ESA deal proxy statement: Interesting details can be found in a preliminary proxy statement filed by Extended Stay America (ESA) and its paired-share REIT, ESH Hospitality (ESH), about their previously announced definitive agreement to be acquired by a 50/50 joint venture between funds managed by Blackstone Real Estate Partners and Starwood Capital Group for US$19.50 per paired share in an all-cash transaction valued at approximately $6 billion. The statement comes after March reports about some shareholder believing the price undervalues the company. The preliminary proxy statement outlines the interesting background of the transaction and the reasons the Boards of Directors of the company strongly support the transaction, which include: immediate, certain and compelling value to shareholders; superior value to the continued execution of Extended Stay’s strategic plan on a time and risk-adjusted basis; and culmination of thorough actions to explore value-enhancing alternatives.
Read the filing for more details
Miami Beach boutique planned: Miami Beach hotelier Ronny Finvarb has closed on the site of a planned boutique hotel, also located in Miami Beach. Finvarb’s Sobe 18 paid US$4 million for the 10,200-square-foot property, he said. There, he plans to build a 36-room hotel with a restaurant on the ground floor. The property previously traded for US$1.2 million in 2011.
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HMM adds 25 since 2020: Hersha Hospitality Management, Philadelphia, Pennsylvania, on Wednesday announced the addition of 25 hotels totaling approximately 4,000 rooms to its portfolio since last year. The company’s full portfolio includes 140 hotels operated on behalf of more than 20 institutional and long-term owners. Despite the pandemic, HHM successfully launched and/or opened three new luxury or lifestyle properties for their owners: The Whitney Hotel in Beacon Hill/Boston, the THesis Hotel in Coral Gables/Miami and the Plaza Hotel at Pioneer Park in El Paso. HHM also has completed seven sponsored investments in the past two quarters alone. “While we think of ourselves primarily as a hotel manager, we have available capital and dedicated teams whose sole focus is on acquiring hotels and expanding our investment portfolio,” said Naveen Kakarla, president and CEO, HHM. “We have been moving quickly and decisively in this area and look forward to making additional investment announcements soon.”
Marriott Bonvoy, Uber partner: Starting today, members of Marriott Bonvoy will be able to earn points toward free nights at Marriott hotels, as well as premium and luxury home rentals when ordering food delivery on Uber Eats and requesting select Uber rides. Available across the U.S., Marriott Bonvoy members who link their Bonvoy and Uber accounts in the Uber app will automatically start earning points on all qualifying transactions. Members will be able to earn up to six points per dollar spent on Uber Eats delivery with a minimum US$25 basket and three points per dollar spent on Uber XL, Comfort and Black rides.
Vegas hotel incents employee vaccinations: The Cosmopolitan hotel-casino on the Las Vegas Strip has committed to paying up to US$1 million in cash bonuses if 80% of its workforce receives their first dose by May 1. Additional tiered cash bonuses will be administered to employees for 60% and 70% positive vaccination rates as well. The resort released the following statement: “In response to the Nevada Gaming Control Board’s clear direction to gaming companies to accelerate the vaccination of its workforce, effective April 13, The Cosmopolitan of Las Vegas will launch the next phase of its COVID-19 vaccination plan as a continuation of the resort’s ongoing health and safety measures. To incentivize employees to receive the vaccine as soon as possible, the resort will commit to pay upwards of US$1M in total cash bonuses should 80% of the workforce receive their first dose by May 1. Employees who have yet to receive the vaccine are strongly encouraged to take advantage of the resort’s free onsite vaccination clinic.”
IHG’s digital check-in now in U.S., Canada: IHG Hotels & Resorts’ guests can now use digital check-in within the U.S. and Canada via mobile devices, computers and tablets. At check-in time, guests will receive a notification with the option to check-in from their phone or the IHG App. Once the process is completed, they will then be prompted to go to a designated lobby area, show their identification, and pick up their room key. At check out, guests will receive a reminder via email or the IHG App, review their bill, and then be able to leave the keys in the room and go.