Latest news: BWH to manage in KSA; Blue Suede buys from HHM; Azul adds in San Diego

Blue Moon for Blue Suede. New York City-based Blue Suede Hospitality Group has acquired from HHM Hotels the 75-room, 1934-vintage building housing the Blue Moon Hotel in Miami Beach for $16.6 million ($221,733 per key). The price is nearly identical to what HHM paid for the property in 2013, according to property records. Last year, KSL Capital Partners acquired HHM Hotels, formerly Hersha Hospitality Trust, for $1.4 billlion. The sale marks Blue Suede’s third acquisition in Miami Beach over the past year.

BWH takes management in KSA. BWH Hotels (BWH) has executed signings of management deals in Saudi Arabia and will soon bring eight new hotels and one new branded residence (1,889 rooms) in the region into its portfolio, with other development prospects in the works, the company has stated. The new additions will feature its “core” brands as well as several boutique and extended stay brands. The Executive Residency by Best Western, Al Shafa Hotel Jeddah, the Best Western Kindah Hotel Makkah, and the Best Western Plus Madinah Hotel reflect significant milestones for the brand as they will be directly managed by BWH.

IHG adds in India. IHG Hotels & Resorts has signed a management agreement with GPKP to develop the 95-key Holiday Inn Prayagraj, in Uttar Pradesh in India, which is scheduled to open in 2025. IHG currently has 45 hotels operating across five brands in India.

700^th Accor in China. Accor has added its 700^th hotel in China with the 315-key Sofitel Shanghai North Bund. The company has added more than one new hotel per week in greater China over the past two years. Accor plans to open 103 hotels in the country in 2024 and has another 150 in its pipeline. 

Wyndham reprices, upsizes debt. Wyndham Hotels & Resorts announced that it completed the repricing of its existing $1.1 billion Senior Secured Term Loan B Facility due May 2030 (the Term Loan B). The Term Loan B garnered significant investor demand, resulting in an upsize of $400 million while in market and an interest rate of Secured Overnight Financing Rate ("SOFR") plus 1.75%, which represents a 60 basis point reduction, at an issue price of 99.875% - the tightest priced new money raise in the entire SOFR era. The repricing on the existing $1.1 billion Term Loan B is expected to result in annual interest expense savings of approximately $6 million. There is no change to the company’s maturities or covenants from the repricing on the now combined $1.5 billion dollar facility. Wyndham intends to use the net proceeds for general corporate purposes, including the repayment of outstanding balances under its revolving credit facility.

HVMG’s results. Hospitality Ventures Management Group (HVMG), an Atlanta-based third-party hotel operator and investor, announced 1Q24 results that include the addition of three third-party management agreements and the naming of Heidi Nielsen as vice president of business development. “With the addition of these three hotels, HVMG remains on track to maintain 20% annualized growth,” said Robert Cole, president and chief executive officer. “HVMG’s year-to-date RevPAR Index exceeds 110% up 3.5% YTD.  Our market share premium coupled with how much of the increase in total revenue flowed to GOP line has driven incremental asset value of hotels under management by approximately $60 million over the trailing 12-month period.” The three new hotels include the 30-unit (22 four-bedroom villas and eight single unit hotel rooms) Islands of Islamorada in Islamorada, Florida; the 158-suite Homewood Suites St. Louis Galleria in Richmond Heights, Missouri; and the 128-suite TownePlace Suites Brentwood in Brentwood, Missouri.

Azul grows in San Diego. Azul Hospitality Group has been selected to manage the 92-room Monsaraz San Diego Tapestry Portfolio by Hilton. The property features two meeting rooms with almost 5,000 square feet of space. Azul Hospitality Group culinary concept team will rebrand the restaurant concept.

Fast work on EB5 application for Peachtree. Peachtree Group has received in just five months its I-956F approval from the United States Citizenship and Immigration Services ("USCIS"), the government agency that oversees the EB-5 Immigrant Investor Program, for the development of a Home2 Suites by Hilton in Boone, North Carolina. Peachtree originated $21.7 million of fixed-rate construction financing over a five-year term for Narsi Properties to develop a 105-room project. The hotel is expected to be completed by Fall 2024.

New president at Tekmak. Rockwall, Texas-based Tekmak Development Co. has announced that Glenn Decker has been promoted to president.  In his new role, the former vice president of operations will be responsible for the growth and direction of the company as it seeks to expand its hospitality portfolio.  The company also announced that Thomas Kirkland will remain as CEO. “Tekmak is pursuing intentional growth goals,” Decker said. “We expect to break ground on three new hotel developments within the next 15 months, and our goal is to kick-off an additional six hotel projects within the following 24 months.”

Fourth Radisson for Vietnam. Radisson Hotel Group has signed the beachfront, 225-room Radisson Blu Resort, Ho Tram, in Vietnam, scheduled to open in 2028. The resort will feature beachfront villas, F&B and expansive meeting spaces, including a ballroom. The new mixed-use development will also feature private residences and a yacht club. This marks the fourth property in Vietnam for Radisson.