Skift Take
Need for all-inclusive resorts reveals no indication of letting up. Plus, more development in top quality, hotel-managed residences in India, and other hotel offers and development news worldwide.
Sean O’Neill
Here are some excerpts from Daily Accommodations Report from the past week. If you’re not a customer, you should be. Get news on hotel deals, advancement, stocks, and profession moves. Sign up here, now.
Sunday, July 17
Work is slated to start this fall on a store hotel in the Millwork District of Dubuque, IA. Main Street Community Capital, producing the hotel, chosen Meyer Jabara Hotels to manage the planned hotel located in the Novelty Iron Works building. The job, initially announced in fall 2020, will have its grand opening in fall 2023. The hotel will be designed on Hyatt’s JDV brand. A newly-announced addition to the hotel is a rooftop dining establishment and bar.
Concord Hospitality revealed the closing of a $74.7 million building loan to money the advancement of the Westin Gwinnett Hotel in Duluth, GA. Acres Capital provided the financing. When completed, the property, which will be the very first four-star hotel in the market, will connect directly to Duluth’s Gas South Convention Center. The 348-key Westin will include 17,607 square feet of meeting area. JLL Hotels & Hospitality Group revealed the sale of the AC by Marriott Hotel Salt Lake City Downtown, a 164-key hotel in downtown Salt Lake City, UT. JLL marketed the property as exclusive agents on behalf of the Seller. The eight-story hotel was offered unencumbered by management.
Skift Note: It’s good to see that increasing rate of interest haven’t led to capital restrictions for essential jobs.
Monday, July 18
MCR closed on a $420 million refinancing of 30 hotels throughout 17 states. The financing was provided at an interest rate of SOFR +3.7% by lead left arranger Wells Fargo, joint lead arranger BMO Harris, Bank of America and Square Mile Capital.
UAE-based Select Group announced the acquisition of The Mere Golf Resort & Medspa in Knutsford, U.K. The resort offers 81 visitor bed rooms, event space, a champion golf course and golf services, and a Health Spa & Gym. Select Group prepares to elevate the hotel’s placing with plan to refurbish the interior and exterior by updating spaces, public areas and centers, add brand-new spaces and expand the general public areas.
Whitbread PLC started construction on what it declares is its very first “all-electric” hotel, a 195-room property in Swindon, Wiltshire, England. The hotel is “to be designed without a connection to a gas supply. Rather, the hotel will be completely heated and powered by grid energy created from eco-friendly sources and by on-site solar batteries.”
Vacation Home Le Blanc, a 5-star high-end resort operated by Gran Melia, will open at the end of July as the current member of the Leading Hotels of the World, the only such hotel on the island of Menorca, and the brand’s very first energy-efficient carbon neutral hotel.
Skift Note: It’s excellent to see “all-electric hotels” and “carbon-neutral hotels” being presented. For more examples of hotel try outs sustainability, listen to Skift’s current podcast on the subject.
Tuesday, July 19
The Economic Times published a post on how top quality, hotel-managed residences are removing in India, with more hotel chains and designers warming up to the concept. A new Taj Hotel in Chennai will consist of 123 Taj branded residences in the hotel complex, while Delhi-based BI Luxury Residences has actually tied up with Oberoi Hotels & Resorts to manage services at its upcoming high-end jobs in central Delhi. JLL Hotels and Hospitality reported a lot of interest from realty developers. IHCL is partnering with AMPA group for a Chennai project. 3B Group of Hotels, Sushma Group, Sarovar Portico, and Wyndham Hotels & Resorts EMEA likewise see the demand for branded residences growing in India.
Banyan Tree Group will make its launching in the Philippines with Banyan Tree Residences Manila Bay, slated to open in the third quarter of 2025.
Skift Note: Branded homes remain in hot need. For more context, see Skift’s recent interview with a leading consultant at PKF Hospitality.
Wednesday, July 20
According to June 2022 data from STR, the U.S. hotel industry reported its highest monthly space rates on record. June 2022 (portion modification from June 2019): Tenancy: 70.1% (-4.3%); ADR: $155.04 (+15.3%); and RevPAR: $108.64 (+10.3%).
Truist Securities stated they see 2Q Street price quotes for hotel names as reasonable and achievable with the wildcard to the degree of outperformance for C-Corps coming from a modest headwind from unfavorable FX. Truist anticipates commentary on brand-new U.S. hotel advancement slowing. They also are expecting a stall in corporate room need at around -20% below pre-Covid levels, a cap on post-Covid service take a trip some have actually been predicting. They likewise see substantial new short-term rental supply pushing hotel occupancy in hot domestic resort markets such as Florida and ski/mountain resorts.
IHG Hotels and Resorts plans to strongly broaden in Thailand’s luxury premium hospitality sector, aiming to take advantage of the country’s tourist healing, reported The Country. Rajit Sukumaran, IHG’s handling director for Southeast Asia and Korea stated more worldwide tourists are revealing a desire to go to Thailand, especially Bangkok, Phuket, Pattaya and Samui Island. IHG plans to double its estate there throughout all brand names, with 35 hotels in the pipeline.
Mandarin Asian International is selling its Washington, DC hotel to London-headquartered private equity property manager Henderson Park. The deal is anticipated to gain gross earnings of approximately $139 million and a post-tax.
Rotana will release the Luxor Rotana in Egypt’s ancient city at the end of 2023. Spaces feature a view of the Nile with an area on the edge of one of the world’s longest rivers. The hotel consists of 48 suites, pools and luxury facilities.
Accor will partner with Singapore’s Fragrance Group Limited and open a new hotel– Novotel Devonport in Tasmania’s northwest– in Q4 of this year. Construction is nearing completion on the 187-room hotel. The Lyons Architecture-designed hotel was conceptualized to act as a renowned horizontal land bridge, visually connecting the Mersey River to the city of Devonport.
Skift Note: Thailand needs to see more global travelers now that its government has actually eased some entry limitations.
Thursday, July 21
Wyndham Hotels & Resorts revealed on Thursday a long-term handle Palladium Hotel Group, among the largest Spanish hotel companies, that will include 14 complete TRS Hotels and Grand Palladium Hotels & Resorts to Wyndham’s portfolio. The offer includes more than 6,500 rooms in Mexico, Dominican Republic, Jamaica, and Brazil to Wyndham’s Registry Collection, bringing Wyndham’s all-encompassing resort portfolio to 26 hotels. Characteristic consist of Grand Palladium Colonial Resort & Spa in Riviera Maya, Mexico. and the luxury TRS Yucatan Hotel in Riviera Maya. What’s more, the Dominican Carnival Hotel & Casino in Santo Domingo, Dominican Republic, likewise handled by Palladium Hotel Group, will be signing up with Trademark Collection by Wyndham. All 15 homes will enter into the acclaimed Wyndham Rewards commitment program.
Skift Note: Wyndham, the world’s biggest hotel franchisor, last October debuted Wyndham Alltra, an all-encompassing resort brand with Playa Hotels & Resorts. The company plainly sees long-term strength in need for complete resorts.