Latest news: Gencom refi in Bermuda; record pipeline in Canada; Yotel deal in Tokyo

Gencom refi in Bermuda. Owner-operator Gencom has refinanced the Rosewood Bermuda with the loan originated by Blackstone Mortgage Trust and KSL Capital Partners for an undisclosed amount. Gencom acquired the Rosewood Tucker’s Point master-planned estate out of receivership in 2017. Following the acquisition, it executed a $24 million renovation of the asset. Gencom’s current plan for a $17 million renovation of Tucker’s Point includes improvements to the golf course and clubhouse, as well as the Beach Club, which features Bermuda’s longest private beach. It will also add new amenities and food & beverage options. The firm is also developing the Fairmont Southampton, doubling down on its commitment to Bermuda. Recently, Gencom retook majority ownership in the 291-key Ritz-Carlton Key Biscayne in Miami in a deal financed by Citigroup and KSL Capital Partners. “Bermuda’s tourism and hospitality industries are expanding at a rapid pace. We’re grateful to contribute to the country’s economic growth with the refinancing and renovation of Rosewood Bermuda and redevelopment of Fairmont Southampton, both of which provide significant jobs and revenue for the country. Construction on the latter has begun, and Gencom is making progress on site work,” Gencom Founder and Principal Karim Alibhai told Hotel Investment Today. 

Record project count in Canada. At 1Q24, there are 314 projects/39,628 rooms in Canada’s pipeline, according to Lodging Econometrics. This new record-high in project counts represents an 11% increase in project counts and a 5% increase in room numbers year-over-year (YOY). Currently, there are 70 projects/9,151 rooms under construction in Canada, up 49% and 58% YOY, respectively. Additionally, at the close of the first quarter, there are 80 projects/9,593 rooms scheduled to start construction in the next 12 months while projects and rooms in the early planning stage reached all-time highs of 164 projects/20,884 rooms, increasing 13% and 1% YOY, respectively. Ontario account for 59% of the projects and 60% of the rooms in the total pipeline, for new all-time highs of 186 projects and 23,839 rooms.

Azora develops hostel platform. As part of its strategy to develop the Latroupe hostel platform Azora has acquired hostels in Dublin and Barcelona with 557 beds on behalf of its Azora European Hotel and Lodging Fund (AEHL) through a transaction with a fund managed by BlackRock. The Jacobs Inn Dublin and the Jacobs Inn Barcelona is currently operated by Siggis Capital. The assets are sold unencumbered and will be operated by Latroupe, the boutique hostel operator owned by AEHL, which combines the facilities of a large hotel with the atmosphere of a traditional hostel. Latroupe currently manages a hostel portfolio comprising three assets in Madrid, Bilbao, and Brussels, with a combined 700 beds. Azora’s entry into Ireland gives it a portfolio of 12,000 rooms across 41 assets.

Yotel deal in Tokyo. Yotel, in partnership with Singapore-based Frasers Hospitality, will open the first Yotel hotel in Japan in early 2025. Yotel Tokyo Ginza will feature 244 rooms and become the brand’s flagship property. Yotel’s wider strategy is to  expand across key cities in Japan, including Osaka, Kyoto, Sapporo, Yokohama, Fukuoka, Nagoya, and Kobe. The group is also working on opportunities to roll out Yotelair – the group’s unique transit hotel concept - at key gateway airports and train stations, and part of the brand’s commitment to new markets and goal to reach 50 hotels opened and signed by 2025.

