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Briefs: Open US-UK travel urged | SVC, Hyatt make deal

“Open UK-US travel”:  Top aviation and travel leaders have jointly called for the reopening of the UK–US travel corridor, ahead of the G7 meeting in Cornwall. They urged governments to take a data-driven and risk-based approach to re-opening borders, citing world-leading vaccination programs in both countries. A recent York Aviation report stated that a second ‘lost summer’ of international travel would result in £55.7 billion in lost trade and £3.0 billion in tourism GDP. It will cost the U.S. economy US$325 billion in total losses and 1.1 million jobs by the end of 2021, according to the U.S. Travel Association.

SVC, Hyatt reach deal: Service Properties Trust (SVC) announced it has agreed with Hyatt Hotels Corp. to amend their previous management agreement for 22 Hyatt Place hotels owned by subsidiaries of SVC. Hyatt will continue to manage 17 of the hotels for a 10-year term effective as of April 1, 2021. SVC’s owner’s priority return is set at US$12 million annually, supported by a US$30 million guaranty for 75% of the aggregate annual owner’s priority return beginning in 2023. A management fee equal to 5% of gross room revenues payable to Hyatt will be an operating cost paid senior to SVC’s owner’s priority return. Following payment of SVC’s owner’s priority return and reimbursement of certain advances, if any, Hyatt may earn a 20% incentive management fee and SVC will receive the remaining cash flow. SVC will fund approximately US$50 million for renovations expected to be completed by the end of 2022.

Rosewood in Japan: Rosewood Hotel Group will open a hotel under its flagship Rosewood brand on a beach in the Okinawa Prefecture. The Rosewood Miyakojima will be set on Miyakojima Island with 55 villas, each with private pools, landscaped gardens and sea views. The hotel will be built and owned by Japanese real estate company Mitsubishi Estate Co. and managed by Rosewood. It is expected to open in 2024.

Q121 decline in Middle East: The construction pipeline in the Middle East dropped to 534 projects/153,225 rooms, according to the Lodging Econometrics’ Q1‘21 Construction Pipeline Trend Report. This figure is down 12% by projects and 11% by rooms year-over-year (YOY). Though hotel construction has fallen YOY, brand conversion and announced renovation project counts, over the last four quarters, have risen in the region, reaching a record high. Countries leading the construction pipeline are: Saudi Arabia with 185 projects/66,898 rooms, the United Arab Emirates with 154 projects/42,327 rooms, Egypt with 61 projects/14,912 rooms, Qatar with 57 projects/14,047 rooms, and Oman with 32 projects/6,474 rooms. Dubai continues to lead the construction pipeline in the UAE with 115 projects/32,596 rooms.

Another waterfront for OTO: OTO Development has bought the 242-room South Bay Inn & Suites in Myrtle Beach. The property will undergo a renovation and will be rebranded as Homewood Suites Myrtle Beach Oceanfront. It will be also become a Hilton affiliate. South Bay is OTO’s fifth waterfront property. It also recently transformed hotels in St. Pete Beach, Key West, and Marathon in the Florida Keys, and will soon begin an extensive renovation of a hotel in Wrightsville Beach, North Carolina.

Hilton Singapore to rebrand: Singapore-based Hotel Properties Ltd. announced that Hilton Singapore will be rebranded to Voco Orchard Singapore, an upscale brand under UK-based IHG Hotels & Resorts. The 423-key property is slated for reopening in January 2022. Voco Singapore will be IHG’s twelfth hotel in Singapore and the seventh brand within its local portfolio.

Taiba buys two hotels: Saudi Arabia’s Taiba Investments has agreed to purchase the Centro Waha Hotel Riyadh and Centro Shaheen Hotel Jeddah from Shuaa for SR328 million ($87 million). The buyout will be financed through loan finance.

Shamin buys in Virginia: Shamin Hotels has purchased the 120-room Hampton Inn on Virginia Beach’s Oceanfront from Norfolk-based Grand Bay Advisors. The property will be renovated, but will keep the Hampton Inn by Hilton branding. Shamin owns over 60 properties. The sale amount was undisclosed, although city records assess the land and building at US$20.6 million. This is Grand Bay Advisors’ third Virginia Beach Oceanfront property sale over the past six years.

New private residences in Tivat: Nikki Beach Resorts and Hotels is launching Nikki Beach Residences adjacent to the newly opened resort in Tivat, Montenegro. The new component will feature approximately 65 luxury lifestyle units with private pools and sky gardens, ranging from 1 to 4-bedroom units. It is expected to open in 2023.

Huge boost for cruise ships: The first big cruise ship allowing American passengers set sail on Saturday, over a year after the pandemic shut down the industry. The Celebrity Millennium sailed from Philipsburg, St. Maarten with paying passengers for a 7-day cruise that will include port stops in Barbados, Aruba and Curacao. Of the approximately 500 passengers on board, over 95% are fully vaccinated. Children who could not yet receive vaccinations were required to show negative Covid-19 tests. All ship crew members are also fully vaccinated.

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