Latest news: Update on Israel hotels; Cipriani club fund; Sonder grows in LA

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.