Latest news: PEG Companies grows in Utah; Lightstone explores M&A; Aspen refi

PEG Companies acquires in Salt Lake City. Provo, Utah-based PEG Companies has closed on a $18.3 million loan to acquire the 144-key Residence Inn in Salt Lake City, Utah. Los Angeles-based CIM Group's CIM Real Estate Debt Solutions provided the loan for the property that Dallas-based Ashford Hospitality Trust announced it had sold for $19.2 million during its earnings call at the end of February. PEG Companies, which already owns and operates seven Residence Inns, will manage the hotel and execute a next-owner PIP for the guest rooms and common areas. The hotel is one of 12 that Ashford said in late January it was planning to sell to help pay off debt.

Lightstone explores acquisitions. New York City-based Lightstone plans to deploy $500 million of its equity in acquiring hospitality, multifamily and investment assets over the next two years. The firm is eyeing investment in the $20 million to $100 million range in the top 50 metro areas in the U.S. Lightstone president Mitchell Hochberg said he sees “tremendous opportunity in this new venture to fill voice in the capital stack,” given the amount of commercial real estate debt set to mature soon. In November, Hotel Investment Today talked to Hochberg about Level 8, a unique and aggressive food and beverage play in Los Angeles that takes up an entire floor of a dual-branded Moxy/AC hotel.

Northridge Capital refinances Aspen hotel. Washington, D.C.-based Northridge Capital has refinanced the 88-key W Aspen ski resort hotel in Aspen, Colorado. The hotel opened in 2019 and was the first ground-up hotel construction project in Aspen in 25 years. JLL Capital Markets helped arrange the refinancing from Riyad Bank.

European hotel values still below 2019. Hotel values in Europe remained steady in 2023 and rose 1% across the region, but they are still at 97% of 2019 levels, according to the 2024 HVS European Hotel Valuation Index (HVI). The values have slowed following stead increases in the HVI of 3.8% in 2021 and 4.5% in 2022. A number of geopolitical challenges (war in Ukraine, war between Israel and Hamas, increasing operating costs and high interest rates) have offset the gains across Europe, the study found. Co-author Julia Dzerkach, an associate with HVS London, said revenue and profit recovery resulted in marginal gains in value year-over-year but the elevated cost of debt and persistent macroeconomic challenges resulted in “a subdued market for hotel transactions, with a wide bid-ask spread for sales and acquisitions.” Values in Paris, London, Zürich, Amsterdam and Rome remain the highest valued in Europe, while hotels in Athens had the biggest value gains in 2023 because of double-digital RevPAR gains. Only Amsterdam, Athens, Dublin and Paris saw its values return to pre-pandemic levels. The German markets of Berlin, Hamburg and Frankfurt saw some of the largest decline in values for 2023, according to the report. A copy of the HVS 2024 European Hotel Valuation Index can be downloaded here.

Braemar new financing in Puerto Rico. Dallas-based REIT Braemar Hotels & Resorts has closed on $62 million financing for the 96-key Ritz Carlton Reserve Dorado Beach in Dorado, Puerto Rico. The non-recourse loan has a two-year term, is interest only and provides a floating interest rate of SOFR +4.75%.

AHLA applauds reversal of NLRB rule. The American Hotel & Lodging Association (AHLA) is lauding the U.S. District Court for the Eastern District of Texas decision that blocked a National Labor Relations Board (NLRB) rule that would change how joint-employer status is determined. The court also reinstated a 2020 NLRB rule that protects businesses from undue liability for employees over whom they do not have direct control. AHLA Interim President & CEO Kevin Carey said, “This decision is a huge win for hoteliers, the lodging industry, and franchised businesses. The ruling will critically reestablish franchisees’ control over their own businesses, restore certainty in the relationships between employees and employers, and prevent costly confusion with independent contractors.” 

Ennismore seeking to raise capital. Ennismore seeks to raise capital for expansion in the U.S. and is talking to potential strategic partners, according to a Bloomberg report. The company aims to raise money that could value the company at $3 billion or more. Ennismore, which operates The Hoxton and Mama Shelter chains, seeked to raise several hundred million dollars but is still in the early stage of deliberations, according to the report. The company operates 17 brands and 139 hotels worldwide, with 100 more in the pipeline.

Investrade 53% stake in Bahrain hotel, waterpark. Bahrain-based Investrade has acquired a 53% stake in the Areen Park Hotel and The Land of Paradise Waterpark in southern Bahrain for an undisclosed amount. The properties are located in the Areen Master Development Project. Investrade is forging a strategic partnership with Bahrain-based GFH Financial Group as part of the acquisition. 

Atalaya adds in Spain. Atalaya, Andorra-based Andbanks investment fund, which is managed Spain-based Navis Capital, has acquired the 237-key Be Live Experience Lanzarote Beach in the Canary Islands, Spain, from an undisclosed seller, according to HVS. The hotel will undergo a €4.5 million renovation and be branded and managed by THB Hotels.  

Complete Hospitality acquires in the UK. Complete Hospitality has acquired the White Rose Hotel in Askrigg, U.K., from an undisclosed buyer for an undisclosed amount. Complete Hospitality will rebrand the 12-key hotel as The Middle House, Pub I Dining I Hotel. Christie Finance assisted with the transaction.