Latest news: Airline softness; mystery debt buyer in SF; Palm Beach hotel for sale

US airlines lower forecasts. Airlines in the U.S. are reporting softening demand based on a variety of economic factors. American Airlines has reforecast revenue would likely be flat on the year, citing softer domestic leisure segment, primarily in March. Delta Air Lines reported that its outlook has been “impacted by the recent reduction in consumer and corporate confidence.” Southwest Airlines also cut its revenue guidance to up no more than 4%, down from a forecast of as much as 7% for the first quarter over last year. Carrier also said they have seen a sharp decline in government travel since the start of the new Trump administration.

Debt acquired on former Park SF hotels. An unknown buyer has agreed to buy $725 million in debt on two of San Francisco’s largest hotels, reported the San Francisco Business Times. Terms of the sale were still under discussion and the deal has not been finalized. The receiver is under a March 31 deadline to complete the deal or the debt will go back to lender JPMorgan for foreclosure. The 1,921-key Hilton San Francisco Union Square and 1,024-key Parc 55 San Francisco have been under court-appointed receivership since the fall of 2023, after owner Park Hotels & Resorts handed back the keys. Last year, the two properties were appraised at roughly $554 million by Kroll Bond Rating Agency, a drop of more than $1 billion from their appraised value when the debt was originated.

Palm Beach hotel available. Billionaire Jeff Greene is exploring a sale of the 134-room Tideline Palm Beach Ocean Resort and Spa in Florida, according to a Bloomberg report. Greene is working with Eastdil Secured, potentially valuing the oceanfront hotel at more than $150 million. The hotel, which includes nearly 3 acres (1.2 hectares) of beachfront, is being marketed unencumbered by brand and management contracts. Greene acquired the property in 2011 when it was known as the Omphoy Ocean Resort.

Braemar refi. Braemar Hotels & Resorts has closed on a refinancing involving five hotels. The new loan totals $363 million and has a two-year initial term with three one-year extension options, subject to the satisfaction of certain conditions, taking the final maturity to 2030. The loan is interest only and provides for a floating interest rate of SOFR + 2.52%. The loan is secured by five hotels: The Clancy, The Notary Hotel, Marriott Seattle Waterfront, Sofitel Chicago Magnificent Mile, and The Ritz-Carlton Reserve Dorado Beach. The $363 million loan amount represents a 48.9% loan-to-value based on third-party appraisals completed by the lender. The appraisals valued the hotels at $742.2 million based on the sum of their "as-is" values. The new loan refinanced the $293.2 million loan secured by The Clancy, The Notary Hotel, Marriott Seattle Waterfront, and Sofitel Chicago Magnificent Mile which had an interest rate of SOFR + 2.66% and had a final maturity date in June of 2025 and the $62 million loan secured by The Ritz-Carlton Reserve Dorado Beach which had an interest rate of SOFR + 4.75% and had a final maturity date in March of 2026.

New leadership at SVC. Service Properties Trust, the parent company of Sonesta International Hotels Corp., has named Chris Bilotto as managing trustee, president and CEO, effective March 10, 2025. Bilotto is an executive vice president of The RMR Group, overseeing its acquisition platform, asset management for all hotel and senior living properties, as well as property development and redevelopment throughout the United States. Bilotto succeeds John Murray as managing trustee and Todd Hargreaves as president and chief investment officer, both of whom resigned from their positions with SVC, effective March 9, 2025.

New LVS CEO named. Patrick Dumont, governor of the Dallas Mavericks and a prominent figure in the team’s majority ownership group, has been named the next chairman and CEO of Las Vegas Sands, the Dallas Business Journal reported. Dumont will assume the role next year, following the retirement of CEO Robert Goldstein as Sands looks to develop a Mavericks-anchored resort project in Irving, Texas.

Marriott development in Texas. Indiana-based Great Lakes Capital, in partnership with Nebraska Furniture Mart and the City of Cedar Park, Texas, has signed an agreement for a new, 300-room full-service Marriott hotel and convention center in the CedarView mixed-use new development. Construction is slated to begin May 2025 with an anticipated opening first quarter 2027.

Sheraton to Al Khobar, KSA. Marriott International has signed a deal in Saudi Arabi with Ashaad Co. for the 580-room Sheraton Al Khohar Al Hamra with an anticipated opening in 2028. Aleph Hospitality will oversee the franchise property’s operations.

Athens Four Seasons ownership. Greek shipping tycoon George Procopiou has acquired full ownership of the Astir Palace resort in Vouliagmeni, southern Athens, the centerpiece of which is the 303-room Four Seasons Astir Palace Hotel Athens. After buying 33.75% of the resort from Turkish conglomerate Dogus Group for €150 million in October 2024 (indicating a value of around €1.5 million per room), Procopiou has now acquired the remaining shares in the resort from the Dubai-based Jermyn Street Real Estate Fund managed by AGC Equity Partners. The transaction also includes Astir Marina yacht club and the Astir Beach.

Minor launches Explorer by Elewana. Minor Hotel Group’s Elewana Collection has launched a new Explorer brand with the first lodge opening in Serengeti. The Explorer by Elewana collection of upscale safari lodges will cater to a wider audience through a more moderate price point as well as an increased range of activities on property. The first lodge, Serengeti Explorer by Elewana opened its doors in January 2025. Ngorongoro Explorer will follow in 2026, and Tarangire Explorer is also scheduled for the future. The 68 explorer rooms and six suites of Serengeti Explorer are built on the site of the previous Serengeti Sopa Lodge.

Dusit grows in Indonesia. Dusit International has signed a management agreement with PT Komodo Property Management to manage Kaliwatu Residences - Dusit Collection, in Labuan Bajo, Flores Island, in Indonesia, located near Komodo National Park, renowned for its Komodo dragons and world-class diving. This signing marks Dusit's first Dusit Collection branded hotel in Indonesia, complementing its subsidiary, Elite Havens—a luxury villa rental provider—which already manages properties in Bali and Lombok. Developed in phases, with full completion scheduled for Q2 2028, the project will feature 63 private villas with plunge pools and 194 contemporary apartments.

Bob W adds in Athens. Brussels-based Bob W has signed a long-term lease agreement to transform 4,500 sq m of an Athens office building into 130 design-led serviced apartments in the heart of the city. The operator has exchanged contracts with developer-landlord Blend Development for its third property in the city. Bob W now has more than 5,000 units across Europe.

Big February in Madrid. Helped by a pair of UEFA Champions League matches, Madrid’s hotel industry posted its highest February ADR and RevPAR on record, according to CoStar data. Occupancy was 71.5% (-0.4% YOY); ADR: EUR153.35 (+10.6% YOY); and RevPAR was EUR109.71 (+10.1%).

Abu Dhabi’s record February. Boosted by a defense exhibition and a gold tournament, Abu Dhabi’s hotel industry posted its highest February ADR and RevPAR since 2009, according to CoStar data. Occupancy was 86.8% (-3.5% YOY); ADR was AED873.51 (+40.6% YOY); and RevPAR was AED758.37 (+35.8% YOY).