating lifestyle destinations in Indonesia’s
largest cities with 25 business units across eight cities.
Village Hotels on the block. KSL Capital Partners has
reported hired Morgan Stanley to lead an auction of the 33-unit budget U.K.
chain, Village Hotels. KSL paid about £485 million for the business in 2014
from De Vere Group. The news comes at Canada’s Brookfield continues to try to
sell Center Parcs properties in the U.K.
US performance still positive YOY. Following seasonal patterns, U.S.
hotel performance from August 27 through September 2 showed mixed results from
the previous week but positive comparisons year over year, according to CoStar
data. Occupancy was 62.7% (+0.2% YOY); ADR was $150.52 (+1.8% YOY); and RevPAR
was US$94.38 (+2% YOY). Among the Top 25 Markets, Minneapolis saw the
largest year-over-year increases in occupancy (+19.1% to 74.4%) and RevPAR
(+26.7% to $101.06). Las Vegas posted the highest lift in ADR (+9% to $181.61)
and the second-largest jumps in occupancy (+15.9% to 74.4%) and RevPAR (+26.3%
to $135.07). New Orleans saw the steepest RevPAR decline (-17.2% to $61.20).
Ritz-Carlton Residences to Baku. Azerbaijani real estate
developer Pasha Development has reportedly signed a management agreement with
Marriott International to bring The Ritz-Carlton Residences to Baku and is
slated to open in 4Q23. Located in Baku’s Nasimi district, The Ritz-Carlton
Residences, Baku, with 79 apartments, are situated in the
landmark 31-story building. Fourteen floors are already
home to The Ritz-Carlton, Baku – the brand’s
first hotel in the country.
Canadian TRevPAR on the rise. TRevPAR values for the
Canadian hospitality market have seen a significant surge in 2023, according to
new data from HotStats. The market saw a dip in 2022 TRevPAR compared to 2019,
but this year’s numbers have not only recovered from that dip but also
surpassed previous years, as well. The data shows that Gross Operation Profit
Per Available Room (GOPPAR) and total department profit saw similar trends in
2023 after a dip the previous year. HotStats says there are warning signs for
the sector, however, as the GOP margin for year-to-date 2023 took a 0.5%
decline compared to 2022. This suggests that hoteliers are having to work
harder to convert top-line revenue into bottom-line gains.