QHotels to be sold: The Times of London reported that QHotels is being put up for sale by its private equity owners, Sankaty Advisors and Canyon Capital Advisors, for an estimated £650 million (US$968 million) just a year after acquiring the portfolio.
Read more at The Times of London
KIC considers luxury hotels investment: Reuters reported that South Korean sovereign wealth fund Korea Investment Corp. is considering investing more than US$1 billion in three 5-star hotels owned by Saudi Prince Alwaleed’s Holding Co. The deal would reportedly include a 50% stake in the famed Savoy in London.
Hyatt grows in Palm Springs: A Hyatt Hotels Corp. affiliate has entered into a management contract with Rael Development Corp. for an Andaz hotel in Palm Springs, California. Andaz Palm Springs is expected to open in 2016 and include 150 guestrooms and 17 suites.
Cornell study highlights hotel risk premium: A new report from Cornell University’s Center for Hospitality Research highlights the factors that drive the interest-rate spread between loans for hotels and office buildings. According to the study, lenders require hotel owners to pay a higher interest rate than other real estate, because hotels are viewed as a more risky investment.
Up to three hotels proposed in Michigan: Group 10 Hospitality has proposed to demolish the former headquarters of Alexander Hamilton Life Insurance in Farmington Hills, Michigan, and construct a 140-room Holiday Inn and 106-room Courtyard by Marriott. A potential third hotel could also be built if the first two hotels are successful.
Read more at the Detroit Free Press