Mergers & Acquisitions

🏦 On Feb. 19, 2025, DiamondRock Hospitality Company sold the 410-room Westin Washington, D.C. City Center for $92.0 million. The sale reflects an 11.2x multiple on 2024 hotel EBITDA, a 7.5% capitalization rate on 2024 hotel net operating income, or 5.6% inclusive of projected capital expenditures. CEO Jeffrey J. Donnelly emphasizes the sale as part of a strategy to boost long-term earnings and shareholder value.

🏨 Leonardo Hotels expands in Italy; acquired former Hotel dei Borgia, now Leonardo Boutique Hotel Rome Monti. NYX Hotel Rome to open in summer 2025 after renovations. Leonardo Boutique Hotel boasts 80 rooms, located near Colosseum and Fori Imperiali. Features include a breakfast area, two meeting rooms, and wellness facilities. Yoram Biton, Managing Director, highlights Italy as a key market for Leonardo Hotels Central Europe. The expansion reaffirms their investment strategy in Italy, with legal support from Tamar Cohen.

🏨 RevPAR reached a record $78 in 2024, a 14% increase over 2019. Demand surged by 232,000 room nights year-over-year, nearly recovering to 2019 levels. In 2025, room night demand for select-service and extended-stay properties is projected to hit 1.02 billion, a 16% increase above the 2001 average. GOP margins in 2020 for these hotels were 26%, 11 percentage points above full-service hotels. Between 2000 and 2024, the number of brands grew from 184 to 214, and branded hotel supply nearly doubled to 3.3 million rooms. In 2024, Oyo acquired G6 Hospitality for $525 million. The select-service and extended-stay sector attracted $62.6 billion in investments since 2021, with a 19% decrease in 2024 but still nearly half of the U.S. hotel investment volume. In 2024, the sector's average deal size was $17 million, and loan origination volume reached $18.2 billion, a 6.4% increase. The Federal Reserve began rate cuts in September 2024, which could spur a rebound in portfolio deals in 2025.

💰 InterContinental Hotels Group, PLC announced Q4 and full-year 2024 results with global RevPAR up 3%, Americas up 2.5%, EMEAA up 6.6%, and Greater China down 4.8%. U.S. RevPAR increased by 1.7% in 2024, with a 4.1% rise in Q4. The average daily rate rose by 2.1%, and occupancy by 0.6 percentage points, leading to a total gross revenue of $33.4 billion, a 6% increase. Gross system growth went up by 6.2%, net system growth by 4.3%, with 59,100 rooms opened, marking a 23% YOY increase and reaching a total of 987,000 rooms across 6,629 hotels. New room signings rose by 34% YOY to 106,200 rooms, with the pipeline growing by 10% to 325,000 rooms over 2,210 hotels. Fee margin increased to 61.2%, and operating profit from reportable segments reached $1,124 million, up 10.3%. Adjusted EPS was 432.4, a 15.1% increase. Net cash from operating activities totaled $724 million, and adjusted free cash flow was $655 million. Net debt grew by $510 million, largely due to over $1

🏨 Henderson Park, in partnership with Atream, acquired five Novotel Suites hotels in France. The deal includes 645 rooms in Paris, Lille, and Cannes. Hotels were built between 2000 and 2011. The portfolio consists of hotels with room counts: Paris – Issy-les-Moulineaux (128), Paris – Montreuil (166), Paris – Saint-Denis (101), Lille (126), and Cannes (124). Accor to continue managing the properties. Henderson Park aims to upgrade facilities and align with Paris Agreement’s 2050 goals. France welcomed 100 million international tourists in 2023. Henderson Park's global hospitality footprint includes over 11,000 rooms.

🏨 IHG acquired Ruby brand for €110.5M, with Ruby operating 20 hotels (3,483 rooms) and having 10 pipeline hotels (2,235 rooms) set to open in Europe within three years. Ruby's CAGR is 26% over five years. IHG targets Ruby's growth to over 120 hotels in 10 years and expects to introduce the brand to the US by year-end. The seller will continue to operate Ruby hotels, now under IHG franchise agreements. IHG anticipates franchise fees of $8M in 2028 and over $15M by 2030, with potential additional payments up to €181M based on the seller's growth. Integration of all 20 Ruby hotels into IHG’s system is expected to begin in 2025 and end by March 31, 2026, with integration costs of around $10M for IHG in 2025.

🏨 InterContinental Hotels Group (IHG) acquired Ruby Hotels for €110 million, adding 20 properties and nearly 3,500 rooms to its inventory. Ruby Hotels, founded in 2013, has locations in major European cities and plans for 10 more projects totaling 2,235 rooms. IHG aims for Ruby Hotels to have over 120 properties in 10 years and 250 in 20 years, with franchise fees from Ruby expected to hit $8 million by 2028 and $15 million by 2030. Hyatt and Hilton have also made significant acquisitions, with Hyatt purchasing Playa Hotels & Resorts for $2.6 billion and Hilton acquiring Graduate and Sydell Groups for university campus and lifestyle brand expansion. Marriott added 10,500 rooms through a marketing agreement with Sonder.

🏨 Scandic Hotels takes over a 214-room hotel in downtown Berlin, set to open in Q3 2026 after renovations, partnering with AXA Investment Managers. This addition will bring Scandic's Berlin room count to 992 over three locations. They already signed with AXA for a Stuttgart hotel in late 2024. The new hotel, close to Kurfürstendamm, will feature modern amenities and be Nordic Swan Ecolabel certified. Scandic will then operate nine hotels with 2,849 rooms across Germany, as part of its 280-hotel network totaling 58,000 rooms.

🏨 Invesco Real Estate sold NH Collection Milan CityLife, opened in 2022, as part of a strategic divestment. This is the third Italian hotel for Schroders Capital European Leased Hotel Fund, alongside the Westin Milan and the St Regis Venice. NH Collection Milan CityLife, with 185 rooms, is situated in Milan's CityLife district and targets business and tourist clients. Schroders Capital manages €3.6 billion in hotel investments with a team of 40 experts. Invesco's 18-year hotel portfolio includes 53 hotels across 11 countries and 31 brands. The Milanese hotel market has grown significantly, with NH Collection Milan CityLife outperforming its initial business plan by 15%. The European hotel sector sees strong demand and limited supply, encouraging investment activities.