The latest news about development, M&A, data and more.
PE firm developing Ritz-Carlton mixed-use. TMGOC Ventures, a
real estate and development private equity firm based in Charleston, South
Carolina, and Boca Raton, Florida, has received approval from the Savannah
Historic District Board of Review to bring the first Ritz-Carlton to the city.
Construction is scheduled to begin in the second quarter of 2024, with a
proposed opening date within the first quarter of 2026. The 104-room property
will occupy the historic ‘Savannah Skyscraper’ downtown, and the 20 residences
will be adjacent. TMGOC’s portfolio consists of $1 billion in existing and
development pipeline investments comprising 2,620 hotel keys, along with
opportunistic multi-family, office and retail investments. Recent TMGOC
developments include the 131-room Moxy Charleston Downtown. Projects underway
include a 208-key Moxy under construction in the heart of Uptown
Charlotte, North Carolina, a 162-key Tapestry Collection by Hilton and a
233-unit multi-family mixed-use development in Macon, Georgia, a 191-key
Thompson by Hyatt in Charleston, South Carolina, and a 150-key and 20
residences by Autograph Collection Hotels in Charleston, South Carolina. TMGOC plans
to expand in Arizona, Colorado, and Utah.
Hilton launches LXR brand in Italy. Hilton plans to open
Italy’s first LXR Hotels & Resorts property in 2026, following a franchise
agreement with Romania’s Paval Holding and Lithuania’s Apex Alliance. Grand
Hotel Gardone Lake Garda, LXR Hotels & Resorts will open on the banks of
Northern Italy’s Lake Garda, following a multimillion-euro renovation,
elevating the hotel’s interiors while preserving the façade. The 160-room hotel
will be managed by Apex Alliance Hotel Management. The hotel will offer two
signature restaurants, two bars and a spa featuring indoor and outdoor pools
and comprehensive fitness facilities. Additionally, the hotel will feature 825
square metres of meeting space, including a ballroom with an expansive terrace
overlooking the lake. Hilton currently has more than 40 trading and pipeline
hotels in Italy.
Boston hotel trades. The 65-room Whitney Hotel Boston on
Charles Street has been acquired by an affiliate of Amsterdam-based capital
management firm Egeria Group for $57 million. The hotel was developed by
Boston-based developer Related Beal and is operated by Hersha Hospitality
Management.
Margaritaville NYC auctioned. Lender Arden Group won a Uniform Commercial Code
foreclosure auction for the 234-room Margaritaville Resort Times Square as the
lone bidder, three months after owner Soho Properties filed for Chapter 11
bankruptcy protection. Arden Group used existing debt for its bid of
$1,000 to acquire an equity stake in the hotel. Soho Properties defaulted on
the hotel in March after missing a debt service payment on the $57 million loan
originated by Arden Group in July 2021. The property continues to operate under the Margaritaville brand and is reportedly performing strong during the ongoing rebound in the city.
Latest US hotel performance. U.S. hotel performance for the week ending October 14
increased from the previous week, and year-over-year comparisons remained
mixed, according to CoStar data. Occupancy was 68.5% (-2.3% YOY); ADR was
$164.25 (+3.2% YOY); and RevPAR was $112.51 (+0.8% YOY). Among the Top 25
Markets, Oahu Island saw the largest year-over-year increases in occupancy
(+17.8% to 85.2%) and RevPAR (+29.7% to US$243.22). Las Vegas posted the
highest lift in ADR (+14.7% to US$226.94) and the second-largest jump in RevPAR
(+21.1% to US$199.88). New Orleans saw the steepest RevPAR decline (-28.3% to
US$107.38).
Canada’s September. Despite economists predicting
an economic downturn, Canada continued a stretch of year-over-year performance
growth in September, according to CoStar data, with occupancy hitting 75.3% (+1.5%
YOY); ADR at C$222.02 (+8.1% YOY); and RevPAR reaching C$167.14 (+9.7% YOY). “Transient
demand grew a staggering 14% against 2019, while group was down 16% against pre-pandemic
levels, in line with the trends seen over the past few months,” said Laura
Baxter, CoStar’s director of hospitality analytics for Canada. “Weekend and
weekday occupancy remained ahead of 2019 levels, suggesting business transient
demand has improved. Submarkets most reliant on large national accounts,
however, are still lagging.” Among the major markets, Vancouver saw the highest
occupancy (86.6%), which was 0.5% ahead of September 2022. The lowest occupancy
among provinces was reported in Saskatchewan (63.5%), up 2.6% against 2022. At
the market level, the lowest occupancy was reported in Edmonton (+8.8% to 63.8%).
Accor grows in India. Accor is expanding its portfolio in India with the signing of the 100-room Grand Mercure Amristar Airport Road set to open in 2026 with two F&B outlets, 800-plus sqm of banquet space, and a spa and fitness center. The property is being developed by R. V. Enterprises, which has businesses in real estate, food processing, and Punjab’s agro-retail industry.