Latest news: Schroders new fund; IHG milestone in APAC; watch HIT conversion webinar

Schroders launches UK fund. Schroders Capital has secured an initial £100 million commitment for a dedicated UK Operating Hotels strategy to cater to strong inbound investor demand following the success of its pan-European sister fund. Building on the performance of the Schroders Capital European Operating Hotels strategy – which closed above its fundraising target at €25 million two years ago – the Schroders Capital UK Operating Hotels will extend the firm’s presence in the UK market. “Schroders Capital is well-positioned to bring the platform’s experience and track record to bear in identifying, securing and managing attractive investment opportunities,” said James MacNamara, head of Operating Real Estate Strategies at Schroders.

IHG milestone. IHG Hotels & Resorts has passed the 1,000 hotel (1,012 today) threshold in Asia Pacific. The achievement includes more than 700 hotels in Greater China. Looking ahead, IHG said 45% of its global Luxury & Lifestyle pipeline is in APAC, as well as 60% of its InterContinental brand’s pipeline.

Listen to our webinar about successful conversions. Hotel Investment Today conducted a webinar on March 12, “Success secrets every owner should know about conversions,” which is now available for viewing on demand. Sponsored by Sonesta International Hotels Corp., discussions focused on how investors can maximize the upside of a conversion opportunity and revealed the subtle strategies to convert potential into profits.

Glendale Aloft sold. Chicago-based Bradford Allen Hospitality Investments has acquired the 100-room Aloft Glendale at Westgate in Glendale, Arizona, for $23.75 million from HCW Hospitality & Development, Branson, Missouri. Cushman & Wakefield brokered the deal representing the seller.

Dark is good. Choice Hotels International reports that it has more than 400 hotels in the path of the total solar eclipse taking place on April 8 and they are being booked at an increased rate of 800% compared to the same date last year. The total eclipse will be visible along a narrow track stretching from Texas to Maine. More than 20% of American travelers said they are likely to take a trip to experience next month’s total eclipse, according to a recent report.

Mixed weekly results in US. U.S. hotel performance between March 3-9 increased from the previous week but declined year over year, according to CoStar data. Occupancy was 63.2% (-2.2% YOY); ADR was $156.96 (-0.6% YOY); and RevPAR was $99.17 (-2.8% YOY). Among the top 25 markets, Minneapolis reported the largest year-over-year increases in each of  three key performance metrics: occupancy (+25.1% to 63.7%), ADR (+15.9% to $143.12) and RevPAR (+45.1% to $91.11). The steepest RevPAR declines were seen in Las Vegas (-30.6% to $123.99) and Anaheim (-26.2% to $139.21).

Hostel brand expanding. European hostel chain a&o will invest approximately €500 million towards expansion, with the conversion of existing office and retail properties into accommodation earmarked as a key area for growth. Currently, a&o has 38 hostels in 25 cities and nine 9 European countries. In 2023, a&o produced 6.1 million overnight stays, 2.7 million guests and a turnover of €217 million. Founder and CEO Oliver Winter has expressed a flexibility with regards to property contracts. “Whether lease or ownership, new build or conversion, our property expansion covers a wide variety of property types. We are flexible and we want to grow,” he said.

CN Hotels buys in NC. High Point, North Carolina-based CN Hotels has purchased the 114-room Holiday Inn Rock Hill in North Carolina for $6.5 million from Kismet Rock Hill. CN Hotels operates nearly two dozen hotels across the Carolinas and Florida.

Radisson deal in India. Radisson Hotel Group has announced the signing of Pramod Lands End Resort, a member of Radisson Individuals, in Gopalpur, Odisha, India. The 100-room hotel has been developed by Padma Eastern Hotels Pvt. Ltd. and is set to open its doors in 2Q24.

Advisory firms merge. R.M. Woodworth & Associates, a provider of customized lodging research and advisory services, and Core Hospitality Advisors, a firm specializing in hospitality real estate appraisals, have merged. Adam Cowart and John Ritger will be joining Mark Woodworth, Henry “Hank” Staley, Jr. and Jill Bidwell as principals in the new firm, Woodworth Core Group (WCG). With the merger, WCG will have offices in Atlanta, Jacksonville, Washington, D.C., Birmingham, Baton Rouge and Boise, Idaho.