Breaking news about development, M&A, data and more.
TPG’s new Texas home. Hotels & Resorts, TPG Hotels &
Resorts is centralizing its management company platform with the opening of its
new national operations headquarters based in Dallas, Texas. Procaccianti
Companies, the firm’s parent organization, will maintain its corporate
headquarters in the northeast. “Greater Dallas has quickly become the nation’s
hub for leading hospitality management firms, and it is exactly where TPG
Hotels and Resorts belongs,” said Ben Perelmuter, president and COO. “Dallas is
an ideal location with its deep pool of hospitality talent and ideal
central-U.S. location, making travel easy and efficient for clients, brands,
partners, and staff.”
Iberian jv. Redevco and Swiss Finance & Property Group
(SFP Group) have formed an Iberian hotel joint venture. Following a first
close, a fund managed by SFP has indirectly taken a majority stake in ‘Next Gen
Stays,’ currently comprising a seed portfolio of six assets in Portugal and
Spain in the Lisbon, Porto, Bilbao, Malaga and Seville. The strategy is
targeting a net levered IRR of 15%-plus over a five-year period and aims to
build up a portfolio of around €300 million. The SFP fund will look to increase
its stake in the joint venture through further capital raises to acquire
additional pipeline assets.
Moran Group refi. Värde Partners, a global alternative
investment firm specializing in credit and credit-related assets, announced
that an entity owned by Värde-managed funds has provided a €70 million loan to
the Moran Group for the refinancing of commercial real estate assets in Dublin,
Ireland. The loan is backed by the newly developed Rockpoint apartment complex
in south Dublin as well as the Red Cow Moran Hotel and adjacent Red Cow Inn pub
located in southwest Dublin. The Moran Group, run by the Moran family, has
owned and operated the Red Cow complex for more than 30 years. Rockpoint,
completed in January 2024, is the newest addition to their portfolio of
residential properties.
Soft YOY week in US. U.S. hotel performance through the week of
March 16 increased from the previous week but showed continued declines year
over year, according to CoStar data. From March 10-16, occupancy was at
66.5% (-1.4% YOY); ADR was $163.21 (-2.1% YOY); and RevPAR was $108.51 (-3.5%
YOY). Among the Top 25 Markets, Seattle reported the largest
year-over-year increases in occupancy (+12.7% to 73.0%) and RevPAR (+21.7% to
US$120.29). Anaheim posted the highest ADR lift (+18.0% to
US$254.73). The steepest RevPAR declines were seen in Las Vegas (-41.0% to
US$167.50) and New Orleans (-19.0% to US$139.05).
Occupancy issue in Canada. Canada’s hotel industry reported
a third consecutive month of occupancy declines in February but continued
growth in ADR, according to CoStar data. For the month, occupancy stood at
58.0% (-1.6% YOY); ARD closed at C$181.55 (+3.8% YOU); and RevPAR was C$105.37
(+2.2% YOU). Group ADR growth (+7.9%) was the strongest among the
segments. “Both transient and group occupancy declined, down 2.4% and 1.2%,
respectively, contributing to the third consecutive decline in Canada’s monthly
hotel occupancy,” said Laura Baxter, CoStar Group’s director of hospitality
analytics for Canada. “Supply pressure continues to be minimal for most
markets,” Baxter added. “New openings across Canada in 2024 are expected to be
down roughly 30% compared to the 10-year average.”