Co-working to accelerate recovery: Over the last three months, Miami, New York and D.C. have announced partnerships with WeWork to offer discounts to companies bringing people back to the office, according to reporting from Bisnow. The co-working company finances the discounts without city subsidies, but the cities are using their promotion and marketing power to push people toward the WeWork spaces. The New York partnership offers two months of free office space for companies that make a six-month commitment, three months for those that make a 12-month commitment. It also offers a one-month free trial and 12 months of 15% for WeWork All Access, a pass that allows members to use any WeWork location in the city.
S Hotels to divest some underperforming UK hotels: Bangkok-based S Hotels and Resorts Public Co. Ltd., the flagship hospitality arm of Singha Estate, intends to divest a selection of its underperforming hotel assets in the United Kingdom, as part of its strategy to optimize its UK portfolio and maximize returns. The company said it intends to enter into a sale agreement for the 73-key Mercure Newbury Elcot Park in the amount of £4.25 million (US$6 million). In addition, the company is also considering to dispose up to five other UK hotels in the portfolio which have been identified as non-core assets. Proceed from sales will be used to reinvest in the renovation of core hotel assets in the portfolio to lift up the product and potentially enhance their profitability.
Caesars to invest US$400M in Atlantic City: Caesars Entertainment has plans to invest US$400 million in Atlantic City where it owns and operates three casinos – Caesars, Harrah’s Resort, and Tropicana Atlantic City. The plans include remodeled room towers, new interior design elements, enhancements to the casino gaming floors and new dining concepts. The first phase of the project, a US$170 million renovation of guest rooms and suites at Caesars and Harrah’s, will debut in summer 2021.
Michigan casino’s US$300M project: The Shelbyville, Michigan-based Gun Lake Tribe will embark on a US$300 million expansion project plan to turn property at the Gun Lake Casino in Wayland, Michigan, into a resort. The casino expansion plan will add approximately 250,000 square feet to extend the property going west. It will be the home of a 250-room hotel with amenities like a fully enclosed glass-domed pool. The expansion project is a part of continued development on master planning and infrastructure required to create an entertainment facility. The hotel construction is expected to begin at the end of the summer and the work on the designs for a fifth phase will begin immediately upon completion.
Hotel for Miami’s US$300M “Jungle Island” project: ESJ Capital Partners, an Aventura, Florida-based commercial real estate firm, has secured the final approvals necessary to move forward with developing an “eco-adventure destination” and hotel on 18.5 acres of waterfront in Miami. The US$300 million project is a re-imagining of “Jungle Island,” a zoological theme park and botanical gardens built in 1936 that once boasted a large and rare collection of exotic animals and birds. Set to re-open in mid-2022 as “Jungle Island: Miami’s Adventure Oasis,” the redesigned park will also ultimately have a 300-room, family-friendly eco-resort, scheduled to open in late 2024 or early 2025.
Scandic convertible bonds: To mitigate the spread of COVID-19, Stockholm-based Scandic held an “extraordinary general meeting” and resolved to approve the board of directors’ resolution on March 26, that the loan raised by Scandic at par value of not more than SEK1.8 billion (US$214 million) shall be convertible into shares in Scandic by way of an issue of convertible bonds. More information about the resolution is available in the notice and the board of directors’ complete proposal which are available on the company’s website.
Select U.S. hotel sales survey: According to a new select U.S. sales survey from LW Hospitality Advisors, the hotel industry has rapidly adjusted its operating model due to the devastating effects of the pandemic. However, permanently embracing the pandemic induced cost savings as the market recovers will be a key challenge. Maintaining reduced staffing levels, keeping unprofitable food and/or beverage outlets shuttered, and removal of some guest room amenities has contributed to dramatically reducing full- and limited-service hotel break even points. It remains to be seen if and/or when these break-even points will increase over time due to “amenity creep” that typically evolves during periods of strong transient lodging demand.
Elegant to convert Barbados hotels into all-inclusive Marriotts: London-based Elegant Hotels will reopen both The House by Elegant Hotels and Treasure Beach by Elegant Hotels on May 18 and June 10, respectively, under a new adults-only, all-inclusive resort concept as part of the All-Inclusive by Marriott portfolio. Located on the Platinum West Coast of Barbados, both boutique properties will now offer new culinary, romantic, wellness and cultural experiences.
