AJ Capital seeks US$300M: Nashville, Tennessee-based AJ Capital Partners is seeking a strategic partner to supply growth capital and pay down property level debt for Graduate Hotels, according to a Bloomberg report. The company is seeking as much as US$300 million in a combination of debt and equity, according to people familiar with the matter.
Canada’s 2020 pipeline: According to the year-end Lodging Econometrics Construction Pipeline Trend Report for Canada, the country’s hotel construction pipeline ended the fourth quarter of 2020 at 270 projects/34,678 rooms, a mere 35 fewer projects than the region’s peak of 305 projects achieved in Q4’19. Projects under construction stand at 83 projects/9,836 rooms. Projects scheduled to start construction in the next 12 months recorded 87 projects/10,142 rooms, while projects in the early planning stage stand at 100 projects/14,700 rooms, up 12% by projects and 4% by rooms year-over-year (YOY). The under construction and scheduled to start in next 12 months stages have both seen declines YOY after recently reaching peaks. New project announcements were at their highest in Q4 than at any other quarter of 2020 with 20 projects/1,882 rooms, a promising sign.
Peakside raises US$194M: Frankfurt, Germany-based Peakside Capital Advisors has so far raised €160 million (US$194 million) for its latest value-add German real estate fund. It expects several opportunities coming out of market distortions in the wake of the COVID-19 pandemic, particularly in the retail and hotel sectors, and specifically for assets which lend themselves to conversion into office or residential use. The Peakside Real Estate Fund IV’s (PREF IV) first close was backed by institutional investors and family offices across Europe. PREF IV’s investors also include about 80% of the equity base of the predecessor fund which raised €200 million (US$241 million) in September 2018. Peakside Capital said the latest fund plans to raise around €350 million (US$423 million) of equity for a total investment volume including debt of up to €900 million (US$1.1 billion).
Hotel West + Main breaks ground: Keystone Property Group has broken ground on the new Hotel West + Main, part of the Tapestry Collection by Hilton, a milestone in its 520,000-square-foot Sora West development located in Conshohocken, Pennsylvania (also the company’s headquarters). Keystone has partnered with Concord Hospitality Enterprises to develop and operate the 127-room boutique hotel (the third hotel for Conshohocken and the first newly constructed since 2001). The US$325 million mixed-use project includes a new global headquarters for Fortune 10 pharmaceutical distribution company AmerisourceBergen, the reuse of a 146-year-old historic firehouse, and a 12-story public and private parking garage. The hotel is expected to open in the second half of 2022.
Virtuoso sees momentum: During a February 2-4 virtual U.S. and Canada Virtuoso forum, Senior Vice President of Global Partnerships Albert Herrera pointed out that while service spending decreased dramatically in 2020, Americans’ personal savings increased 173% over 2019, citing a New York Times report. Virtuoso also reported that inquiries coming through its advisors doubled from June to September 2020, and January 2021 brought renewed optimism with as much as a 50% increase over December in requests to be connected to an advisor. When Virtuoso advisors were asked when they anticipated feeling comfortable or confident about business returning, 80% of respondents said that it will be this year; a surprising 7% said they are already there. Virtuoso advisors said almost half of their daily business is new bookings, with only 10% using travel credits and 38% being business with full revenue. Virtuoso advisors for cruises, hotels, on-sites and tour operators all booked more business in December than they did in October, some by as much as 40%. Overall, the network showed double-digit increases in terms of share and its support of preferred hotels. Additionally, those who booked also stayed longer – an increase of 13% in average length of stay. Even better says Virtuoso, clients spent 2.8 times more on preferred bookings than on non-preferred hotels.
Meadowood restaurant hits the road: Meadowood chef residency begins: Chef Christopher Kostow and the three-Michelin-starred The Restaurant at Meadowood has kicked off its winter residency at the Ojai Valley Inn in Southern California. This collaboration marks a new home for the restaurant which was destroyed by a California wildfire in September. The six-course dinner with wine pairings will take place Wednesday-Sunday at US$495 per person.
U.S. meeting growth: January U.S. monthly meetings and events volume increased 7.3% over the previous month, according to Knowland. The new year started slowly but picked up pace as the month continued. Several key markets rebounded nicely which added to the increases. Key takeaways:
• Average attendees increased. The average number of attendees in January 2021 was 42 compared to 37 in January 2020
• Average square footage used increased. The average space used in January 2021 was 1,550 square feet while meetings in January 2020 averaged 1,218 square feet.
• Individual markets still grew. Month over month, the top five growth markets were Fort Lauderdale, Florida; Dallas, Texas; Minneapolis-St. Paul, Minnesota; Washington, D.C.; and Atlanta, Georgia.
• Corporate meetings represent the largest meeting segment. Corporate meetings produced most of the activity with 63.7% of total meetings for the month.
Why tell them when you can show them? The Wyndham Grand Orlando Resort Bonnet Creek in Orlando, Florida, has created a short video showcasing health and safety protocols in place for upcoming meetings and events. From physically distanced room set ups and hybrid capabilities, to F&B adjustments and safety measures and overall resort amenities, the video gives meeting and event planners a visual way to share with clients all the new guidelines to make sure a group gathering follows best practices with regard to COVID-19 safety.
Checkout-free hotel store in Japan: Zippin, San Francisco, which specializes in checkout-free technologies for brick-and-mortar retail, has launched a new retail format: a hotel convenience store. Zippin’s partner, Fujitsu, a systems integrator in Japan, has worked with Koyo Group to implement a checkout-free store within a hotel at the Yokohama Techno Tower Hotel in Yokohama, Japan. It is also the first store in Japan open to the general public to use biometric authentication technology to verify customers’ identities. Koyo will start full-scale operation at the store in April 2021.
CoralTree manages Miramonte: Denver, Colorado-based CoralTree Hospitality Group has taken over the management of the 215-room Miramonte Resort & Spa in Indian Wells, California after parent company Lowe recently purchased the luxury property. The resort will undergo US$3.5 million in enhancements. Miramonte is scheduled to reopen later this month.
Freehand launches extended-stay offering: London-based Freehand Hotels, a collection of boutique design hotels, has launched a new exclusive membership program and extended stay product. “The Freehand Club” allows guests to take advantage of a fixed price, monthly membership (renewable for up to three months) giving them one private room at any Freehand hotel on any given night within the month. Freehand Club members also get unlimited access to open hotel amenities.