ESA sells 32 hotels. Extended Stay America (ESA) has completed sales of two portfolios totaling 32 branded Extended Stay America hotels. The company recently completed the sale of 16 Extended Stay America branded hotels across the U.S. to Lodging Advisory Group, Wichita, Denver and Phoenix. The disposition comes with franchise agreements for each of the 16 hotels. Additionally, LAG has committed to build or convert five additional Extended Stay America hotels in the future. ESA also recently sold 16 branded hotels to Provident Realty Advisors, Dallas. The hotels acquired by Provident include 11 hotels in Texas and five in Oklahoma and will be operated by Aimbridge Hospitality. The disposition comes with franchise agreements for each of the 16 hotels. Additionally, Provident has committed to build or convert five additional Extended Stay America hotels in the future.
Minor takes stake in GHA. Minor Hotels, Bangkok, has taken a 10% stake in the Global Hotel Alliance, (GHA) with an investment worth US$3.2 million. Minor Hotels have been members of the GHA since 2007, first entering with the Anantara brand. As the GHA will enter its 15th year in 2019, it is currently investing in new CRM and shared technology to build on the Discovery loyalty program, which it said has 13 million members and will produce US$1.7 billion in room revenue in 2018. GHA also said it wants to double those numbers in the next few years. Dillip Rajakarier, Minor Hotels CEO, will now join the GHA Board of Directors.
Another Mandarin turning to Waldorf. The Mandarin Oriental in Atlanta’s Buckhead neighborhood has reportedly sold and will be rebranded as a Waldorf Astoria property, a Hilton luxury brand. Mandarin Oriental Hotel Group said in a statement that it has received notice of termination of its management agreement and will cease managing the hotel from December 7, 2018. The termination is consequent to the sale of the hotel by iStar Financial Inc. Earlier this year, the Mandarin Oriental Las Vegas was sold and rebranded as a Waldorf property.
Hyatt on Two Roads. Hyatt Hotels Corp. reported Q3 earnings on Wednesday, stating systemwide comparable RevPAR grew 2.8% with U.S. hotels up 1.4% due to lackluster results among select-service properties. Hyatt also reported net rooms growth of 7.6% for the quarter and net income of US$237 million. CEO Mark Hoplamazian also said Hyatt expects to finalize its Two Roads Hospitality acquisition within a few weeks, adding that Hyatt plans to keep all the luxury and lifestyle brands such as Thompson, Alila and Joie de Vivre. In response to queries about potentially losing some Two Roads properties in the transition, he said the company’s similar customer base, its loyalty program and distribution system should improve results for Two Roads owners. He also said Hyatt will try to give new owners “as much stability as we can muster.”
Main Street moves. Main Street Hospitality Group, owners and operators of boutique hotels in the Berkshires of Western Massachusetts that include the Red Lion Inn, has been named as the management partner for the 84-room Hammetts Wharf hotel development on the waterfront in Newport, Rhode Island, due to open in 2020. This marks the company’s first step outside of Massachusetts as it pursues growth throughout the Northeast.
Localizing breakfast. The Hyatt Place brand has unveiled its new regional breakfast experience at hotels across the U.S. The new menu will draw from food culture from five regions across the country. For example, the Mediterranean scramble with chicken sausage comes from the West Coast, while a turkey sausage and pimento biscuit sandwich will be served in the South. Loyalty members who book an Eligible Rate or a Points + Cash Rate or are on an award stay will receive the breakfast complimentary.
Constance Hotels & Resorts, a collection of hotels in the Indian Ocean, has announced the debut of its new brand — C Resorts. Constance Hotels & Resorts currently operates in Mauritius, the Maldives, the Seychelles, Madagascar and Zanzibar. According to a statement, at C Resorts, guests will reconnect with their inner child and revive the true value of play in an environment that allows them to let go and relax.