Latest news: Kimpton grows in Texas; extended-stay growth slows; Seibu Prince NYC debuts

First Kimpton in San Antonio. IHG’s Kimpton Hotels & Restaurants is opening its first hotel in San Antonio, Texas, in late 2024. The 347-key Kimpton Santo Hotel in San Antonio is owned by Merrillville, Indiana-based White Lodging, which will also operate the property. IHG also announced that the 48-key Kimpton Virgilio is opening in Mexico City. It was developed by ZKC, an investment fund specializing in real estate developments in Mexico City.

Extended-stay growth slow, but construction way up. Extended-stay hotels had an annual 1.8% gain in supply in 2023, the smallest increase on record, and reflects two straight years of growth under 2%, according to The Highland Group. However, extended-stay rooms listed under construction were up 53% year-over-year, largely driven by the launch and growth of five new brands in the economy and mid-price segments. Mark Skinner, partner at The Highland Group, said extended-stay demand has increased yearly for 25 years (except in 2020), and there is still plenty of extended-stay demand. Highland expects RevPAR growth for extended-stay to be similar to the overall hotel industry in 2024.

Seibu Prince debuts in NYC. Tokyo-based Seibu Prince Hotels & Resorts is opening the 150-key The Prince Kitano New York after a renovation of several years. The hotel is the first for Seibu Price in the continental U.S. It was originally built in the 19th century and was formerly known as The Kitano Hotel New York.

More details on MCR refinancing. Last week, New York City-based MCR announced it was refinancing a 16-hotel portfolio with a $333 million loan. According to RW Baird, the debt package comprises a $280.5 million CMBS loan and a $52.5 million mezzanine loan. The first mortgage has a two-year term with three one-year extensions and bears interest at a Secured Overnight Financing Rate (SOFR) of +342 basis points (bps); the mezzanine loan has an interest at SOFR +950 bps, which makes the all-in spread to SOFR +438 bps. Baird said the SOFR cap was purchased with a 5.15% strike rate throughout the initial term. The largest concentration of hotels in the portfolio is the five in Dallas-Fort Worth, and $7.1 million of PIP spending is expected for the 16 hotels in the next two years.

More details on Braemar financing. Last week, Dallas-based Braemar Hotels & Resorts said it refinanced or extended almost all of its 2024 debt maturities. According to Baird, the 550-key Capital Hilton in Washington, D.C., was refinanced with a new $110.6 million mortgage loan with a three-year term and two one-year extensions, and Aareal is the new lender. Prudential provided a six-month forbearance for the Hilton La Jolla Torrey Pines in exchange for a $21.4 million paydown. The loan balance is now $66.6 million with a fixed 9% interest rate) and Braemar is potentially selling the La Jolla asset. For the loans secured by the 142-key Pier House Resort & Spa in Key West, Florida (by Bank of America Merrill Lynch) and the 180-key Ritz-Carlton St. Thomas in the Virgin Islands (by Apollo), both maturities were extended by one year plus a one-year extension option and the principal balances were unchanged. Baird said the SOFR spreads increased to 360 bps and 435 bps, respectively.

Spark GHC acquires dual-branded in Maryland. Cleveland, Ohio-based Spark GHC has purchased the dual-branded hotel 289-key Aloft/Element Arundel Mills BWI Airport in Hanover, Maryland, from an undisclosed buyer. The amount was not disclosed. Aloft has 142 rooms, while the Element has 147 rooms. JLL arranged the sale.

$5 billion condo-hotel project begins in LA. Construction has begun on One Beverly Hills, a nearly $5 billion condominium and hotel complex in Los Angeles. The 17.5-acre urban resort will unify the neighboring Beverly Hilton and Waldorf Astoria hotels with condominium high-rises and includes a 75-key Aman hotel, which will be the first for the luxury brand on the West Coast.

Aareal Bank’s role in Starwood deal. Aareal Bank led a quartet of lenders playing a pivotal role in financing the majority (10 hotels with 2,053 rooms) of the £800 million Edwardian hotel portfolio in London operated under the Radisson Blu brand acquired by Starwood Capital Group. Aareal Bank provided a loan for eight assets within the portfolio while acting as the arranger, facility agent, and security agent, thus contributing to the structuring and execution of this deal. The acquisition adds to Starwood Capital’s existing portfolio of European hotel investments, which, following the transaction, will comprise 47 hotels/approximately 10,000 rooms. Key players in this transaction include Pinsent Masons and White & Case, serving as legal advisors to Aareal Bank and Starwood Capital, respectively. Cushman & Wakefield acted as Aareal Bank’s external valuation advisor.

New CEO at Expedia. Peter Kern will leave as CEO of Expedia Group in May, and Ariane Gorin, currently president of Expedia for Business, will become CEO. Kern will remain as vice chairman of the company’s board. He shared the news at the start of the company’s Q4 and full-year 2023 earnings call, in which the company reported its highest-ever yearly and Q4 revenue, up to 10% year-over-year. Expedia also said its 2023 EBITDA of $2.7 billion was a new record.

Marriott cash dividend. Marriott International announced a quarterly cash dividend of $0.52 per share of common stock ahead of its earnings call on Tuesday. The dividend is payable on March 29 to shareholders of record as of the close of business on February 22.