Latest news: Fontainebleau refi; Brookfield buys in Brisbane; Vegas arena hotel

Fontainebleau raising funds for refi. Jeffrey Soffer’s Fontainebleau Development wants a $975 million commercial mortgage-backed security (CMBS) to refinance the debt on the 1,504-key Fontainebleau Miami Beach, according to Bloomberg. The group will also take out CMBS and mezzanine loans that could be worth as much as $225 million, while Soffer himself will add $105 million to increase proceeds to $1.3 billion. The funds will refinance $1.18 billion of debt, which includes a CMBS and a mezzanine loan, while also paying back a $75 million construction loan from Goldman Sachs to add a convention center. Newmark helped secure the financing.

Brookfield acquires in Australia. Brookfield Asset Management has acquired the 146-key Hotel X Brisbane Fortitude Valley, Vignette Collection in Brisbane, Australia, from Brisbane-based Pointcorp Development Group for around A$90 million ($58 million), according to a report in The Australian. The hotel opened in 2021 and is managed by IHG Hotels & Resorts. Brisbane is hosting the 2032 Olympics. Brisbane-based Ark Capital Partners assisted with the transaction, and CBRE brokered the deal. The transaction is expected to close by the end of the year.

New Vegas hotel next to NBA-ready arena. In Las Vegas on Wednesday, the Clark County Commission gave unanimous approval to several use permits for the construction of a 2,605-room hotel and condominium project that will accompany an 18,000-seat NBA-ready arena on the north Strip. Las Vegas-based LVXP is developing the multi-billion-dollar project between the Sahara and Fontainebleau resorts.

Strikes could affect holiday hotel travel. Hotel strikes could frustrate holiday travelers, according to a report in The Street. The report said striking hotel workers in Las Vegas, Los Angeles and San Francisco could pose problems for travelers who might only know about the disruptions once they arrive at the property. Hundreds of hotel workers at Virgin Hotels in Las Vegas walked off the job, and some 500 workers at the San Francisco Marriott Marquis also voted to strike. The story says several other Marriott San Francisco properties also voted to authorize strikes.

Park Hotels update. Tyson, Virginia-based REIT Park Hotels & Resorts Inc. said its preliminary November 2024 RevPAR is pacing ahead of expectations and preliminary full-year 2024 RevPAR is trending towards the upper end of its previously disclosed guidance range. The REIT said results continue to be driven by strong group and leisure trends. Park also said on December 4, the consolidated joint venture that owns the 375-key DoubleTree Hotel Spokane City Center in Spokane, Washington, successfully sold the hotel for $35 million to an undisclosed buyer. So far in 2024, Park has sold or disposed of three hotels for total gross proceeds of approximately $76 million.

First B&B opens in the UK. Brest, France-based B&B Hotels is opening its first hotel in the U.K. at the London Heathrow Airport. Following the acquisition of the Arora Park Hotel in February 2024, B&B has renovated and rebranded the 119-key B&B Hotel London Heathrow. In July, the chain acquired and added five new hotels to its U.K. portfolio in Birmingham, Derby, Inverness, Ipswich and Warrington. The company plans to reach 100 hotels in the U.K. by 2035. B&B has 870 hotels in 17 countries.

IHG debuts Vignette in Vietnam. IHG Hotels & Resorts is introducing its Vignette Collection brand to Vietnam with the opening of the 128-key Moire Hoi An. There are 19 Vignette Collection hotels open worldwide, and 34 are in the pipeline, marking brand debuts in markets such as Japan and Maldives.

Social Hub opens in Rome. Amsterdam-based The Social Hub is opening the 392-key The Social Hub Rome in Italy in March. The project has three main structures: a new, contemporary main building alongside refurbished spaces now housing the Accademia Italiana, an event venue and a coworking and meeting and event space.

Baku hotel performance surges. The 29th Conference of the Parties (COP29) drove Baku, Azerbaijan’s hotel ADR and RevPAR to record-high levels, according to CoStar data. The market’s performance peaked on the first night of the conference (November 11), with ADR up 1,263.2% year-over-year to AZN2,256.69. RevPAR that night grew 2,980.4% to AZN 1,981.39. Both metrics remained above AZN 1,000 throughout the conference, as this was the first time that Baku posted four-figure room rates. Occupancy topped out on November 13 (up 104.6% to 90.2%).