Sonnenblick-Eichner Company Arranges $26,750,000 of First Mortgage Financing for Two Northern California Hotels
Sonnenblick-Eichner Company | January 10th, 2023
Hilton to Bring First Waldorf Astoria Property to Costa Rica
Hilton | November 15th, 2022
Q1 2022 Major U.S. Hotel Sales Survey
Daniel Lesser | April 20, 2022
By Daniel Lesser As the world was emerging from a once in century pandemic, global and national events during the first three months of 2022 have resulted in a transformative quarter unlike any for nearly 80 years. During the nuclear superpower age, the notion of an unprovoked brutal attack and invasion of a sovereign state was the stuff of fiction. "Never again" is a phrase associated with the Holocaust, the genocide of European Jews during World War II. Unfortunately, the phrase is merely two words as history is currently repeating itself in Eastern Europe. As of the end of Q1 2022, skyrocketing energy and food costs have greatly ...
What the 2022 Revitalization of EB-5 Financing Means Today: Part 1
Jim Butler | April 19, 2022
By Jim Butler and the Global Hospitality Group® Since the renewal of the EB-5 program this year, there has been a lot of talk about what this means for developers interested in taking on new projects. Our recent article in Westlaw Today sums up the latest information about the program. Part one is below; part two will be published next week. This article was originally published on Westlaw Today on April 14, 2022. What the 2022 Revitalization of EB-5 Financing Means for Real Estate Developers and Other Entrepreneurs: Part 1 After being sidelined for the last few years by circumstances culminating with the pandemic and the lapse o...
Hotel Insurance – A Largely Uncontrollable Cost
Robert Mandelbaum | April 19, 2022
To analyze recent changes in hotel insurance costs, and the factors that influence those changes, we examined the operating statements of 3,156 U.S. hotels that reported insurance expenses for the Trends® survey each year from 2015 through 2021 (estimated). By Robert Mandelbaum & Tom Cleary In 2020 and 2021, U.S. hotel operators did a praiseworthy job controlling expenses to offset the significant declines in revenue. Based on data from CBRE’s Trends® in the Hotel Industry survey of annual operating statements from thousands of properties across the U.S., not only have we seen a reduction in the variable expenses associated wi...
Benchmark Pyramid to Acquire Portland-Based Provenance Hotels
Benchmark Pyramid | April 18, 2022
BOSTON, THE WOODLANDS, TX and PORTLAND, OR – April 18, 2022 – Benchmark Pyramid and Provenance Hotels (Provenance) today announced the signing of a definitive agreement under which Benchmark Pyramid will acquire Portland, Oregon-based Provenance, adding 12 unique hotels to Benchmark Pyramid’s portfolio of more than 240 properties across the U.S., Europe and the Caribbean. Terms of the transaction were not disclosed. “We couldn’t be more thrilled to welcome the Provenance family into Benchmark Pyramid’s storied portfolio,” said Warren Fields, Benchmark Pyramid’s chief executive officer. “The decades of highly s...
The Americas and Asia Pacific Regions Show Increased Hotel Pipeline Activity
STR | April 14, 2022
LONDON — April 14, 2022 — Two of the four world regions, the Americas and Asia Pacific, showed a year-over-year increase in hotel pipeline activity at the end of the first quarter, according to March 2022 data from STR. March 2022 (% changes in comparison with March 2021) Europe In Construction: 226,597 rooms (-12.2%) Final Planning: 158,057 rooms (-12.7%) Planning: 164,690 rooms (+5.8%) Total Under Contract: 549,344 (-7.7%) Germany (42,712) and the U.K. (31,796) lead Europe in total rooms in construction. Asia Pacific In Construction: 482,689 rooms (+4.3%) Final Planning: 147,854 roo...
Deal Activity in Travel and Tourism Sector Improved by 1.8% in Q1 2022 Compared to Q1 2021
GlobalData | April 13, 2022
A total of 289 deals* were announced in the global travel and tourism sector during Q1 2022, according to GlobalData, a leading data and analytics company. An analysis of the company’s Financial Deals Database reveals that this is a growth of 1.8% compared to the 284 deals that were announced in Q1 2021. Aurojyoti Bose, Lead Analyst at GlobalData, comments: “This growth was driven by improvement in some of the key markets. Meanwhile, several other key markets experienced subdued activity due to prevailing market volatility and uncertainty.” While markets such as the US, the UK, Japan, India, Germany and Spain witnessed improvem...
