Hyatt raising equity for Apple Leisure deal: Hyatt Hotels Corp. has launched a public offering of 7 million Class A common stock shares to support the company’s pending acquisition of Apple Leisure Group. Underwriters will be granted an over-allotment option to purchase up to an additional 1.05 million shares. Hyatt said it intends to fund more than 80% of US$2.7 billion Apple Leisure deal with a combination of US$1 billon cash on hand and new debt financing, and the remainder with equity financing.
Expedia unites loyalty programs: Expedia Group has announced plans to unify its free loyalty programs into one global rewards platform, spanning all products and global brand. With 145 million members, the current loyalty programs have provided nearly US$10 billion in travel benefits to date. The program will consist of unique member pricing discounts and will span flights, hotels, vacation rentals, car rentals, cruises and activities.
Big refi for Margaritaville NYC: In New York City’s largest refinancing deal of the year, the Margaritaville Times Square Resort owner Soho Real Estate has closed on a US$317 million deal from senior lender Bedrock Capital Associates, while mezzanine financing coming from South Korea’s Hana Financial. The newly opened 234-key property was developed for an estimate US$400 million.
Financing for Tampa deal: JLL’s Hotels & Hospitality Group has arranged an unspecified amount of acquisition financing for the 309-room Westin Tampa Waterside in downtown Tampa, Florida. JLL represented the borrower, a joint venture between Newbond Holdings and investment funds managed by an affiliate of Apollo Global Management, to secure the acquisition loan through New York Life Investors’ Structured Debt team.
Timbers partners with Wheelock: Boutique luxury resort and private residence club developer and operator Timbers Company has formed a strategic partnership with PE firm Wheelock Street Capital to support strategic growth. Timbers said the deal will give it more flexibility to stabilize distressed assets, acquire hotels or land for ground up development, or pursue value-add projects. It will be looking at projects in the US$40 million to US$200 million range, according to Timbers CEO Greg Spencer, who added the group plans to launch a new brand later this year. Current Timbers Collection properties can be found in 16 markets, predominantly in the U.S., but including Cabo San Lucas, Mexico, and Tuscany in Italy.
AGO expands in Wales: Hybrid lease operator in the U.K. AGO Hotels announced the addition to its portfolio two new Welsh hotels — the 99-room ibis Swansea and the 104-room ibis Budget Newport. This addition brings the number of hotels operated and leased by AGO to 12 and increases the number of rooms in AGO’s portfolio by around 40%. The two hotels are the first ones in Wales to switch over to AGOs hybrid lease. Both the properties will continue to operate under their current Accor brand names.
Marriott’s agreement with Saxum: Marriott International has entered into a deal with Saxum Group, San José, Costa Rica, to develop the first Fairfield by Marriott and second Residence Inn by Marriott in Costa Rica, expanding its portfolio to 17 hotels in the market. The Residence Inn Alajuela in Coyol de Alajuela will feature 117 rooms, while the Fairfield by Marriott San Jose Curridabat, located in a growing business hub in the city’s east, will have 125 rooms.
Finance firm align: Hospitality industry lender Access Point Financial (APF), Atlanta, has expanded its platform by aligning with Pike Hill Lodging Partners to better tailor financing needs for hoteliers. Financing company Pike Hill Co-Founders Tim Peterson and Ankur Shah will join the APF’s executive leadership team as managing directors and co-heads of Capital Markets and Corporate Development. Shah and Peterson will launch and lead an office in Washington, D.C., to accelerate growth through expanded capital markets and M&A reach. They will also be dedicated to introducing new financing offerings and enhancing brand partnerships.
