Latest news: Apollo undecided in Atlanta; Kempinski adds in Germany; Westgate M&A

Apollo undecided on Atlanta hotel. New York City-based private equity firm Apollo Commercial Real Estate Finance is undecided on the fate of a 763-key hotel in downtown Atlanta that it took over two years ago, according to Bisnow. Apollo took over the hotel, formerly known as the Sheraton Atlanta Hotel, in a deed-in-lieu of foreclosure in 2023. The property was rebranded under Wyndham’s Trademark Collection as the Courtland Grand Hotel later that year. According to the story, the property is generating cash flow but below what Apollo would like to see. Apollo originally provided a $77 million senior mortgage to Philadelphia-based Arden Group in 2017 to finance the hotel. But Arden defaulted on the loan by the end of 2022.

Kempinski to manage historic German residence. Munich, Germany-based Kempinski Hotels is partnering with HRH Prince Luitpold von Bayern and the Royal Family of Bavaria to manage the Nymphenburg Palace Royal Residence in München, Germany. In partnership with HRH Prince Luitpold von Bayern and the Royal Family of Bavaria, Kempinski will manage the private residence exclusively starting March 1.

Westgate acquires Vacation Ownership Sales. Orlando-based Westgate Resorts has signed a definitive agreement to purchase Bellevue, Washington-based Vacation Ownership Sales (VOS), which has the exclusive management and sales and marketing rights for VI Resorts, North America's largest owner-controlled timeshare and vacation club. The acquisition is set to close in 2025. As part of the acquisition, Westgate Resorts will assume management of VI Resorts' points-based Vacation Club, which has a portfolio of over 40 domestic and international resorts and destinations. As part of its management agreement, Westgate Resorts has committed to investing over $4 million in marketing, branding and technology improvements for the VI program.

Deka acquires in Ireland. Frankfurt, Germany-based Deka Immobilien has purchased the 272-key Ruby Molly Hotel in Dublin for approximately €86 million from Creekvale Ltd., a subsidiary of Hong Kong-based ESR Group. The hotel was completed in 2024 and is the first Ruby Hotel in Ireland and also Deka’s first hotel in Ireland.

Ashford Trust earnings. Dallas-based REIT Ashford Hospitality Trust reported comparable hotel RevPAR increased by 3.1% in the fourth quarter, and comparable ADR also increased by 3.4% as part of its earnings. The REIT said adjusted EBITDAre was $45.2 million for Q4 while comparable total hotel revenue also increased 4.6% year-over-year. Earlier in February, Ashford Trust announced, after several refinances of hotel properties, it has fully paid off its strategic financing, including the exit fee, after utilizing excess proceeds from its $580 million refinancing of 16 hotels. In December, the company announced three core pillars of G&A reduction, revenue maximization and operational efficiency aimed at growing EBITDA for the REIT.

Crestline adds in Florida. Fairfax, Virginia-based Crestline Hotels & Resorts is taking over the management of the 106-key Courtyard Fort Lauderdale East/Lauderdale-by-the-Sea in Florida. The hotel is in the final phase of a major renovation and is owned by JP Edmondson Estate and Affirmed Corp.

Pebblebrook earnings. Bethesda, Maryland-based REIT Pebblebrook Hotel Trust experienced a sustained recovery in both business group and transient demand, according to CEO Jon Bortz as part of its fourth quarter and year-end 2024 earnings. Bortz also said recently redeveloped properties produced gains in market share and operating performance. “Looking ahead to 2025, we are encouraged by the continued resurgence in leisure demand that began in the fourth quarter of 2024 and has carried into the new year,” he said. The REIT also updated the impact of the fires in Los Angeles on its nine area hotels. Pebblebrook said the properties have experienced a significant increase in business cancellations and a material slowdown in booking due to the fire, which it said should heavily impact Q1, full-year 2025 RevPAR and EBITDA results for the REIT this year. Analyst Michael Bellisario of R.W. Baird said Pebblebrook’s Q4 numbers were well above its forecasts in part due to $5.4 million of business interruption income. “Overall, investor expectations are low (and had been lowered in recent weeks), but guidance includes several moving pieces and headwinds,” he said.

Marriott issues $2B in new debt. Marriott International has issued $2 billion in new debt, according to a recent filing with the Securities and Exchange Commission. The hotel giant entered into a terms agreement to issue $500 million of 5.100% Series RR Notes due 2032 and $1.5 billion of 5.500% Series SS Notes due 2037.  Interest payments for both the Series RR and SS Notes are scheduled semi-annually, with the first payment due on October 15.

US hotels mixed last week. The U.S. hotel industry reported mixed year-over-year comparisons, according to the latest data from CoStar. For the week of February 16-22, occupancy was 60.3% (-2.7%), ADR was $159.90 (+2.5%) and RevPAR was $96.49 (-0.3%). Among the top 25 markets, Los Angeles saw the largest increases in occupancy (+10.4% to 74.8%) and RevPAR (+16.7% to $147.34) while New Orleans reported the only double-digit lift in ADR (+10.9% to $197.41). Las Vegas saw the steepest performance declines: occupancy (-14.3% to 69.6%), ADR (-8.4% to $170.83) and RevPAR (-21.4% to $118.86).

Minor expands in China. Minor Hotels International is partnering with its Chinese joint venture partner, Guangzhou, China-based Funyard Minor, and YouChao International Tourism Hotel Co. Ltd. to develop the 160-key Anantara Thousand Island Lake Resort. The resort will be in Hangzhou City, Zhejiang Province and will open in October 2027. Minor currently operates four hotels in China and aims to expand to 15 properties within the next three years.

IHCL adds Taj in India. Indian Hotels Co. Ltd. has signed a deal for a conversion project in Alibaug, India, that will become a Taj-branded hotel. The 156-key Taj Alibaug Resort & Spa will be one of 38 hotels in Maharashtra for IHCL, including 14 under development.