Grand Orlando Resort at Celebration Under New Ownership, Management; Announces $35 Million Renovation
Tishman Hotel Corporation | April 13, 2022
CELEBRATION, FL – April 13, 2022 – The Grand Orlando Resort at Celebration is under new ownership and management. The 718-room property, located just 1.5 miles from Walt Disney World, was recently purchased by Tishman Hotel Corporation. StepStone Hospitality has been named the management company and will oversee the property. The resort is currently undergoing a $35 million renovation, which includes guest rooms and suites, outdoor pool areas, a restaurant and on-site conference center, with completion expected in early 2023. The room renovation construction is contained to one of the hotel’s six towers at a time, to avoid interruption...
The Siegel Group Completes Sale of Four Extended-Stay Properties for $184.5M
The Siegel Group | April 11, 2022
LAS VEGAS - April 11, 2022 - The Siegel Group, a real estate investment and management company, announced today that it had sold four extended-stay properties in an off-market transaction for $184.50 million at a blended per unit cost of approximately $167,400. Each property was operated under the company’s successful Siegel Suites® brand of flexible-stay communities which has locations throughout the United States. These assets were sold unencumbered of the Siegel Suites brand. The properties sold included two assets in the Las Vegas market totaling approximately 400 units and another two locations in the Phoenix market totaling just...
Sonnenblick-Eichner Company Arranges $30,000,000 of First Mortgage Financing for The Inn at the Pier, Pismo Beach, California
Sonnenblick-Eichner Company | April 7, 2022
Beverly Hills, CA - April 7, 2022 - Sonnenblick-Eichner Company has arranged $30 million of long-term, fixed-rate financing for the Inn at the Pier, a 104-room, full-service, luxury boutique hotel located one-half block from the Pacific Ocean in Pismo Beach, CA. The non-recourse loan was funded by a Life Company and priced in the low 4 percent range with interest-only payments for the entire term. Proceeds from the loan also provided for a return of equity to the Borrower. The Inn at the Pier features a full-service restaurant, pool and spa, and the only roof-top bar in Pismo Beach. Other amenities include 1,200 square feet of meeti...
Groups360 Raises $35 Million in Funding to Support Rapid Growth
Groups360 | April 7, 2022
$35 Million Investment from Zigg Capital, Blackstone Innovations Investments, and Fir Tree Partners to Accelerate Growth NASHVILLE, TN – April 7, 2022 – Groups360, a leading platform for booking group travel, today announced the completion of a $35 million funding round led by Zigg Capital and including Blackstone Innovations Investments, and Fir Tree Partners. They join existing investors Accor, Hilton, IHG Hotels & Resorts, and Marriott International. Groups360 provides real-time availability and instant booking capabilities for both hotel room blocks and meeting space, streamlining group travel for organizers, attendees, a...
Paramount Lodging Advisors Successfully Transacts in Houston With the Sale of the Four Points by Sheraton Hobby Airport
Paramount Lodging Advisors | April 6, 2022
Houston, TX - Paramount Lodging Advisors (PLA) has successfully executed the sale of the Four Points by Sheraton Hobby Airport. Austin, TX-based Sr. Managing Director Kami Burnette and Sr. Associate Mason McDavid along with Sr. Managing Directors Brent Clemens and Bennett Webster represented the special servicer in the transaction. The 79-key, 2011 built hotel is ideally located near Hobby Airport. The buyer has increased the number of hotels owned in the submarket and is looking to capitalize on economies of scale as the Hobby submarket continues to recover after airline travel was disrupted with the onset of COVID-19. “With viru...
Paramount Lodging Advisors Successfully Sells the Wyndham Garden Inn Oklahoma City Airport
Paramount Lodging Advisors | April 5, 2022
Oklahoma City, OK – Paramount Lodging Advisors (PLA) successfully transacted on the Wyndham Garden Oklahoma City Airport. Austin, TX-based Sr. Managing Director Kami Burnette and Sr. Associate Mason McDavid as well as Managing Director Rob Willard represented the seller. The 244-room hotel is optimally located approximately four miles north of Will Rogers World Airport in Oklahoma City. The new buyer is looking forward to ramping property performance after renovating the 1984-built hotel and as airline and corporate business return to pre-pandemic levels in the MSA. “The Oklahoma City hotels were negatively impacted by COVID-19 and ...
