Latest news: 2023 US deals data; Forte adds in Italy; Ennismore grows residences

2023 US deal data. LW Hospitality Advisors has released results from its Q4 2023 Select Major U.S. Hotel Sales Survey, which included 86 sales that totaled just over $3 billion with approximately 13,900 hotel rooms with an average deal size of $35.4 million and an average sale price per room of $219,000. Comparing Q4 2023 with Q4 2022, the number of trades decreased approximately 20% while total dollar volume declined roughly 25%, average deal size dropped 7% and sale price per room diminished by roughly 18%. For the year 2023, the LWHA Major U.S. Hotel Sales Survey includes 340 single asset sale transactions over $10 million. These transactions totaled just over $12.8 billion and included approximately 52,500 hotel rooms with an average deal size of $37.7 million, and an average sale price per room of $245,000.

Forte grows in Italy. Rocco Forte Hotels has signed a management agreement with fashion company Capri Group to open a luxury hotel in Naples, Italy, in 2027 located in Palazzo Caravita di Sirignano, adjacent to the Villa Pignatelli museum. The Colella family, owners of fashion brands Gutteridge and Alcott, acquired the property in 2018. The Rocco Forte Hotels Naples project includes 46 suites, a rooftop with a panoramic pool, two restaurants, private gardens, a bar, and a large spa.

First Rixos standalone residence. Ennismore, together with developer East & West Properties, Driven Properties and Refine Development Management, announced the Rixos Financial Center Road Dubai Residences - the brand’s inaugural standalone residential project. The property will be home to 260 residences, ranging from 1 to 4-bedroom units and 4-bedroom and 5-bedroom duplex penthouses. Ennismore has over 25 branded residence projects open and under development.

YTL adds in Malaysia. YTL Real Estate Investment Trust is acquiring Syuen Hotel in Ipoh, Perak, in Petaling Jaya, Malaysia, from Syuen Hotel Bhd for RM55 million with plans to renovate the now closed 290-room hotel and reopen under the AC Hotels by Marriott brand. The property will be leased under a variable rental arrangement where YTL REIT will participate in the income to be generated from the property.

Motel One adds in London. German hotel group Motel One plans to open two hotels in London later this year as part of a major expansion across Europe. The company, which operates both the Motel One and Cloud One brands, will unveil new properties in the Old Street and Hyde Park areas of London in late 2024. Motel One already operates a property in the Tower Hill area of central London. The new Old Street hotel, which is due to open in winter 2024, will offer 237 rooms, while the Hyde Park location will have 197 rooms when it debuts in autumn 2024. The two additional properties in London will take the group’s total portfolio in the UK and Ireland up to 11 hotels. Motel One also has properties in Edinburgh, Glasgow, Newcastle, Manchester and Dublin. Last month, the Munich-based group announced plans to open 13 hotels under its Cloud One lifestyle brand by 2026. The Motel One brand will also launch a new hotel in Gdansk, Poland, this summer, as well as properties in the Belgian city of Antwerp (opening in autumn 2024) and Karlsruhe in Germany in March 2024.

OTO adds in Long Island. Spartanburg, South Carolina-based OTO Development plans to develop a 170-room AC by Marriott hotel in Garden City, Long Island, New York. The $75.6 million project will bring a four-story, 103,600-square-foot hotel on 1.65 acres, according to the developer’s application. OTO plans to begin construction in December and expects to open for business in fall 2026. OTO is reportedly seeking economic incentives from the Nassau County Industrial Development Agency., including sales and mortgage tax exemptions and a 20-year payment-in-lieu-of-taxes agreement.

Premium deals lead in Australia. Transaction volume for Premium hotels in Australia increased by 20.9% last year as investors bet on continued high performance and resilient pricing, according to Colliers Hotels Investment Review 2023. Colliers said the data defies the uncertain economic climate and proves Premium products are the crown jewel of the market with the transaction volume for hotels over $50 million reaching $1.53 billion or 63% of overall hotels investment last year. An increase in the Premium hotel transaction volume by 21% in 2023 ensured the average hotel sale jumped 19.1% to $41.8 million over the same period, as pricing for Premium properties in gateway cities and leisure markets remains robust. “Investors see the opportunity presented by improving demand levels, which supported increases in room rates across key markets of 20-50%, compared to 2019,” said Colliers Head of Hotels Transaction Services Karen Wales.

Blue Orchid growth. Listed London building Atlas House and the adjoining Crescent collection of buildings have been acquired by Integrity International Group to develop a hotel for its Blue Orchid Hospitality group, adding to the group’s portfolio of luxury independent hotels, apartments, suites, residences, and venues.