The latest news about development, financing, M&A, data and more.
Update on Israel hotels. There are 57,000
registered hotel rooms in Israel and many displaced families have been
evacuated to a hotel in Eilat on the Red Sea and at a hotel on the Dead Sea,
according to Joseph Fischer, former hotelier and current owner of Vision
Hospitality & Travel, Tel Aviv. These two resorts are at full capacity.
Israeli hotel companies Fattal Hotels and Isrotel have housed the most
displaced families. Many others are staying with friends and families around
the country. The IDF has evacuated the town of Metula in the north of Israel on
the border with Lebanon. In Israel’s main tourism destinations – Jerusalem, Tel
Aviv, the Sea of Galilee – hotels are mostly empty. Fischer said the only
guests are journalists, foreign diplomats and officials, people on support
missions. Fischer added that many hotels sent their employees to unpaid leave
and the government social security system will pay them similar to during the
pandemic. Reuters reported that across Israel and the Israeli-occupied
Palestinian territories of Gaza and the West Bank, hotels have emptied and at
least six companies have stopped trips to top destinations like Jerusalem and
Tel Aviv. Two tour operators have called off trips until next year. It added
that Dan Hotels and Isrotel were providing rooms for people fleeing the
Gaza border. Dan is also offering 50% discounts off rooms for locals.
Cipriani wants to grow club business. Luxury
brand Cipriani is reportedly launching a new fund to raise $526 million for
global expansion of its membership clubs. Bloomberg reported the Cipriani
Hospitality Fund was established with Optimum Asset Management, a real estate
developer helmed by Alberto Matta, and Geneva-based Credit des Alpes, an
investment bank headed by Fabrizio Cerina. The capital raised will be used to
develop private clubs and residences under the Casa Cipriani brand in Dubai,
Geneva, Madrid, Singapore and Tokyo. Cipriani’s flagship private club in New
York’s Battery Maritime Building charges $3,900 annual members fee and
generated $63 million in revenue last year, according to Bloomberg.
Sonder adds 3 in SoCal. Sonder is launching
three new properties in Southern California, including two office-to-hotel
conversions. The 125-key Winfield and the 110-key Craftsman are the first two
locations in Downtown Los Angeles. Sonder said they are adaptive reuse
properties in partnership with leading developers. Sonder also stated it has
opened a third property in Orange County at Laguna Beach with the 25-key Woods
Cove. Sonder partner with owners to lease, manage, and operate hotels, resorts,
and multi-unit apartment buildings. It recently announced the launch of Powered
by Sonder, its first dedicated hotel collection, as well as continued expansion
in New York City, EMEA and Florida.
New CEO at NCG. NCG Hospitality, Middleton,
Wisconsin has appointed Jeff Lenz CEO. He previously served as the company’s
president/chief assets officer. Lenz began his career at NCG Hospitality
in 1999 as director of development after several years in the mortgage banking
industry. During his 20-plus years at the company, he has been principally
involved in the development, purchase, management and disposition of more than
60 hospitality projects representing more than $750 million in asset value.
UK performance, development data. A new
report from hotel consultancy Christie & Co reveals that U.K. RevPAR
growth in H1 2023 surpassed both 2022 and pre-pandemic 2019 levels across 10
markets, led by Edinburgh and Belfast in the North of England and London and
Birmingham in the South. The report also suggests that while the development
pipeline has been delayed in recent years due to the pandemic, an uncertain
economic environment and rising interest rates, nine of the top ten UK markets
could see their room supply grow by more than 12% over the next few years.
According to the report, transactional volumes across the top ten cities
reached £567 million in the first half of 2023 which was just over half of the
volume recorded over the same period in 2022.
New UK soft brand. Elegant Hotel Collection,
Nottinghamshire, U.K., has entered the luxury soft brand market, launching
with 25 luxury hotels, targeting 50 properties globally by summer 2024. The
independently owned flag will expand on a curated, invitation-only basis based
on criteria that including hospitality, authenticity, inclusivity, innovation
and sustainability. The group will operate on a pay-on-performance model
biased toward results-based pricing rather than fixed costs. Founding members
include: Home House, London; Rosselli AX Privilege, Malta; the Exclusive
Collection (Pennyhill Park, South Lodge, Lainston House, The Manor House, Royal
Berkshire and Fanhams Hall); Sunborn Hotel Gibraltar; Paresa Resort Phuket,
Thailand; La Sultana Oualidia, Morocco; Cresta Palace Hotel, St
Moritz; and Stapleford Park.
Inspirato reverse stock split. Travel
subscription service Inspirato Incorporated said it will effect a reverse stock
split of its Class A common stock, Class B non-voting stock and Class V common
stock at a ratio of 1-for-20, effective at the close of trading on Oct. 16. The
reverse stock split is being done to regain compliance with the minimum $1 bid
price per share requirement per Nasdaq rules. Inspirato’s Class A common stock
is expected to begin trading on a reverse-split-adjusted basis on Oct. 17 under
its existing ticket symbol of ISPO.
Hilton expands services for small biz. McLean,
Virginia-based Hilton announced digital tools designed to create more seamless
travel for small and medium-sized businesses. The company said those sized
companies represent roughly 85% of its business transient guests. The
innovations will launch in early 2024 and include a “Hilton for Business”
program with a new booking website designed for small- and medium-sized
businesses and an expansion of its event booking capabilities, which would
allow customers to shop for meeting packages for up to 35 attendees directly on
the website.
Accor adds in India. France-based Accor is
opening a 100-key property in India, The Grand Mercure Amritsar Airport Road,
according to a report in ET Hospitality World. Located in the heart of
Amritsar, the property is scheduled to open in 2026. It will feature five
suites and an 8,600+ sq. ft. banquet room.