Breaking news about development, M&A, data and more.
Standard’s X-factor. Standard International is launching a
new concept called The StandardX with its first property set to open in
Melbourne’s Fitzroy neighborhood in February 2024. Drawing on the X-factor
terminology that gives guests something unique in the lifestyle hospitality,
the first 125-room property will include minimalist guest rooms with two main social
spaces that include a restaurant only open to hotel guests as well as a Thai
street food-inspired restaurant. Rates are expected to start at $160.
IHG grows in Malaysia. IHG Hotels & Resorts, in
partnership with Taipei real estate broker Zhancheng Tourism Development, a
subsidiary of Sinyi Realty Inc., a listed real estate brokerage company in
Taipei, will develop the eco-friendly InterContinental Sabah Kota Kinabalu
Resort in Malaysia. The 450-room new-build beachfront resort in northern Borneo
will open in 2027. The hotel will establish targets across energy,water,
landscape, materials, and waste. It will develop natural ventilation and
extensive shading and use recycled water via a rainwater filtration system.
Local sourcing of goods and materials will be prioritized, with an on-site food
garden and the use of low carbon materials from the local area among its
sustainability-based initiatives.
Combined residential platform for Europe. A comprehensive
residential platform in Europe that brings DoveVivo, ALTIDO and Chez Nestor
under one brand has been launched as Joivy. The concept offers a range of
living spaces to its users - co-living, micro-living, student housing, short-term
stays, multifamily and co-working - and supports owners and investors with services
from complete asset management, to design and build and real estate
investments. The platform currently has a portfolio of 4,000 units located
in 50 destinations and six countries.
New hotel for downtown Orlando. California-based SED Development, San Francisco-based JMA Ventures and Houston-based Machete Group are planning a 260-key lifestyle hotel as part of a 900,000 sq. ft. mixed-use project adjacent to the Amway Center in downtown Orlando. The hotel will have 16,000 sq. ft. of meeting space and an adjacent 3,500-capacity live music venue.
Europe pipeline update. Through 3Q23, Europe’s
construction pipeline currently stands at 1,673 projects/249,264 rooms, up 1%
by projects year-over-year (YOY), according to Lodging Econometrics. Luxury
projects increased 2% YOY, just ten projects short of the segment’s all-time
high, closing the quarter with 139 projects/18,515 rooms. The upper upscale
chain scale increased 3% by projects YOY, with 284 projects/46,717 rooms.
Upscale projects in Europe are up 3% YOY and account for 26% of projects in the
country’s total construction pipeline, settling in at 439 projects/71,178
rooms. Economy projects grew 5% YOY to stand at 157 projects/20,042 rooms at
the close of the quarter. There are 759 projects/114,842 rooms under
construction. Projects scheduled to start construction in the next 12 months
stand at 411 projects/63,154 rooms, while projects in early planning stand at
503 projects/71,268 rooms. Brand conversions in the region are up 15% by
projects YOY, to stand at 374 projects/49,893 rooms. Construction starts grew 17%
by projects YOY, with 91 hotels/11,436 rooms, and new project announcements
(NPAs) also increased at Q3 by 20% YOY by projects, to close the quarter at 107
projects/13,536 rooms. The United Kingdom continues to have the largest number
of projects in the region’s total pipeline at Q3, with 322 projects/44,259
rooms.
New leader at Hand Picked. Hand Picked Hotels, London has
Ignace Bauwens, former managing director for the Middle East, Asia and Africa
at Corinthia Hotels, as its new CEO, replacing Julia Hands. Hands, CEO since
the company was founded in 2001, will remain as chairman of the 21-hotel
collection of country house and spa hotels in the UK and the Channel Islands.
Bauwens will be responsible for the day-to-day operations, as well as its
long-term growth strategy.
Center Parcs sale scrapped. The proposed £4 billion sale of U.K.-based
Center Parcs resorts has reportedly been scrapped by owner Brookfield amid weak
investor confidence. Brookfield is understood to still be considering selling a
minority stake or recapitalizing Center Parcs, which has six holiday parks in
the U.K. and Ireland. It purchased the group for £2.4 billion from Blackstone
back in 2015.
Amara bid. Amara Holdings, Singapore, has reportedly
received a voluntary cash offer to go private from a consortium at SGD 0.60 per
share, representing a 53.8% premium over its share price on June 15. The
special purpose vehicle Amethyst Assets, partially owned by First Security and
Concordia United, seeks to privatize Amara due to challenging growth prospects
and low trading liquidity of its shares. The buyout, presenting a clean cash
exit opportunity, will be financed through interest-free loans and a bank loan.
Higher-end chains
dominate Middle East pipeline. The hotel construction pipeline in the Middle East
stands at 585 projects and 139,582 rooms, with project counts up 9%
year-over-year, according to data from Lodging Econometrics. Of those 585
projects, 320 are currently under construction, totaling 83,760 rooms, while
103 projects are scheduled to start in the next 12 months. There are 162
projects in the early planning stage. With an average of 239 rooms per project,
the Middle East continues to have the largest hotel construction projects in its
pipeline of any region in the world, with most of these projects belonging to
to the top three chain scales (82% of the Middle East’s projects in Q3 are in
the luxury, upper upscale and upscale.) Luxury projects are up 26% YOY in the
region (156 projects/33,346 rooms), Upper Upscale projects are up 22% YOY (160
projects/40,789 rooms), while Upscale construction stands at 163 projects and
41,339 rooms. Saudi Arabia is the leading country (275 projects/67,614 rooms)
and accounts for 47% of the region’s total pipeline, while the Provincial
region of Saudi Arabia is the leading market (115 projects/25,333 rooms.)
Another Place adds in Scotland. England-based lifestyle
hotel company Another Place will add its first hotel in Scotland in 2024. The
47-key hotel The Machrie sits on the Isle of Islay and features a championship
links golf course built along the beach at Laggan Bay. In addition to acquiring
the hotel, the company also acquired a nearby pub, the Brackenrigg Inn, which
will be refurbished and open in February 2024.