Colony officially out of hospitality: Colony Capital has completed the final sale and assignment, as applicable, of six hospitality portfolios to Highgate and an affiliate of Cerberus Capital Management. The transaction concludes Colony Capital’s previously announced exit from the hospitality business. Consistent with the original agreement, the transaction resulted in aggregate gross proceeds to the Colony of US$67.5 million and a reduction of consolidated investment-level debt of US$2.7 billion, reflecting the assumption of underlying mortgage debt and other liabilities by Highgate and its affiliates and Cerberus. This investment by Highgate and Cerberus marks an ongoing strategic commitment to the select service and extended-stay space.
Mezz for Charlotte Home2 Suites: Driftwood Capital has provided a US$9 million mezzanine loan toward the recapitalization of the 180-key Home2 Suites by Hilton Charlotte Uptown, Charlotte, North Carolina. The loan comes behind a US$23 million senior mortgage provided by Benefit Street Partners. The debt was used to take out the existing construction loan on the hotel, which opened in November of 2019. The loan has a three-year term, with no extension options, and represents a 65% loan-to-value.
Bankrupt Bay Area hotels slated for auction: A bankrupt hotel chain has won court approval for the sale of more than a dozen U.S. hotels, including two in the San Francisco Bay Area, whose finances crumbled beneath economic blows during the coronavirus pandemic. The auction of the hotels is scheduled to be completed by the end of May and a private investment firm has been picked as a “stalking horse” to set a minimum bid for the 15 hotels involved in the sale. The Bay Area hotels due to be auctioned off in May are the Four Points by Sheraton in San Jose and the Holiday Inn & Suites in San Mateo. The minimum price for the package of hotels is US$470 million, according to court records.
First JW Marriott for Dallas: Plano, Texas-based Sam Moon Group will develop a new 275-Key JW Marriott hotel in Dallas, Texas. The hotel, which should open in 2022, is part of a US$140 million newly renovated Trammell Crow Center Masterplan Development that has Goldman Sachs as the anchor tenant. NHK Capital Partners, an affiliate of CMB Regional Centers and part of the Hogan Companies, raised US$10.5 million for the development and construction of the property. The hotel will be the first JW Marriott branded hotel in the Dallas metro area.
AMResorts grows in Mazatlán, Mexico: Apple Leisure Group’s AMResorts will open Dreams Estrella del Mar Mazatlán, located on the Pacific Coast of Mexico in Estrella del Mar, a private gated golf and residential community. This development brings the first Dreams Resorts & Spas branded property to the area and includes an investment of over US$70 million. The resort’s 350 beachfront suites include 29 swim-out suites and a separate adults-only section.
Nepal makes it easier for tourists: The Nepali government has removed the requirement for foreign tourists to stay in quarantine provided they have got full doses of a COVID-19 vaccine, Nepal’s Ministry of Culture, Tourism and Civil Aviation said. Earlier, all foreign tourists visiting Nepal were required to stay in hotel quarantine for at least seven days. Similarly, the ministry also said that foreign tourists producing documents that were tested negative for coronavirus 72 hours prior to boarding the Nepal-bound plane, are also not required to stay in hotel quarantine.
Texas hurt by ending mask mandate: At least four organizations canceled conferences or conventions in Austin, Texas, citing health concerns after the state ended its mask mandate earlier this month. The cancellations cost the Hilton Austin hotel US$350,000 in revenue, according to Austin Convention Enterprises, a city-created corporation that owns and manages the hotel. The state’s governor ended the mask mandate and capacity limits on businesses on March 10, pointing to fewer COVID-19 hospitalizations and cases in the state. Public health experts and political opponents lamented the move, saying it was too soon before the majority of the state was vaccinated against the virus or even eligible for a shot.
Need passengers? Post a vaccine tweet: Royal Caribbean Group, formerly known as Royal Caribbean Cruises (Royal Caribbean) witnessed a dramatic 200% jump in influencer conversations on Twitter during the third week of March 2021 over the previous week, following the announcement to resume cruising in June for vaccinated crew and guests, according to GlobalData, a data and analytics company. Royal Caribbean cruise line and its subsidiary Celebrity Cruises announced to start sailing from Bahamas and St. Martin, respectively, by resuming their North America cruise services. All crew and adult passengers will be required to show the proof of vaccination against COVID-19.
Caribbean resorts respond to COVID: As Caribbean islands slowly re-open for tourism, operators should note that the health crisis has shifted consumers’ preferences, according to a new report from Horwath HTL. Visitors are seeking longer and more meaningful trips with a focus on wellness and regenerative travel. Caribbean resorts will have to adapt their products and programming to meet evolving guests’ expectations and stay relevant in the post-covid era.
America’s Cup lifts Auckland performance: The America’s Cup, New Zealand’s oldest sport and sailing race event, lifted Auckland daily hotel performance to its highest levels of early 2021, according to preliminary data from STR. The market reached a peak occupancy of 73.0% on March 13, the highest level in the metric for the period of January 1-March 22, 2021. By March 17, occupancy had slipped a bit to 66.8%.
The rise in occupancy was also accompanied by improvement in average daily rate (ADR) and revenue per available room (RevPAR). By March 13, each metric improved to their highest levels since January 2021: ADR, NZD264.47 (US$184) and RevPAR, NZD192.96 (US$134).
Amid the latest pandemic lockdown in Auckland, the market’s daily occupancy levels were below 50% for the period of February 28-March 8. That included a low of 41.8% on March 2.