Mergers & Acquisitions

🏨 Larry Ellison, founder of Oracle, acquired Eau Palm Beach Resort & Spa in Manalapan, Fla., part of the Preferred Hotels & Resorts Legend Collection. The London-based Lewis Trust Group bought the hotel in 2003 for $67.5 million when it was a Ritz-Carlton and rebranded it to Eau Palm Beach in 2013. The property has received Forbes Five-Star recognition for nine consecutive years. No sale price was disclosed for Ellison’s purchase, and the hotel was originally established as La Coquille Club in the 1950s. Ellison plans to invest in further upgrades.

🏨 BWH Hotels, as of March 31, 2024, boasts a global presence of 3,899 properties with 2,113 located in the U.S. The company offers a rewards program, including Best Western Rewards® and WorldHotels Rewards℠. Franchising since as early as 1946 for Best Western®, they have a variety of brands across chain scales from economy to luxury, each with specific franchising fees such as a $49,000 application fee for Aiden® and royalty rates like 5% of GRR for Best Western Premier®. The total rooms in the system across brands reach numbers like 127,209 for Best Western® and 3,185 for Aiden®.

🏦 West Virginia Governor Jim Justice's luxury resort, The Greenbrier, faces auction on August 27th amid unpaid debts. Located in White Sulpher Springs, W.Va., the resort features 700-plus rooms, four golf courses, a casino, a medical spa, and is staffed by thousands of local workers. The Justice family pledges to fight the sale, following JPMorgan's loan sale to Beltway Capital and subsequent default declaration. The resort was purchased by Justice in May 2009, after CSX Corporation filed for bankruptcy. Governor Justice, in office since 2017, is also running for a U.S. Senate seat in 2024.

🏢 In Washington, D.C., Frontier Development & Hospitality Group LLC and Basis Investment Group acquired the 182-key Cambria Washington DC, Downtown/Convention Center, rebranding it as Hyatt Washington DC/Convention Center. The hotel, now part of Hyatt’s portfolio, will convert to Hyatt House brand after a renovation set for completion in summer 2025. Located in the Historic Shaw District, the hotel features amenities like a fitness center and rooftop terrace. The acquisition aligns with Frontier's strategy for high-quality assets in prime locations.

📌 Sonesta International Hotels Corporation executed 19 franchise agreements in the second quarter of 2024, spanning six brands. The agreements are part of Sonesta's expansion, offering franchisees a range of options from upper upscale to premium economy. New franchise hotels comprise 5 Sonesta Essential, 5 Americas Best Value Inn by Sonesta, 5 Knights Inn, 2 Sonesta Hotels & Resorts, 1 MOD Collection by Sonesta, and 1 Sonesta Simply Suites. Sonesta's flexible growth model and diverse market segmentation aim to attract new owners and travelers.

🏅 Paris is preparing for the Olympics with elevated hotel rates, seeing a 41%-61% surge in average hotel prices in three- to five-star hotels during the event compared to yearly averages. Tourist tax will increase by almost 200%, with costs per night ranging from €2.6 to €14.95. Despite high occupancy predictions, nearly 80% hotel booking levels in June, tourists are avoiding the city pre-Olympics due to disruptions and higher expenses. Airlines like Air France-KLM anticipate a revenue drop of €180 million, while Delta expects a $100 million loss. Visitor numbers could reach 11 million, but only 1.5 million from abroad. France is projected to maintain its tourism appeal, expecting 101 million international arrivals in 2024, up from 98.2 million in 2023.

🏨 Highline Hospitality Partners acquired Hilton Garden Inn Courthouse Arlington Courthouse Plaza, marking its first property in the Washington, D.C. metro area and expanding its portfolio to 12 hotels with 3,400 keys. The hotel has 193 rooms, was built in 2002, and recently renovated, featuring a restaurant, fitness center, 3,000 square feet of meeting space, and an underground garage. Stepstone Hospitality will manage the hotel. Resolute Road Hospitality rebranded The Newberry Hotel in Bend, Ore, formerly a DoubleTree by Hilton. Choice Hotels International opened four Cambria Hotels across the U.S., with locations in Denver, Niagara Falls, North Conway, and Rehoboth Beach, bringing the chain's total to over 70 U.S. hotels. Hotel Yellowstone at Jackson Hole, an adults-only resort with 36 suites over 4 acres, opened, offering views of the Teton Mountain Range and Snake River Valley.

🏕️ World of Hyatt and Under Canvas announce alliance, offering Hyatt members access to 13 outdoor resorts including ULUM Moab, launched in 2023. Luxury accommodations across U.S. locations like Yellowstone, Great Smoky Mountains, and Acadia, with Yosemite opening May 2025. Camps feature tents, activities, and eco-friendly amenities. Five Utah and Arizona camps are DarkSky-certified. Hyatt's portfolio, including over 700 Mr & Mrs Smith hotels, is expanding with more to be bookable by year's end.

🏠 Stoneweg and Bain Capital sold Casa Lit Barcelona hotel, located 400m from Las Ramblas, to Gargallo Hotel Group. The 89-key luxury hotel built in 2010 was managed by Stoneweg since 2022 after renovation. CBRE was the sale's intermediary; Cuatrecasas and Deloitte were legal and financial advisors, respectively. Hampton by Hilton signed with Acre Hotels for a 157-room hotel at London Heathrow. Valencia Hotel Group completed its biggest equity raise and bought two hotels in Texas. Springboard Hospitality rebranded Ascent on Main as The Parker Hotel, with renovations and new amenities in Parker, Colo.

🏠 Marriott International expanded its branded residences by nearly 50% since the end of 2019, now totaling 138 open projects and 123 in the pipeline. ONVIA, launched earlier this month, is Marriott's owner recognition platform offering enhanced experiences for residence owners. The company provides 16 residential brands, including luxury options like The Ritz-Carlton and St. Regis. Standalone properties make up about 25% of Marriott's open and upcoming projects, with significant growth in Europe, Middle East, Africa, Asia Pacific, the U.S., Canada, Caribbean, and Latin America.