Breaking news about deals, development, data and more.
Park closes SF deal. Park Hotels & Resorts has completed
the sale of the 316-room Hyatt Centric Fisherman’s Wharf in San Francisco for
$80 million ($253,000 per key). The San Francisco Business Times reported the buyer, HCF Wharf Owner LLC, is tied to New York-based EOS Investors LLC. The sale price represents 64.0x 2024 EBITDA of
the hotel. The transaction is part of Park’s plan to divest $300 million
to $400 million of non-core hotel assets in 2025. The proceeds are earmarked
for reinvestment into the company’s return on investment projects and for other
general corporate purposes.
St. Regis deal. Marriott International has signed an agreement with Solana
PA, S.R.L. to debut the St. Regis Hotels & Resorts brand in Costa Rica. The
development, which will span 20 hectares on the Gulf of Papagayo in the
Guanacaste region, is expected to begin in July of this year, with a planned
opening in early 2027. The new-build St. Regis Papagayo is slated to feature
120 hotel rooms and 143 residential units.
Mixed week in US. The U.S. hotel industry from May 11-17 reported mixed
year-over-year comparisons, according to CoStar data. Occupancy was 67.2%
(-0.4% YOY); ADR was $166.31 (+1.3% YOY); and RevPAR was $166.31 (+1.3% YOY).
Among the Top 25 Markets, Detroit saw the highest gains in each of the three
key performance metrics–occupancy: 70.4% (+11.4%), ADR: $142.83 (+13.2%),
RevPAR: $100.54 (+26.1%). The steepest decline in occupancy was seen in Houston
(-11.3% to 60.0%). Atlanta posted the largest losses in ADR (-6.8% to $128.06)
and RevPAR (-13.5% to $85.59).
Canada's April performance. On the negative side of the Easter calendar shift, Canada’s
hotel industry reported mixed year-over-year performance in April, according to
CoStar data. Occupancy was 63.2% (-1.0% YOY); ADR was CAD190.46 (+1.1% YOY); and RevPAR was CAD120.36
(0.0% YOY). Among the provinces and territories, British Columbia recorded
the highest occupancy level (68.7%), which was 1.5% above 2024. Among the
major markets, the highest occupancy was seen in Vancouver (-1.2% to
78.5%). The lowest occupancy among provinces was reported in Prince Edward
Island (44.2%), up 6.4% against 2024. At the market level, Calgary saw the
lowest occupancy (61.2%), down 0.9% from April 2024.
Leonardo buys hotel near Heathrow. Leonardo Hotels UK & Ireland
has acquired the freehold of its 230-room Leonardo Hotel London Heathrow
Airport from Aprirose, marking its fourth leasehold buyback in under a year. The
acquisition aligns with Leonardo Hotels’ strategy to strengthen its ownership
position in high-performing assets. “This acquisition is a natural next
step in our U.K. expansion strategy and demonstrates our confidence in the
resilience and long-term value of the London hospitality market,” said Ronen
Nissenbaum, CEO UK, Ireland, Benelux, Spain, Portugal, and U.S. development for
Fattal Hotels. “Leonardo Hotel Heathrow is exceptionally well-positioned
to benefit from both international travel and business demand.” Seller Aprirose
acquired the hotel in 2015. Knight Frank advised Aprirose on the transaction.
Club Med's upbeat results. Club Med reported business volume of €2.09 billion for 2024,
up 7% from 2023. Mountain Resorts’ winter season saw 20% growth, now accounting
for over 35% of total business volume. In the East, South Asia, and Pacific (ESAP) region, Club Med
grew its business volume by 24% year-on-year and welcomed close to 260,000
guests from the region to its resorts worldwide, a 5.5% five increase from
2023. This surge was driven by the exceptional performance of the Mountain
Resorts in Japan, China, and the European Alps, which saw a 57% rise compared
to 2023.