Tag Archives: hotels

Starwood Selling 3 Westin Hotels in Prospective $525 Million Deal

Hotels in Ottawa, Calgary and Edmonton on Block With Sellers Searching For $475 Million to $525 Million From Sale

Imagined: The Westin Ottawa, among 3 hotels being noted by Starwood Capital Group.Starwood Capital Group is offering its Westin-branded hotels in Ottawa, Calgary and Edmonton in a deal anticipated to bring $ 475 million to $525 million.

Cushman & & Wakefield is managing the sale of what is being branded as the Westin Hotels Portfolio Canada, but the residential or commercial properties may be sold separately, Curtis Gallagher, vice president of hotel financial investments, said in an interview.

” These are 3 excellent hotels in great cities,” said Gallagher, about the properties, noting Starwood, which has partners, is the lead investor in the portfolio, which was acquired in 2005.
” We will offer them together, or we will offer them individually.”

Marriott International, which now owns Starwood Hotels and Resorts, is the operator at all hotels and no changes to the names of the hotels are expected.

The Westin Ottawa is a 492-suite hotel directly linked to the newly built Shaw Convention Centre in the city and its largest mall, CF Rideau Centre. The Westin Calgary has 522 suites while the Westin Edmonton has 416.

” It’s just a capital recycle,” stated Gallagher, about factors behind the sale. “Ottawa is doing extremely well and has actually been for the last couple of years. Edmonton and Calgary, those markets are beginning to turn the corner and still carry out well now. There is upside there for the next owners or owners of these hotels.”

The Calgary website has some extra density readily available on it, however it’s a worth added component and development is not the chauffeur of the deal, said Gallagher. “You are purchasing into the turn-around story in Alberta, the consistency in Ottawa and some extra advantage with some tactical capital investment in the properties.”

In its newest report from November 2017, hospitality company HVS reported the occupancy rate in Calgary was 73.3% in the 3rd quarter, up from 69.5% a year earlier. Profits per available space leapt from $113.92 to $116.39 during the duration for the city.

Ottawa revealed strong growth with tenancy levels reaching 85.3% in the third of 2017, up from 79.6% a year previously. RevPar leapt from $131.76 to $155.09 in the nation’s capital during the duration, HVS said.

Gallagher anticipates buyers for the 3 residential or commercial properties might emerge locally, but he likewise states American and overseas buyers could be drawn in too.

” They are all in significant cities, and you take a look at the scale of the portfolio, and it can get you critical mass,” he stated. “It’s early days of marketing, however we see interest from all over the location.”

Garry Marr, Toronto Market Press Reporter CoStar Group.

Richard Branson’s Virgin Hotels planning to broaden to Las Vegas

[unable to recover full-text material] Virgin Hotels, part of the Virgin Group founded by billionaire Richard Branson, could quickly be entering the Las Vegas market, most likely acquiring an existing hotel residential or commercial property. A spokeswoman for Virgin Hotels company validated the company was looking at …

Vegas visitors can use electronic wallet for hotels, show tickets รข $” however not for betting

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Steve Marcus Tourists take pictures at the Welcome to Fabulous Las Vegas indication Saturday, March 14, 2015, on the Strip.

Tuesday, Aug. 22, 2017|3:43 p.m.

Next time you go to Las Vegas, you might be able to leave your credit cards in the house. Numerous hotel-casino resorts along the city’s well known Strip now let guests utilize their digital wallets to pay for their room, meals and more– but not for gaming.

To see the full story, click here.

Vegas visitors can use electronic wallet for hotels, reveal tickets– but not for gaming

Image

Steve Marcus Tourists take photos at the Welcome to Fabulous Las Vegas indication Saturday, March 14, 2015, on the Strip.

Tuesday, Aug. 22, 2017|3:43 p.m.

Next time you check out Las Vegas, you might be able to leave your credit cards at home. Many hotel-casino resorts along the city’s renowned Strip now let guests utilize their digital wallets to pay for their room, meals and more– however not for gambling.

To see the full story, click on this link.

Blackstone To Spin-Off La Quinta’s Hotels into a New REIT

La Quinta Holdings Inc.(NYSE: LQ) has officially submitted with the United States Securities and Exchange Commission to proceed with its previously revealed plans to separate its real estate company into a brand-new REIT to be named CorePoint Lodging Inc. The relocation will create two unique, publicly traded business.

Irving, TX-based La Quinta is a leading owner, operator and franchisor of select?service hotels mostly serving the upper?midscale and midscale sectors. The company’s owned and franchised portfolio consists of more than 885 hotels representing about 87,500 spaces in 48 states in the United States, and in Canada, Mexico, Honduras and Colombia. Affiliates of private equity giant Blackstone Group LP own roughly 27% of La Quinta’s public stock.

