Mergers & Acquisitions

🛫 Zurich Insurance Group acquired AIG’s personal travel insurance and assistance business for $600 million with an additional potential earn-out payment, positioning itself as a major global travel insurer. The deal involves AIG’s Travel Guard and combines it with Zurich's Cover-More Group, now operating under Zurich Cover-More brand. New HQ in the US, David Fike as CEO, and the acquisition expands Zurich's global market share in a sector worth $20 billion in gross written premiums, serving over 20 million customers annually and partnering with over 200 distributors. Zurich's SST ratio was affected by 5 percentage points.

📌 NexGen Hotels acquired Fairfield Inn & Suites by Marriott Fort Lauderdale Northwest, a 120-room hotel in Tamarac, Florida, managed by AD1 Global. Located 12 miles from Fort Lauderdale International Airport, amenities include a complimentary breakfast buffet, outdoor pool, 24-hour fitness center, and WiFi. Rooms feature microwaves, mini-refrigerators, Keurig coffeemakers, and 55" TVs. The hotel caters to business and leisure travelers and is close to local attractions and facilities.

💰 PM Hotel Group and Sightline Hospitality announced a strategic merger aimed at expanding PM's Modus by PM Hotel Group through Sightline's experiential travel expertise. The merger will maintain the PM Hotel Group name. The combined entity results from a shared history and values, focusing on performance and opportunity for high performers. The merger brings 22 new properties to PM's portfolio, reaching a total of 85 with expansion in the West Coast mountain regions and the first Hawaiian property. Distinctive brands like RESET and evo Hotels, targeting Millennials and Gen Z, will now be part of the portfolio, reflecting the demographic shift in travelers towards younger generations seeking experiential travel.

🏨 NexGen Hotels, based in Itasca, IL, acquires Fairfield Inn & Suites by Marriott Fort Lauderdale Northwest, located in Tamarac, FL with 120 keys. Managed by Hollywood, FL-based AD1 Global, the hotel is near Colony Golf Course, 12 miles from Fort Lauderdale International Airport, and close to various amenities. The hotel suits both business and leisure travelers, offering amenities like complimentary breakfast and free Wi-Fi. NexGen, founded in 2007, manages a portfolio across the Midwest, Florida, and California.

📌 Driftwood Hospitality Management opened Delta Hotels by Marriott in West Palm Beach, Florida, targeting regional hospitality and economic growth. The launch featured a ribbon-cutting event with COO Bryan Postema, Sagar Desai, Mayor Keith James, and CEO Milton Segarra. Previously a Holiday Inn, the revamped hotel offers a Florida Fusion menu at The Dive Bar, over 8,200 sq ft of meeting space, and proximity to transportation hubs like Palm Beach International Airport and Interstate 95.

🏡 Blackstone Real Estate acquired Grand Hyatt Athens from Henderson Park and Hines for €235 million. The hotel, initially the Ledra Marriott, was purchased in June 2017 and underwent renovations, expanding from 315 to 548 rooms. The hotel now offers 4,400 square meters of conference space and features a rooftop restaurant with Acropolis views. This marks Blackstone's 10th hotel in Greece, where it has invested over €750 million in its portfolio. The sale was advised by JLL and Eastdil Secured.

🏦 Mohari Hospitality acquired Venice's iconic Bauer Hotel, partnering with Omnam Investment Group. The Bauer, located in the San Marco district on the Grand Canal, will be restored; Rosewood Hotels & Resorts will operate it. Mohari reportedly offered €309 million, outbidding LVMH's founder. The hotel was previously owned by Signa. Mohari's portfolio includes recent acquisitions in Paris and Madrid. Advisers included Kryalos SGR, DLA Piper, Deloitte, Eastdil Secured, CBRE, and Cushman & Wakefield.

🏠 In Charleston, South Carolina, Highline Hospitality Partners acquired the dual-branded Hyatt Place/Hyatt House Charleston Historic District, marking their 13th and 14th hotel addition and entry into the Charleston market. The property offers 304 rooms, combining 113 Hyatt House extended-stay rooms and 191 Hyatt Place rooms. Built in 2015, it features 16,000 square feet of retail and office space, a 398-space parking garage, 8,600 square feet of meeting space, and a rooftop bar. Renovation and repositioning plans are underway. Avion Hospitality will manage the hotel.

💳 Commercial Property Assessed Clean Energy (C-PACE) programs, first introduced in California in 2009, have been utilized in over 3,300 development projects across 22 states and Washington, D.C. over the last 15 years. Facing elevated interest rates and a liquidity crisis expected to persist for another 12 to 24 months, C-PACE loans are projected to gain momentum in 2024, potentially outpacing 2023. However, C-PACE loans come with considerations: capitalized interest from loan closure, fees including a 1% origination fee and third-party charges, possible rate adders of 10 basis points, and prepayment penalties ranging from 1% to 5% for up to 10 years. Despite being promoted as a cheaper alternative to mezzanine loans, C-PACE may increase costs with senior lenders.

🏨 Trinity Investments, Oaktree Capital Management, L.P., and Partners Group acquired The Standard, London; financial details undisclosed. The hotel, opened in 2019, offers 266 rooms and suites, six dining options, and is now part of Hyatt's brand portfolio. In October, Hyatt acquired Standard International brands and affiliates, adding 22 hotels and nearly 2,000 rooms globally. The acquisition follows Trinity and Oaktree's recent purchase of Park Hyatt Zurich and marks Partners Group's first European hotel investment with Trinity, totaling over €550 million in European and U.K. hotel investments.