Blackstone out at Hilton. Hilton said Friday stockholders affiliated with The Blackstone Group are going to sell 15.8 million shares of Hilton common stock, which will end Blackstone’s ownership stake in common shares. Following the closing of the sale, Hilton will repurchase 1.25 million shares and distribute 214,503 shares of Hilton common stock.
Park sale. Park Hotels & Resorts has closed on the sale of the 601-room Hilton Berlin for gross proceeds to the joint venture owners of €297 million (US$350 million), or US$583,000 per key. Park’s pro rata share of gross proceeds was approximately US$140 million. The sale price represents an EBITDA multiple of approximately 20x the hotel’s 2017 EBITDA marks the 13th hotel that Park has sold in 2018 and the 10th hotel located in an international market.
Wynn sticking it out in Boston. The Encore Boston Harbor owned by Wynn Resorts apparently will not be sold after all. After weeks of negotiations, multiple reports suggest Wynn is keeping its Boston-area casino project. MGM Resorts and Caesars Entertainment were supposed bidders, but reportedly made bids well under the projects US$2.5 billion construction costs.
Shooter at Doral. A man reportedly opened fire early Friday at the Trump National Doral Golf Club in Miami while yelling “anti-Trump … rhetoric.” The suspect was shot by police in an exchange of gunfire, was arrested and listed in stable condition. The gunman reportedly took a flag from a pole in the rear of the complex, brought it into the hotel lobby, draped it over a counter, yelled rhetoric against President Donald Trump and fired a gun into the air – at the roof and chandeliers.
No surprise here. While U.S. President Trump’s hotel company reportedly earned US$40 million last year from his Washington, D.C., property, USA Today updated the story on Friday by suggesting more than US$350,000 in campaign funds contributed to the hotel’s revenue, 60% coming from events hosted by the Republican National Committee.
Highgate’s new deal. Sandestin Investments has announced Highgate will manage the newly developed Sandestin Hotel and Conference Center slated to open in 2020. The hotel will be a 250-room full-service hotel and conference center located adjacent to the Baytowne Conference Center at Sandestin Golf and Beach Resort.
More bad news for Airbnb. The Bangkok Post reported people who rent out their rooms via Airbnb on a daily or weekly basis are acting illegally, according to a recent court ruling handed down to the Wan Vayla Condo in Hua Hin district of Prachuap Khiri Khan province. The court ruled that people renting out their rooms have not obtained a license to run a hotel business under the 2004 Hotel Act. Only rentals of 30 days or more would be legal. The parties affected by the ruling include owners of condos who rent out their rooms via the Airbnb app on a daily and weekly basis to both Thai and foreign customers. At the same time, The Boston Herald is reporting that Boston Mayor Martin Walsh is slamming Airbnb PR efforts as the city prepares to vote on strict new short-term rental regulations. If passed, the proposal would ban anyone who does not live in their property from renting it via Airbnb or other services.
New fund will hit market. Trinity Merger Corp., a special purpose acquisition vehicle led by real estate investment professionals Lee Neibart and Sean Hehir have announced the closing of its initial public offering in which it raised gross proceeds of US$345 million. The company intends to focus on business combination candidates with a real estate component and an enterprise value of approximately US$750 million to US$2 billion. The two have worked together for more than 20 years, partnering on several large institutional real estate transactions. Altogether, the company’s leadership team has acquired more than 50 hotels with more than 30,000 keys in the United States and abroad.
Marriott at the mall. Marriott International and shopping mall giant Simon have announced their plans to open at least five new hotels at Simon shopping centers over the next several years. Already expected to open over the next several years: AC Hotel by Marriott Fort Lauderdale Sawgrass Mills/Sunrise in Florida; AC Hotel by Marriott Miami Dadeland; Courtyard Marriott Wolfchase Galleria/Memphis, Tennessee; Residence Inn Long Island Jericho, New York; and the Fairfield Inn & Suites Dallas Garland, Texas.