Following the spin deal, CorePoint Accommodations anticipates to be the only publicly-traded U.S. lodging REIT strategically concentrated on serving the midscale and upper-midscale select-service segments.

CorePoint’s portfolio will include 316 hotels, excluding three hotels held for sale, with 40,500 rooms with 32% of them in the Leading 25 markets as defined by Smith Travel Research study (STR).

As a stand-alone public company, CorePoint’s overall adjusted EBITDA for the complete year 2017 is estimated to be in between $200 million and $215 million.

Post-spin La Quinta and CorePoint Lodging each anticipate to complete several funding transactions including the refinancing of considerably all of La Quinta’s existing financial obligation.

As a stand-alone company, La Quinta expects to take advantage of a pipeline of interest from designers in expanding the brand into the more than 30% of U.S. markets where the brand is not yet represented.

La Quinta’s total adjusted EBITDA for full year 2017 is approximated to be between $110 million and $115 million, consisting of fee earnings under continuous franchise and management agreements with CorePoint.

J.P. Morgan is acting as monetary consultant to La Quinta Holdings Inc. Simpson Thacher & & Bartlett LLP is acting as legal consultant.


MCR Sells 18 Marriott and Hilton Hotels for $407.4 Million

Courtyard by Marriott Wall at Monmouth Shores Corporate Park, Wall Township, NJ
Yard by Marriott Wall at Monmouth Shores Corporate Park, Wall Town, NJ MCR finished the sale of 18 Marriott and Hilton possessions to American Hotel Income Residence REIT LP (TSX: HOT.UN) (TSX: HOT.DB.U) (OTCQX: AHOTF)for$407.4 million ($186,283/ room).

The sale incorporated 2,187 spaces. The assets offered are in Maryland, New Jersey, New york city, Connecticut and Pennsylvania.

The Eastern Coast portfolio includes 10 Marriott branded hotels amounting to 1,206 guestrooms (5 House Inns, 2 SpringHill Suites, one Courtyard, one Fairfield Inn and Suites and one TownePlace Suites) and 8 Hilton branded hotels totaling 981 guestrooms (4 Homewood Suites, 2 Hampton Inns and two Hilton Garden Inns).

The average age of the hotels is 10 years and each hotel has actually either been recently built or renovated.

The typical capitalization rate of the portfolio personality was 7.9% on a routing 12 months net operating income basis, or approximately $186,000 per space.

“The sale of this portfolio is a reflection of MCR’s investment thesis: to buy superior branded select service and extended stay hotels, enhance operations, and offer opportunistically,” said Tyler Morse, CEO and handling partner of New York-based MCR.

Rob O’Neill, CEO of Vancouver, BC-based American Hotel Income Properties, said, “During the first half of 2017, we have been disciplined in our financial investment strategy to acquire premium branded, select-service hotels with supported in-place income, which are younger and well-maintained and where acquisition costs are listed below replacement cost.

AHIP has actually now acquired 23 hotels in the first 6 months of 2017 for approximately $589 million. Other markets it has actually finished purchases in are: Ohio, Texas, and Arizona.

Hyatt hotels banning on-demand adult movie in hotel rooms

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Edward Linsmier/ The New york city Times

A space in the Hyatt hotel situated in the Orlando International Airport in Florida, April 23, 2012.

Wednesday, Oct. 14, 2015|6:37 p.m.

Hyatt Hotels will no longer offer on-demand pornographic movies in its spaces, the business stated Wednesday.

“This content will not be presented to any brand-new Hyatt hotels, and it will be terminated or phased out at all hotels,” the business stated in a statement.

Hyatt is simply the most recent hotel company to prohibit on-demand adult entertainment from its spaces. Decreasing revenue from film rentals in hotels has driven the pattern, with film rental income per readily available hotel room dropping from $339 a year to $107 a year between 2000 and 2014, according to a report from PKF Hospitality Research study. Hotel visitors are leasing fewer in-room films since they can enjoy them on mobile phones or laptops instead.

Marriott hotels ended the practice of offering adult video on demand several years earlier. The business’s chairman, Bill Marriott, a member of The Church of Jesus Christ of Latter-day Saints, told The Associated Press in 2012 that not just was the church “really, extremely opposed to pornography,” however that demand for the motion pictures had actually “gone way down” due to the fact that “if they desire that things, they can get on the computer.”

Hyatt, a U.S.-based business, owns 618 buildings in 51 nations.

The National Center on Sexual Exploitation in Washington praised the change. “With this step, Hyatt is showing itself to be a leader among corporations that value a favorable and safe environment for their consumers,” the company’s president, Patrick Trueman, said in a statement.

