Breaking news about development, financing, M&A, data and more.
CMBS deals ramp up. R.W. Baird analysts report that CMBS
securitizations, particularly SASB deals, have gained significant momentum in
recent weeks (off a low base though); deal size is relatively modest still, but
spreads have come in meaningfully over the last 90+ days. Here are four recent
or in-the-market deals: Elliott Investment Management and Chartres Lodging
Group have refinanced the 1,841-room Sheraton Dallas with a $270 million
floating-rate loan (plus a $30 million mezzanine loan). Blackstone’s BREIT has
refinanced a 23-hotel portfolio (4,002 rooms; all select-service assets except
the Hyatt Regency Atlanta) with a $428.5 million floating-rate loan. MCR and
Building & Land Technology have refinanced a 53-hotel select-service
portfolio (5,958 rooms) with a $631.5 million fixed-rate loan. Ohana Real
Estate Investors and DivcoWest have refinanced the 496-room La Cantera Resort
& Spa in San Antonio, Texas, with a new $240.3 million floating-rate loan.
Kimpton to Lisbon. IHG Hotels & Resorts has signed a franchise
agreement with Real Hotel Group for the 141-room Kimpton Lisbon, which is set
to open in early 2025. It marks the second Kimpton to come to Portugal. In the
luxury and lifestyle segment, IHG operates six open hotels in Portugal and has
a further seven in development. Kimpton Lisbon joins a portfolio of eight
Kimpton hotels across the U.K. and continental Europe and forms part of Kimpton’s
global portfolio of 78 hotels across 12 countries, representing 13,721 rooms.
Marriott growth in Poland. Marriott International plans to
expand its portfolio in Poland with the expected addition of more than 10
properties in the next few years, including the debut of two brands - Le
Méridien and Element Hotels by Westin - in the market. Marriott currently has 24
properties and over 4,500 rooms in the country across 12 brands and eight
cities. Le Méridien Krakow Royal will open in 2025 and the Element by Westin
Wroclow opens this spring. The company also plans to expand the presence of its
Collection brands in the market with the slated opening of a Tribute Portfolio
hotel in Warsaw and an Autograph Collection hotel in Wroclaw. Plans also
include the addition of a second Renaissance hotel, with a projected opening in
Gdansk Old City. Four Points by Sheraton builds upon its current portfolio with
projected openings in Poznan and Wroclaw in 2025. The Moxy Hotels brand is
slated to open its fifth property in the market next year with a hotel in
central Warsaw. Marriott will add its second Luxury Collection property, H15
Luxury Palace, a Luxury Collection Hotel, within the Lubomirski Palace in Krakow.
Best Western trades. The 137-key Best Western Sugar Sands
Inn & Suites in Destin, Florida, was sold by Omega Hotel Group to an
institutional buyer on April 4. The buyer intends to reposition the property as
a Spark by Hilton. Hunter Hotel Advisors represented the seller and buyer in
this transaction.
Mixed performance in US. U.S. hotel performance from March
31 through April 6 showed mixed results from the previous week but positive
comparisons year over year, according to CoStar data. Occupancy was 64.1%
(+4.7% YOY); ADR was $156.96 (+2.1% YOY); and RevPAR was $100.59 (+6.9% YOY). Among
the Top 25 Markets, Philadelphia reported the largest year-over-year occupancy
lift (+17.5% to 66.1%) and the second-highest jumps in ADR (+17.3% to $165.11)
and RevPAR (+37.8% to $109.10). The market’s performance was driven by
WrestleMania 40. Helped by the NCAA Men’s Final Four, Phoenix posted the
largest increases in ADR (+24.8% to $237.38) and RevPAR (+39.7% to $184.07). The
steepest RevPAR declines were seen in Orlando (-7.7% to $163.05) and Tampa (-7.1%
to $162.81).