Group items tagged

HYATT HOTEL CORP. plans to acquire Dream Hotel Group's lifestyle hotel brands, including the Dream Hotels, The Chatwal Hotels and Unscripted Hotels brands, for approximately $300 million. The deal will add more than 1,700 rooms to Hyatt's lifestyle portfolio and increase Hyatt's room count in New York City by more than 30 percent. The acquisition includes a portfolio of 12 managed or franchised lifestyle hotels, with another 24 signed long-term management agreements for hotels expected to open in the future, Hyatt said in a statement on Nov. 29. The transaction, expected to close in the coming months, continues Hyatt's asset-light growth strategy following acquisitions of Two Roads Hospitality in 2018 and Apple Leisure Group in 2021. Post-acquisition, Hyatt will pay a base purchase price of $125 million, with up to an additional $175 million over the next six years. It would generate management fees of about $12 million a year on the first dozen hotels.

A GROUP OF InterContinental Hotels Group franchisees have filed a lawsuit against the company in connection with a cyber-attack that "significantly disrupted" its booking channels and other applications in mid-September. The lawsuit claims that IHG should have taken more steps to prevent the breach in light of warnings it received after a previous breach. IHG implemented a response plan, including notifying the relevant regulatory authorities, working with its technology suppliers and engaging external specialists to investigate the incident, according to the company. The breach affected IHG's reservations and customer care call centers, as well as internal systems, such as Merlin and the IHG Help Desk, according to a statement from AAHOA on the breach. The association said franchisees, including some of its members, saw a complete shutdown in guestroom bookings during this outage. On Sept. 15, several IHG franchisees filed a lawsuit against IHG in the U.S. District Court for the Northern District of Georgia Atlanta Division alleging the company should have done more to prevent the breach. The lawsuit references a similar breach the company experienced in 2017 as an example that IHG should have taken further steps to secure its system.

STONEHILL CRE, THE commercial real estate group of investment firm Stonehill, has originated and purchased $200 million in first mortgage loans since being launched in the second quarter of 2022. The companies expect to complete an additional $100 million in loan originations and other transactions by year's end, based upon deals in its pipeline, and Stonehill CRE is targeting over $500 million in transaction for 2023. Stonehill CRE, formed in May with Daniel Siegel as its president, is designed to work in all real estate sectors to navigate ongoing market volatility and enable real estate owners to execute their business plans, according to the company. Its work has made Stonehill the 10th largest U.S. hotel lender in 2021, according to the Mortgage Bankers Association. Atlanta-based Stonehill and Stonehill CRE are affiliates of Peachtree Group, led by Jatin Desai and Mitul Patel as managing principals. "Stonehill CRE's formation came at a fortuitous time as market conditions have created a dislocated lending environment for commercial real estate," said Siegel. "Traditional lenders have not only slowed commercial real estate lending but also tightened underwriting standards, which allows us to provide needed liquidity for maturing loans, new acquisitions and construction projects."

THE U.S. HOTEL construction pipeline showed positive trends in the third quarter of 2022 as total projects stood at 5,317 containing 629,489 rooms, according to Lodging Econometrics. That's up 10 percent by projects and 6 percent by rooms year-over-year. There are 987 projects with 135,050 rooms under construction in the U.S. at the end of the third quarter, according to the U.S. Construction Pipeline Trend Report from LE. As many as 987 projects with 135,050 rooms are under construction during the period. According to LE, 2,074 projects containing 236,894 rooms will start construction in the next 12 months, up 14 percent by projects and 13 percent by rooms year-over-year, respectively. Projects in the early planning stage reached record in the third quarter, with 2,256 projects containing 257,545 rooms, a 14 percent increase by projects and 7 percent increase in rooms when compared to same period last year.

DALLAS-BASED NEWCRESTIMAGE plans to acquire 45 hotels from a private investment firm. The portfolio includes approximately 3,300 rooms in 11 states, but other terms of the transaction were not disclosed. The hotels include 35 Marriott International-branded, seven Hilton-branded, two Choice Hotels International-branded and one Radisson Hotels-branded properties. They are in Arkansas, Colorado, Illinois, Iowa, Kansas, Michigan, Minnesota, North Dakota, Ohio, South Dakota and Texas, according to NewcrestImage. "The current financial environment makes it very attractive to buy rather than build, and this group of fine hotels in high-traffic locations provides us with an exceptional opportunity to immediately start generating significant revenue, profit, and return on investment," said Mehul Patel, NewcrestImage managing partner and CEO.