Lendlease Receives $250M to Privatize Hotels At Two Army Posts

To Date, Lendlease’s Army Post Portfolio Handled By IHG Overalls Almost 12,500 Rooms

Lendlease has secured $250 million in senior financial obligation financing for the last phase of a six-year task with InterContinental Hotels Group (IHG) and the united state Army Department to remodel and privatize hotels found on or near Army posts.

With the closing of the latest financing, which includes 2,058 hotel spaces located on Fort Lee, VA and Fort Benning, GA, the Privatized Army Lodging (FRIEND) program run by IHG, one of the world’s largest hotel groups, has received an overall of $715 million in senior financial obligation funding.

BUDDY, the Department of Defense’s only program to privatize accommodations, began in 2009 with Australia-based Lendlease taking ownership of hotel centers on 10 Army posts.

Lendlease deployed the 2nd stage of the program at an extra 11 posts in 2010 and was offered a third round of posts in 2011. To this day, Lendlease’s privatized hotel profile includes 12,492 hotel rooms on 41 military setups.

At Redstone Collection in Alabama, Lendlease is delivering the country’s first hotel constructed completely of cross laminated wood. The 58,850-square-foot, four-story hotel is comprised of 92 rooms to be branded Candlewood Suites and is expected to open its doors by year-end.

To this day, 14 Holiday Inn Express hotels have been delivered through the PAL program with another five presently under renovation.

In addition, Lendlease has actually provided 5 brand-new Candlewood Suites hotels with three under construction. One Staybridge Suites is under building at Fort Belvoir, VA. All excess profits from the BUDDY program is reinvested back into the portfolio.

Blackstone Accepts Buy Strategic Hotels for Nearly $4 Billion

Sale of Luxury Chain Includes Ritz-Carlton in Half Moon Bay, CA and Essex Home In Manhattan

Luxury hotel business Strategic Hotels & & Resorts, Inc. early today it has accepted be gotten by Blackstone Realty Partners VIII L.P. in a deal that values the hotel REIT’s portfolio at about $6 billion, consisting of debt.

Blackstone will certainly acquire all outstanding shares of Strategic Hotels (NYSE: BEE) for $14.25 per share in money in the deal, expected to be finished by the first quarter of 2016 pending traditional closing conditions, consisting of a shareholders vote at a special conference on a date to be announced.

Strategic Hotels & & Resorts Chairman and CEO Raymond L. “Rip” Gellein said in a statement that the board “completely thought about various alternatives over the course of the past few short years, and this all-cash offer from Blackstone develops considerable investor value with a high degree of execution certainty.”

Blackstone, which has actually formerly taken Hilton Worldwide Holdings Inc. and La Quinta Holdings Inc. personal, is now settings its sites on Strategic Hotels, the only pure-play luxury hotel REIT.

“As long term financiers in the accommodations market, we remain positive in the fundamentals of the sector despite recent market volatility,” said Tyler Henritze, co-head of U.S. acquisitions for Blackstone Real Estate, explaining Strategic Hotels as one of the greatest quality luxury hotel profiles in the country.

J.P. Morgan is serving as monetary advisor to Strategic Hotels. Simpson Thacher & & Bartlett LLP is acting as legal consultant to Blackstone.

Discuss the potential sale of Strategic Hotels has actually distributed for more than 2 years and did not come as a shock to the investment community on Monday. Waterfall Financial investment Inc., the company owned by tech billionaire Bill Gates, disclosed last month that it has obtained $21.5 million in shares, boosting its stake in the business to 9.8 %, which Cascade was interested in exploring a possible sale or takeover. Strategic verified on Aug. 17 that it was exploring strategic options.

The sale is part of a new wave of publicly traded and private hospitality mergers and acquisitions activity. Hotel REITs have actually come under increasing pressure from investors to put themselves up for sale, spin off assets or take other steps to bolster share prices.

Dallas-based Ashford Hospitality Prime last month revealed strategies to assess its strategic alternatives, following the similar statement by Strategic Hotels earlier in August and Starwood Hotels & & Resorts Worldwide last spring.

With lodging stocks down 19.7 % year to date versus a decrease of 9.4 % for the broader Morgan Stanley REIT Index, private evaluations are now well above public appraisals and “we are not amazed to see public operators seeking value for investors,” said Rod Petrik, hotel REIT analyst with Stifel Nicholas.

The $14.25 offer rate for BEE represents a boost of 13 % over the trading cost on July 23, when media reports initially surfaced about a prospective deal, and a 5.6 % premium over Friday’s closing share cost, Petrik noted.

La Quinta Holdings, another reported takeover target, stated last week Inc. that it accepted sell 24 hotels of its 870 hotels completing about 86,000 living rooms to a concealed buyer.

In a private deal, Walnut Creek, CA-based financial investment business Hall Equities Group acquired ZMC Hotels, a 50-year-old hotel chain possessed by the Goldfine household of Duluth, MN.