Henderson Park buys 12 Hiltons: Trying to time an industry recovery in Europe, real estate investment firm Henderson Park is acquiring 12 predominantly freehold Hilton hotels (2,424 rooms) across the UK and Ireland, including London, Edinburgh and Dublin. The seller and the price were not disclosed. All 12 hotels are franchised by Hilton and are core Hilton properties, along with Hilton Garden Inn and DoubleTree hotels. Henderson Park is talking to Amaris Hospitality about ongoing management of the portfolio. Finance for the deal was provided by Apollo. Eastdil advised Henderson Park on financing.
Owners sue NYC: Several hotel owners have sued New York City over the new law that mandates they pay severance benefits to employees if they had been laid off during the pandemic. This comes within a week after Mayor de Blasio signed the legislation during an in-person rally at the City Hall, which was also attended by members of the Hotel Trades Council. Filed in Manhattan federal court by the Hotel Association of New York City, the lawsuit claims that the new law tries to surpass the existing federal law on employee benefit plans. The association said that the new law, before being signed, was flown through the City Council’s approval procedure “circumventing the standard process of debate and deliberation typical for a bill of this magnitude.” The law mandates hotels with more than 100 rooms to pay severance worth US$500 per week for more than six months if they have fired more than 75% of their staff during the pandemic and are still operating at those staffing levels.
Hyatt brand debuts in Italy: Hyatt Hotels Corp. announced the opening of the 62-room IL Tornabuoni Hotel in Florence, marking the debut of The Unbound Collection by Hyatt brand in Italy and the first Hyatt hotel in Tuscany. The historical hotel, which was previously known as the Palazzo Minerbetti, has undergone renovations, with the guest rooms and suites, terrace and public spaces being updated. The hotel will be managed by the AG Group’s AG Hotels, who also announced with Hyatt the reopening of the 52-room The Tribune Hotel in Rome, Hyatt’s first JdV by Hyatt branded hotel in Italy.
Quinta acquires in Italy: Quinta Capital Sgr, Milan, has acquired the 132-key Grand Hotel Savoia and 45-key Radisson Residences Savoia Palace in Cortina d’Ampezzo in Italy, from Bain Capital for about €70 million (US$81million). The acquisition was reportedly finalized with the support of the Grand Investments fund, which has an investment projection of €200 million (US$231.4 million), with an expected return of 5%. The Grand Hotel Savoia had reopened after extensive renovations worth €10 million (US$11.6 million) and, along with the Radisson Residences Savoia Palace, had recently joined the Radisson Hotel Group with management by Zeus International.
1754 acquires Floridian Palace: 1754 Properties, Weston, Florida, in partnership with Triangle Capital Group, New York, has acquired the 212-key Floridian Palace Hotel in Tampa, Florida. The sale, which concluded on October 7, also includes the three to four-acre parking lot at Taylor Street in the North Downtown neighborhood in Tampa (known as NoDo), the hub of nightlife and culture. 1754 is planning an extensive renovation and looking to recruit dozens of employees to boost their team and restaff the hotel for full operations.
PM Hotel Group adds to management portfolio: PM Hotel Group, Chevy Chase, Maryland, has been selected to manage the 347-room Sheraton Harrisburg Hershey Hotel in Harrisburg, Pennsylvania. The hotel and PM Hotel Group’s capex team will immediately initiate a multi-million-dollar renovation project. The acquisition helps grow the hospitality management company’s Mid-Atlantic portfolio of Marriott-affiliated hotels and currently manages around 30 Marriott-affiliated hotels.
Travelers favor local experiences: Travelers have been favoring closer-to-home destinations and experiences, with Global Hotel Alliance domestic stays accounting for 88% (as compared to 72% in 2019) of all global stays from June to September 2021. According to latest data by Global Hotel Alliance and GHA DISCOVERY, as much as 99% of its members in North America vacationed domestically, compared to 92% in 2019. Members in Asia stayed local the most this summer, with domestic stays rising to 91% in 2021 compared to 52% in 2019, followed by Europe (87% in 2021 vs. 68% in 2019) and the Middle East and North Africa (75% in 2021 compared to 44% in 2019). While the top staycation markets were U.A.E., Hong Kong, the U.S., Germany and the U.K., overseas trips tended to be short-haul, the survey revealed. Length of stay trends, however, differed significantly based on the market. Following several months of uncertainty amid a pandemic, travelers made luxury travel a priority, with U.K. members spending 80% more on average spend per stay on domestic trips.