HOSPITAITY FIRM OYO Rooms has filed fresh documents with India's stock market regulator, Securities and Exchange Board of India, for an Initial Public Offering in early next year, media reports said. The company filed fresh financial documents on Sept. 19 and is now targeting an IPO in January 2023, according to CoStar. OYO filed preliminary IPO documents in 2021, only to shelve the listing plan earlier this year after the prolonged pandemic hurt its growth and forced the company to cut thousands of jobs. The latest financial documents showed narrower losses and a rebound in sales for the year through March 2022 and in the three months to June 2022.

BANYAN INVESTMENT GROUP recently acquired the Castle Hotel, part of the Autograph Collection by Marriott, in Orlando, Florida. The hotel recently underwent an $8.2 million renovation on its guestrooms, public spaces and exterior. The 213-room hotel is on Universal Boulevard near the city's key attractions, Disney's Magic Kingdom and Universal Studios, according to Atlanta-based Banyan, led by Rakesh Chauhan, managing partner and CEO. Also nearby is the site of Epic Universe, a 750-acre, $1 billion theme park expected to open in 2025, which will be the largest Universal Park in the U.S. and second largest globally. The Castle Hotel, which is designed to look like a medieval fortress, also is close to the 270-acre Lockheed Martin regional headquarters that employs 8,000 people. Also nearby are the Orlando International Airport, including the recently opened $2.8 billion, 15-gate international Terminal C, as well as the Orlando Convention Center. Brightline High Speed Rail plans to open two stations in the area.

"UNSTOPPABLE" WAS THE theme for Choice Hotels International's 67th Owner & Franchisee Convention in Las Vegas last week. In keeping with that, the company announced new software tools, a new prototype and more news on the incorporation of more than 600 newly acquired Radisson Hotels Americas properties. Nearly 6,000 hotel owners, general managers and Choice associates attended the three-day event at Mandalay Bay Resort and Casino, according to the company. It included more than 85 educational and brand sessions as well as 275 vendor exhibits. "At our 67th Annual Convention, we celebrated our shared success with thousands of Choice franchisees, examined key travel industry trends, and revealed our plans to capitalize on them and keep the momentum going," said Pat Pacious, Choice's president and CEO. "We're inspired by the ways these entrepreneurs bet on themselves, and we are committed to being by their side as we continue to disrupt the industry together."

TWO-THIRDS OF U.S. travelers think that family and friend reunions bring the most joyful summer vacations, according to a survey from G6 Hospitality's Motel 6. The survey, conducted by SWNS Media Group, revealed that 57 percent of the respondents plan to attend a family or friend reunion this summer. The poll conducted May 20 to 26, also found 2,000 adults traveling this summer said that an average respondent has not gathered with extended family in four years. U.S. travelers will journey nearly 80 miles to reunite with their favorite people and places, while about 32 percent will venture more than 100 miles. More than half of those surveyed believe that reunions will look and feel different this year. The reunion invitee lists include friends (42 percent), significant others (39 percent), neighbors (34 percent) and pets (36 percent). According to the survey, 55 percent of those attending a family reunion this year look forward to celebrating both old traditions while creating new ones, and 64 percent are interested in becoming more connected to their family traditions.

THE U.S. HOTEL construction pipeline continued its growth at the end of the second quarter of 2022 as travel returned, according to Lodging Econometrics. The upscale and upper-midscale segments continue to lead the pipeline with 68 percent of projects. The total U.S. construction pipeline stands at 5,220 projects with 621,268 rooms during the second quarter. That is up 9 percent by projects and 4 percent by rooms, over the same period last year, according to the U.S. Construction Pipeline Trend Report from LE. There were 965 projects with 130,914 rooms currently under construction in the second quarter, down 17 percent by projects and 18 percent by rooms, year-over-year. As many as 2,009 projects with 232,163 rooms are scheduled to start in the next 12 months, up 9 percent by projects and 9 percent by rooms, over last year. According to the report, projects and rooms in early planning reached a record high at 2,246 projects with 258,191 rooms, up 26 percent by projects and 15 percent by rooms, compared to last year. "Improved demand and increased consumer sentiment and spending has led to record-high rates of travel and much improved hotel revenue over the last few months. The outlook for the industry is positive and growth is expected to continue throughout 2022, albeit at a decelerated pace than initially expected. The industry's ability to adapt to the constantly changing economic environment provides a positive outlook for hotel performance, and its eventual full recovery," the report said.

