Top quotes from the week's stories, including FTI Consulting's talking about Selina Hospitality's insolvency challenges.
QUOTE OF THE WEEK
“Unfortunately, the company [Selina Hospitality] was unable
to reach its growth aspirations following the COVID-19 pandemic. The group
subsequently struggled to raise sufficient capital to deliver a turnaround due
in a large part to increased interest rates and weaker trading performance. The
Joint Administrators are considering options for the company on an accelerated
basis and we will continue to support regional management where possible to
minimize disruption to guests, employees and other stakeholders. However, as a
result of the insolvency, Selina Hospitality PLC is unable to continue to
provide financial support to the company’s subsidiaries.” – Andrew Johnson, FTI
Consulting Read story
“You still have, overall in the market, probably 100 basis points disconnect between buyer and seller. Stuff that is getting sold is getting sold because there is pressure on the capital stack, largely.” – Nolan Hecht, Certares Read story
“Compared to other asset classes, hotels present very attractive investment opportunities. High-quality assets with strong in-place performance are trading at aggressive cap rates driven in part by ample equity earmarked to the lodging sector. In addition to forthcoming debt maturities, equity fund life expirations will drive increased hotel sales activity. Sale pricing of U.S. hotels is anticipated to remain robust for top-tier properties with in-place cash flow while reduced valuation opportunities may only be available for complex and/or less desirable assets.” – Daniel Lesser, LW Hospitality Advisors Read story
“Select-service pricing has remained remarkably consistent, likely due to the sector's lean operating model and ability to generate stable returns for investors. Luxury pricing, on the other hand, has generally increased due to robust operating performance and heightened investor interest. However, pricing still varies depending on the market and specific asset.” – Zach Demuth, JLL Hotels & Hospitality Read story
“The investment marks another strategic acquisition by Millemont and our fifth hotel transaction since 2022. Edinburgh is one of the best-performing hotel markets in Europe, and we are delighted to increase our presence in this thriving market. This acquisition allows us to continue the growth of our hotel portfolio with one of the largest hotels in the city.” – Ashley Shaw, Millemont Capital Partners Read story
“We are already present in 22 countries. They are not new
markets for us. They are new markets for our hotel expansion, but we already
have an operating structure in many of those markets.” – Philipp Knuepfer, Sunset
Hotels & Resorts Read story
“Over two-thirds of consumers today are either Gen X,
millennials or Gen Z… which greatly dispels the idea that this is a product for
your grandfather or grandmother.” – Michael Brown, Travel + Leisure Co. Read story
“The resilience and highly cash-generative nature of our
business model was once again on full display this quarter. Amid a normalizing
domestic RevPAR environment, we delivered strong adjusted EBITDA driven by net
room and ancillary fee growth.” – Geoff Ballotti, Wyndham Hotels &
Resorts Read story
“The collective power of the investment and development
opportunities throughout these regions rivals that of any geographic area in
the world. The approach of the ALIS CALA programming and networking platforms
will facilitate localized and regional content that produce more free-flowing
conversations and connections to further enable extended collaboration and
results.” – Jeff Higley, The BHN Group
Read story