2022 Update: EB-5 Is Back! What Every Real Estate and Hotel Developer Needs to Know
Jim Butler | April 4, 2022
By Jim Butler and the Global Hospitality Group® Click here for the latest articles on EB-5 Financing, and here for C-PACE Financing. The hotel development and financing world is buzzing with the news that the EB-5 program has been renewed, creating new opportunities for upcoming projects. My partner David Sudeck and I have written the short update below to help get you up to speed. EB-5 Reform and Integrity Act of 2022 EB-5 is revitalized and renewed by Jim Butler & David Sudeck In case you haven’t heard, EB-5 is back! On March 15, President Biden signed the Omnibus Spending Bill, which included the “EB-5 Reform...
KSL Capital Partners Invests in The Pig Hotels
The Pig Hotels | April 1, 2022
London – April 1, 2022 – The Pig Hotels announced today that an affiliate of the specialist travel and leisure private equity firm KSL Capital Partners, LLC (“KSL”) has acquired the parent company of The Pig Hotels in partnership with its co-founder Robin Hutson. Robin will continue as Chairman of the company and will retain a stake in the business. Tom Ross, previously Group Operations Director, has taken on the role of Managing Director. Terms of the transaction were not disclosed. Founded in 2011, The Pig Hotels are a much-loved collection of award-winning rural boutique hotels with acclaimed restaurants built on a commitment t...
Twelfth Avenue Realty Holdings Completes Sale of W Nashville to Xenia Hotels & Resorts for $328.7M
Xenia Hotels & Resorts, Inc. | March 30, 2022
NASHVILLE, TN – March 30, 2022 – Twelfth Avenue Realty Holdings, LLC (Twelfth Avenue Realty), today announced it has completed the sale of W Nashville to Xenia Hotels & Resorts, Inc. (NYSE: XHR) (Xenia) for a sales price of $328.7 million or $950,000 per key. Designed by The Rockwell Group and built by Yates Construction, the luxury lifestyle property opened in October 2021 in the vibrant Gulch neighborhood of Nashville. The concept, programming and design direction of W Nashville was led by hospitality veterans David Tessier and Anna Gomez of Hospitality Gaming Advisors along with local partners Mark Bloom and Larry Papel of...
Recent Expense Rise Presents Threat to Hotel Profit
HotStats | March 30, 2022
February was a stronger month all around for the global hotel industry, but escalating line item expenses could derail what’s already a fragile profit rebound. In the U.S., gross operating profit per available room (GOPPAR) hit $65.98 for the month, more than $40 higher than January and the highest it’s been since October. It’s still well below pre-pandemic profit, which was recorded at more than $90 in February 2019. Ever since profit fell dramatically in April 2020, well into negative territory, U.S. hotels have steadily climbed back, but the drive back to normal GOPPAR levels has come in fits and starts. The precipitous drop in...
Oak View Group Acquires 25 Acres in Las Vegas With Vision to Build Retail & Entertainment District Including 20,000 Seat Arena, Casino and Hotel
March 30, 2022
LAS VEGAS, NV - March 30, 2022 - Oak View Group (OVG), the global venue development, advisory, and investment company for the sports and live entertainment industry, today announced its vision to welcome a newly planned entertainment district including an arena in Las Vegas. Groundbreaking and construction for the estimated $3B point of destination entertainment district and arena are scheduled for 2023. The 25 acres, which is located on 66.5 acres of land near the intersection of two major freeways, I-15 and I-215, will feature an 850,000 square foot arena, a casino, a hotel, and an additional entertainment venue amphitheater. Feat...
Spirides Provides $7 Million in Loans to Refinance Debt & Renovate Two Hotels in Sylva, NC
Spirides Hotel Finance Company | March 29, 2022
TAMPA, FLORIDA—Spirides Hotel Finance Company has successfully provided and the borrower has officially closed $7 million in loans to refinance the existing mortgage debt and fund renovations to the Holiday Inn Express and Clarion Pointe hotels in Sylva, North Carolina. The 67-room Holiday Inn Express Sylva, NC is located at 26 Rufus Robinson Road. Its ownership retained the services of Spirides Hotel Finance Company to provide them with a new conventional mortgage which has a much lower fixed rate of interest than that of their previous mortgage as well as additional funds to perform a comprehensive Holiday Inn Express “Formula Blue...
