HOTELSMag.com - 10 Minutes News for Hoteliers - Page 31

2 min

Diplomat Beach Resort to rebrand under Signia

🏖️ The Diplomat Beach Resort in Hollywood, Florida, currently managed by Hilton, is undergoing a rebrand to Signia by Hilton, including lobby and public space renovations, an oceanfront event terrace, a new bar, and an adults-only pool. The 1,000-room resort boasts a 6,600-square-foot Club Signia suite on the 33rd floor, six dining venues, four grand ballrooms, a 5,000-square-foot great hall, and 39 breakout rooms. In 2018, a $90 million renovation took place, and in February 2023, Credit Suisse and Trinity Fund Advisors acquired it following a $575 million financing deal. It's the fourth Signia hotel in the U.S., with new ones to open in Indianapolis in 2026 and West Palm Beach in 2027.

3 min

How evolving capital markets dictate portfolio management

🏨 Hospitality investors, after enduring COVID-19, supply chain issues, inflation, and high interest rates, face new market challenges. As liquidity returns and interest rates subside, portfolio evaluation and capital deployment strategies are in focus. Despite moderating costs and inflation, the cost of capital remains high. Net operating income growth is pressured, with difficulties expected into 2025. High cap rates for hotels reflect the costly capital, yet financial market liquidity offers opportunities, especially for subordinate debt investments. Investors must efficiently allocate limited capital, considering market and property types. Story by Douglas P. Hercher and Stephen O’Connor of RobertDouglas.

4 min

The luxury hotel segment is booming. Are there cracks?

🏦 The Wall Street Journal highlighted the cost of luxury accommodations, with some hotel rooms reaching $1,000 per night. Vicki Poulos of IHG remarked on the increasing number of wealthy travelers, with global millionaires projected to surpass 84 million by 2025, up from 56 million in 2020, according to Credit Suisse. IHG has expanded its luxury brands, including Regent and Six Senses. CoStar reported that the average daily rate for luxury hotels was $415.64 as of August 2024, a slight decrease from 2023, but RevPAR increased by $2 to $282.18 due to higher occupancy. The U.S. has 502 luxury hotels with 36 under construction. Marriott and IHG are investing in luxury properties and branded residences, such as Regent Residences Dubai with 63 units and 10 floating homes. Host Hotels & Resorts, owning 80 hotels, focuses on properties with low CapEx needs in markets with high barriers to entry. The cost of operating luxury hotels is rising due to increased labor costs and potential legislation for higher minimum wages.

3 min

Hyatt’s select service pipeline sees impressive growth in the Americas

🏨 Hyatt Hotels Corp. reports over 25% growth in select service pipeline in the Americas, comprising more than 50% of their total pipeline. Caption by Hyatt brand has opened two hotels in Asia Pacific and plans U.S. openings in 2025. Hyatt Studios, within 18 months, boasts over 4,000 pipeline rooms, 250 deals, and projected openings for 2025 and 2026. Hyatt House and Hyatt Place brands are undergoing guest and owner feedback-driven upgrades to enhance profitability and operational efficiency.

2 min

Hilton Grand Vacations expands in Japan with Kyoto hotel acquisition

🏝 Hilton Grand Vacations Inc. acquired Citadines Kyoto Karasuma-Gojo in Kyoto from CapitaLand Ascott Trust for JPY6.18 billion. The 124-room hotel, sold 40.1% above book value, will be transformed into 63 one-bedroom timeshare units with kitchens and a fitness center. Renovations start Q2 2025, with sales beginning the same quarter, and completion expected Q1 2026. CLAS plans to reinvest the JPY4.4 billion proceeds into higher-yielding investments. Hilton Grand Vacations shows continued growth in Japan, with over 72,000 members and expanding since 2012.

2 min

Briefs: Hotel Cleveland joins Crescent Hotels’ management portfolio; Baccarat Hotels’ debut in the U.A.E.

🏨 Crescent Hotels & Resorts now manages the Hotel Cleveland, Autograph Collection, which reopened in April after an $80-million renovation and features 491 rooms, a new lobby bar, restaurant, and 60,000 square feet of meeting space. Baccarat Hotel's first UAE location, a 145-room luxury hotel, is under development in Downtown Dubai, offering residences and penthouses with access to all amenities. Protea Hotels by Marriott opened two new hotels in Africa, totaling over 60 properties across nine countries. The Renaissance Chicago O’Hare Suites, with 362 rooms and over 15,000 square feet of event space, joined Maverick Hotels and Restaurants' management portfolio.

2 min

Briefs: Tribute Portfolio debuts in Korea; Helix Hospitality acquires two Alabama hotels

🏨 Tribute Portfolio opened its first hotel in Korea, The Link Seoul, featuring 141 rooms, 16 suites, and a presidential suite across 19 floors. The hotel offers various amenities, including a 760-square-meter ballroom. Helix Hospitality acquired two Courtyard by Marriott hotels in Alabama, expanding its portfolio to 13 properties. Lefay Resort & Spa Lago di Garda in Italy will add five new villas by summer 2025. Indian Hotels Co. Ltd. (IHCL) signed 35 new hotels and opened 12 in H1 2024, growing its total portfolio to 345 properties with a pipeline of 115.

4 min

‘Mass-affluent’ Asian travelers prioritizing travel despite inflation, finds Expedia study

🌍 A study by Expedia indicates the Asian middle class, expected to constitute two-thirds of the global middle class by 2030, is prioritizing travel despite inflation, with plans to spend 23% of their income on travel in the next 12 months. Mass-affluent Asians are planning on average four destinations over 10 days for their next trip, with Indians opting for longer trips at 14 days. Digital tools are heavily utilized for travel planning with 83% having installed a travel app. High-end accommodations and premium amenities are highly sought after, with 93% planning luxury experiences. Concerns about local customs and language barriers are also influencing travel decisions, with 34% willing to spend more to mitigate these issues. Luxury and loyalty programs are key, as 86% of travelers belong to one, highlighting the potential for targeted marketing by tourism boards.

2 min

Briefs: Sleeperz Hotels rebrand; Remington adds to CALA portfolio

🏨 Resident Hotels to convert four Sleeperz Hotels to Four Points Flex by Sheraton by 2025, after Mactaggart Family & Partners' majority stake purchase in November 2022. The 400+ room portfolio spans Cardiff, Dundee, Edinburgh, Newcastle upon Tyne, with renovations funded by principal investors. Remington Hospitality manages Kimpton Mas Olas Resort and Spa, a 93-room luxury resort in Baja, expanding into Mexico and other Latin American countries. Sonesta Hotel Miraflores, a 133-room upscale hotel, will open in Lima, Peru, in early 2025. Scandic's second Scandic Go hotel with 234 rooms opened in Stockholm in 2023 post-Pandox acquisition.

4 min

A yo-yo 2024 for the hotel industry has brand leaders ready, anxious for the year ahead

📈 In September, G6 Hospitality agreed to sell its Motel 6 brand to Oyo Hotels for $525 million. Highgate, having acquired a large set of La Quinta properties and Viceroy Hotels & Resorts, anticipates 2025 as a prime investment year with lower interest rates. Sonesta now operates over 1,100 hotels worldwide and emphasizes flexible brand standards for franchisees. Wyndham’s CEO highlighted long visa wait times for India at 250 days, affecting U.S. inbound travel, with Asian tourism still recovering, particularly from China and Japan. Glendale, Ariz., voters may decide on higher wages for hotel workers, impacting profit margins.

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