Breaking news on development, M&A, data and more.
Big refi in Manhattan. The
1,780-room Sheraton New York Times Square has a new four-year, $260 million floating-rate
loan through funds managed by affiliates of Fortress Investment Group, replacing $250 million in seller financing. The
borrower, a partnership between hospitality owner-operator MCR Hotels and
global investment firm Island Capital Group, acquired the hotel in April 2022.
JLL arranged the new deal.
Another Army hotel for IHG. Real estate group Lendlease and
IHG Army Hotels have broken ground on a Candlewood Suites hotel at Fort Liberty
in North Carolina. Expected to open in early 2026, the 207-room hotel is the 17th
Candlewood Suites property Lendlease and IHG have partnered on since 2009 as
part of the Privatization of Army Lodging (PAL) initiative, a U.S. Army-led,
public-private venture to revitalize on-post lodging for service members, their
families and government travelers. As the exclusive developer for the
Department of Defense’s only lodging privatization program, Lendlease is the
owner, developer, design-builder and asset manager for the Candlewood Suites at
Fort Liberty. IHG Hotels & Resorts is the hotel operator and manager.
Lendlease’s PAL portfolio includes more than 12,000 hotel rooms on
installations across the country.
Solid US performance. U.S. hotel performance for November
5-11 increased from the previous week and showed positive year-over-year
comparisons, according to CoStar data. Occupancy was 64.8% (+0.8% YOY);
ADR was $156.01 (+4% YOY); and RevPAR was $101.13 (+4.9%). Among the Top
25 Markets, Denver saw the largest year-over-year occupancy lift (+9% to
69.3%). Dallas reported the largest increases in ADR (+12.6% to $136.34) and
RevPAR (+22.3% to $101.84). The steepest RevPAR declines were seen in New
Orleans (-13.4% to $117.26) and San Diego (-8.6% to $138.29).
IHG grows in Thailand. IHG Hotels &
Resorts and Thailand’s Asset World Corp Public Co. Ltd. Have extended their
long-standing partnership with an agreement to open two new luxury hotels in
Chiang Rai, Thailand. Opening in 2025, InterContinental Chiang Rai Golden
Triangle Resort will offer 68 one- and two-bedroom pool and plunge pool villas.
Kimpton Chiang Rai Golden Triangle, which currently operates as The Imperial
Golden Triangle Resort, will undergo an extensive renovation and convert to the
Kimpton brand with 68 suites. With 34 hotels across nine brands and 39 hotels
in the pipeline, Thailand continues to be a strong growth market for IHG and
the business is on track to double the size of its estate within the next three
to five years.
Pebblebrook closes in SF. Pebblebrook Hotel Trust has closed
on the sale of the 221-room Hotel Zoe Fisherman’s Wharf in San Francisco,
California, for $68.5 million to a third party. For the trailing 12 months
ended September 30, 2023, the hotel’s net loss was ($1.2) million, its net
operating income was $2.2 million, and its EBITDA was $2.7 million. The $68.5
million sales price reflects a 25x EBITDA multiple and a 3.2% net operating
income cap rate (assuming a capital reserve of 4% of total hotel revenues). Year
to date, Pebblebrook has completed $300.8 million of property dispositions
comprised of six property sales, reflecting a combined 21.8x EBITDA multiple
and a 3.8% NOI cap rate.
Radisson adds resort in Greece. Radisson Hotel Group,
Brussels, has signed a deal with developer Vema Tourism Enterprises S.A. for
the Radisson Blu Resort, Mani in Greece. The new-build, 150-room beach
resort, is scheduled to open during the 2025 season, is the fifth Radisson Blu
property in Greece.
Gr8 refinances in the Netherlands. The credit investment arm
of London-based real estate investor Veld Capital has provided a €63 million senior
secured loan to hospitality group Gr8 Hotels to refinance 10
properties in the Netherlands. The assets include affordable hotels in Amsterdam,
Rotterdam, Maastricht and Breda, as well as F&B outlets.
Choice grows extended-stay pipeline. Choice Hotels
International announced new Everhome Suites are under construction in California
– Temecula, Ontario and San Bernardino – and six more are in various stages of
development across the Southern California region. The hotels under
construction are slated to open in the second half of 2024 and early 2025. For
the first nine months of 2023, Choice said its extended-stay hotel openings
grew by 38% compared to the same period in 2022. Choice's extended-stay
domestic pipeline increased 12% year over year to over 47,000 rooms in the
third quarter of this year. Choice currently has 60 Everhome Suites properties
in the pipeline and over 250 across three other extended-stay brands: MainStay
Suites, Suburban Studios and WoodSpring Suites.
Key appointments for Salter Brothers. Further
to its recent announcement of the opening of a Singapore office and the
expansion into Asia, Australia’s Salter Brothers has named Rahul Ghai as managing
director, Asia; Ethan Quek as principal, Asia; Gene Osborne as asset manager,
Asia; and Tokio Takai as associate. Ghai joins the firm from Partners
Group where he was most recently managing director and regional head of Real
Estate for Europe. In Japan, the firm has secured the services of Tetsutaro
Muraki, who as senior director, will oversee deal origination; and Yujiro
Muraki, who as executive director, will lead commercial and third-party deal
due diligence. Salter Brothers has a portfolio of over 5,000 rooms across 37
hotels, making it one of the largest hotel owners in Australia.