Breaking news on deals, development, data and more.
"Tourists go home". Tourists in Barcelona were being sprayed with water by
thousands of locals over the weekend protesting mass tourism in the popular
destination. Similar demonstrations have recently taken place in the Canary
Islands and Mallorca with protestors concerned about the cost of living and
quality of life. The demonstration was organized by a group of more than 100
local organizations, led by the Neighborhood Assembly for Tourism Degrowth. According
to official figures, almost 26 million visitors made an overnight stay in the
Barcelona region in 2023, spending €12.75 billion ($13.8 billion).
B&B adds lease in Florida. Midscale European-based B&B Hotels has completed its
second U.S. lease deal for a hotel in Jacksonville, Florida. It will open with
156 rooms in the 1Q25 following a comprehensive renovation. B&B’s first
U.S. hotel opened in Orlando four months ago. Real estate investor Batipart is
supporting B&B as it tries to grow its U.S. presence. The company has
nearly 800 hotels spanning 17 countries, predominantly in France. The U.S.
business is being led by U.S. CEO Valerio Duchini. Since 2016, Fabrice Collet
has served as the President and CEO of B&B HOTELS, with Goldman Sachs
becoming the principal shareholder in 2019.
Trump deal in Oman. A Trump-branded resort is expected to debut in Oman by
December 2028. The Trump Organization and luxury real estate developer Dar
Global have partnered with Omran Group (Oman's state-run tourism-development
arm) on a $500 million hospitality project, which will be part of the AIDA
mixed-use complex currently under construction. The complex, which is on track
to complete its first phase by 2027, will be located approximately 10 minutes
from downtown Muscat. The development's 140-room Trump International Oman
will have an 18-hole golf course. The Trump Organization and Dar Global have
joined forces on another development in Jeddah, Saudi Arabia. The Trump
Organization's hospitality portfolio has gone from 15 properties in 2015 to
eight today.
$430M refi for Fairmont Austin. Manchester Financial Group has
secured a $430 million, five-year, interest only fixed-rate SASB CMBS loan,
with Goldman Sachs acting as a lead manager and sole bookrunner, for the 1,048-room
Fairmont Austin in Texas. The all-mortgage financing package was used to
replace a $300 million senior loan and $125 million of mezzanine debt. JLL
Capital Markets represented the borrower in refinancing the asset.
AAHOA icon dies. AAHOA Past Chair Manhar P. (MP) Rama passed
away Sunday, July 7, at age 74: Rama served as AAHOA Chairman from 2005 to
2006. MP is the brother of AAHOA Founder HP Rama and AAHOA Past Chairman
Jayanti P. (JP) Rama, who passed away in February of 2022. MP was born in
Africa and raised in India. He graduated with distinction in civil engineering
from M.S. University of Baroda. He came to the United States in 1973 to pursue
postgraduate studies in engineering and graduated with a master's degree. At
AAHOACON22, MP received AAHOA's Cecil B. Day Community Service Award. At that
time, he said, "AAHOA allowed me to develop myself professionally and as a
person. The AAHOA membership gave me an opportunity to expand my skills and the
ability to think ahead and handle more responsibilities."
Grenada fully operational. In the aftermath of Hurricane
Beryl, the Grenada Tourism Authority (GTA) announced that the country’s hotels
and attractions are fully operational. The islands of Carriacou and Petite
Martinique, Grenada’s sister islands, suffered catastrophic damage. Hurricane
Beryl’s fierce rains and wind knocked out desalination plants, cell towers, and
fiber optic cables, left roads impassable, and destroyed houses along with
local businesses, and income-generating activities. Petra Roache, CEO of the
Grenada Tourism Authority, said, “Together, we can turn adversity into strength
and continue to build a brighter future for all. We extend our deepest
gratitude to all who have reached out with concern and support. The spirit of
the Caribbean is one of unity and resilience, and together, we will overcome
this challenge.”
Hilton resort in Ras Al Khaimah. Hilton has agreed with M Hospitality to open Hilton Marjan
Island Beach Resort & Spa in Ras Al Khaimah, the UAE’s northernmost
emirate. Expected to open in Q4 2026 with 315 rooms and 35 suites, the property
will add to Hilton’s portfolio of 80 hotels across 11 brands operating in the
Middle East. The resort will bolster Hilton´s existing portfolio of 36 hotels
in the UAE, including five in Ras Al Khaimah.
DoubleTree to Tasmania. DoubleTree by Hilton and Fragrance Group Ltd. have signed a
deal for the 206-room DoubleTree by Hilton Hobart in Tasmania. The hotel is in
advanced construction status and is set to open in the second half of 2024. With
nearly 80 additional properties in the Asia Pacific pipeline, DoubleTree by
Hilton will contribute to Hilton's target to surpass 1,000 trading hotels in the
region by 2025.
NH Collection adds Samui. Minor Hotels has announced the upcoming rebranding of Peace
Resort Samui into NH Collection Samui, marking the arrival of NH Collection to
Thailand. From January 1, 2025, following a property upgrade, the resort will
start operating as the 122-key NH Collection Samui, located directly on Bophut
Beach. Originally established in 1977 by the Pupaiboon family, the property has
been independently operated ever since.