Melco’s big deal in Sri Lanka. Melco Resorts & Entertainment Ltd. is partnering with John Keells Holdings, the largest listed conglomerate on the Colombo Stock Exchange, in their $1 billion plus integrated resort development in central Colombo. The integrated resort, which had previously been branded “Cinnamon Life Integrated Resort,” will be rebranded as “City of Dreams Sri Lanka” and become the first integrated resort in Sri Lanka and South Asia. It will include 800 hotel rooms, retail, F&B outlets, MICE facilities, and more. Additionally, a wholly-owned local subsidiary of Melco has been awarded a 20-year casino license by the Government of Sri Lanka. Melco will fit-out and operate the gaming area at City of Dreams Sri Lanka, and Melco will manage the top five floors of the hotel under its Nuwa brand of ultra high-end luxury rooms, which represents 113 of the 800 total hotel rooms at City of Dreams Sri Lanka. Melco and John Keells have agreed all key commercial arrangements and expect fit-out of the casino area to begin shortly. The estimated initial investment in the casino is expected to be approximately US$125 million. The non-gaming facilities of the integrated resort, including the 687 key Cinnamon Life hotel managed by John Keells, is in the final stages of completion and is expected to open in the third quarter of 2024.

New CEO at The Lux Collective. The Lux Collective (TLC), Singapore, has appointed Olivier Chavy as chief executive officer. Chavy will be responsible for the overall strategic direction and performance of The Lux Collective while pursuing its expansion. He was previously president of Travel + Leisure Group - Panorama, the business line managing the company’s exchange and membership travel brands. Paul Jones will be departing TLC in June 2024 following a 14-year tenure as CEO.

Greensboro hotel trades. A group of Charlotte, North Carolina, investors has reportedly purchased a Greensboro hotel near the Piedmont Triad International Airport for $5 million. iCare Hospitality Greensboro bought the 60-room Clarion Pointe Greensboro Airport hotel, according to filings with the Guilford County Register of Deeds. The seller was PRBGP Hospitality, which it originally acquired the property for $3.58 million in 2016.

Cheval Collection to Riyadh. KSA’s Ladun Investment Co. has signed a partnership agreement with Cheval Collection for the construction and operation of Ladun Cheval Living – a tower featuring luxury hotel apartments situated near King Abdullah Financial Center in Riyadh. The partnership marks the first project of Cheval Collection in Saudi Arabia, and will feature 130 residential units of various sizes, from one to three rooms, along with amenities including a gym, swimming pool, and sauna. Construction of the tower with a total cost of up £63.8m is set to commence this year with expected completion in 2027.

Trilogy grows in Australia. Newly launched Trilogy Hotels and Panthers Group have signed an agreement that will see Trilogy Hotels oversee operations of the 153-room Pullman Sydney Penrith in Australia. Panthers Group invested $110 million on the project that opened last August. Trilogy now operates nearly 1,200 rooms across five hotels.

IHG’s Indigo brand to Bangkok. IHG Hotels & Resorts has signed a deal with developer Magnolia Quality Development Corp. for a 274-room Hotel Indigo The Forestias Bangkok, which will open in 2026 at The Forestias, a new integrated mixed-used development on the eastern fringe of Bangkok. The hotel will be located alongside residential and office space, retail, dining and family entertainment options, expansive meeting spaces and a hospital. The Forestias will also be home to another IHG property, Six Senses The Forestias, a 85-room hotel and 27 residences development closely attached to a five-hectare forest park.

IHCL grows Ginger brand. Indian Hotels Co. Ltd. (IHCL) has signed an agreement with Banaras Beads Exports Pvt. Ltd. to develop a Ginger hotel in Varanasi, Uttar Pradesh, India. The hotel is a Greenfield project on a fully fitted operating lease. The 101-key hotel will feature Qmin, the signature all-day diner, and amenities that include a fitness center and meeting rooms. With this addition, IHCL will have 23 hotels in Uttar Pradesh under Taj, SeleQtions,Vivanta and Ginger brands, including 10 under development.

JW coming to Jeddah. Marriott International and Al Qimmah Hospitality (a subsidiary of BinDawood Trading) signed an agreement to introduce the JW Marriott brand in Jeddah. Situated on the Jeddah Corniche, JW Marriott Hotel Jeddah is anticipated to offer 280 guestrooms including more than 50 suites. Plans for the hotel include two restaurants, a lobby cafe and pool lounge, and leisure facilities including a swimming pool, fitness center, and Spa by JW.