Arora acquires Luton Hoo: The Arora Group, London, acquired the Luton Hoo Hotel, Golf & Spa in Luton, the U.K., from East Sussex-based Elite Hotels for an undisclosed sum. Elite Hotels bought the 1,000-acre estate in 1999 after its former owners went bankrupt and the property fell into disrepair. Arora Group is known as a specialist hotel owner operator and has been diversifying into the country house hotel market with the recent opening of Fairmont Windsor Park. The hotel re-opened in 2008 following an investment of £60 million (US$79.44 million), offering 228 guest rooms and an 18-hole golf course.
Lotte buyer in Chicago: In news first reported December 6, the buyer of 191-key Kimpton Hotel Monaco Chicago is now reportedly South Korea’s Lotte Group, which already has U.S. hotels in Seattle and New York City. Xenia Hotels & Resorts, Orlando, Florida, entered into an agreement about 10 days ago to sell the hotel for US$36 million (US$188,500 per key).
Remington adds in DC: Remington Hotels has signed agreements to manage the Courtyard Washington, DC Dupont Circle, which just underwent a complete renovation, and the Moxy Washington, DC Downtown. Dauntless Capital Partners, a private equity affiliate of Twin Bridges Hospitality, reportedly acquired the two Washington, D.C., hotels earlier this month from Douglas Development for US$152 million.
US performance improves: Hotel performance in the U.S. improved from the previous week, according to STR’s data through December 11.
- Occupancy: 57.4% (-4.8%)
- ADR: US$128.35 (+2.3%)
- RevPAR: US$73.73 (-2.7%)
Among the Top 25 Markets, Norfolk/Virginia Beach saw the only rise in occupancy over 2019 (+4.2% to 55.2%). Notably, New York City reported the highest weekly occupancy level (81.5%) of any STR-defined U.S. market. NYC’s occupancy level was 13% lower than the 2019 comparable. San Francisco/San Mateo saw the steepest occupancy decline (-32.7% to 59.8%), while Miami registered the largest ADR increase (+30.1% to US$229.34). The largest RevPAR deficits were in San Francisco/San Mateo (-53.2% to US$106.83) and Washington, D.C. (-32.6% to US$69.23).
San Manuel Gaming Hospitality to own Palms Casino Resort: San Manuel Gaming and Hospitality Authority (SMGHA), an affiliate of the San Manuel Band of Mission Indians, announced it has received approval from the Nevada Gaming Commission as licensees for Palms Casino Resort in Las Vegas, Nevada. With this, SMGHA Nevada LLC, owned by SMGHA, will close the deal and become the owners of the casino, with plans to reopen next spring. Along with the casino, Palms features around 700 guest rooms and suites, casual and upscale dining options, a 2,500-seat theater and meetings and convention space. The San Manuel Band of Mission Indians also owns and operates Yaamava’ Resort & Casino at San Manuel in Highland, California.
USTA commends decision to waive visa interview: The U.S. Travel Association (USTA) commended the Biden administration’s decision to temporarily withdraw the interview requirement for returning and renewing immigrant visa holders issued on or after August 4, 2019. “It is a step in the right direction and comes at a critical time for rebuilding international travel. The severe backlog in visa applications will require additional focus and resources to help restore inbound travel to its pre-pandemic levels,” said USTA Executive Vice President of Public Affairs and Policy Tori Emerson Barnes. The department’s decision will address the “backlog of nearly 2.6 million visa applicants,” the statement said, adding that the action acknowledges that many individuals pose no risk to national security and similar waivers could be issued to non-immigrant visas. “The State Department issued approximately 50,000 visas during the period of August 4, 2019, to February 4, 2020, that would be eligible for interview waiver under the new temporary final rule,” the statement said.
Kempinski launches online store: Kempinski Hotels has launched online store Kempinski Boutique, which will allow consumers to acquire Kempinski signature items such as bed and bath linen, mattresses, Salvatore Ferragamo fragrance diffusers, etc. Kempinski has partnered with hospitality retail services Hotels at Home for its online store. While Kempinski Boutique is live in Europe and the Middle East, the platform will be launched in China in January 2022.
easyHotel secures €50 million to grow portfolio: easyHotel, the London-based budget hotel chain, has secured a €50 million (US$56.34 million) commitment from its shareholders ICAMAP and Ivanhoé Cambridge for its growth, with plans to more than triple its European portfolio by 2026. easyHotel has a current portfolio of 42 hotels with 3,977 rooms. The additional capital along with new bank funding recently secured will be used to develop or acquire assets in key cities in Europe. The company hopes to more than triple the size of its owned and leased portfolio, which consists of 15 hotels with 1,723 rooms in the U.K., Spain and France. The company said it is performing at above pre-COVID levels with occupancy rates surpassing 80% since August. It said, since October, most properties reached 10% growth on a like-for-like basis compared to the same period in 2019.
Former Hilton manager arrested for investment fraud: San Diego, California, resident Denny Bhakta was arrested after he was indicted for a multimillion-dollar Ponzi type investment scheme that took in around US$28 million from investors since 2016. According to court documents, Bhakta allegedly solicited investments in his companies — Fusion Hotel Management, LLC and Fusion Hospitality Corp. — and falsely told investors that his companies regularly acquired discounted blocks of hotel rooms from Hilton which were then sold to United Airlines at a higher price at a substantial profit. However, instead of buying rooms, he allegedly used the funds for personal expenses and to pay off other investors. He allegedly provided fake bank records and agreements with Hilton and United Airlines to make Fusion’s fabricated business transactions appear valid. Bhakta was a former revenue manager at the Hilton San Diego Bayfront from 2008 to 2010. According to a complaint filed against Bhakta by the U.S. Securities and Exchange Commission, “millions of dollars” were taken from investors which were “gambled and lost at casinos.”
David Kong receives Arne Sorenson Award: David Kong, the recently retired president and CEO of BWH Hotel Group, will be awarded with the inaugural Anne Sorenson Social Impact Leadership Award, announced the American Hotel & Lodging Association (AHLA), The American Hotel & Lodging Foundation and The BHN Group. Kong will be recognized at the Night of a Thousand Stars, AHLA Foundation’s fundraising gala, on January 23, 2022, and during the 21st Annual Americas Lodging Investment Summit on January 25, 2022. Named after the late Arne Sorenson, industry veteran and former CEO and president of Marriott International who died this February, the award will be presented annually to a senior-level executive in the lodging industry who drives change through leadership and community engagement.