Access Point Financial Refinances Portfolio of Four Hotels for Walker Reynolds Lodging Partners
Access Point Financial | March 29, 2022
Hospitality’s leading capital provider provides funding for four hotels across three states, owned by Walker Reynolds and managed by Aileron Management. ATLANTA, GA – March 29, 2022 – Access Point Financial, LLC (APF), a leading direct lender focused exclusively on the hospitality industry, announced today that the company has originated $45.75MM in floating-rate debt to refinance four hotels owned by Walker Reynolds Lodging Partners (WRLP), a Colorado-based private real estate investment firm. The hotels are all managed by Aileron Management, the exclusive management company of WRLP, and include a Residence Inn by Marriott in S...
The Siegel Group Completes Sale of Artisan Hotel Boutique for $11.9M
The Siegel Group Nevada, Inc. | March 25, 2022
LAS VEGAS, NV – March 25, 2022 – The Siegel Group Nevada, Inc., a Commercial Real Estate & Development Company, announced today that it had completed the sale of the Artisan Hotel Boutique; a 64-room boutique hotel located in Las Vegas, Nevada. The sale price was $11.90 million. The Siegel Group is proud to be one of the first companies to have brought boutique hotels to Las Vegas starting in 2007. As a long-time leader in off-strip, boutique hotel properties, The Siegel Group not only brought this unique style to Las Vegas with the Artisan Hotel Boutique, but also with The Gold Spike Hotel & Casino, Oasis at Gold Spike, The Re...
Deal Activity in the Travel & Tourism Sector Down by 2% During February 2022, Finds GlobalData
GlobalData | March 24, 2022
A total 96 deals—comprising mergers & acquisitions (M&A), private equity, and venture financing deals— were announced in the global travel and tourism sector in February 2022, according to GlobalData. The leading data and analytics company notes that this represents a decline of 2% compared to the previous month. Aurojyoti Bose, Lead Analyst at GlobalData, comments: “While there is still prevailing uncertainty among deal makers in the sector, deal activity remains a mixed bag across different market and deal types.” The number of M&A deals decreased by 15.9% while the number of venture financing and privat...
White Lodging Exits Suburban Hotel Markets, Boosts Focus on Experiential Urban & Lifestyle Hotels
White Lodging | March 24, 2022
Merrillville, Indiana – March 24, 2022 – White Lodging recently closed on an agreement to sell 25 suburban management contracts. The transaction, combined with planned individual suburban hotel sales, supports White Lodging’s multi-year strategy to exit suburban markets altogether. This transformation focuses the company’s resources across a concentrated urban portfolio with more complex hotels that deliver memorable and elevated guest experiences. Read more about the transition in the latest edition of Hotel Business. “This strategic portfolio shift further defines our position in the industry and reinforces our focus on u...
Wyndham Signs First 50 Hotels for New Economy Extended-Stay Brand, Project ECHO
Wyndham Hotels & Resorts | March 22, 2022
PARSIPPANY, NJ - March 22, 2022 - Wyndham Hotels & Resorts, the world's largest hotel franchising company with approximately 9,000 hotels across nearly 95 countries, today unveiled new details about its upcoming economy extended-stay hotel brand. Among them, newly awarded contracts to develop 50 new construction projects with its first two partners: Richmond, Va.-based Sandpiper Hospitality and Dallas-based Gulf Coast Hotel Management. Operating under the working title "Project ECHO"—an acronym for Economy Hotel Opportunity—the all new-construction brand fills whitespace within the larger Wyndham Hotels & Resorts portfolio w...
P3 Hotel Software Targets Growth in U.S. and Germany After Securing $1.2M Investment
P3 Hotel Software | March 15, 2022
Hotel software solutions provider P3 has announced plans to almost double its workforce and expand into the United States and Germany after it secured investments totaling $1.2m (€1.1m). The Irish company – which offers an integrated ecosystem of hotel technology through core products, such as custom booking engine and online check-in/checkout solutions– announced that it has received $820,000 (€750,000) from Business Venture Partners (BVP). This funding comes on top of a recent $380,000 (€350,000) investment that P3 received from the Irish state economic development agency Enterprise Ireland in 2021. P3 now plans a major e...
