Lawsuit accuses Marriott of misappropriating funds: Marriott International has been sued by a Manhattan landlord for the alleged misappropriation of US$12 million at its now-defunct Marriott East Side hotel in New York City. An Ashkenazy Acquisition-backed joint venture, which owns the building the hotel is in, filed the lawsuit against Marriott in New York State Supreme Court last week. According to the suit, the hotel used US$12 million from maintenance and repair reserves to boost its balance sheet. The landlord also seeks US$42 million for breach of contract.
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San Fran Hiltons want US$725M loan aid: The owner of the San Francisco’s two largest Hilton hotels has requested help meeting obligations on a US$725 million loan backed by the two properties. The borrower, Park Hotels & Resorts Group, a publicly traded REIT based in McLean, Virginia, hasn’t missed any regular debt payments on the loan but has landed on an industry watchlist for commercial-mortgage back securities at risk of defaulting. The Hilton San Francisco Union Square property, the region’s largest hotel, has 1,921 rooms and a 2016 appraised value of US$1.02 billion, while the Hilton Parc 55, a block away from its larger sister hotel, has 1,024 rooms and an appraised value of US$540.4 million.
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Trump’s ‘back room’ hotels: The New York Times has released a report, the fourth in its series, based on U.S. President Donald Trump’s federal tax returns, illustrating how the paper says the president turned “his own hotels and resorts into the Beltway’s new back rooms, where public and private business mix and special interests reign.” Trump attended 34 political fundraisers at his hotels and resorts that brought in US$3 million in revenue, the Times reported. More than 200 companies, special-interest groups and foreign governments patronized Trump properties, benefiting the commander-in-chief and his family at a time when his personal business empire was under financial strain, the Times also found.
Forecasts and asset management: A new dashboard from asset management firm Hotel Ave shows that industry forecasts for 2020 imply a 70% RevPAR decline for Q4 based on actual year-to-date results, while weekly trends have been averaging minus 50%. The group’s asset management strategies for 2021 indicate that leisure travel will exceed 2019 levels, while group will likely be negative and corporate recovery will begin in Q2 of 2021, achieving 50% of 2019 levels in H2 of 2021.
Mandarin Oriental Ritz, Madrid will open in spring: The Mandarin Oriental Ritz, Madrid has confirmed that it will open next spring, and is accepting reservations starting March 15 2021.The hotel is on the verge of completing a three-year renovation, with Spanish architect Rafael de La-Hoz and the French designer duo Gilles & Boissier at the helm. The 153-room hotel will have five restaurants and bars, designed, developed and implemented by Spanish chef, Quique Dacosta. The Palm Court with its glass dome, reinstated after more than 80 years, will have a selection of artworks on display. And the hotel’s new leisure and wellness facilities include a heated indoor swimming pool, a vitality pool, steam room and fitness center.
US$1.2B luxury hotel in Mississippi: Universal Music Group is building three hotels under the brand “UMusic,” one of which will fill the 15-year vacancy of a site once occupied by the Broadwater Hotel in in Biloxi, Mississippi. The US$1.2 billion luxury hotel and concert venue will have 1,100 rooms, a golf course, marina and a casino, along with the music arena.
Saudi-based Amaala names new COO: Riyadh-based Amaala, an ultra-luxury integrated wellness and healthy living project along Saudi Arabia’s north western coast, named Victor Clavell new chief operating officer. Clavell has guided the openings of properties across the Americas, Europe, and Asia Pacific for The Ritz-Carlton Hotel Company, Bulgari, W and Edition hotels.
Cosmopolitan in Vegas adds security: The Cosmopolitan hotel-casino in Las Vegas has implemented several new security features following weeks of increased violence on the Vegas Strip. Every Friday and Saturday from 6 p.m. to 6 a.m., the hotel will allow entry only to those with reservations in the hotel or at a restaurant or to rewards members. All guests will be checked with metal detectors. Specific doors are now designated for entry and exit and the doors will be monitored by Metropolitan Police Department officers. The new measures started October 9.
McKibbon adds five: Tampa, Florida-based McKibbon Hospitality added five hotels to its management portfolio. Owned by Hospitality Investors Trust, the Hilton properties include Hampton Inn Boca Raton, Hampton Inn & Suites Boynton Beach, Hampton Inn Boca Raton-Deerfield Beach, Hampton Inn Palm Beach Gardens, and Hampton Inn West Palm Beach-Florida Turnpike. The five new hotels add a total of 579 rooms to McKibbon’s portfolio, expanding the company’s presence in South Florida, where it currently manages eight additional properties.