Latest news: Big fire at Balazs hotel; Gaw Capital's default; Sonder-Marriott deal info

Big fire at trendy London hotel. Burning wood falling from a pizza oven set off a serious fire at Andre Balazs’ Chiltern Firehouse hotel in London on Valentine’s Day. No injuries were reported as 100 guests were evacuated, but the 26-suite hotel sustained significant damage and will be closed for the foreseeable future to undergo a large refurbishment. Flames spread through the ducts through the first three floors of the property.

Gaw Capital defaults on loan. Los Angeles-based Gaw Capital USA, a unit of Hong Kong-based Gaw Capital Partners, has reportedly defaulted on a $100 million loan secured by the 500-key Oakland Marriott City Center. Gaw Capital USA skipped one or more payments for the loan tied to Oakland’s largest hotel, according to the San Francisco Business Times. Paris-based Natixis lent Gaw Capital USA $80 million in 2017, and $20 million more two years later, according to The Real Deal. Gaw Capital bought the hotel in 2017 for $143 million. The default comes after notable hotel closures and loss of hotel asset values in the Oakland-San Francisco area, which makes troubled assets more difficult to sell.

US profits grew. U.S. hotel industry profits grew in 2024, but increased labor costs and inflation limited growth, according to P&L data from CoStar.  For CoStar’s 2024 per-available-room metrics, GOPPAR was $73.60 (+3.2% year-over-year), TRevPAR was $209.67 (+7.2%), EBITDA PAR was $51.88 (+2.5%), LPAR (Labor Costs) was $72.44 (+11.2%). “Growth in total operating expenses, especially labor, has had the biggest impact on profits,” said Raquel Ortiz, senior manager of financial performance at STR. “GOPPAR continued to slow at the end of the year with growth below the rate of inflation. On the positive side, demand growth has been key to driving total revenues, which have been the best defense against high expenses and allowed for hotels to increase profits, albeit minimally.” Among the top 25 markets, Miami posted the greatest difference in GOPPAR (+$12) and TRevPAR (+$27). Oahu realized the largest drops in both metrics, likely due to lower demand caused by the labor strikes.

Yurbban adds in Florida. Barcelona; Miami Beach, Florida; and Bogotá, Colombia-based  Yurbban Hospitality Group is adding the 118-key Lennox Hotel Miami Beach in Florida to its portfolio. It is the sixth hotel the company manages in Miami Beach. In 2025, Yurbban projects revenues of €50.9 million (about $53.4 million), fueled by continued North American expansion and a growing portfolio in Spain. The company currently managing 1,600 rooms and aims to reach 10,000 managed rooms by 2035.

Barbados resorts join Marriott brand. The Waves Resort & Spa and Treasure Beach Art Hotel in Barbados are joining Marriott’s Autograph Collection. Both the 70-key Waves Resort & Spa and 35-key Treasure Beach Art Hotel have undergone multi-million dollar renovations and are the first two hotels on the island to join Marriott’s brands. Other resorts like The House, Tamarind, and Colony Club are expected to join Autograph Collection and The Luxury Collection later this year.

Sonder-Marriott deal. San Francisco-based apartment-style accommodations provider Sonder Holdings filed its delayed third-quarter earnings report and, in the SEC filing, noted that Marriott International agreed to pay the company $15 million as part of a recent licensing deal. Marriott, in November 2024, paid Sonder half of that total as part of the agreement, announced in August 2024, to incorporate Sonder’s inventory in Marriott’s portfolio, making them bookable through Marriott’s channels. Marriott is scheduled to pay the remaining $7.5 million by March 31. Sonder pointed to the deal as one of its strategies for addressing its financial losses and negative cash flow.  The company has reduced its portfolio throughout 2024, exiting 70 buildings and 2,800 rentable units by September 30 with plans to exit 10 more. 

Palazzo adds in Africa. Dubai-based Palazzo Hospitality has expanded its portfolio in Africa after signing the management of the 299-key Palazzo Ezulwini Hotel and Convention Center in the country of Eswatini. The project is scheduled to open in the last quarter of 2025.

MOB earns BCorp certification. French hotel group MOB Hotels and MOB House have been awarded the BCorp certification. This international recognition rewards companies that integrate high standards of ESG impact, focusing on a vision of responsible and committed hospitality. Since its creation in 2017, MOB Hotel has made committed hospitality its signature. 

Catalonia adds in Spain. Barcelona-based Catalonia Hotels & Resorts has acquired the  84-key Hesperia Barcelona Del Mar in Spain from Barcelona-based private equity firm Meridia Capital, completing the divestment of its Fund IV, according to HVS. The price has been reported as €25.3 million, or €27.7 million including associated debt. Meridia acquired the hotel in March 2020. Catalonia now operates 29 hotels in Barcelona.

Explorer adds in Portugal. Lisbon, Portugal-based Explorer Investments, through its Hospitality I Fund, has acquired the 84-key Douro Royal Valley Hotel & Spa and the 60-key Douro Palace Hotel Resort & Spa in Portugal by purchasing Portuguese owner-operator JASE Empreendimentos Turísticos. 

Britannia adds in the UK. Hale, U.K.-based owner-operator Britannia Hotels has acquired the 116-key Crowne Plaza Felbridge in West Sussex from MCAP Global Finance, the U.K. arm of New York-based Marathon Asset Management, according to HVS. Britannia’s portfolio now has 65 hotels in the U.K. 

Plaza adds in Hamburg. Heilbronn, Germany-based Plaza Hotel Group has acquired the 180-key Ibis Budget Hamburg Altona in Germany from Frankfurt, Germany-based Union Investment.