More than US$2M/key for Napa Four Seasons? Real estate fund manager Alcion Ventures reportedly is selling the 85-room Four Seasons hotel in Napa Valley’s Calistoga, California, and could fetch a record price of more than US$2 million per key, according to The Wall Street Journal. Broker and investment bank Eastdil Secured is marketing the property and the Journal cited sources who suggested Irvine, California-based Sunstone Hotel Investors is among the bidders. The report added that a handful of investors have made competing offers of more than US$170 million. Only two U.S. hotels have sold for more than US$2 million a key, according to lodging data tracker STR, a Four Seasons hotel in Hawaii and the Montage Hotel Beverly Hills.
KSL goes to Croatia: KSL Capital Partners, Denver, is reportedly buying Sunce Hotels, a portfolio of 13 resorts across Croatia, from local entrepreneur Jako Andabak. The transaction includes 12 hotels managed under the Bluesun Hotels & Resorts brand, the TUI Blue Jadran hotel and a campsite. The properties will continue to be operated by local group, Valamar Hotels.
Koch, Soffer buy in Vegas: The Las Vegas Fontainebleau has a new owner: its old developer. The real estate wing of conglomerate Koch Industries teamed with Florida developer Jeffrey Soffer to acquire the unfinished Drew Las Vegas property on the Strip. Terms were not disclosed. Soffer was part of the group that originally built the 60-plus-story megaresort during the mid-2000s bubble, but the project, one of Las Vegas’ tallest buildings, went bankrupt in 2009 after the economy tanked. The blue-tinted skyscraper has changed hands a couple of times since but has never been finished.
More from the Las Vegas Review-Journal
US hospitality relief?: The U.S. Senate has introduced another version of the “Sustaining Tourism Enterprises During the COVID–19 Pandemic (STEP)” Act. If the legislation passes and is signed by U.S. President Joe Biden, US$2.25 billion would be set aside to provide economic support for companies and organizations involved in promoting and facilitating tourism, travel, and special events.
Expedia revenue sinks: Expedia Group reported another steep drop in revenue in the fourth quarter, missing analysts’ estimates amid a surge in Covid-19 cases and new pandemic-related restrictions. The pandemic hit the Seattle travel giant hard last year with travel restrictions placed across the globe. Revenue dropped 57% to US$5.2 billion and gross bookings fell 66% to US$36.7 billion in 2020, Expedia reported today as part of its fourth quarter earnings rundown. The company posted a loss in each quarter of 2020 after three consecutive profitable quarters in 2019. Expedia shares were down slightly after its holiday quarter missed expectations for revenue (US$920 million) and profit (-US$2.64 per share). Analysts expected revenue of US$1.12 billion and earnings per share of -US$1.97.
Corporate bookings down: TripBam, which allows consumers to cancel and rebook rooms at lower rates, reported on February 11 that corporate bookings sat at 18% of the levels achieved the previous year and at a room rate 34% lower. Length of stay increasing more than one day to 3.6 days and the booking window declined to nine days from 14. The report stated that Hilton gained 43% in corporate market share, while Marriott lost 22%.
SVC transfers 78 hotels to Sonesta: Newton, Massachusetts-based Service Properties Trust (SVC) has completed the transition of branding and management for 78 hotels to subsidiaries of Sonesta International Hotels Corp. Ten additional hotels are expected to transition to Sonesta by the end of March. SVC entered short-term management agreements with Sonesta to manage the 78 hotels on terms substantially consistent with its legacy management agreements with Sonesta that expire on December 31, 2021. SVC will enter similar management agreements with Sonesta for the 10 hotels scheduled to be transitioned to Sonesta by the end of March. These 88 hotels include one Royal Sonesta hotel, two Sonesta hotels, 32 Sonesta ES Suites, four Sonesta Simply Suites and 49 Sonesta Select brands.
NOLA Sheraton trades: Indianapolis-based PE firm Hotel Capital has sold the 181-room Sheraton Metairie New Orleans to an Atlanta-based Generation Hospitality, led by Jamal and Shereza Tajuddin, for an undisclosed price. Generation Hospitality will operate the hotel. Broker HREC said the transaction involved “a creative financing structure.”