NEWCRESTIMAGE RECENTLY ACQUIRED the TownePlace Suites by Marriott Dallas Las Colinas in Irving, Texas. It is the most recent acquisition for the Dallas-based investment firm led by Mehul Patel as managing partner and CEO, and the company plans to fully renovate the property, which opened in 1998 and was last renovated in 2014. The 3-floor, 135-suite property offers three types of guestroom: studio, one-bedroom, and two bedroom, according to NewcrestImage. It is near two major airports, Dallas Fort Worth International Airport and Love Field, and two major convention centers, the Irving Convention Center and the Gaylord Texan Convention Center. Amenities at the hotel include a fitness center and an outdoor pool. "This extended-stay property is in the heart of a high-traffic corridor that's a popular destination for both corporate and leisure travelers," Patel said. The acquisition of the TownePlace Suites is important to Marriott, said Loren Nalewanski, the company's vice president franchising for the Element, Residence Inn, Fairfield, TownePlace and SpringHill Suites brands. "Our industry is built on strong partnerships between brands and owners," Nalewanski said. "This acquisition enhances the long, valued, and successful partnership between Marriott and NewcrestImage, which has owned and operated 30 Marriott-branded properties since 2013."

A CYBER-ATTACK "significantly disrupted" booking channels and other applications for InterContinental Hotels Group last week, according to a statement from the company. Now, AAHOA is demanding an explanation for the breach and assurances that its members' data is protected. IHG has implemented a response plan, including notifying the relevant regulatory authorities, working with its technology suppliers and engaging external specialists to investigate the incident, according to the company. 'IHG is working to fully restore all systems as soon as possible and to assess the nature, extent and impact of the incident," the company said. "We will be supporting hotel owners and operators as part of our response to the ongoing service disruption. IHG's hotels are still able to operate and to take reservations directly."

From the courtroom to the halls of Congress, Laura Lee Blake has been representing AAHOA in some capacity for more than a decade now. For the past year she has served as the organization's president and CEO, and recently she sat for Asian Hospitality's Leadership Series to discuss the issues facing the association today. Those issues include the promotion of franchise reform, programs to advance women in the hotel industry and her future plans in her role at AAHOA. Blake's work for the association began well before her current appointment. Making the decision Blake, who is an attorney, worked with AAHOA from 2005 to 2014, then left to return to her law firm in Newport Beach, California. She had just started a trial on a big case when AAHOA offered her the president position.

NETHERLANDS-BASED CITIZENM HAS inaugurated its first hotel at Meta's Menlo Park campus in California, marking its second U.S. opening this year after the launch of citizenM Miami Center. CitizenM currently operates 14 hotels in the U.S. and has plans for additional openings in 2024, including locations in Austin, Boston, and another in South Beach, Miami. The global hospitality company was founded by Rattan Chadha in 2015. The five-story hotel, spanning 79,400 square feet, features 240 modular rooms, citizenM said. The brand's modular design has not only reduced construction waste by up to 60 percent but has also shortened the development timeline by three to four months compared to traditional construction methods. The hotel at Meta's Frank Gehry-designed headquarters campus has been designed by citizenM's architectural partner, Baskervill. "We're excited to open in Menlo Park, a burgeoning tech hub," said Robin Chadha, chief brand officer at citizenM. " CitizenM, designed to seamlessly connect remote and in-person work with private nooks and versatile workspaces in our Living Rooms, along with societyM meeting rooms. This dynamic property will provide a unique experience for Meta employees and mobile citizens in the area."

