VM Hotel Acquisition to acquire five properties: VM Hotel Acquisition Corp., Toronto, announced its proposed qualifying acquisition of a portfolio of five premier hotels worth US$411 million and comprising 2,079 keys in four cities and two countries to create a cross-border North American portfolio of high-quality hotel properties. The hotels in the portfolio include Battery Wharf in Boston, Massachusetts; Hyatt Regency in Cleveland, Ohio; The Renaissance in Cleveland, Ohio; Sheraton Center in Montreal, Quebec; and Sheraton Golf & Spa in Panama City Beach, Florida. Most of the hotels are fully renovated. The total purchase price represents a 25% discount to current appraised stabilized values, a 65% discount to replacement cost and a weighted-average portfolio acquisition cost of about US$198,000 per key. The purchase is expected to be funded through a combination of around US$260 million of mortgage financing and US$20 million raised via issuance of VMH shares, with the rest amount funded through cash on hand and PIPE Investment.
Four Seasons Dubai residences sold out: Four Seasons Hotels and Resorts and Bright Start, Dubai, have announced a standalone residential project in Dubai consisting of 28 luxury homes and villas fully managed by Four Seasons. All 28 units of the Four Seasons Private Residences Dubai at Jumeirah have been sold without going to public sales, a first in the over 35-year history of Four Seasons residential projects. Set to open in 2022, the residences consist of two, three and four-bedroom apartments and penthouses with one and two-story configurations. The property is designed by French designer Sybille de Margerie.
Dusit grows China portfolio: Dusit International, Bangkok, which is represented in China by Dusit Fudu Hotels and Resorts, has signed a hotel management agreement with Zhejiang Dahua Group to operate the 160-key luxury resort, the Dusit Thani Tianmu Mountain in Hangzhou. The hotel is scheduled to open in Q2 2022 on the outskirts of the Tianmu Mountain National Nature Reserve. Dusit’s portfolio currently includes more than 300 properties operating under six brands in 16 countries. In China, Dusit operates 10 hotels with more than 20 properties in the pipeline.
Como Hotels launches in Fiji: Como Hotels and Resorts, Singapore, launched the Como Laucala Island at a private island in Fiji, which is scheduled to open on December 15. The resort features 25 standalone residences, each with their own butler on private beaches above lagoons, 18-hole golf course, land and water activities, jet skis, wellness center and a private airstrip. The residences have been built using natural Fijian wood in local style. Como’s portfolio includes 14 international properties.
Dorchester to undergo renovation: The Dorchester in London will undergo renovation starting in February 2022. The renovation will be the biggest since 1989 and will see the hotel’s entrance, promenade, the bar, and two floors getting refurbished. The renovation is slated to be completed by September 2022. Pierre-Yves Rochon will work on the entrance, promenade and new rooms, while Martin Brudnizki Design Studio will recreate the bar. The hotel will remain open during the renovation.
New bids for Ayre hotels in Spain: Investment group Eurazeo and Westmont Hospitality Group are reportedly bidding to acquire the five-unit Ayre hotel group in Spain, controlled by El Corte Inglés and Palladium Hotel Group. There are reportedly two bids on the table in the range of €135 million (US$152 million). Previous attempts to sell the Ayre portfolio have failed due to lower than expected bids, according to reports.
OakNorth Bank’s loan to reconvert London building: U.K.’s OakNorth Bank has provided a £34.3 million (US$45.45 million) loan to a property business founded by entrepreneur Alex Shamash and joint venture partner Boscalt Hospitality, a member of Edmond de Rothschild Private Equity partnerships. The capital will be utilized to convert an office building in London into a 110-room luxury hotel. The Victorian property was originally built as the Holborn Viaduct Hotel by architect Evans Cronk and was the first hotel in London to have electric lighting. It was converted into an office building in the 1900s.
Valor adds Scores Hotel to portfolio: Valor Hospitality Partners, Atlanta, Georgia, has partnered with Dallas, Texas-based Links Collection and Ireland-based Wirefox to operate the 36-room Scores Hotel in St. Andrews in the U.K., beginning with a 18-month renovation that will lead to a 2023 opening. The refurbishment will see the hotel transforming into a boutique hotel, featuring multiple dining outlets. Links Collection and Wirefox acquired the hotel from the Mann family, who owned and operated the hotel for the past 34 years. Valor and the new partnership will renovate the property, with Valor assisting Wirefox in overseeing the renovation. Formed Robert Covington and Jonathan Harper, the Links Collection develops small boutique hotels around iconic U.K. golf destinations.
Gaming and Leisure Properties, Cordish partnership: Gaming and Leisure Properties, Wyomissing, Pennsylvania, announced it has signed definitive agreements to acquire the real estate property assets of Live! Casino & Hotel Maryland, Live! Casino & Hotel Philadelphia and Live! Casino Pittsburgh, along with long-term ground leases, from affiliates of The Cordish Companies, Baltimore, Maryland. The initial deal has an aggregate consideration of US$1.81 billion. Cordish will lease back all the properties and continue to own, control and manage all the gaming operations of the properties. The deal is also a binding partnership on future casino developments by Cordish and potential financing partnerships between Gaming and Leisure Properties and Cordish in other areas of Cordish’s real estate and operating business.
Hyatt introduces room keys in Apple Wallet: Hyatt, in partnership with Apple, has made its room keys available in Apple Wallet for six hotels in the U.S. This new feature allows World of Hyatt guests at the participating hotels to securely tap their iPhone or Apple Watch to unlock rooms and key card-protected common areas like gyms, elevators and pools, without having to open an app or use a traditional key card. If a guest needs to change rooms or extend their stay, the hotel will update the guest’s room key in Apple Wallet remotely. Guests can check out from the World of Hyatt app, after which the guest’s room key will be remotely deactivated from Apple Wallet and archived.
