Private equity firm Brookfield to pay $3.8 billion for Watermark Lodging Trust

Here are some excerpts from what Daily accommodation report informed his readers during the past week. If you’re not a subscriber, you should be. Register now, here.

Sunday, May 8

Watermark Hosting Escrow announced that they signed an agreement with private real estate funds managed by Brookfield Asset Management which will see Brookfield acquire Watermark in a $3.8 billion cash settlement. Brookfield will pay $6,768 per Class A share and $6,699 per Class T share. The transaction includes the assumption of debt and preferred equity. Watermark’s portfolio consists of 25 properties with more than 8,100 rooms located in drive-through destinations and urban cities in 14 states. Brookfield expects to close the transaction in the fourth quarter of this year.

According to the Lodging Econometrics Construction Pipeline Trends report for the first quarter of 2022, the Hotel Construction Pipeline in Latin America amounts to 563 projects, or 92,356 rooms. Mexico leads the Latin American construction portfolio with 216 projects. It is followed by Brazil with 90 projects or 15,115 rooms, Peru with 32 projects or 972 rooms, the Dominican Republic with 22 projects or 4,853 rooms, and Colombia with 18 projects/2,782 rooms. Latin American cities with the largest oil pipelines, including Mexico City, Guadalajara, and Cancun. In 2023, LE analysts forecast 108 projects/16,587 rooms to open in Latin America.

Eastern Express signed a collaboration agreement with Arsenale SpA to open the second Orient Express hotel in Italy at the Palazzo Dona Giovannelli in Venice. The Hotel Orient Express Venice will consist of 45 rooms and suites, a restaurant, and bar

Skift Note: The Brookfield deal shows investment interest in hotel portfolios remains strong. In particular, in this case, the Sun Belt region has a high concentration of assets. A portfolio with similar assets is Xenia Hotels, Baird analysts said.

Monday, May 9

Should you be interested in owning part or all of a hotel that should never have been built, Bermuda Supreme Court has appointed a liquidation and inspection committee to South Coast Holdingsthe former sponsor of the 13 Hotel located in Macau. As people liquidate the company, the hotel remains in limbo regarding ownership and its future.

Seven years after selling the Best Western Plus at the Denver Tech Center for $15 million, DTC Hotel LLC he is still owed $11.5 million. According to DTC Hotel, Rockies Lodging Capital signed an $11.5 million note and took out a $200,000 loan for hotel repairs in April 2015. DTC says the company owes it $11.3 million on the note and the full $200,000. of the loan. along with interest, late fees, and attorney fees. DTC Hotel has begun foreclosure of the 149-room Best Western and has asked an Arapahoe County judge to appoint a trustee to oversee day-to-day operations at the hotel and ensure its bills are paid. District Court Judge Frederick Martinez agreed and appointed Colorado Hospitality Services.

Skift Note: Expect to see litigation over hotel assets that began in the pandemic clog courtrooms as they finally make their way to hearings.

Tuesday, May 10

the hotel as is finally launching in Australia, with sydney the first location of the brand. Ace Hotel Sydney will open on May 18, the first Ace in the southern hemisphere. The hotel will take over the Tyne Building on Wentworth Avenue in Surry Hills, owned by the Golden Age Group. Ace Sydney will feature 264 rooms, a gym, restaurant and café, a lobby bar and a rooftop bar and restaurant.

The Nustar Resort & Casino has opened the Cebu Island in the Philippines. It calls itself the first integrated resort for the vacation destination. The resort will have three hotel towers. Tower 1 is ultra high end, Tower 2 will be five star and Tower 3 will be for the MICE market. It will also feature a shopping and retail center bringing luxury food and retail options, a first for Cebu. The casino floor totals 21,000 square meters and will eventually feature 1,500 gaming machines and 500 tables. The opening had originally been planned for March.

german hospitality said since he entered the middle east market as of 2015, the brand now has a total of 23 operating properties across the region. They are looking to establish four additional hotels by the end of the year. Its global strategy includes its entire portfolio of brands, including Steigenberger Hotels & Resorts, Steigenberger Icons, MAXX by Steigenberger, House of Beats, Jaz in the City, Intercity Hotel, Zleep Hotels and now Steigenberger Porsche Design Hotels. The group is set to launch its first luxury lifestyle hospitality concept with Steigenberger Porsche Design Hotels, offering a minimum of 150 rooms, suites and penthouses, as well as the first Intercity Hotel in Muscat, Oman. In March this year, the group announced its partnership with Al Hamra to take over the management of Al Hamra Village Hotel and Al Hamra Residence in Ras Al Khaimah. They were able to reopen Al Hamra Residence on April 15, in a record time of 25 days from the signing of the hotel management. Al Hamra Village Hotel is expected to reopen in the third quarter of 2022.

Skift Note: These articles are good news for The Ace Hotel, Nustar, Y Steigenberger that seem to have a bright and globalized future.

Wednesday, May 11

The South China morning positiont published an article about the Recent listings for two Hong Kong hotels. The SCMP said that Shun Ho Construction bought Bay Bridge Lifestyle Retreat and Weave Living acquired the former Grand City Hotel from Magnificent Hotel for a total of US$295 million and shows that cash-rich investors are betting on a once-in-a-lifetime hotel sector rebound. that the borders be reopened. Shun Ho is the wholly owned subsidiary of Magnificent Hotel Investments. The Bay Bridge Lifestyle Retreat is a 435-room waterfront hotel in the Western New Territories overlooking the Tsing Ma Bridge, while the Grand City Hotel is in Sai Ying Pun. Weave Living is partnering with investment firm Angelo Gordon on that purchase.

said the australian Accor is planning for three more Movenpick hotels in the region. The article said that the popularity of chocolate-themed hotels has inspired Accor to fuel the growth of the brand throughout the Pacific. Accor will open two new Movenpick hotels in New Zealand, while another is planned for the Brisbane inland suburb of Spring Hill. Since opening in Tasmania last year, Accor has grown the brand to four locations in Australia and New Zealand. Early construction has begun on its fifth location, Movenpick Hotel Brisbane Spring Hill, due to open in 2024. Overall, there are more than 110 Movenpick locations open around the world.

Skift Note: Some investors are thinking beyond current covid-related restrictions to a brighter future.

Thursday, May 12

PEG companies acquired a portfolio of nine properties of hotels and anticipates operating each of the properties as hotels and ultimately converting them to quality Class B multi-family communities when the highest and best use of the property is no longer as a hotel. The nine hotels are located in Boston, MA; Vancouver, Washington; Dallas, TX; Atlanta Georgia; Jacksonville, Fla.; Philadelphia, Pennsylvania; Ann Arbor, MI; and Princeton and Ocean City, both in NJ. With most of them originally built as Residence Inn by Marriott hotels for extended stays, the properties lend themselves to efficient and profitable conversions. To date, through the PEG Extended Stay Conversion Fund, LP, PEG has acquired 15 extended stay hotels and is currently finalizing a $130 million fundraiser.

Skift Note: Many investors now think more along a residential-to-hotel continuum.

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