Radisson grows in India, Africa: With the opening of Radisson Bhopal, Radisson Hotel Group, Minnetonka, Minnesota, has achieved a milestone of 100 operating hotels in India, the company said. With seven brands and a presence in over 60 locations in India, the company plans to open 14 new hotels this year and more than 60 hotels within the next five years. The company recently launched the 171-key Classic Grande Imphal, a Radisson Individuals hotel, and will open the first Radisson RED property — the 154-key Radisson RED Chandigarh Mohali — later this year. The group also aims to add six upper upscale resorts in high-demand leisure destinations this year. The group also announced a record year in Africa, with 13 signings and 2,500 rooms. It has three more openings in Africa later this year and across the continent has grown to nearly 100 hotels in operation and under development across 30 countries. The company aspires to have a portfolio of 150 hotels in Africa by 2025.
Leadership changes at Hilton: Paul Hutton has been appointed as Hilton’s head of Australia, while Alexandra Murray will assume the role of head of southeast Asia. Both the changes will take effect from January 1, 2022. Hutton, who will be succeeding Heidi Kunkel, will be in charge of 27 operating hotels and a pipeline of 12 resorts and hotels. Murray, who is transferring from Hilton’s operations in Europe, Middle East and Africa, will oversee 46 open and trading hotels and a pipeline of 51 properties, including the largest Hilton hotel in the APAC region.
Brighstar acquires The Villare Hotel: Brightstar Hospitality, Peterborough, has acquired The Villare Hotel, formerly known as The Grosvenor, in Stratford-upon-Avon for an undisclosed amount. The acquisition increases the group’s portfolio to 13 hotels. The 76-room hotel will undergo renovations and will be rebranded back to its former name.
Business school rename after landmark donation: The School of Hotel Administration in the Cornell SC Johnson College of Business, Ithaca, New York, has been renamed as the Cornell Peter and Stephanie Nolan School of Hotel Administration, following a US$50 million donation from alums Peter Nolan and Stephanie Nolan. The Nolans’ contribution will initiate a challenge funds, which will provide US$16 million as financial assistance for students in the Johnson Graduate School of Management and the Dyson School of Applied Economics and Management.
Thai relief fund: Thailand approved a further sum of 27 billion baht (US$809 million) as COVID-19 relief measures and extended a travel scheme to uplift domestic travel till end of February 2022 and help revive the country’s ailing economy. The relief measures, including subsidizing utilities, can availed by welfare card holders. The existing scheme’s benefits consist of subsidy of up to 3,000 baht (US$90) with an additional 600 baht (US$18) voucher per hotel room per night, along with a 3,000-baht (US$90) subsidy on flights.
Nobu strengthens partnership with Caesars: Caesars Entertainment, Las Vegas, Nevada, and Nobu Hospitality, Miami Beach, Florida, expanded their partnership with two new Nobu Hotels and restaurants at Caesars Atlantic City and Harrah’s New Orleans, a Nobu restaurant at Paris Las Vegas and a refurbishment of the first Nobu Hotel at Caesars Palace Las Vegas. The 182-key Nobu Hotel Caesars Palace will undergo multimillion-dollar refurbishments, which is expected to be completed by the end of this year. While the new Nobu restaurant and lounge at the Paris Las Vegas is expected to open in early 2022, the Nobu Hotel Atlantic City within Caesars Atlantic City is expected to welcome guests from summer of 2022. The Nobu Hotel New Orleans is expected to open in 2024.
New lending platform by Bridgeton: Private investment firm Bridgeton Holdings, New York, has launched Bridgeton Capital, a tech-driven, non-bank lending service specializing in commercial mortgages for the hospitality sector, multi-family developments, industrial, offices, self-storage and construction ventures in New York and significant secondary and tertiary markets. Bridgeton Capital is aiming at US$350 million of financing in the initial 12 months. The platform will offer senior secured lending and non-recourse loans ranging between US$1 million to US$75 million with a loan to value ratio of up to 85%. Fixed and floating rates will start from 5%. Atit Jariwala, founder and CEO, will be joined by Solomon Garber, the former managing director at Northeast Bank, who will serve as partner. David Hall, the former managing director at CV Capital and chief operating officer of Bridge Funding, will serve as managing director.