GBTA opposes testing mandate: As the Biden administration is considering a rule that would require negative COVID-19 test results for domestic air travel and potentially other restraints to interstate travel, the Global Business Travel Association (GBTA) issued the following statement:??“An aviation-only testing mandate would not be scalable, feasible nor effective, and may in fact be discriminatory and unwarranted. Highlighting personal responsibility and personal accountability as opposed to blanket orders that are next to impossible to manage is how we as a nation will emerge from this time of devastating loss of life, mental stress and economic struggles. We strongly encourage the Biden administration to take a science-based, realistic approach and to not further cripple an industry that is fighting to stay in existence.”
Hotelier sues insurer for denial of COVID-19 coverage: Santa Clara, California-based Pacific Lodging Group, led by Tarun Patel, the former chairman of the Asian American Hotel Owners Association, has filed a lawsuit stating that Sequoia Insurance Co. is denying coverage for losses resulting from government-mandated public health shutdowns related to COVID-19. Despite paying substantial premiums for business interruption insurance, Sequoia has yet to issue a coverage determination despite the passage of several months since the claim was submitted. No denial letter has been issued, no request for information has been sent, and no further calls have been received by Pacific Lodging Group reflecting any sort of investigation.
Oyo expands in U.S. with 10 new hotels: India-based Oyo Hotels & Homes has opened 10 new hotels in Colorado, Georgia, Iowa, Mississippi, North Carolina, and Texas. The new hotels will now run on Oyo’s proprietary technology, with access to industry data, analytics, tools, and price algorithms. All of the new Oyo hotels will also implement the company’s ‘Scrubbed Clean’ program, which ensures all hotels in the U.S. comply with the U.S. Centers for Disease Control and Prevention (CDC) guidelines related to health and safety.
Oyo struggles in Latin America: The Latin American unit of Indian startup Oyo has ended its joint venture with the SoftBank Latin America Fund, less than six months after they struck a partnership, according to Reuters. Oyo Latam on Wednesday said it was moving to a digital-only model, and that the changes would require laying off nearly its entire staff. SoftBank Group has poured US$75 million into Oyo in Latin America, part of its more than US$1 billion investment in the parent company. Although hotels in the region can still operate under Oyo’s brand, operations will now be managed directly from Oyo’s home base in India.
Virgin Las Vegas’ new date: The re-conceptualized Virgin Hotels Las Vegas, part of the Curio Collection by Hilton, is now scheduled to open on March 25. Located off-Strip, the hotel will be an integrated resort with three hotel towers and over 1,500 rooms and suites. It will also have the 60,000 square foot Mohegan Sun Casino, operated by Mohegan Gaming & Entertainment, in addition to a five-acre desert pool oasis.
Legendary acquires Colorado Marriott: Fargo, North Dakota-based Legendary Capital has acquired the 141-room Courtyard by Marriott in Aurora, Colorado for a US$27.9 million contribution valuation. The transaction utilized the UPREIT (Umbrella Partnership REIT) mechanism, allowing the REIT to acquire the property for minimal capital in exchange for operating partnership units and preserved equity for the contributor. National Hospitality Services has been selected as the hotel’s management company.
Miraval targets mental health: Hyatt’s Miraval brand will partner with Nami, the National Alliance on Mental Illness, a non-profit, grassroots organization providing no-cost advocacy, education, and support to those affected by mental illnesses. The two plan to launch a series of events and programs that aim to promote the intersection of mindfulness and mental wellbeing, and have also created a series of 12 “Sensory Journey” videos that include Soundscapes for Serenity videos featuring autonomous sensory meridian response (ASMR) techniques and “Mantras & Meditations” videos containing guided meditations. The Sensory Journey videos will be available complimentary on miravalresorts.com and promoted by Nami starting in late spring.
Paceline affiliate acquires loan secured by Boston Sheraton: An affiliate of Paceline Equity Partners, a Dallas-based private equity manager, has acquired a commercial loan secured by a senior mortgage encumbering a Sheraton Hotel located in the Boston suburban area of Needham, Massachusetts. The acquisition closed in January 2021. The Sheraton Needham hotel is a 247-room full-service hotel with a full suite of amenities located just outside Boston.