The Capital Stack: PIP Timing is a Key Variable in Hotel Financing
🏠 Heading into 2026, hoteliers must synchronize Property Improvement Plan (PIP) timing with lenders to avoid transaction roadblocks. Lenders view PIPs as essential, non-optional obligations. Near-term PIPs (within 24 months) require more equity and reserves, while PIPs in the 24–36 month range face stricter cash flow and liquidity requirements. For refinances with PIPs beyond loan maturity, lenders adjust their exit strategies. Owners should integrate PIPs into their business plans for better financing outcomes and leverage.
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A Key Ingredient: Management Company Leaders Share Approaches to F&B Sustainability
🍳 Remington and Meyer Jabara Hotels are integrating sustainability into kitchen operations. Remington's green practices save 3-5% on food costs, while Concord Hospitality achieves 1-2% savings. Sustainable sourcing and partnerships, such as with Avendra, enhance F&B efficiency and reduce costs. Food waste tracking with tech like BioGreen 360 and manual logs cut excess. Equipment upgrades, like low-water dishwashers and ENERGY STAR appliances, minimize resource use. Staff training emphasizes sustainability, improving efficiency and morale.
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Hyatt Completes Sale of Playa’s Owned Real Estate Portfolio to Tortuga
💰 Hyatt Hotels Corporation sold its real estate portfolio acquired from Playa Hotels & Resorts to Tortuga Resorts for $2 billion. The sale, completed in November 2025, involves 14 all-inclusive properties across Mexico, the Dominican Republic, and Jamaica. Hyatt retains $200 million in preferred equity and can earn an additional $143 million. Management agreements for 13 properties span 50 years. Hurricane Melissa in October 2025 caused closures in Jamaica, with properties reopening by late 2026. Financial aid was provided to affected colleagues.
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Marcus & Millichap Brokers Sale of Comfort Inn New Orleans Airport South
📍 Marcus & Millichap brokered the sale of the 68-room Comfort Inn New Orleans Airport South in Saint Rose, Louisiana. Built in 2010, the three-story hotel, located five miles from Louis Armstrong New Orleans International Airport, was purchased by NOLA Airport Hospitality LLC, an Indiana-based investor group. The sale attracted six competitive offers. The hotel offers amenities like an airport shuttle, complimentary breakfast, and fitness center, and plans for renovation and management changes promise added value.
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Mag HON 362-363: Luxury clients are deploying new behaviors
📈 Profound generational shifts redefine luxury beyond mere possession, focusing on experiences, meaning, and personal transformation. Diverse client bases, from "aspiring luxury" to Ultra-HNWI, drive demand with high expectations for sustainability, seamless technology, and emotional engagement. Luxury hospitality must strategically adapt to this fragmented demand landscape to remain relevant.
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This Week’s Comings & Goings
📈 Jim Plohg was appointed as executive vice president at Ashford Inc. and Braemar Hotels, effective immediately. Amy Epperson was promoted to EVP of Human Resources at Remington Hospitality. Claudia Martinez became senior catering sales manager at The Ritz-Carlton, Half Moon Bay. By January 1, 2026, Deidre Schwartz will serve as international president of NEWH, Inc. Dillon Weaver and Gustavo Machado were promoted to operations managers at Sprague Pest Solutions. Randy Rockbrand now manages Rio Perdido.
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Apex Hotels reports 21% rise in annual revenue after acquisitions
🏨 Apex Hotels Ltd reported a 21% revenue increase for the year ending 30 April 2025, fueled by acquisitions and enhanced trading. Operating profit rose by 4% to £13.6m, despite weaker winter trading for recent acquisitions. They acquired The Vineyard Hotel in Berkshire and DoubleTree by Hilton Dunblane Hydro, rebranded as Apex Dunblane Hydro. Investments were made in Pine Trees Hotel, Pitlochry, and Apex Waterloo Place, Edinburgh. Chairman Ian Springford highlighted pivotal portfolio reshaping and future growth plans.
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UK hotel investment falls 15% to £5bn in 2025, Savills finds
💸 UK hotel investment in 2025 reached £5.0bn, a 15% annual decrease, yet still 8% above the 10-year average of £4.7bn, per Savills. In Q4 alone, investment exceeded £2.0bn, 40% more than Q4 2024. Portfolio transactions dropped to £750m from £3.1bn in 2024, while single asset deals rose to 85% of total investments. London led with £3.0bn, a 25% rise from 2024. Regional investments fell to £2.0bn from £3.3bn.
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Over a third of Britons plan UK holiday in 2026, Travelodge finds
🗺️ More than a third of Britons plan to holiday in the UK in 2026, citing cost and convenience. Travelodge's survey of 2,000 British adults reveals that 35% expect domestic holidays, with 52% combining UK and abroad trips. Coastal destinations top the list at 35%, with August being the favorite month. Social media influences younger travelers, with 42% of 18-24-year-olds using TikTok for ideas. Cost-effectiveness and location are key factors, with most traveling by car to destinations like Cornwall and the Lake District.
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