Trilogy grows leased hotel spa portfolio: Trilogy Spa Holdings, Phoenix, Arizona, grew its leased hotel spa portfolio with the opening of the BABOR Signature Spa at The Dominick in New York. With this addition, Trilogy now has three leased hotel spas, with two in the New York City market. The full-service spa, which reopened in October, features nine treatment rooms, Turkish and Moroccan hammams and three spa suites. Trilogy plans to increase its leased hotel spa portfolio by more than double in 2022, with one opening in Q1 2022 and three deals in the pipeline.
Mazabi expands portfolio: Mazabi, Madrid, has acquired the 139-room Hotel Cap Roig nature in Tarragona, Spain. The acquisition was made through a sale and leaseback in a way that will allow The Palm Experience to continue operating the hotel till December 2022. This acquisition was Mazabi’s fifth deal in the hotel sector this year. In 2021, Mazabi has acquired four more assets, with two of them operated by Soho Boutique Hotels in Cordoba and Puerto de Santa Maria in Cadiz. The others are a hotel building in Madrid which will be operated by Room Hostels & Hostels and a newly-built 4-star hotel in Menorca that will be operated by the Barcelo Group.
CU Boulder, Aspen Skiing partnership: The University of Colorado Boulder has entered into a partnership with Little Nell Hotel Group, the Aspen, Colorado-based division of Aspen Skiing Co., to build and operate a hotel and conference center under its Limelight brand. The hotel, in the northwest part of the campus, will comprise 250 rooms and 25,000 square feet of meeting space. The project is estimated to cost US$130 million and is likely to break ground in fall 2022. The hotel is expected to open in 2025. Aspen Skiing has Limelight hotels in Snowmass and Aspen. CU Boulder is also partnering with Denver, Colorado-based Nichols Partnerships to build accommodations near campus, which will feature 189 rooms and around 9,000 square feet of retail space.
Queensgate completes refinancing for Generator hotels: Queensgate Investment, London, has completed a refinancing of two of its Generator Group lifestyle hotels in the U.S. for circa US$55 million with funds managed by Apollo. The refinancing was for two of Generator Group assets in Washington D.C. and Miami. This comes after a circa €600 million (US$676 million) debt restructuring for Queensgate’s Generator Group, for which Apollo funds provided roughly €100 million (US$112.67 million) in secured financing earlier this year. The Generator Group’s portfolio consists of 19 hotels with 11,500 beds in 10 countries.
Supply chain issues affecting operations: Supply chain disruptions are affecting the operations of more than eight out of 10 surveyed hotels and almost three in four hotel operators say the disruptions are impacting their business revenue, according to the latest study by the American Hotel & Lodging Association (AHLA) members. About 86% of the respondents said supply chain disruptions were having a moderate or significant impact on their operations, which could have repercussions for employment, underlining the need for targeted federal relief for hotel employees, like the Save Hotel Jobs Act. Respondents do not expect the supply chain disruptions to be resolved soon, with 46% saying they anticipate disruptions to last six months to a year and 36% expecting them to last more than a year.
Oakwood launches in Bangladesh: Oakwood, the Singapore-based serviced apartment brand and wholly owned subsidiary of Mapletree Investments, has signed a management agreement with Aara Hospitality for the brand’s debut in Bangladesh. Oakwood Hotel & Apartments Dhaka in the country’s capital Dhaka will feature 89 hotel rooms and serviced apartments, ranging from two-bedroom units to studios, rooftop bar, all-day restaurant, cigar divan bars and MICE facilities. Slated to open in April 2022, the project will help Oakwood expand its footprint in South Asia and double its global portfolio of managed properties by 2025.
Initial closing of Banyan’s fund vehicle: Banyan Investment Group, Miramar Beach, Florida, announced the US$20 million first closing of Banyan Lodging Enhanced Value Fund (BLEV), a fund vehicle offering investors an opportunity to acquire hotels that have been impacted by the COVID-19 pandemic. BLEV is expected to reach its US$35 million hard cap early in 2022, much before the official end of its offering period. BLEV will focus on high-barrier-to-entry hotel locations, targeting opportunities with significant discounts to replacement costs and/or historical sale prices and will allow for both individual property and portfolio acquisitions. Targeted hotels will be transient-demand-oriented and range from 100-350 keys. The fund allows for both individual property and portfolio acquisitions.
November meetings, events reflect seasonal trend: While group meetings in the U.S. fell 12.4% in November as compared to October, this decrease reflects normal seasonality trends for this time of the year with less of a decline than the pre-COVID trends, revealed Knowland’s monthly meetings and events data for November. The average number of attendees per event (105 in November 2021) outpaced the same period in 2019 (72) for the third consecutive month. Additionally, average space used (2,501 square feet) was closer to the 2019 figure (2,543 square feet). The top five market growths in November were San Francisco, Miami, Houston, Orlando and New Orleans. The corporate sector accounted for 70% of meetings and event business with the technology and healthcare sectors leading as the largest industry segments.
Vail Resorts to acquire Seven Springs Mountain Resort: Vail Resorts, Broomfield, Colorado, has entered into an agreement to acquire the 418-room Seven Springs Mountain Resort in Pennsylvania from Seven Springs Mountain Resort. As part of the deal, Vail will also acquire Hidden Valley Resort and the operations of Laurel Mountain Ski Area. The purchase price for the ski areas and a hotel, conference center and other related operations is around US$125 million. Seven Springs Mountain Resort is retaining certain neighboring operations. The deal is expected to close by this winter. Operations at all the three resorts for the 2021-22 winter season will continue.