Noble Investment raises $360M: Noble Investment, Atlanta, Georgia, has reportedly raised US$360 million for its latest U.S. hotel investment fund. The real estate investment manager is looking to raise US$800 million and a US$1 billion hard cap for Noble Hospitality Fund V, which acquires existing hotel assets with value-add potential. In 2018, Noble raised US$450 million in its fourth round and additional US$200 million in co-investment capital. The fund will be investing in extended-stay and select-service hotels. The Missouri Local Government Employees Retirement System had said it issued a US$40 million commitment to Fund V.
KSL acquires five in Spokane: KSL Capital Partners, Denver, Colorado, has acquired a chain of upscale hotels in Spokane, Washington, consisting of 1,700 rooms. The list of sold hotels include the Historic Davenport Hotel, the Davenport Tower, the Davenport Lusso, the Davenport Grand and the Centennial. Davidson Hospitality Group will operate the hotels and is retaining all staff and leadership teams. Terms of the sale were not disclosed.
Cross agreement for Vietnam hotels: Cross Hotels & Resorts, Bangkok, has agreed with Tan Thanh Trading & Tourism JSC to develop a mega project that will include two new hotels with 716 keys — Cross Long Hai and Cross Vibe Long Hai — in Vietnam’s Vung Tau province. Construction is underway and the properties are scheduled to open in Q4 2022. While Cross Long Hai is an all-villa boutique resort, the twin-tower Cross Vibe Long Hai is a condotel that offers MICE facilities, spa, swimming pool and fitness center. Cross’ portfolio currently includes more than 21 hotels under five brands.
Orient Express returns to Italy: Accor is relaunching the luxury rail tourism project Orient Express brand in Italy signed by Arsenale S.P.A, with the Orient Express La Dolce Vita. Starting from 2023, six trains will travel across 14 regions and beyond, including three international destinations from Rome to Paris, Istanbul and Split. A stopover in Rome will feature the first Orient Express Hotel, Minerva, which is expected to open in 2024. The train, which is designed by Dimorestudio, will feature 12 deluxe cabins, 18 suites, one honor suite and a restaurant. Accor, which is La Dolce Vita’s hospitality partner, will partner with Trenitalia and Fondazione FS Italiane for the project. The train will cover more than 16,000 kilometers of workable rail lines of which 7,000 kilometers are not electrified. Three itineraries will traverse across eight countries, connecting Rome to Paris, Istanbul and Split.
US performance declines: Hotel occupancy in the U.S. increased over the previous week but performance, compared to 2019, was lower, according to STR’s latest data through December 4.
- Occupancy: 54.8% (-8.8%)
- ADR: US$127.92 (-0.5%)
- RevPAR: US$70.08 (-9.2%)
Although none of the Top 25 Markets recorded an occupancy increase over 2019, Los Angeles matched its 2019 comparable (70%). San Francisco/San Mateo recorded the steepest occupancy decline from 2019 (-37.3% to 48.4%), while Miami, lifted by Art Basel, reported the largest rise in ADR (+32.9% to US$373.71). The largest RevPAR deficits were in San Francisco/San Mateo (-54.9% to US$77.57) and Washington, D.C. (-38.2% to US$60.39).
Implications of UK’s ‘Plan B’: Following the U.K. Prime Minister’s announcement about the introduction of ‘Plan B’, BLCP’s hotels and hospitality team produced an outline of what the new restrictions mean for the hotels and hospitality sector. As per the report, staff operating in the cinema and theater sector is likely to be affected by the legal mandating of face coverings and might need to consider whether reduced audiences will mean that employees’ work schedules need to be tweaked or whether headcount needs to be reduced in a worst case scenario. Businesses will also need to be cautious that COVID status certification and reduced workforce in city centers might lead to reduced number of customers during the holiday season — a busy period for the hospitality sector. This could indicate that changes might need to be adopted.
CDL acquires site to develop lifestyle hub: Singapore’s City Developments Ltd. (CDL), led by local property magnate Kwek Leng Beng, is set to acquire the Central Square complex near Clarke Quay from Far East Hospitality Trust for S$315 million (US$230 million), with plans to develop a lifestyle hub with mixed-use office, hospitality and residential spaces. The developer expects to build commercial, hotel and serviced apartment space on the site, and is also seeking permission to include condos in the project. The commercial and hospitality complex has 72 years remaining on its lease 99-year leasehold and CDL plans to convert it to freehold terms. CDL is leveraging Singapore’s URA Strategic Development Incentive Scheme, which is designed to encourage more development of living space in the city center.
Margaritaville to operate cruise brand: Margaritaville Resorts & Hotels will operate a cruise brand from 2022 in partnership with Bahamas Paradise Cruise Line. The Margaritaville Paradise, formerly Grand Classica and the company’s first vessel, will be launched on April 30, 2022. The Florida-based company’s cruise will sail under the Margaritaville at Sea brand. The company said it plans to add more ships. Margaritaville Paradise will continue to operate two-night sailings from the Port of Palm beach to Freeport, Grand Bahama Island.
Geronimo acquires in Santa Barbara: Geronimo Hospitality Group, Beloit, Wisconsin, has acquired the 75-key Hotel Santa Barbara in downtown Santa Barbara, California, for US$41.9 million. Geronimo and its sister company Hendricks Commercial Properties will begin renovating the hotel in 2022.
Deutsche’s new fee model: Deutsche Hospitality is introducing a new fee model for franchise, management and lease agreements called BE Deutsche Hospitality, containing an all-in digital solution that can give owners the opportunity to quickly integrate into the hotel companies network. The program comprises easily calculable structures and business solutions delivered from a single source and extending across sales, marketing and communications, IT, digital commerce, operations, procurement, human resources and controlling. This package takes in the three pillars of core services, booking services and supplementary selective service options. Partners can access the services of the program either as a complete package or as modular solutions. The new program also includes a transparent fee model which consists of three components. A turnover-related core fee applies to use of the brand and to the standard services associated with marketing and with hotel operations for the respective brands. The booking fee is only incurred if bookings are generated. Selective services are also only charged if actually used by the partner.
Future of restaurants: Almost 64% of consumers do not plan to return to their pre-pandemic habits of dining in restaurants in the next six months, revealed ‘The Restaurant of the Future: A Vision Evolves’ report by Deloitte. Convenient off-premises dining has become a permanent fixture in the restaurant experience, with 61% of consumers opting for takeout or delivery at least one per week, a 29% increase from last year and 18% before the pandemic. Demand for frictionless digital experiences continues to be at the top of the menu, with 57% of consumes ordering delivery or takeout preferring to use a digital menu. About 67% of on-premise diners opt to order their food digitally. About one-third consumers said safety protocols and enhanced cleanliness were important in returning to on-premises dining sooner and more frequently.
HVMG begins operations of two hotels: Hospitality Ventures Management Group, Atlanta, Georgia, began operations of the 95-key Residence inn Near Universal Orlando and the 160-key Fairfield Inn & Suites Orlando International Drive/Convention Center. With these two hotels, the company’s total portfolio now stands at 56 properties across 17 states, totaling 8,999 rooms. The company, which has added 14 new hotels since July, said 2021 was the second busiest year in their 20-year history.
Marriott to grow luxury portfolio: Marriott International announced it plans to launch more than 30 luxury hotels in 2022. With an existing portfolio of more than 460 luxury hotels and resorts in 68 countries, Marriott is hoping to expand its luxury footprint with around 190 properties in the development pipeline, including the 30 hotels slated to open in Mexico, Portugal, Australia and South Korea in 2022.