Exploring the Latest Developments in the Hotel and Hospitality Sector
Dalata Explores Potential Sale
In a significant move that could reshape its future, Dalata Hotel Group, headquartered in Dublin, Ireland, has announced it is exploring options to enhance shareholder value, including a potential sale of the company. The financial advisory firm Rothschild & Co has been appointed to oversee this strategic review. Importantly, Dalata clarified that it is not currently in discussions with any potential buyers. The company operates 55 hotels under the Maldron and Clayton Hotel brands, primarily located in Ireland and the United Kingdom. Notably, Dalata’s 30 owned hotels have been appraised at approximately €1.7 billion (around $1.84 billion), which includes assets still under construction. Additionally, Dalata manages 22 leased hotels, making it a notable player in the European hospitality market.
Hunter Closes $60.2M in Financing
In a noteworthy development for the hotel financing landscape, Atlanta-based Hunter Hotel Advisors has successfully closed on $60.2 million in financing specifically tailored for seven hotels operated by five different owners. This financing comprises a mix of Small Business Administration (SBA) 7(a) and 504 loans, benefitting properties such as the Extended Stay America locations in Chantilly, Virginia, and other hotels across various states, including Kentucky, Colorado, and Louisiana. The loans range from $5.73 million to $12.8 million and cover up to 85% of the total costs, providing essential support for these properties’ operational needs and potential expansions.
AHIP Secures $43M Financing
American Hotel Income Properties REIT LP (AHIP), based in Vancouver, has secured $43 million in financing for a portfolio of five select-service and extended-stay hotels. This portfolio, featuring a total of 554 rooms, includes properties branded by both Marriott and Hilton and is spread across five strategically positioned states. The financing for this portfolio was arranged by JLL, pointing to the confidence in these properties, which are situated in secondary markets known for diverse demand generators.
HEI Expands in California
In a bid to enhance its portfolio, HEI Hotels & Resorts, located in Norwalk, Connecticut, has successfully opened the Claremont Resort & Club in Berkeley, California. This addition brings HEI’s management portfolio to an impressive total of 103 hotels. The Claremont Resort & Club features 276 keys and is nestled within 22 acres of scenic landscape, marking a significant leap in HEI’s expansion strategy in the highly competitive California market.
Marriott’s Growth in CALA
Marriott International has reported remarkable growth in the Caribbean and Latin America (CALA) region, having signed 67 agreements that represent approximately 8,000 new rooms slated for 2024. This growth comes on the heels of the addition of 30 properties to Marriott’s CALA portfolio in the previous year, elevating the total count to 528 open properties across 37 countries and territories. Notably, conversions made up 32% of the total room signings in the region, highlighting Marriott’s strategy to capitalize on existing structures while broadening its brand footprint.
Trailborn Develops Near Grand Canyon
Trailborn is launching its fifth property with the introduction of the 96-key Trailborn Grand Canyon in Williams, Arizona. This new venture follows the establishment of other Trailborn hotels in picturesque locations, such as the Rocky Mountains and North Carolina. With a license agreement with Marriott recently secured, Trailborn is poised to expand its offerings within the outdoor-focused hospitality sector as it aims for further growth in 2025.
IHG Expands in the UK and Ireland
InterContinental Hotels Group (IHG) is ramping up its presence in the UK and Ireland by signing contracts for eight new hotels. This expansion, which will introduce more than 900 rooms in key metropolitan areas like Leeds, London, and Reading, incorporates a diverse array of brands, including the luxury Hotel Indigo and the premium Crowne Plaza. Remarkably, IHG’s recent signings also mark the debut of its Garner hotels in the market, showcasing the group’s innovative approach to hospitality.
Dreamscape’s Management in Illinois
New York City-based Dreamscape Hospitality has recently taken over the management of the 73-key Hampton Inn Freeport in Illinois. This strategic management transition signals Dreamscape’s ongoing efforts to expand its operational footprint and enhance service offerings in this region.
Minor Hotels Introduces Tivoli in Mexico
Minor Hotels, hailing from Bangkok, Thailand, has announced its partnership with Designia to expand its Tivoli Hotels & Resorts brand into Mexico. The upcoming Tivoli Mérida Residences, set to open in early 2027, will be a 69-key property and marks Tivoli’s inaugural entry into the Mexican market. This expansion underscores Minor Hotels’ broader strategy in Latin America, where it already operates projects in Brazil.
EIH Expands in India
East India Hotels Ltd. (EIH), the parent company of the Oberoi group, is collaborating with the Ladhani Group for the development of two luxurious resorts in Rishikesh, India. The first will be an 80-key Oberoi resort, while the second will feature 120 keys under the Trident brand. Both properties are projected to commence construction in early 2026, aligning with EIH’s ambitious plan to further enhance its portfolio with a pipeline of 20 developments slated for completion by 2029.
Positive Trends in the U.S. Hotel Industry
According to the latest data from CoStar, the U.S. hotel industry has reported encouraging year-over-year comparisons for the week of February 23 through March 1. Occupancy rates were recorded at 62.8%, coupled with an average daily rate (ADR) of $159.26 and revenue per available room (RevPAR) of $100.06. Notably, St. Louis witnessed the highest occupancy increase, attributed to events like Mardi Gras, while New Orleans experienced significant ADR and RevPAR growth, despite fluctuations in overall occupancy rates.
CDL Board Dispute Update
City Developments Limited (CDL) has recently seen significant changes in its boardroom dynamics. Dr. Catherine Wu, previously identified as a central figure in the ongoing dispute, has stepped down from her role as an unpaid independent adviser to Millennium & Copthorne Hotels, CDL’s hotel division. This move is part of the evolving landscape within CDL, further detailed by Executive Chairman Kwek Leng Beng’s announcement of Dr. Wu’s immediate resignation, accentuating the company’s internal tensions.
Orix JREIT Acquires in Japan
Tokyo-based Orix JREIT Inc. has completed the acquisition of the 428-key Hotel Universal Port Vita for JPY 35 billion from ORIX Corp. This property, which was completed only in 2018, is strategically situated as one of the official hotels associated with Universal Studios Japan and complements Orix JREIT’s ownership of a nearby hotel.
KB Asset Management Makes Moves in Seoul
KB Asset Management, a wholly-owned subsidiary of KB Financial Group based in Seoul, is set to acquire the 342-key Four Points by Sheraton Josun, Seoul Station. This acquisition involves a substantial investment of KRW 170 billion and reflects the growing confidence in the South Korean hospitality market.
Ark Capital Partners Expands in Melbourne
Ark Capital Partners, in collaboration with Lead Global from Myanmar, has secured the newly constructed 191-key Melbourne Place Hotel for AUD 150 million. This acquisition underscores the brand’s commitment to expanding its footprint in vital markets like Melbourne.
FEHT’s First Acquisition in Japan
Far East Hospitality Trust (FEHT) has made its inaugural acquisition in Japan by purchasing the 319-key Four Points by Sheraton Nagoya, located near Chubu International Airport, for JPY 6 billion. This hotel, which began operations in 2018, highlights FEHT’s strategic plan to enhance its presence in Japan’s hospitality sector.
These recent developments within the hotel and hospitality sector reflect a dynamic and evolving landscape, characterized by strategic partnerships, significant investments, and an unyielding drive toward expansion in both established and emerging markets.