Cross in Japan with 7-hotel deal: Bangkok-based Cross Hotels & Resorts has expanded its regional footprint with entry into the Japanese market in a master franchise agreement with AB Accommo Company Limited to operate seven properties with a total of 844 keys within four years stretching across Okinawa in the far south to Hokkaido. The inaugural property, located on Kouri Island, will be the Away Okinawa Kouri Island Resort, with a projected opening date of July 2021.
Saudi Arabia, global supply growth leader: Saudi Arabia shows 73,057 rooms across the three phases of the hotel pipeline, and the country’s projected 67.1% increase in room supply over the next three years is the highest among the world’s 50 most populated countries, according to STR’s AM:PM platform. Of the total rooms in the pipeline as of March 11, 16,965 were scheduled to come online over the duration of 2021. The 67.1% increase assumes completion of all projects in construction, final planning and planning.
While a significant portion of Saudi Arabia’s pipeline activity is concentrated in Makkah (28,052 rooms under development), several other submarkets across the country are expected to increase hotel supply by 50% or more.
1. Makkah: 28,052 rooms (+81%)
2. Saudi Arabia Regional: 13,996 (+80%)
3. Riyadh: 13,165 rooms (+75%)
4. Jeddah: 11,198 (+97%)
5. Al Khobar & Dammam: 5,418 (+47%)
6. Medina: 1,228 (+7%)
A&O buying Edinburgh Hostel for US$22M: Safestay Plc will sell the Edinburgh Hostel in Scotland to A&O Hotels and Hostels for £16 million (US$22 million), representing a 22% premium to the £13.4 million (US$18.4 million) book value. The 2019 annual EBITDA of the hostel pre-COVID 19 was £1.7 million (US$2.3 million). The group has responded to the pandemic and associated lockdowns across Europe by reducing the monthly cash burn of the business, which has significantly mitigated the impact of having to close the hostels.
Wyndham redeems senior notes: As of April 15, 2021, Wyndham Hotels & Resorts will redeem all US$500 million aggregate principal amount of its outstanding 5.375% senior notes due April 15, 2026. The notes will be redeemed on the at a redemption price equal to the sum of 102.688% of the aggregate principal amount of the notes plus accrued and unpaid interest up to, but excluding, the redemption date. The company expects the redemption of the notes to reduce its annual cash interest expense by approximately US$27 million. Coupled with the issuance of 4.375% senior notes in August of 2020, this redemption effectively returns Wyndham to pre-pandemic debt levels while extending US$500 million of maturity by approximately 2.5 years at a 100 basis point (or 19%) lower interest rate.
Accor’s new development svp: Accor has appointed Mark Purcell as senior vice president, Development, North & Central America. Purcell has an extensive hospitality background focused in the areas of development, acquisitions and finance. Over the course of his 12-year tenure at Starwood Hotels & Resorts, he led the negotiation of more than 100 management and franchise agreements, adding more than 30,000 rooms to their portfolio, including notable transactions such as The Westin Denver International Airport and the W and Element Philadelphia. Earlier in his career, he was also instrumental in numerous mergers and acquisitions during his nearly two decades at Interstate Hotels & Resorts.
Avroko launches female-forward ‘Hospitable Bridge’: New York City-based hospitality design and concept firm Avroko, and its sister agency Brand Bureau, are launching an accelerator studio funding and supporting female founders of color in hospitality. Hospitable Bridge’s mission is to “step into this space to financially support businesses owned by women of color in the hospitality sector.” All Hospitable Bridge ventures will receive US$15,000-US$50,000 in pre-seed investment. They will also be supported via the Avroko and Brand Bureau Partners and studios, with support including educational content, legal resources, financial guidance, and operational insight; access to female mentors and business coaching; as well as consulting on public relations, graphic design, interior design, branding and strategy.
Cambria’s new wines: The upscale Choice Hotels brand Cambria Hotels has launched a new collaboration with Cambria Estate Winery, part of Jackson Family Wines in Santa Maria, California. Starting in June 2021, Cambria Estate Winery will offer its Julia’s Vineyard Pinot Noir and its Katherine’s Vineyard Chardonnay at Cambria Hotels restaurants and bars across the country, as well as in the self-serve marketplace. Throughout 2021, select Cambria hotels will also host interactive “Corks & Crafts events,” pairing wines and craft beers with locally inspired food to reflect the tastes of the destination they are exploring.
McKibbon adds Hilton Garden Inn Jacksonville: Tampa, Florida-based McKibbon Hospitality has added the 127-room Hilton Garden Inn Jacksonville | Ponte Vedra to its management portfolio. The new contract expands McKibbon’s presence in Jacksonville, Florida, where the company currently manages two additional hotels: Aloft Jacksonville Airport and Homewood Suites by Hilton Jacksonville-South/St. Johns Center.
New task force around secure data collection: The movement toward high-tech solutions to engage guests and customers has greatly increased in the hospitality industry and has especially accelerated over the past year as hospitality enterprises implemented health safety protocols to address distancing guidelines. In response, the Austin, Texas-based Hospitality Financial and Technology Professionals has assembled a Global Hospitality PII Management Task Force of hospitality technology experts to examine and develop guidelines for hospitality companies to follow as best practices. Michael Levie ,co-founder of CitizenM Hotels, is acting as the task force’s chair.
Lausanne’s Beau-Rivage Palace reopens: The Beau-Rivage Palace in Lake Geneva at the base of the Swiss Alps in Lausanne is reopening its doors April 1, after being shuttered due to COVID-19. The hotel has taken advantage of the temporary closure and is debuting several upgrades. The Beau-Rivage wing has undergone a renovation, and the new Cinq Mondes Spa has a new space and new wellness concepts.