Breaking news about development, M&A, data and more.
Big conversion for Hilton. Sunstone Hotel Investors has
completed the sale of the 1,060-room Boston Park Plaza for a gross sale price
of $370 million ($350,000 per key) in what was an all-cash
transaction. The name of the new owner was not disclosed, but the property is
being rebranded as the Hilton Boston Park Plaza. The sale price represents a
12.1x multiple on Hotel Adjusted EBITDAre and a 7.1% cap rate on Hotel Net
Operating Income for the trailing four quarter period ended June 30, 2023.
The company acquired the hotel in 2013 and executed a business plan to
reinvigorate the historic hotel. Over the course of the company’s ownership
period, the hotel’s annual earnings nearly doubled and the generated cumulative
Hotel Adjusted EBITDAre of approximately $210 million. Inclusive of the Sunstone’s estimate of
required near-term capital expenditures, the gross sale price presents a 14.1x
multiple on Hotel Adjusted EBITDAre and a 6.1% cap rate on Net Operating
Income for the trailing four quarter period ended June 30, 2023.
NYC Renaissance selling. Sherwood Equities is reportedly in
contract to sell for $165 million ($520,000 per key) the 317-room Renaissance
New York Times Square Hotel in New York City to a joint venture of Apollo
Global Management and Newbond Holdings.
Acapulco devastated by hurricane. About 80% of Acapulco,
Mexico, hotels are severely damaged as a result of Category 5 Hurricane Otis,
which struck the area last week. At least 43 people have died, the region’s
governor said Sunday. “This is a chaotic situation, a devastating scenario with
unquantifiable damages,” said Jorge Laurel, former president of the Acapulco
Association of Hotels and Tourist Enterprises.
First Project H3 by Hilton breaks ground. Hilton has broken
ground on the first Project H3 by Hilton in Kokomo, Indiana. The new studio
apartment-style, extended-stay hotel brand is operating under a working title
as Hilton navigates the final stages of the trademark process. The 137-room
property is owned by Sun Management & Development Corp. and is expected to
open by the summer of 2024. The hotel began construction less than five months
after the brand was first announced, and Hilton said more than 350 deals in
various stages of negotiation.
DoubleTree, Garden Inn grow in Asia Pac. Hilton has expanded
its franchise model in Greater China into the upscale full-service segment with
the inclusion of its DoubleTree by Hilton brand. The company announced 19 new
franchise projects across its Hilton Garden Inn and DoubleTree by Hilton
brands, including signings and intentions to sign, spanning key cities and
emerging destinations such as Beijing, Shanghai, Haikou, Nanchang, and
Zhangzhou. In Asia Pacific, Hilton launched its Hilton Garden Inn franchise
model in Greater China in 2021 and is now focused on expanding it in Thailand
and Australia. To date, there are 76 Hilton Garden Inn hotels in operation in
the region and over 130 in the pipeline. DoubleTree by Hilton has 93 hotels in
operation across the region, and recently debuted in Seoul, Kyoto and Varanasi.
IHG’s voco expands in Europe. IHG Hotels & Resorts has
announced a slate of voco hotels across Europe with recent signings and
openings in France, Spain, the UK&I, Austria, Portugal, and Belgium. These
additions take Europe’s voco hotels total number of opened and signed
properties to 37, up from 28 at the end of 2022, marking more than a 25%
increase in 10 months. The brand has more than 100 properties signed and
opened globally, and the goal is to reach 200 properties in leading urban and
leisure locations by 2028.