Raines acquires Waynesville Inn: Florence, South Carolina-based developer Raines has acquired the Waynesville Inn Golf Resort & Spa in Waynesville, North Carolina. The property, which will be owned, developed, and operated by Raines, joins the firm’s boutique hotel division, Woven by Raines, and expands their existing footprint in Western North Carolina, where they also manage The Foundry Hotel Asheville, Curio Collection by Hilton in nearby Asheville, North Carolina. The 165-acre property houses the 111-room hotel as well as a 27-hole golf course, originally designed by golf architect Donald Ross.
U.S. readies small-business grants: The U.S. federal government is preparing to open two new industry-specific small-business relief programs, one of them months in the works, as its signature pandemic aid effort, the Paycheck Protection Program, nears its end. The Small Business Administration said it hopes to start taking applications by the end of this week for a US$16 billion grant fund for live-event businesses like theaters and music clubs. On Saturday, the agency posted additional details on its forthcoming Restaurant Revitalization Fund, a US$28.6 billion support program for bars, restaurants and food trucks whose sales were devastated by the shutdowns that states imposed in response to the pandemic. The fund was created as part of last month’s US$1.9 trillion economic support package.
New hires for Stonehill: Atlanta, Georgia-based Stonehill has new leadership appointments supporting its growing Stonehill PACE lending platform. The commercial property assessed clean energy (“PACE”) focused unit has extended its role via financing commercial loans to companies involved in renewable energy, energy-efficient components and seismic retrofitting. As a result, Stonehill promoted Jared Schlosser to senior vice president and head of Stonehill PACE, Lisa Nordel to vice president of operations and Allison Neary to senior analyst. Also, Stonehill PACE recently hired Gabrielle Arieno and Robert Loeb as business development associates and Jadah Quick as a senior asset management analyst.
International arrivals to South America fell by 48% in 2020: South America’s tourism is fragile compared to regions such as North America and Europe, according to new data from analytics company GlobalData. Tourist hotspots Peru and Ecuador were some of the most severely affected nations recording a 73% and 70% drop in international visitors respectively. Venezuela’s dismal economic situation and political disruption, coupled with the COVID-19 epidemic, saw its already fledgling tourism industry continue to fall by 71%. As a result, GlobalData predicts that international tourism will not recover in the region until at least 2022.
Canada-U.S. land border restrictions, hotel quarantine extended: Canada and the United States have extended a land-border closure for non-essential travelers, and air passengers arriving in Canada will continue to be tested for COVID-19 ahead of a hotel quarantine period, authorities said. The land-border restrictions, imposed in March 2020, have been extended to May 21. Now in place for 13 months, they are being renewed month by month. Mexico said late on Monday it was maintaining some of its border curbs, too. The U.S. Department of Homeland Security said it was “engaged in discussions with Canada and Mexico about easing restrictions as health conditions improve.” The restrictions have hit many border communities and businesses hard. Many U.S. lawmakers have urged loosening the restrictions or setting a road map to resuming normalized travel.
Thai hotels mull closing for low season: The resurgence of COVID-19 is forcing Thai hoteliers to consider temporarily closing down given the low income and poor demand from tourists. Marisa Sukosol Nunbhakdi, the president of the Thai Hotels Association (THA), said non-chain hotels without adequate cash flow are choosing to cease operations from April to October, or until tourism demand resumes instead of waiting out another slump. Sukosol Nunbhakdi said the occupancy rate in April was expected to drop to single digits, similar to the second wave in January. The last two weeks of April will prove critical in hotels’ decision to close for the low season, she said, adding that only 400,000 hotel workers remain in the industry.
Courtyard by Marriott will host NFL draft conversation: Courtyard by Marriott, the Official Hotel of the NFL, is partnering with Rich Eisen, an Emmy-nominated sports talk show broadcaster, to host a Clubhouse conversation to encourage fans to talk about predictions and commentary around the NFL Draft. On April 28, at 6:30pm EST (the eve of the NFL Draft), Courtyard will launch the invite-only, audio-based Clubhouse conversation.