Latest HITs: Yotelpad to Europe; Regent to Santa Monica; Blackstone buys Cvent

Regent to Santa Monica. The former Loews Santa Monica is being converted to IHG Hotels & Resorts’ Regent brand, marking the return of the luxury brand in the Americas and the first while under IHG’s control, it was announced on Tuesday. Owned by Strategic Hotels & Resorts, which is currently controlled by Chinese insurance company Dajia, the property closed in early March and is expected to reopen as a Regent later this year. The Chicago-based owner and asset manager currently maintains a portfolio of 13 luxury hotels and resorts across the U.S., including two InterContinental hotels. The 347-room hotel completed a $4.5 million renovation in 2021.

Blackstone buys Cvent. Private equity giant Blackstone is acquiring event management technology leader Cvent Holding Corp. for approximately $4.6 billion. Under the terms of the agreement, Cvent stockholders will receive $8.50 per share in cash, representing a premium of 52% to the volume weighted average share price over the 90 days prior to January 30, 2023 – the day before media reports of a potential transaction were published. A wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will be a significant minority investor alongside Blackstone as part of the transaction. Cvent has approximately 22,000 customers globally and has helped manage more than 5 million events. It lists over 302,000 hotels and venues as of December 31, 2022, on the Cvent Supplier Network, an online platform with tools to search, negotiate and contract with hotels and venues for event space. In connection with the transaction, investment firm Vista Equity Partners has agreed to invest a portion of its proceeds as non-convertible preferred stock in financing for the transaction.

PPHE's new fund. PPHE Hotel Group Ltd. (PPHE) has confirmed Call Insurance as the cornerstone investor for its European Hospitality Real Estate Fund of up to €250m equity. Call will invest up to €75 million (with an upper limit of 49% participation at any point in time). The Fund is intended to enable strategic acquisitions of hotels, focusing primarily on value-add investments across Europe and will launch with an initial asset in Rome. Hotels acquired by the Fund will be operated by PPHE’s hospitality operating platform. In its initial form, participation in the Fund will be 51% by PPHE and 49% by Clal. In consideration for its 51% participation, PPHE will contribute the ownership of its existing Rome asset to the fund for an agreed value of €29.3m. Clal will subscribe an initial €28.1m in cash for an initial 49% participation in the fund. PPHE has committed to participate in the fund for an amount up to €50 million in cash and/or assets. In the coming year, additional investors will be able to participate for the remaining €125 million equity, following the receipt of regulatory approval.

SLS Residences coming to Dubai. Set to open in 2026, SLS Residences The Palm, Dubai, will be developed with Roya Lifestyle Development LLC, a luxury real estate development company with headquarters in Dubai. It will be housed in a newly built standalone, low-rise development, offering approximately 113 branded residences comprising 2, 3, and 4-bedroom properties and penthouses. The property’s ground floor will have 13 flagship residences (2-4 bedrooms), each with its own private garden. Its private, 1,000 square metres social house will be available exclusively to residents offering a wellness space including fitness facilities, locker rooms and treatment rooms; a lounge with facilities for private dining; a high-end game-entertainment room and a kids club.

Yotelpad to London. Yotel will debut its Yotelpad brand in Europe with the opening of Yotelpad London Stratford in Q4 2023 (rendering above), following a long-term management agreement with owner, Silver Mascot Limited. It will be Yotel’s seventh property in the UK and third in London. Yotel created Yotelpad in 2018 to challenge the traditional aparthotel space. The London property will have 62 pads and will be bookable from one night to monthly stays and will range in size and layouts.

Pro-Invest, IHG deal. Pro-invest Group, Sydney, and IHG Hotels & Resorts have signed a franchise agreement to open Hotel Indigo Melbourne on Flinders in Melbourne, Australia. Set to open in mid-2023, the 216-room Flinders Lane hotel had been operated by IHG under its Holiday Inn brand for several decades. Following the recent acquisition of the property by Pro-invest, it will undergo a AUD$20 million refurbishment and repositioning to rebrand as Hotel Indigo. Pro-invest is IHG’s largest franchise partner across Australasia and has a partnership that has seen them open an extensive estate of Holiday Inn Express hotels across Australia and New Zealand, as well as recent openings under the Kimpton, voco and Hotel Indigo brands.

Rosewood gets Maldives deal. Qatari investment company Estithmar Holding is developing a new Rosewood-branded resort in the Maldives scheduled to open in Q1 2025. The property will be managed by Rosewood Hotels & Resorts and developed by Estithmar Holding’s subsidiary, Royal Resorts. The Rosewood property will feature approximately 120 independent beach and overwater villas, one- to five-bedroom villas, all with private pools and a select number located on private islands. The total investment is reportedly $343 million.

PCH growing management portfolio. PCH Hotels & Resorts, Mobile, Alabama, announced it is expanding its third-party hotel management services to a larger pool of owners. No specific deals were announced for the company that currently has nine hotels under management.

Ruby hotel to Marseille. BNP Paribas Real Estate is launching in a former Marseille, France, office building a 237-room Ruby Hotel with an adjoining workspace of approximately 1,000 square meters. The hotel’s opening is planned for the end of 2025.