Schroders pan-European fund: The Schroders Capital European Operating Hotels Fund has reached €525 million (US$623 million) of investor commitments after having initially targeted €300 million (US$356 million). Investors include some of Europe’s largest insurance companies, primarily from France, the Netherlands and Finland, as well as a sovereign wealth fund from the Middle East. Assuming moderate leverage, the fund has c€850 million (US$1 billion) of capital to invest and is well-positioned to take advantage of the opportunities emerging across Europe. It will focus on securing off-market deals offering deal security to sellers of high-quality assets in great locations that can benefit from further asset management optimization. The fund’s acquisition of the Grand Hotel Central in Barcelona last month exemplifies this strategy.
Stonehill to deploy US$1.25B in 2021: Stonehill, the Atlanta, Georgia-based commercial real estate direct lender, reported that it deployed US$612 million across 64 transactions year-to-date. The company expects to deploy approximately US$1.25 billion during 2021, a 74% increase from 2020. These transactions include first mortgage permanent and construction loans, bridge, mezzanine loans and hotel investments. Stonehill as a senior lender originates loans across the capital structure for acquisitions, construction, recapitalizations, refinancing, and renovations.
Travel boom is looming: Despite the promising signs of travel recovery, leaders and executives should focus on these four areas, according to a new survey by McKinsey: bringing back capacity, investing innovatively to improve the customer journey, reimaging commercial approaches, and learning from critical moments and the wider ecosystem. The survey says as countries begin to ease travel restrictions and reopen borders, traveling has emerged as the second-most desired activity among respondents (after dining out). In the U.S, air travel has hit 2 million daily passengers, closer to the pre-pandemic level of around 2.5 million than to the low of around 90,000, in April 2020.
Hilton Grand Vacations completes acquisition: Hilton Grand Vacations completed the acquisition of Diamond Resorts International from affiliates of Apollo Global Management. The acquisition creates the largest upper upscale and luxury timeshare operator in a stock-based deal with an equity value of approximately US$1.4 billion. The acquisition will drive Hilton Grand Vacation’s revenue growth across an expanded customer demographic. The combined company is expected to generate over US$125 million in run-rate cost synergies within the first 24 months of operating.
Grant Phuket “green” zone status: As Thailand sees a steady rise in COVID-19 cases, executive chairman of Banyan Tree Group KP Ho said Phuket should specifically be given a “green” destination status by European governments to help the Phuket Sandbox program to succeed. During his virtual address at the Phuket Sandbox Summit held at Laguna Phuket, he said Phuket has the potential to lead the global tourism recovery as the Phuket Sandbox initiative sets the standard for other destinations to follow. However, in order to succeed, governments need to recognize it as a safe, self-enclosed destination rather than combining its travel status with the rest of Thailand. Launched on July 1, 2021, the Sandbox allows fully-vaccinated international travelers to fly directly to the destination and stay on the island without following quarantine norms.
Online endeavor for prospective owners: Castell Project, an Atlanta, Georgia-based non-profit organization dedicated to accelerating the careers of women professionals in the hospitality industry, along with She Has A Deal, a real estate investment platform that creates pathways to hotel ownership and development for women, launched Fortuna’s Table — an online community of resources to allow diverse potential hotel owners to make their ownership dreams a reality. Using public relations and social media, the project introduces the opportunity to diversify assets and build wealth through hotel ownership to new markets in hospitality and other industries. The website has a library of curated articles, webinars, and templates. Fortuna’s Table is sponsored by major hotel brands, including Hilton, Accor, IHG, Marriott, Hyatt, Wyndham, Sonesta, G6, Choice and Best Western. Lenders, consultants and operators like Premier Capital and HotelAVE also support the effort.