Fairmont grows residences. Fairmont Hotels & Resorts has partnered with UAE
developer SOL Properties to launch a private residence development, Fairmont
Residences Solara Tower Dubai. The downtown Dubai project is currently underway
and is scheduled for completion by Q3 of 2027. The property joins a portfolio
of 16 Fairmont-branded residences with another 22 projects in the pipeline.
The Ascott partners with Chelsea. The Ascott Ltd.,
Singapore, has added six properties to its European portfolio, marking the
debut of The Unlimited Collection brand and expansion of the lyf brand in the
region. These new signings will boost Ascott’s portfolio in Europe by 14% to
about 8,000 units across six brands. In addition, Ascott has entered a
strategic multi-year partnership with Chelsea Football Club, becoming the
Official Global Hotels Partner of the English Premier League club. Ascott will
assume management of the 232-unit stadium hotels at London’s Stamford Bridge,
home of Chelsea, from 2H 2024. The properties will be rebranded as lyf Stamford
Bridge London in 2H 2025, with a focus on experience-led social living.
AAHOA concerned about unhoused residents ruling. AAHOA (Asian American Hotel Owners Association) has
expresses significant concerns over the recent U.S. Supreme Court ruling in the
case of the City of Grants Pass, OR, v. Johnson et al., which criminalized
outdoor sleeping. The Court upheld the Grants Pass case late last month,
which involved bans on camping for unhoused residents. The Court found the laws
that criminalize sleeping in public spaces do not violate the Eighth
Amendment's protections against cruel and unusual punishment, even as the city
lacked sufficient shelters and the unhoused residents had nowhere else to go.
AAHOA said this decision has far-reaching implications for municipalities and
businesses, including the hotel industry. It said the Supreme Court's ruling
has raised critical issues related to public spaces, homelessness, and the
responsibilities of local governments. AAHOA is concerned that such
criminalization could lead to efforts such as seen in Los Angeles, where city
officials recently considered an ordinance that would have forced hotels to
report vacant rooms by 2 p.m. daily so unhoused residents could use government
vouchers to stay in them without providing any wrap-around services. AAHOA
added that this proposed ordinance would have placed an immense burden on the
hotel industry, creating significant concerns for hotel workers and guests and
threatening the local tourism and travel industry. A new provision
revising the former Los Angeles mandatory homeless voucher program into a
voluntary opportunity.
US hotel payroll data. U.S. hotels added 700 jobs to their payrolls in June,
according to government data. Total hotel employment stands at about 1.92
million, according to the Bureau of Labor Statistics (BLS) That’s more than
196,000 fewer workers in the industry than in February 2020, just before the
pandemic hit, a shortfall that reflects the scarcity of available employees,
according to the AHLA. BLS also revised down the total number of hotel jobs in
the country, which eliminated job gains for the industry that were reported in
prior months.
Karisma to Montenegro. Karisma Hotels & Resorts, in partnership with Dobrov & Family Group, has announced plans to construct the Porta Rai hotel-residential complex in Ulcinj, Montenegro. Construction is expected to begin in November this year, with the project value estimated at €160 million ($173 million). The luxury hotel and residential complex will be situated on Velika Beach.
Three properties sold in Japan. Yuyuan Inc., a subsidiary of China-based Fosun International
Ltd., has sold its subsidiary company, which owns three resorts in Tomamu, to
Japan-based YCH16 for JPY 40 billion. The Hoshino Resorts Tomamu (HRT) includes
three hotels: the 535-key Tomamu The Tower, the 192-key Risonare Tomamu, and
the 341-key Club Med Tomamu Hokkaido. The resort also features 29 ski trails,
21 food and beverage outlets, an indoor waterpark, a farm area, and other
recreational activities. In 2023, HRT achieved an occupancy rate of 75%. Fosun
had acquired HRT in 2015 for JPY 18.3 billion.
Sircle adds London. Sir Hotels will open an 81-room property in London later
this year on the edge of Shoreditch. Sir Devonshire Square will join Sircle Collection
properties in Amsterdam, Barcelona, Ibiza, and Berlin, with Prague also coming
soon.
Mahil buys in Brisbane. Australia-based Mahil Group has acquired the 50-key ibis
Budget Windsor in Brisbane, Australia, for an undisclosed sum. This acquisition
is the third venture of Mahil Group in Brisbane, which includes the 47-key
Pegasus Motor Inn and the 44-key Alloggio Hamilton Brisbane Airport.Sir Hotels will open an 81-room property in London later
this year on the edge of Shoreditch. Sir Devonshire Square will join Sircle Collection
properties in Amsterdam, Barcelona, Ibiza, and Berlin, with Prague also coming
soon.
Bob W to Vienna. W has exchanged contracts to launch a 67-unit serviced apartment building in Vienna, marking its first opening in Austria. The operator has signed a long-term lease agreement with Viennese developer Peter Pilz & Partner Projektentwicklungs GmbH for a 2,000 sq m building, located in the Austrian capital’s historic Heiligenstädter Straße. The aparthotel will bring the total number of European cities in which it operates to 18. Construction has already started, and the property is scheduled to welcome its first guests in 2025.