ESA to urge support of sale: Extended Stay America and its paired-share REIT, ESH Hospitality, on Monday announced that the company has filed a definitive joint proxy statement in connection with the company’s 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 US$6 billion. Extended Stay’s Special Meetings of Shareholders are scheduled to take place on June 8. The company will mail the joint proxy statement to its shareholders on or about April 26, 2021, and urge them to vote in favor of the transaction.
Read the letter sent to shareholders
Olive Tree launches: New York-based real estate investment firm Olive Tree Holdings has launched Olive Tree Hotels & Resorts, a fully integrated hospitality group focused on the acquisition and strategic repositioning of hotels across the U.S. The company has named as CEO hospitality industry veteran and former Holiday Inns CEO Ken Hamlet. Olive Tree plans to invest over US$500 million of equity capital over the next three years in select-service hotels and opportunistic full-service assets.
BPG secures funding for D.C. Marriott: The Buccini/Pollin Group (BPG) has closed an open investment round for its Marriott-affiliated project in Washington, D.C. The company raised US$6.2 million from 145 individual investors via the online platform CrowdStreet for its 235-room Washington Marriott Capitol Hill/NoMa project, currently under construction. It’s part of a massive mixed-use project known as the NoMa CNTR backed by BPG and Beltway developers Perseus TDC and Four Points LLC, along with investor Sunwater Capital.
More from the Delaware Business Times
Vonder launches hotels in central London: Co-living brand Vonder will launch a new branch of its evolved co-living concept, presenting two community driven hotels in Earls Court and Paddington, with the former due to launch in May and the latter in July. The project is an additional venture to the London-based Vonder’s residential sites already situated in areas across London. Both hotels will provide an alternative option for extended stays at affordable prices. The concept has been created “to offer a social hotel experience for guests looking to stay for both short and long-term periods.” Overall, the two hotels will offer 95 rooms between each of the four buildings and will accommodate stays for one to four people.
Six Senses partners with sustainability coalition: As part of its strategy to remove and avoid all virgin plastic materials from its hotel and spa operations, Bangkok-based Six Senses Hotels Resorts Spas will partner with the United States Coalition on Sustainability and SustainChain. Starting with single-use and disposable plastic as the top priority, Six Senses is removing exposure to all plastics for guests as well as communities in and around its properties.
The Student Hotel in Rome: The Student Hotel brand from Amsterdam-based TSH Group has just closed a deal for its fifth property in Italy, adding to the pipeline it operates in 16 European countries. The property, the TSH San Lorenzo in Rome, is expected to open by the end of 2023. The seller is Residenziale Immobiliare, which is fully owned by Cassa Depositi e Prestiti, the investment fund of the Italian Ministry of Economy and Finance. Part of the existing building was used to organize events, such as art exhibitions, while the building facing the street was abandoned and previously used as an office. With the acquisition in the area of San Lorenzo, TSH Group says its investment in Italy now totals over €450 million (US$544 million).
East Avenue Development in Utah: East Avenue Development has acquired two properties in Moab, Utah. The company has selected Vista Host Hotel Management to manage the properties, which include the 79-room Hampton by Hilton Moab and 119-room Holiday Inn Express & Suites by IHG Moab.
Brand boycotts: A new study from Savings.com found 50% of Americans are more likely to boycott a brand due to their political positions than they were just one year ago, and Democrats are more likely to boycott than Republicans. Coming off one of the most polarizing political years in American history, brands that take political positions risk a dramatic impact to their bottom line. Key findings include:
- In 2020, 1 in 4 American shoppers (over 50 million) stopped purchasing from a brand due to their support of a presidential candidate
- More than 1 in 3 American shoppers (over 65 million) stopped purchasing from a brand in the last year due to COVID-19 policies, poor customer service and/or mistreatment of employees. Nearly 1 in 4 Americans stopped purchasing due to “controversial comments”
- Large percentages of consumers say brand politics will influence their decisions in the future. Forty-seven percent of people said they’re more likely to spend money on brands whose politics align with their own
- 50% of Americans are more likely to boycott a brand due to their political positions than they were just one year ago
China’s May Day bookings 8x higher: Hotel bookings in China for the coming May Day holiday have increased eightfold over last year’s, according to travel platform Qunar. Hotels are reporting a surge in bookings as travelers plan their trips during the traditional holiday honoring workers running from May 1 to 5 in China. According to the data, hotels in big cities like Shenzhen are at nearly the same level as they were before the epidemic.