Breaking news about M&A, development, data and more.
JV acquires Loews
Minneapolis Hotel. Milwaukee-based Marcus Hotels & Resorts,
Minneapolis-based Hempel Real Estate and Oklahoma City, Oklahoma-based Robinson
Park Investments have jointly acquired the 251-key Loews Minneapolis Hotel from
an undisclosed buyer for an undisclosed price. The acquisition is expected to
close at the beginning of March, and upon closing, Marcus Hotels & Resorts
will assume the hotel’s management.
New fund for CapitaLand. Singapore-based
CapitaLand Investment Limited (CIL) has established a new lodging private fund,
CapitaLand Ascott Residence Asia Fund II (CLARA II), with a target equity size
of $600 million (S$800 million). CIL will hold a 20% sponsor stake in CLARA II,
investing in serviced residence and co-living properties in Asia Pacific.
CLARA II will acquire two seed assets from The Ascott Limited, a 50% stake in
the 308-key lyf Bugis Singapore and a full stake in the 200-key lyf Shibuya
Tokyo in Japan.
Hyatt adds in Puerto Vallarta. Hyatt will expand
its Inclusive Collection portfolio in Mexico with a Breathless
Resort & Spa scheduled to open in 2025 in Puerto Vallarta. Hyatt is
collaborating with Grupo Hotelero Santa Fe on the 450-key
Breathless Puerto Vallarta Resort & Spa, which will feature nine restaurants, five
bars and more than 10,000 sq. ft. of meeting and event space. Hyatt currently
has 71 hotels in Mexico.
Record revenue for MGM’s in Las Vegas, China. MGM Resorts
International said its Las Vegas Strip resorts had record full-year and Q4 net
revenue and adjusted property EBITDAR. In contrast, MGM China had record
full-year and fourth-quarter adjusted property EBITDAR. MGM said its room
revenue at its Las Vegas Strip resorts was up 8% year-over-year to $875
million, ADR was up 14% to $295, and RevPAR was up 13% to $270.
Radisson debuts in Cambodia. Brussels-based
Radisson Hotel Group will have its first properties in Cambodia after signing
an agreement with Prince Real Estate Group to operate a dual-branded property
in Phnom Penh scheduled to open in the first quarter
of 2026. It will feature a 250-key Radisson Blu Hotel & Residences and a 200-key Radisson RED Hotel.
Refinance of NYC mixed-use
with Mint House hotel. New York
City-based DTH Capital and Rose Associates have secured a $395 million refinancing
of 70 Pine Street, a 66-story, mixed-use property in New York City with luxury
multifamily rental, retail and hotel space. JLL worked on behalf of the borrowers
to secure the financing through Goldman Sachs. The property was originally
built in 1932 for office use and was renovated in 2016 for adaptive reuse. A
165-key Mint House hotel is on the second through sixth floors of the property.
Accor adds two in southern China. Accor announced a
new partnership with Huayu Group to bring two brands to Hainan Island in China.
The 460-key Swissôtel Sanya Yalong Bay and 124-key Grand Mercure Sanya Yalong
Bay are being renovated and will open at the end of 2024.
Airbnb grows in Q4. Airbnb said its
fourth-quarter revenue of $2.2 billion grew 17% year-very-year, while its nights
booked grew 12% YOY. The company’s adjusted net income was $489 million, which
was its most profitable fourth quarter ever. Its ADR was $156.73, which was up
2.6% YOY. It also has a roster of five million hosts, a jump of about one
million from 2022. Analyst R.W. Baird said, “We recognize Airbnb is one of the
higher-quality online marketplaces, and we have a positive view on the
company’s longer-term prospects. While there are signs of some moderation in
travel in Q1, more interesting might be the second half of 2024 updates on
‘reinventing’ Airbnb through AI while expanding into new verticals. Whether
this emerges as an overhang or catalyst remains to be seen.”
China construction surging. China’s hotel
construction pipeline in Q4 reached an all-time high for projects for the
second straight quarter, according to Lodging
Econometrics. The country’s total pipeline ended the year at 3,788 projects (a
6% increase year-over-year) and 691,772 rooms (a 2% increase YOY). Projects
currently under construction stood at 2,644 projects and 473,921 rooms, while
projects scheduled to start construction in the next 12 months were up 4% YOY to
420 projects and 74,067 rooms. Projects in the early planning stages surged to
724 projects (up 30% YOY) and 143,784 rooms (up 16% YOY). Upscale and upper midscale represent
over 50% of the country’s total projects. Chengdu leads China’s pipeline with
148 projects and 29,575 rooms, while Shanghai is second with 121 projects and
23,148 rooms.