THE U.S. HOTEL construction pipeline continued to grow in the third quarter, up 7 percent year-over-year by projects and rooms, according to Lodging Econometrics. The growth was moderate, with current project count 3 percent below and rooms 14 percent below the all-time high of 5,883 projects and 785,547 rooms reached in the second quarter of 2008. There were a total of 5,704 projects and 672,676 rooms in the construction pipeline by the end of the quarter, according to LE's Construction Pipeline Trend Report for the U.S. That's up from 5,572 projects with 660,061 rooms at the end of the second quarter. There were 1,063 projects with 140,331 rooms under construction at the close of the third quarter, an increase of 8 percent by projects and 4 percent by rooms YOY. Projects scheduled to start construction in the next 12 months stand at 2,234 projects with 257,729 rooms, up 8 percent YOY by projects and 9 percent by rooms. Projects and rooms in the early planning stage each increased 7 percent to stand at 2,407 projects with 274,616 rooms, just 27 projects and 5,296 rooms shy of the all-time high.

CHOICE HOTELS INTERNATIONAL is continuing its bid to acquire Wyndham Hotels & Resorts after twice being rejected by Wyndham's board of directors. Now Choice has launched an exchange offer "to present its compelling proposal directly to Wyndham shareholders" and plans to nominate its own candidates for Wyndham's board. However, Wyndham's board continues its refusal to accept the offer, saying it remains substantially the same as the last bid it rejected and does not address the board's concerns about the deal's regulatory viability and benefits to stockholders. It also said in a statement that Choice currently owns less than 1.7 percent of Wyndham common stock and is "restricted from further purchases without antitrust approval."

STONEBRIDGE COS. JUST acquired five properties, totaling a 1,200-key portfolio across the U.S. in late November. The Denver-based hotel operator plans to execute capital improvements at each property, with three having undergone recent renovations. With a current nationwide portfolio of more than 14,000 rooms, the company is actively pursuing additional expansion opportunities, Stonebridge said in a statement.

BWH HOTELS HAS partnered with Tesla to introduce electric vehicle charging stations at its North American properties, with plans for international expansion. The installation of Tesla's Universal Wall Connectors at selected hotels will begin in 2024. The charging stations are designed to charge a variety of North American EV models, BWH Hotels said in a statement. "This collaboration with Tesla underscores BWH Hotels' unwavering commitment to sustainability and dedication to delivering exceptional guest experiences," said Michael Morton, vice president for brand management and member services, BWH Hotels. "As the hospitality industry evolves, we will continue to blend eco-conscious initiatives with the service, value and comfort that guests expect from BWH Hotels." EV charging stations are an attractive amenity for travelers with electric vehicles, the statement said. In line with its Earth, People, and Community initiative, BWH Hotels collaborates with hoteliers to broaden sustainability efforts by installing EV charging stations across the U.S., Mexico and Canada.

Jessica Brady is now the vice president of federal affairs for tax policy at the American Hotel & Lodging Association. Prior to joining AHLA, Brady served as the senior director of federal government relations at the Distilled Spirits Council of the U.S., focusing on tax, trade, and other key issues. Before DISCUS, Brady led budget and appropriations advocacy as the associate director of global development policy and advocacy at Save the Children, AHLA said. She also handled congressional affairs and engaged in multilateral diplomacy at the State Department as part of the President's Emergency Plan for AIDS Relief program. "Jessica's extensive tax expertise and profound understanding of the federal policymaking process will prove invaluable for our members as we navigate a myriad of crucial tax issues in 2024 and beyond," said Chip Rogers, AHLA president and CEO. "This addition reinforces AHLA's commitment to securing policy victories for hoteliers."

JUST OVER ONE year ago, President Biden signed an executive order directing an "all-of-government approach" to assessing the status of the nation's supply chains to repair disruptions that are currently plaguing businesses large and small. The order led to the creation of a new plan, based on a six-month study, that the administration announced on Feb. 24 and which has earned the approval of the U.S. Small Business Administration and AAHOA. Biden's order a year ago led to the creation of the Supply Chain Disruptions Task Force. The report includes data from seven cabinet agencies, the Departments of Defense, Homeland Security, Commerce, Energy, Agriculture, Transportation and Health and Human Services. The administration announced additional actions to build long-term resilience across critical supply chains and formally institutionalize supply chain resilience.